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

THE trend of tea prices recording new lows witnessed at the auctions of the Coonoor Tea Trade Association (CTTA) in the recent weeks continued this week, with some lines being sold on Friday for Rs 20 a kg - the lowest price so far for the year.

The volume offered was the highest for the year at 19.84 lakh kg comprising 14.27 lakh kg of leaf and 5.57 lakh kg of dusts. The demand was inadequate to match this huge offer.

The buyers showed more interest only for those teas whose prices declined. Consequently, around 60 per cent of the offers had to be withdrawn.

In general, the market declined by Rs 3 a kg over the previous week.

Among the corporate buyers, Hindustan Lever Ltd bought some better medium sorts. Tata Tea, which had re-entered the market recently, was absent. Goodricke, GPI and Indcoserve did not buy at all.

On the export front, J.V. Gokal bought some bolder grades. Iraq re-entered the market for smaller brokens but at the low levels of around Rs 24-28 a kg.

The shippers to Pakistan bought clean, black types for around Rs 37 a kg.

The exporters to CIS and Russia as also Poland bought at Rs 25 a kg - some Rs 2 less than the previous weeks.

In the domestic market, the buyers for Gujarat said due to the floods the demand was nil. "We are worried that even the teas we had already bought are unable to reach the destinations. Some dealers say that they have lost the stock. Our monies are blocked. This is certainly not the time to pick up fresh orders," a buyer for Gujarat told Business Line.

"Brighter liquoring teas lost Rs 2 a kg. Teas with poor leaf appearance saw discounts of Rs 3. The medium and plainer CTC dusts were easier up to Rs 3. But orthodox brokens gained Rs 2," an auctioneer said.

Quotations held by the brokers indicated bids ranging from Rs 20-22 a kg for the plain dusts and Rs 56-64 for the brighter liquoring teas. The plain leaf grades got Rs 22-24, while the bright liquoring sorts, Rs 54-60.

Among the CTC teas from the bought leaf factories, Darmona Estate got the highest price of Rs 72 a kg followed by Highfield Estate at Rs 67.10 and Hittakkal Estate, Rs 66.60.

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