The Hindu Business Line : Higher volumes of tea for sale at Coonoor

THE volume of tea catalogued for sale at the Coonoor Tea Trade Association auctions on Thursday and Friday are nearly three lakh kg more than the first sale for 2006 held last week — the lowest for years. A volume of 10.39 lakh kgs has been catalogued for Sale No. 2. But as much as 16.5 lakh kg were offered in last year's corresponding sale. Of the 10.39 lakh kg, as much as 7.63 lakh kg belong to the leaf grades and only 2.76 lakh kg, the dust grades. And 9.71 lakh kg belong to the CTC variety and only 0.68 lakh kg, the orthodox variety.

Despite a rise in volume over the previous week, auctioneers expect the prices to hold firm or rise, but not decline, because of anticipated matching demand. "Upcountry buyers are keen to purchase as much as they could to carter to the retail traders' needs. Since the teas from the North have tapered due to winter reductions, the traders are more dependent on the South for their teas. Given the relatively improved quality in the last couple of weeks due to the positive impact of winter on the high-grown teas, the Nilgiris teas have a fair chance," an auctioneer said.

Exporters are, however, showing less interest right now. The scope is limited even for the CIS markets. "Winter is harsh in Russia. Normal life is hit. Traders are not placing fresh orders. We are also cautious not to lose track when movement is hindered. Our importers contend that they have enough stock for some weeks," an exporter told Business Line.