The Hindu Business Line : Price slump, withdrawals at Coonoor tea sale

Coonoor April 8 Prices slumped at the auctions of the Coonoor Tea Trade Association (CTTA) here this week even as news came in that some sections of the buyers who were calling on the Commercial Taxes Minister and secretaries in Chennai had assured the Government that they would pay a minimum of Rs 55 a kg to enable the Government lower the VAT to one per cent from the present 4 per cent.

"As much as 50 per cent of the leaf grades and 30 per cent of the dust grades went unsold for want of bids. Even among those sold, the bulk of the better medium, medium and plainer teas got only less than Rs 50 a kg. Sizable volumes were sold for less than Rs 45 and some were sold for less than Rs 40 as well. Only the limited invoices of select brighter liquoring grades fetched more than Rs 60", an auctioneer told Business Line.

Although the volume of 7.76 lakh kg on offer was less than the previous week by as much as three lakh kg, the demand was not matching enough to absorb the teas at high bids.

" The better medium and medium grades eased up to Rs 2 a kg and sizable volume was withdrawn as there were no takers. The plainer sorts eased up to Rs 1 a kg.

Brokens and fannings of the orthodox leaf grades sold lower by Rs 2-4 a kg", another auctioneer said. Among the corporate buyers, Hindustan Lever Ltd (HLL) showed interest on better medium sorts. Western Indian buyers were selective. Defence buyer picked up select lines of plainer varieties.

Among CTC teas from bought-leaf factories, Prammas got the highest price of Rs 122 a kg. Darmona Estate Rs 87, followed by Highfield Estate Rs 80.

Quotations held by the brokers indicated bids ranging from Rs 39-41 a kg for the plain leaf grades and Rs 60-68 for the brighter liquoring grades. For the dust grades, they ranged, Rs 43-45 for the plain sorts and Rs 63-78 for the brighter liquoring sorts.