The Hindu Business Line : Coonoor tea auctions disappoint producers

THE curtains came down for the tea auctions for 2004 conducted by the Coonoor Tea Trade Association (CTTA) last week with a note of disappointment for the producers who saw the prices falling on an average Rs 4 and in some cases, Rs 5 a kg over the previous week.

After the year-end vacation, the auctions would resume on January 6. Almost 60 per cent of the leaf grades and 5 per cent of the dust grades were withdrawn for want of bids matching the asking price.

Only two corporate buyers — Hindustan Lever Ltd (HLL) and Tata Tea — were seen bidding actively, but they confined to select grades.

It was the fleet of upcountry individual buyers, which supported the dust grades.

The exporters once again let down the producers. Barring some purchases of Pekoes at around Rs 35-38 a kg for the CIS markets, there was hardly any buying for foreign destinations. Some buyers for the Russian markets said that with the winter turning harsh, they would not resume purchases until February, they said.

There was a little buying activity for the Pakistan market, but the buyers complained about the inadequacy of the cleaner blacker types. The short supplies were picked up at high prices - up to Rs 50 a kg.

Good liquoring teas, however, got good prices. The price range was Rs 36-38 a kg for the plain grades of leaf and Rs 64-65 for the brighter liquoring grades.

In the dust category, the plain teas fetched Rs 38-40, while the brighter liquoring teas, Rs 66-68. An