The Hindu Business Line : Coonoor tea prices drop

When the auctions of the Coonoor Tea Trade Association resumed on Saturday after the lorry strike, prices dropped as buyers offered only low bids for the huge volume which included the teas withdrawn from earlier auctions.

The volume of 10.07 lakh kg was the second highest for the year. With the prices dropping in Mombassa auction, Pakistan was in no mood to pay more here.

Mombassa, TRENDSETTER

Ever since the Kenyan crop drop, Mombassa auction has become the trendsetter for the auctions around the globe, Coonoor included. With both sides of the Rift having received repeated useful showers, reports have come in that tea bushes are showing signs of recovery. Factories are reporting stable intakes of the crop.

Consequently, this week, prices dropped at the Mombassa auctions by 20 cents a kg on an average. Almost 80 per cent of the offer was sold and Pakistan bought actively. This reflected in Pakistan's purchases at the Coonoor auctions. The shippers were selective at medium and plainer teas.

With the winter continuing to be harsh in Russia, their purchases were also limited. Iraq was seen buying some plainer teas.

Following the lorry strike, the movement of the teas bought in the last fortnight had been affected. Besides, with Holi celebrations, the buyers were on a holiday mood. So, upcountry buyers limited their demand to select teas.

Collectively, prices dropped Rs 4 a kg on an average. Quotations held by the brokers indicated bids ranging from Rs 37-38 a kg for the plain leaf grades and Rs 62-68 for the brighter liquoring sorts. The bids ranged from Rs 37-39 for the plain dust grades and Rs 61-65 for the brighter liquoring sorts.