The Hindu Business Line : Coonoor tea auctions Q1 turnover up 46 pc

THE turnover of teas auctioned at the Coonoor Tea Trade Association (CTTA) in the first quarter this year has increased by over 46 per cent compared to the same period a year ago.

An analysis of the volume sold and the prices earned showed that between January and March 2005, the turnover was Rs 41.35 crore against Rs 28.32 crore last year.

This year, in the first quarter, 9.12 million kg (mkg) were sold against 7.41 mkg last year.

The producers were keen to offer more teas through the CTTA auctions since the buyers paid on an average Rs 7 more for every kg they bought here. The average price was Rs 45.34 a kg (Rs 38.22).

The price gain has been in respect of both orthodox and CTC varieties. The orthodox teas fetched an average price of Rs 56 a kg - almost Rs 10 more than last year. So, the producers allowed 6.79 lakh kg of their orthodox teas to be sold through the auctions here (5.58 lakh kg).

Since the buyers paid Rs 44.48 a kg on the average forCTC teas - some Rs 7 a kg more than last year - the producers sold an increased volume of 8.44 million kg (6.86 million kg).

Six-year high prices: The average prices realised at the CTTA auctions so far this year are six-year high. It was in 1999 that the prices hit a record of Rs 53.34 a kg. Thereafter, yearly average prices had slipped to Rs 39, Rs 41.46, Rs 36.78, Rs 34.55 and Rs 43.30. Against this, in the first quarter of the current year, the average ruled Rs 45.34.

However, prices had been showing a falling trend in the recent weeks. The uncertainty over the VAT, the absence of export incentives, the inability of the industry to find new markets, the lack of promotion and aggressive marketing, frequent disruptions in sale due to the technical snag in the electronic system are pulling down the demand and prices.

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