The Hindu Business Line : Coonoor teas fall on lower demand

TEA prices continued to fall this week at the auctions conducted by the Coonoor Tea Trade Association (CTTA) as the demand was insufficient to absorb the high volume of 9.10 lakh kg offered for sale.

The high priced teas failed to enthuse the buyers as they said that they could get cheaper teas. "The buyers also complained of a general fall in quality of some such teas. So, they offered lower bids", an auctioneer told

Business Line.

Hindustan Lever Ltd (HLL), a large blender, was highly selective in its purchases. While it chose the better liquoring teas on the leaf counter, it bought only the secondary orthodox on the dust counter. It ignored all other teas. Gujarat buyers, who normally offer a good price for quality teas, complained of a decline in quality and refrained from high biddings. So, the market had to be over dependent on the support from Maharashtra and Punjab buyers. They picked up the teas for Rs 55-Rs 65 a kg.

Consequently, only 40,000 kg could be sold for more than Rs 60 a kg. Among the CTC bought leaf factories' teas, Darmona Estate continued to top but the price it got was some Rs 10 lower at Rs 71. Hittakkal estate got Rs 66. All other received a lower price.

On the export front, the elections andthe uncertainty in the approach to bilateral trade relationship if the Congress comes to power affected the purchases for the Pakistani market. "We do not wish to pile up stocks and can wait until the new Government confirms smooth trade relationship", a leading buyer said.

The buyers for Iraq market bid Rs 2 a kg lower and picked up teas at Rs 36. Poland bought for Rs 32 the teas, which, it had supported at Rs 36 last week. CIS lowered its bids to Rs 34 from Rs 37. Kenyan traders who bought smaller bolder grades - PD, SRD etc — teas for re-export to Egypt paid Rs 37-40.

"CTC brokens lost a rupee a kg. Plainer CTCs were just steady. The best high grown orthodox BOP dusts were mostly unsold. Others eased about Rs 2 a kg. Good liquoring CTC dusts lost up to Rs 3 a kg. Others, Rs 2", noted the market Report of the Joint Brokers.

On the average, plainer dusts got Rs 33 a kg, while the better ones, Rs 42. Plainer leaf grades got Rs 32, while the better ones, Rs 37.

The Market Report has said that for the next auctions, a volume of 8.48 lakh kg comprising 5.71 lakh kg of leaf and 2.77 lakh kg of dusts has been catalogued.