The Hindu Business Line : Tea prices hit new low at Coonoor sale

PRICES hit the new-low at the auctions of the Coonoor Tea Trade Association (CTTA) here on Friday when some lines were sold for Rs 22 a kilo. In general, prices fell by Rs 2 a kilo over the previous week. Many teas fetched the lowest price so far for the year.

The demand could not match the huge volume of 18.22 lakh kg on offer - the second highest so far for the year.

The buyers made it clear that if the prices matched their low bids, they would absorb or otherwise, let the lot go unsold.

Nearly 60 per cent of the offer could not be sold for want of remunerative prices. The withdrawal was heavy in the CTC dust market.

Among the corporate buyers, Hindustan Lever Ltd (HLL) showed interest on good medium varieties.

Tata Tea, which re-entered the market, operated at the lower end prices. J.V. Gokal was selective. Duncans, Goodricke, GPI and Indcoserve did not buy at all.

On the export front, Pakistan buyers were seen scouting for the clean black teas, which were in limited supply.

They paid around Rs 37 a kilo. The shippers for CIS and Poland picked up bolder grades but paid only around Rs 33 a kilo. There was no purchase for any other market.

"The demand was scattered. Bright liquoring CTC teas managed to remain firm, but their volume was low.

So, it was a clear falling market" an auctioneer told Business Line.

Another auctioneer said that the computers gave trouble and the sale was disrupted. "On one hand, the prices are falling.

On the other, bids are scarce. To complicate the issue, in the compulsory e-auctions, it is the machine that is selling the teas and not we, the brokers. So, we are unable to create a demand through our persuasion which is also responsible for the price crash", he explained.

This was evident with the brokers unable to push through the medium teas and they lost Rs 2 a kilo.

Likewise, even after shedding Rs 3 for the plainer brokens and fannings, the brokers could not persuade the buyers resulting in a fair volume of being withdrawn.

In the CTC dust category, medium varieties lost Rs 2, while the plainer sorts, Rs 3.

Quotations held by brokers indicated a price range of Rs 22-24 for the plain dusts and Rs 62-67 for the brighter liquoring teas.

The plain leaf grades got Rs 23-25, while the brighter liquoring ones, Rs 57-64.

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