Prepare to pay more for your cuppa. Worries of a 'tea cartel' are brewing after talk of new supply controls, designed to drive up prices. Price climbs could be on the way after tea producers from India, Sri Lanka and Malawi - amongst other places - announced a new partnership.

But isn't it time you paid a bit more for your brew?

Money-saving guide

Supermarket Sweep - Tips & Advice


Stirring up costs

Look at the price of coffee, for example. In most major UK cities a latte or cappuccino will cost anything between £1.80 and £2.50, with often big variations in quality. A 250 gram bag of real coffee at your supermarket will cost you around £2.50 - £3.

Tea, on the other hand, is cheap. For example, 160 bags of Sainsbury's Red Label Fairtrade tea costs £2.57. That works out at 1.6p per cup. You'll pay far more than that at a cafe, obviously. But tea is far cheaper than coffee, by any standards.

1997 prices

"We're paying in real terms the same price for our tea 10 or 15 years ago," says Richard Anstead from the Fair Trade Foundation. "From a Fair Trade point of view, workers on estates are paid the local applicable minimum wage, but we would like to get workers up from a minimum wage to a working wage."

He adds: "We need to help consumers understand that artificially low prices, while they appear good, will lead to the unsustainability of the tea industry."

But many consumers will resent any rise, given that the cost of so many everyday consumer goods have climbed sharply in the last two years.

Supplier strain

So far there are no definite plans to try and establish tea supply controls - yet. Sri Lanka's Plantations Minister Mahinda Samarasinghe, quoted in the Telegraph, says production quotas "are not part of the objectives listed in the constitution, but I am sure these are matters which will be discussed some time in the future."

Meanwhile global tea prices are currently settled at $2.5 a kilo, someway down from earlier last year when bad weather hit Kenyan tea production (and prices), plus severe monsoons in India. Tea producers are increasingly affected by currency movements, not to mention commodity trading.

But UK tea prices are also kept in check by supermarket competition as tea remains a staple buy for most shoppers. It might yet be a storm in a tea cup. Meanwhile, keep an eye on supermarket tea prices.

Save money on shopping

  • 1) Know the price of everything you buy
    <p> </p> <p> This takes time, but once you know the cost of a phone call, putting the dryer on, or a bag of potatoes, it enables you to judge far better how much you can afford to consume.</p>
    1) Know the price of everything you buy
  • 2) Shop around
    <p> </p> <p> Once you know the base price, you are in a position to keep your eyes open for a better offer. If you see a discount you can judge for yourself whether it actually constitutes a bargain. For bigger things like utilities it enables you to do a proper price comparison and see if you can cut your bills.</p>
    2) Shop around
  • 3) Trade down
    <p> </p> <p> Don't just assume that the premium range is better, try the every-day brand, or even the basic version and see if you spot the difference. Likewise, consider trading down your supermarket from one of the big players to local markets or discounters like Aldi.</p>
    3) Trade down
  • 4) Plan
    <p> </p> <p> If you plan what you buy to match what you actually cook and eat then not only will you be able to budget far more effectively, but you'll also waste much less and find your money goes further without you having to try.</p>
    4) Plan
  • 5) Think creatively
    <p> If you can't think of a way to get your meat for less, consider a vegetarian day once a week. If you can't find petrol any cheaper, then work on making your driving as efficient as possible. The more you can think of clever alternatives the less you will have to make painful cuts to make ends meet.</p>
    5) Think creatively


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