Kolkata, March 27 - India's Tata Tea Ltd may raise prices of some of its brands to pass on firm domestic auction prices of the beverage in 2008, a senior official said on Thursday.
"We may have to pass on price increases to consumers if auction prices rise significantly," Sangeeta Talwar, executive director - marketing, Tata Tea, told reporters.
Tata Tea, the world's second-biggest branded tea firm, procures a major part of its requirement from domestic auctions, she said.
Domestic tea auction prices hovered around 67 rupees a kilogram, industry officials said, adding rising domestic consumption has led to a shortage.
India, the world's second largest tea producer, is expected to consume 797 million kg in 2008, from 780 million last year, according to the Tea Board.
Lower availability from Kenya has also led to short supply, Talwar said.
Kenya, a leading global exporter of black tea, saw a 31 percent fall in February tea output to 24 million kgs due to dry weather.