The Hindu Business Line : Tea volumes up at Coonoor auction on export demand

EXPORTERS helped the market to sustain when an increased volume of over 10 lakh kg of teas was offered for sale at the auctions conducted by the Coonoor Tea Trade Association (CTTA) here.

Iraq, which had announced its decision to buy almost 9 million kg each month from the different sources in India, stepped up its purchases. It paid some Rs 1.50 a kg more for its favourite fannings grade compared to last week. On an average, it picked up the teas for around Rs 37 a kg.

But, the buyers for Pakistani market bought only a low volume of blacker teas paying Rs 42 a kg - a rupee more than last week. They said that in the event of the trade relationship being normal, there would be no hesitation to pick up more teas at this price.

Poland buyers, however, complained that there was not enough volume of the grades which they prefer. They paid Rs 34 - some Rs 2 lower than last week.

The buyers for CIS market were, however, more active now. They paid 37 to Rs 41 - some Rs 2 a kg more than last week.

Kenya, which has been buying smaller dust grades for purpose of re-export, was selective. It paid Rs 40 a kg.

As for the internal market, the buyers for Gujarat, Maharashtra and even Punjab were active this week. They paid around Rs 65 a kg for the good grades. Hindustan Lever Ltd., a large blender, lifted the leaf grades in the Rs 55 to 65 range. But, it remained silent when the dusts were auctioned.

"The recent rains have increased the supply of the teas, but there is a definite fall in the quality. This may be a seasonal happening, but to that extent, the availability of the high priced teas has come down. Besides, arising from increased volume, the market is undergoing a correction in respect of the inferior grades of dusts category", an auctioneer said.

In all, only some 40,000 kg out of the 10 lakh kg could fetch over Rs 60 a kg. Darmona Estate topped the list of CTC bought leaf factories with Rs 71 a kg - some Rs 10 lower than the price it was fetching so far. Hittakkal Estate got Rs 66, Vigneshwar Estate and IBS, Rs 64. All others got a lower price.

The market report of the joint brokers has announced the cataloguing of 10.8 lakh kg comprising 7.35 lakh kg of leaf and 3.46 lakh kg of dusts for the next week auctions.

On an average, plain dusts fetched Rs 34 a kg, while the better ones, Rs 43. plain leaf grades got Rs 33, while the better ones, Rs 42.