The Hindu Business Line : Prices down at Coonoor tea sales

THE second tea auctions this year failed to cheer the market here with 60 per cent of the offerings being withdrawn and prices falling up to Rs 10 a kg in some cases.

"It was clearly a quality tea market. Buyers paid high prices and picked up quality teas, but simply refused to pay the asking price for the bulk of the medium and plain teas. So, only 40 per cent of the teas offered could be sold," an official of the Coonoor Tea Trade Association (CTTA), which conducts the weekly auctions, told Business Line.

An auctioneer said that quite a sizable volume of the teas was sold for Rs 70 a kg and more. "It was common to see the buyers vying with one another to pay Rs 80 to Rs 90 a kg to pick up high quality teas. Many teas were sold for Rs 66 to Rs 70," he said.

Darmona estate teas were sold for Rs 90 a kg - the highest amidst the bought-leaf CTC teas. The teas from Sree Ram Supreme, Garswood Estate, Hittakkal Heritage, Shanthi Supreme, Vigneshwar Estate, Kannavari Estate and Motherland Estate were among those that fetched Rs 70 a kg and more.

Only half the offered volume could be sold. But 30 per cent of the teas sold fetched Rs 68 and above. Some 65 per cent got Rs 55 to Rs 67 and the balance, from Rs 37 to Rs 64. No tea was sold for lower than Rs 37 a kg, he said, but this led to heavy withdrawals.

Hindustan Lever Ltd, the major blender, did not operate at all.

Exporters also did not operate. The buyers for Pakistan market said that they held orders for supplying teas at Rs 39 a kg as the landed price in Karachi and hence allowing for transport cost, they could pick up teas only for Rs 34 a kg. The buyers for Russian and CIS markets said that with harsh winter freezing the waterways, they could expect fresh orders only in the second fortnight.

Consequently, only high grown Nilgiri orthodox teas meant for export markets withstood the pressure. "We have urged the Centre to offer an incentive of Rs 7 a kg for the production of orthodox teas as this the additional cost over the CTC manufacture. Some manufacturers have already made a breakthrough in the UK, Europe, Russia and Poland with direct shipments of orthodox teas. If the Government encourages such exports right now, with the global winter being peak, it would boost India's stand in the international tea market," Mr B.B. Medaiah, President, United Planters' Association of Southern India, said.