The Hindu Business Line : Coonoor teas slip on poor demand

SLUGGISH demand from both exporters and domestic traders pulled down tea prices at this week's auction conducted by the Coonoor Tea Trade Association (CTTA).

Of the 5.38 lakh kg of leaf offered for sale, only the brighter liquoring teas enjoyed support from upcountry buyers. So, the prices of most teas dropped.

But, most of the 2.05 lakh kg of dusts on offer met with fair enquiries principally from HLL. Domestic buyers confined themselves to better liquoring dust grades.

This week, the auctions were conducted without collecting the contingency deposit of 4.5 per cent or the indemnity bond from the buyers. Sales were conducted as per the CST manual by specifying the destination for the teas while knocking them off.

Consequently, of the nearly one lakh kg of high-priced teas put on sale, as much as 60,000 kg went unsold.

Vigneshwar Estate topped the list of CTC bought leaf teas fetching Rs 79 a kg, followed by Darmona Estate, Rs 74. Sree Ram Supreme, Hittakkal Estate, IBS Estate and Garswood Estate are other teas which fetched over Rs 65 a kg. All others got a lower price.

On the export front also, there was a sluggish demand with Poland buyers abstaining from biddings. CIS opted for only lower prices.

On an average, the plain dusts fetched Rs 36 a kg, while the better ones, Rs 44. The plain leaf grades, Rs 33 a kg, while the better ones, Rs 40.

For the next auctions, a volume of 7.93 lakh kg comprising 5.69 lakh kg of leaf and 2.24 lakh kg of dusts has been catalogued.