The Hindu Business Line : Tea earnings at Coonoor auction down in January

TEA producers who sold their teas through the auctions conducted by the Coonoor Tea Trade Association (CTTA) have earned Rs 7 crore less in January compared to January 2005.

In the four sales of January, the average price realised was Rs 43.75 a kg - almost the same as in the corresponding sales of 2005 - Rs 43.59. But, the volume sold this year fell sharply to 2.15 million kg from 3.81 million kg. Consequently, the overall earnings for the producers declined sharply to Rs 9.4 crore (Rs 16.6 crore).

In other words, the earnings have come down by Rs 7.2 crore or 43.4 per cent over last January.

The prices are ruling still lower this month. Even now, many plain teas are sold for Rs 32-33. So, factories are now earning anywhere from Rs 3-15 lower on a kg of tea they produce, compared to the same time of last year. With lower volume on offer, the overall realisation falls steeply.

The lower offering is attributed to the lower harvest due to frost bite. With the tea pockets continuing to experience the frost, production is slated to be down in the coming weeks.

"Tea Board says that because of its tightening the quality norms, volume has come down as poor quality teas have been rid of the market. But, the board should note that the prices have not increased matching with the quality. So, despite the producers giving a better quality as the board wants, the board is yet to get for them matching reasonable price. Now, it is a case of lower volume and lower prices. Tea growers continue to reel under great economic stress," said Mr T. Rangaiah, President, Nilgiris Tea Small Growers' Association.