Talwar in Calcutta on Thursday. A Telegraph picture

Calcutta, March 27: Tata Tea will increase prices of its packet tea in the next few weeks.

Sangeeta Talwar, executive director (marketing) of Tata Tea, said prices were firming up at the tea auctions. “We do not have any other option but to increase prices of packet tea,” Talwar said here today.

Tata Tea is claimed to be the largest player in packet tea business in India, followed by Hindustan Unilever.

Quoting tea trading circles, Talwar said prices would go up by Rs 7-10 a kg soon.

The geo-political situation in Kenya — a big producer of tea — and the flood in Assam have led to a dip in tea production, hardening the price of the commodity.

India produces 960 million kg of tea, while the consumption is about 800 million kg. Half of the Indian tea sold is non-branded. Tata Tea has seven brands, including the UK’s Tetley, which the company had acquired in 2000.

The company has decided to withdraw two orthodox tea varieties — Ceylon and Nilgiri — from the market because of poor response. Tata Tea, however, will re-launch the Darjeeling long-leaf orthodox variety next year.