Shares of tea, coffee companies trade higher on FDI hopes

Mumbai: Shares of tea and coffee companies on Tuesday were trading higher after a PTI report said that the government may allow 100% foreign direct investment (FDI) in rubber and coffee plantation sectors.

Harrisons Malayalam Ltd rose 10.6% to ₹ 61.60, Jay Shree Tea and Industries Ltd rose 1.4% to ₹ 81.40, Tata Coffee Ltd rose 8.6% to ₹ 103.80, CCL Products India Ltd rose 7.9% to ₹ 249.70, Tata Global Beverages Ltd rose 3.5% to ₹ 135.60, Mcleod Russel India rose 3.8% to ₹ 204.90, Andrew Yule and Co. Ltd rose 2.6% to ₹ 26 and Bombay Burmah Trading Corp. rose 3% to ₹ 607.95.

Rubber companies Indag Rubber Ltd rose 4% to ₹ 202.10, Apcotex Industries Ltd rose 2% to ₹ 578.75, Apar Industries Ltd rose 1% to ₹ 461, Rubfila International Ltd rose 7.1% to ₹ 55.15 and Mahalaxmi Rubtech Ltd rose 16.6% to ₹ 47.

Permitting foreign investment will also help India reduce the import bill of rubber and boost India’s coffee exports.

A proposal to this effect is under consultation of the commerce and industry ministry. Currently, 100% foreign investment is permitted through the government approval route in the tea plantation sector. However, FDI is not allowed in any other plantation sector or activity, the PTI report said.

Foreign companies could be allowed to engage in rubber and coffee plantation, engage labourers in plucking coffee beans or collecting latex from rubber trees and processing raw material, it added.