The Hindu Business Line : 2nd lowest volume at Coonoor tea sales

THE second lowest volume for the year — 9.81 lakh kg of teas has been catalogued for the auctions to be held by the Coonoor Tea Trade Association on Thursday and Friday.

The lowest volume of 9.66 lakh kg was offered on March 10. The volume has remained lower than 10 lakh kg only in four sales so far this year.

Of the 9.81 lakh kg coming up for auctions this week, 6.85 lakh kg belongs to the leaf grades and the remaining 3.06 lakh kg to the dust grades. As much as 8.81 lakh kg belongs to the CTC variety and only about one lakh kg to the orthodox variety. Only 47,624 kg among the leaf grades and 51,748 kg among the dust grades belong to the orthodox variety. The rest belongs to the CTC variety.

Considering the low volume on offer, auctioneers expect prices to look up. In the last three weeks, prices had shown some improvement. It is mostly the brighter liquoring teas that suffered inadequate demand at high prices.

Besides, the North Indian crop is heading for an end-season sale.

"Soon, the supplies there might dry up. Only by April 2006 would the full-scale competition from there be felt in the market. To that extent, the demand for the Nilgiris crop could have an impact on the prices," an auctioneer told Business Line.

The low volume on offer is attributed, inter alia, to the reduction of poor quality teas from the system. Besides, the high grown winter Nilgiri teas are a premium product.

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