The Hindu Business Line : High volumes, poor quality pull down Coonoor tea prices

PRICES dipped to the lowest levels so far this year at the Coonoor Tea Trade Association (CTTA) auction here on Saturday with some lines being sold for just Rs 24 a kg.

The huge volume on offer failed to elicit matching demand and with the sellers advising the brokers not to knock off below an expected level, there were heavy withdrawals.

The volume of 17.15 lakh kg offered was the second highest so far for this year - close to the highest volume of 17.51 lakh kg offered last week.

The buyers showed no urgency to pick up the teas with high bids.

"There is a definite decline in quality and with such a huge volume, prices are bound to drop. Besides, we get some matching teas in the North for lower prices. Also, with the scorching heat, the demand is more for the cool drinks than for tea; so, our upcountry dealers have unsold stocks," a leading buyer told Business Line.

There was a general drop of Rs 2 a kg. "We received bids for as low as Rs 22, but refused to sell. In effect, some 60 per cent went unsold," an auctioneer said.

Better liquoring teas could be sold only when the prices dropped by Rs 2.

Browner fannings were sold for Rs 3 lower although the clean black brokens could maintain last levels. Plainer teas shed around Rs 4 and still, with no enquiry, substantial quantities were withdrawn.

Bolder teas fetched Re 1 lower. The flaky and brown dusts lost more than Rs 4 a kg. Orthodox dusts also suffered substantial losses. The powdery residuals had to be withdrawn.

Among the corporate buyers, Hindustan Lever Ltd bought some better medium varieties. Madhu Jayanthi and JV Gokal operated on select grades. Girnar Exports and Bhansali supported the plain teas.

On the export front, the buyers for Pakistan market bought blacker and grainer sorts for around Rs 40 a kg. Exporters to CIS and Poland markets supported teas at lower levels.

Quotations held by the brokers indicated a price range of Rs 24-26 a kg for the plain dusts and Rs 61-66 for the bright liquoring sorts. The plain leaf grades fetched bids in the range of Rs 25-27, while the bright liquoring grades got Rs 56-60.

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