The Hindu Business Line : Coonoor tea prices drop

Prices dropped by Rs 3 a kg on an average at the sale No. 25 of the auctions of Coonoor Tea Trade Association (CTTA) held here on Saturday, as the demand was inadequate to absorb the huge volume at high bids. The bottom level dropped to a new low of Rs 35 a kg.

The volume of 12.43 lakh kg offered is the highest so far this year. It is 1.34 lakh kg more than the offer last week. This is the first time this year when the volume exceeded the offer in the corresponding sale of last year. This time last year the offer totalled 12.2 lakh kg.

NO HASTE

Buyers showed no haste. “The volume is increasing week-after-week. For the coming week, a higher volume of 12.62 lakh kg will come up for auction. With the VAT having been reduced to one per cent from 4 per cent, sellers are now reversing their policy to divert teas to Kochi, which gave them an advantage until now. So, there is no need for us to do panic buying,” a leading buyer told Business Line.

Most teas could be sold only when the prices shed Rs 3 a kg. “CTC leaf medium teas lost Rs 2 to 3 a kg. Some invoices shed much more. Sizable volumes were withdrawn for want of adequate bids. Plainer sorts suffered from poor demand and lost more than Rs 3 a kg when sold. Broken orthodox leaf lost Rs 2 to 3. Fibrous sorts shed much more. Most CTC dusts eased up to Rs 2 a kg. Better medium dusts shed more than Rs 4 a kg. Select lines of brighter liquoring CTC dusts, however, sold dearer.