The Hindu Business Line : Tea prices up on Kochi, Kolkata sale demand

Kochi/Kolkata April 1 Tea prices increased on good general demand at the Kochi and Kolkata tea auctions but higher offerings at Coonoor resulted in rates dropping by Rs 3 a kg.

In Kochi, of the quantity of 8.29 lakh kg on offer in the dust category, CTC ruled fully firm to dearer by Rs 2-4. Orthodox also steady to dearer.

The best CTC varieties commanded prices between Rs 68-80, medium CTC Rs 59-67, below medium were quoted at Rs 52-58. Highgrown BOPD fetched prices between Rs 97-141, while medium BOPD got Rs 50-53. Secondaries were quoted at Rs 45-47.

The leaf sale also witnessed a good general demand and the quantity on offer was 2.69 lakh kg. Orthodox highgrown whole leaf grades were firm to dearer by Rs 1-2. Highgrown brokens and fannings were also steady to dearer. Medium orthodox was higher by Rs 3-5. The best CTC's were steady on last levels, other CTC's were easier by Rs 1-2. Orthodox witnessed enquiry from exporters.

The best Nilgiri varieties commanded prices between Rs 85 and Rs 109, medium orthodox Rs 55-62 and plain orthodox Rs 45-52. The best CTC leaf fetched prices between Rs 53 and Rs 55,while medium CTC realised Rs 48-52.

In Kolkata and Siliguri, a nominal quantity of new season CTC teas was on offer at Kolkata and Siliguri auctions this week. For the well made good liquoring varieties, prices ranged between Rs 100 and Rs 115 per kg mainly supported by the local Bengal buyers and loose tea segments of Western India. The bulk of the offerings were old season teas and prices were irregular due to quality.

Orthodox and Darjeeling teas on offer were of the end-season variety and prices were irregularly lower. The local Kolkata buyers absorbed the bulk of the offerings.

In Coonoor, prices dropped Rs 3 a kg when a volume of 10.28 lakh kg was offered.

In most cases, teas could be sold only when prices were dropped. Buyers generally complained of year-end cash-flow crunch.

"We would like to have clearer picture on setting off and claiming refunds on the CST after paying 4 per cent VAT, before we buy in bulk now", a leading buyer told Business Line.

Export purchases were minimal as exporters continued to be reluctant to buy after paying 4 per cent VAT. Some shippers to Pakistan selectively operated on the blacker CTC dusts.

On the whole, some 50 per cent of the leaf offer and 30 per cent of the dust offer were withdrawn for want of adequate bids.

"Brighter liquoring CTC leaf grades fetched Rs 3 a kg lower. Medium and plainer sorts suffered a fair amount of withdrawal. Medium and plainer CTC dust grades fetched Rs 1-2 a kg lower. Volumes of this grade also were withdrawn. Secondary dusts lost up to Rs 4 a kg. Choppy varieties were neglected", an auctioneer said.

Among the corporate buyers, Hindustan Lever Ltd (HLL) showed interest on better medium sorts. Girnar and JFK lent some useful support for orthodox leaf grades.

Buyers from western India and Karnataka chose CTC dust grades. The buyer for Defence operated on select lines at the bottom of the market.

Among the CTC teas from bought-leaf factories, Homedale Estate got Rs 86 a kg, followed by Darmona Estate Rs 85 and Highfield Estate Special Rs 82.

Quotations held by the brokers indicated bids ranging from Rs 38 to 40 a kg for the plain leaf grades and Rs 63-72 for the brighter liquoring grades. They ranged Rs 43-45 for the plain dust grades and Rs 65-80 for the brighter liquoring grades.

Strong demand was witnessing in the Colombo auction with no immediate improvement in the supply position being anticipated.