The Hindu Business Line : Tea prices up at Coonoor sale

GOOD liquoring leaf grades and high grown quality Nilgiri teas fetched prices above Rs 60 a kg on Friday at the auction hall here - something rare in the recent months.

This is despite the fact that buyers from upcountry markets have been forced to remit a deposit of 4.5 per cent with the Coonoor Tea Trade Association (CTTA) to cover the possible shortage in the sales tax, in case the authorities disowned Central Sales Tax (CST) sales.

Clarifying this, an auctioneer told Business Line that if there was no requirement for the deposit, nearly 30 per cent more of the teas offered in categories preferred by the upcountry buyers would have fetched Rs 60 plus per kg .

Another auctioneer said that despite the CST deposit, the prices shot up on increased demand. Many CTC good liquoring leaf grades were sold for around Rs 55 a kg . In general, their prices rose as much as Rs 2 a kg , which neutralised the fall of Rs 1.50 a kg for the dust grades. CIS buyers also helped the demand to be active, but as usual, their bids averaged Rs 28 a kg .

The defence buyers, however, found themselves out priced. This week, a volume of 12.5 lakh kgs comprising 9.5 lakh kgs of leaf and 3.02 lakh kgs of dusts was offered for sale. For the next week, only 10.9 lakh kgs comprising 8.3 lakh kgs of leaf and 2.6 lakh kgs of dusts has been catalogued.

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