The Hindu Business Line : Tea prices ease at auctions in South

Prices dropped on an average Rs 3 a kg at the auctions held by the Coonoor Tea Trade Association (CTTA) here last weekend, when the demand was inadequate to absorb the huge volume on offer.

A volume of 15.26 lakh kg was for sale, which is the highest volume so far in 2006. But, with the buyers showing no hurry to pick the volume, the prices dropped, but when producers refused to sell some teas at lower bids, a fair amount had to be withdrawn as unsold.

Arrivals to increase

Buyers said with heavy rains in the plantation pockets of the Nilgiris, the arrivals to the market would further rise in the coming weeks. "There is a general decline in prices in the North. With huge crop, there is practically no need for upcountry buyers to rush for purchases in Coonoor right now," a buyer told Business Line.

The bolder and medium brokens in the CTC leaf grades eased by Re 1 to Rs 2 a kg. Plainer teas shed more than Rs 3. Medium CTC dust grades fetched Rs 2 less. Some plainer CTC dusts lost Rs 4. Most orthodox dusts fetched Rs 3 to 4 lowerAmong the corporate buyers, Hindustan Lever Ltd chose better medium grades. JV Gokal and JFK absorbed well-made brokens.

On the export front, CIS was active on the lower levels. Pakistan remained selective. Stray enquiries were seen from Iraqi shippers for some leaf grades.

Some grades improve

Our Kochi/Coimbatore Bureaus report: Prices of high priced varieties eased by Rs 3-5, while prices of other varieties fell by Re 1-Rs 2 when the sale opened in Kochi. However, prices of a few varieties improved as the sale progressed. Market for orthodox varieties were lower by Re 1 to Rs 2.

Best CTC varieties commanded prices between Rs 55 and Rs 61, medium varieties ranged between Rs 47 and Rs 51 and below medium varieties were quoted between Rs 44 and Rs 46.

In Coimbtaore, there was select export demand for the orthodox leaf grades. Selected invoices of well-made Nilgiris sold around last, particularly bolder brokens and larger leaf grades. Others tended easier by Rs 2-3 a kg with some withdrawals. HLL was selective on few lines of larger teas. CIS exporters went for the well-made teas.