The Hindu Business Line : Coonoor teas dip on quality concerns

FOR the fifth consecutive week, prices traced a declining path when 12.36 lakh kg of teas were offered for sale at the auctions conducted by the Coonoor Tea Trade Association (CTTA) here.

Generally, prices declined by Rs 3 a kg over the previous week. In some cases, the fall averaged Rs 5, while a few odd lines posted a reduction of Rs 7 a kg.

Buyers said that there was a noticeable fall in quality. "When the prices were moving up a month ago, growers sacrificed the quality norms for quick returns. Now, they demand the same price for a lower quality" a leading buyer for Gujarat asked Business Line.

The buyers for Gujarat, Maharashtra and Punjab were selective. They picked up only those grades which fetched low prices. But, the corporate buyers also did this. Although Hindustan Lever Ltd (HLL) operated on a wide range of teas, they absorbed only when the teas were knocked off for a lower price. Goodricke and GPI also followed the lower bid ranges. Tata Tea and Duncans did not buy at all.

Indcoserve was seen picking up some teas here and there.

On the export front, the purchases for Iraq were subdued and the bids were up to Rs 47 a kg. CIS and Poland paid up to Rs 42 a kg. Pakistan, Libya and Kenya did not buy at all. The buyers also complained of a cash flow crunch. "Packeteers who had bought huge volumes are yet to realise their monies. With commitments for bonus etc., they are unable to spare more funds for speculative buying now," a buyer explained.

To that extent, there was a slump in demand and the prices had to be lowered to dispose off the stocks.

"Orange Pekoes fetched Rs 5 a kg lower. Fannings tended Rs 2 lower. CTC brokens were easier by Rs 2. Nilgiris dusts also lost up to Rs 2. The brighter liquoring CTC teas were down by Rs 4. Clean black dusts realised Rs 2 lower," noted the Market report of the Joint Brokers.

In all, only 10,000 kg could be sold for over Rs 65 a kg. Among the CTC bought leaf factories, Darmona Estate and Hittakkal Estate got the highest price of Rs 74 a kg.

On an average, plain dusts got Rs 40 a kg, while the brighter liquoring ones, Rs 64.

Plain leaf grades got Rs 39, while the brighter liquoring ones, Rs 65.

For the next auctions, a volume of 12.07 lakh kg comprising 8.79 lakh kg of leaf and 3.28 lakh kg of dusts has been catalogued.

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