The Hindu Business Line : Coonoor teas weak on cash crunch woes

CASH crunch continued to weaken the bids at the auctions conducted by the Coonoor Tea Trade Association (CTTA) here when a volume of 13.24 lakh kg was offered for sale. On the average, prices dropped by Rs 2 a kg over the last week.

"Normalcy is yet to return on cash flow which was disrupted by the lorry strike. There was delay in delivery of the teas bought in the previous auctions and hence there is delay in the collection of money. We do not expect normalcy before Wednesday next", an auctioneer told Business Line.

The market saw subdued purchasing from corporate buyers which dampened the bids from exporters and individual upcountry buyers.

On the export front, Poland bid Rs 2 a kg lower but the CIS was selective. West Asia chose good liquoring bolder grades. Pakistan buyers complained that they could get only small volume of their choice teas. There were some purchases for Kenyan market. In all, some 30,000 kg fetched more than Rs 65 a kg.

"The best Nilgiri orthodox brokens were easier by Rs 2 a kg. The best liquoring CTC teas were occasionally lower by Rs 2. Other CTC teas lost Rs 2. The plainest teas were cheaper by Rs 3. But, the best high grown Nilgiri dusts gained Rs 10 a kg. The best liquoring CTC dusts were tending Rs 1 lower. The plainest among the CTC dusts were dearer by Rs 2" noted the market report of the joint brokers.

Among the CTC teas of the bought leaf factories, Darmona Estate fetched the highest price of Rs 77 a kg. Sri Ram Supreme got Rs 73. IBS fetched Rs 71.

For the next auctions, a volume of 13.92 lakh kg comprising 10.11 lakh kgs of leaf and 3.80 lakh kgs of dusts has been catalogued.