The Hindu Business Line : Coonoor tea prices down

With higher volume on offer and Pakistan showing no haste to compete at high bids in the context of Kenyan plantations receiving showers, prices dropped for the second consecutive week at the auctions of the Coonoor Tea Trade Association (CTTA) here.

The volume of 9.08 lakh kg offered was the second highest for the year so far. The buyers knew that with nearly half the volume withdrawn in the previous weeks and the recent rains promising brighter crop in the weeks ahead, there was no hurry for them to bid high prices. "The teas have to come to the market for, the producers can't hold them back for long. They need money. Today, they asked us to dispose off as much teas as possible unlike the previous weeks when they were prepared to wait for high bids", an auctioneer told Business Line.

Both the sides of the Rift in Kenya have received showers and reports have come in that the intake in the factories had been regular. Pakistan, UK and Afghanistan vied with one another there this week to procure quality teas. But with limited volumes and increased pressures some teas were sold for as high as $4 a kg. Many fetched $2. "That's why we have come here. If we are to pay high prices, we could as well go for the preferred teas in Kenya. Our dealers are asking for low priced teas from India", an exporter to Pakistan said. Exporters refrained from buying when the bids rose and the limited volume they purchased were for around Rs 41 a kilo — some Rs 7 lower than last week. A fortnight ago, they had paid Rs 60 for the same teas.

Up country buyers held that with the year-end approaching, fresh orders are few.

"We are recurring our dues and consolidating the collections. New purchases are only at lower end of the market. Holi holidays are also hindering fresh purchases", a buyer for Gujarat and Maharashtra markets said.