KARACHI, Oct 27: A leading multinational tea packer has increased rates by up to Rs46 per kg while other packers are also likely to follow the suit.

The Unilever has pushed up rate of Yellow Label pack (one kg) to Rs445 from Rs399 while price of 500 grams and 400 gram pack has been enhanced to Rs335 and Rs195 from Rs210 and 175 respectively.

The 200 and 100 grams pack are now available at Rs98 and Rs50 as compared to Rs88 and Rs45.

The MNC, along with other packers, had increased rates ahead of the Ramazan and also in June this year.

According to general secretary, Karachi Retail Grocers Group (KRGG), Farid Qureishi, the company did not mention any reasons for pushing up rates, but its distributors are attributing price-hike to rising cost of import in the aftermath of falling value of rupee against the dollar.

He said that Supreme tea pack (one kg) price has been increased to Rs400 from Rs360 while 200 grams pack now sells at Rs88 as compared to Rs80. The 100 gram pack now costs Rs45 as compared to Rs40 per kg.

Giving an example, he said that Yellow Label pack (200 grams) was Rs80 in June this year.

He said that multinational companies enjoy a free hand in pushing up rates and the government does not check them.

Farid said there is no justification of appreciating prices as rupee has gained in the last one month after falling to Rs84 to a dollar. Besides, the Kenyan tea prices had also fallen by 50-60 cent per kg in the last one month.

Another leading packer said that his company has not yet increased prices but it may come out with fresh price hike. He said that the high quality Kenyan tea price might have remained in the range of $2.80-3.00 per kg but the losing strength of the dollar and rising utility charges in the last few months have intensified the cost of production.

He said that rupee value has depreciated by at least 32 per cent since January this year when it was available at Rs62 to a dollar. Now the rupee value ranges between Rs 82-83 to a greenback. However, market people and analyst said that the rupee had depreciated by at least 25 per cent from early this year till now.

In anticipation of rising consumption in winter, importers and packers have imported 30,546 tons ($66 million) in July-September 2008 as compared to 24,099 tons ($45.5 tons) in the same period of last fiscal, showing an increase of 45 per cent in value and 26.75 per cent in quantities.

According to figures of Federal Bureau of Statistics (FBS), tea imports in September stood at 10,715 tons ($23 million) as compared to 8,440 tons ($16.1 million) in September 2007.

In August 2008, tea imports were recorded at 9,865 tons ($21.4 million).