The Hindu Business Line : Coonoor tea down

Prices generally eased by Rs 2 a kg over the previous week at the auctions of the Coonoor Tea Trade Association (CTTA) principally because the demand was inadequate to absorb the huge volume at higher bids.

The volume of 10.87 lakh kg on offer was the highest so far for the year.

But there was a general complaint that the quality was a tad lower than the previous offers.

"We could spot many brown teas here. The sellers cannot expect us to pay higher bids when quality suffers. This happens when the volume production takes place," a buyer told Business Line.

Upcountry buyers were selective. Some said that quality teas were available in the North Indian sales. Among the corporate buyers, HLL chose the better medium grades.

On the export front, Pakistan bought clean black grades for around Rs 42 a kg.

Iraq picked up smaller grades - BOP, BOPS - for around Rs 43. CIS shippers were bought only sporadic lines. No other exporter operated.

To avoid withdrawal, the auctioneers allowed the offers to be bought at lower acceptable ranges. "We could sell 80 per cent of the offer, but most went off only when we eased the price demand," an auctioneer said.

Only around 5,000 kg could be sold for over Rs 60 a kg.

"Many browner CTC leaf grades eased about Re 1 a kg. The liquoring bolder brokens suffered withdrawals due to lack of takers. Many orthodox leaf grades eased by over Rs 2. Primary orthodox dusts suffered quality decline and hence, prices fall. The leafy Secondaries maintained last levels, but the powdery Secondaries lost up to Rs 3," said an auctioneer.

Quotations held by the brokers indicated bids ranging Rs 39-40 a kg for the plain leaf grades and Rs 62-65 for the brighter liquoring teas. The bids for the plain dust sorts ranged Rs 41-42 a kg, while those for the brighter liquoring sports ranged Rs 64-68.