The Hindu Business Line : Low price continues for Coonoor teas

Coonoor, July 15 Prices continued to rule low at the auctions of the Coonoor Tea Trade Association (CTTA) here with the demand being inadequate to absorb the huge volume on offer.

About 30 per cent of the 12.49 lakh kg offered went unsold and in most cases, teas could be sold only when the prices shed Rs 2 a kg. The new low of Rs 34 a kg struck last week continued this week as well.

Excess Supply

The offer was the second largest volume so far for 2007 and some 11,000 kg lower than last week’s offer which was the highest so far this year. But, it was as much as 1.79 lakh kg more than the offer in the corresponding sale of last year.

Buyers complained of a general decline in quality. “We have picked up only those invoices where the quality matches our requirements. With more teas expected in the coming weeks because of the current rains and the North Indian second flush likely to post excess supply situation, we are selective in our purchases here now,” a leading buyer told Business Line.

Pakistan shippers chose blacker sorts in the range of Rs 36-40 a kg, while CIS buyers picked up bolder grades for Rs 39-41. There was no buying for any other country.

On the corporate front, Hindustan Unilever Ltd (HUL) selected good medium grades. Duncans bought better medium sorts. JV Gokal operated on fannings. IPL picked up powdery orthodox residuals.

Among the CTC teas from bought leaf factories, no tea crossed the Rs 100-level which Darmona Estate had maintained for two months thus far. This week’s highest for Darmona Estate was Rs 90 a kg. Professor came second with Rs 85, Kannavarai Estate Rs 84, Shanthi Supreme and Green View Rs 83, Selva Ganapathy Supreme Rs 81 and Highfield Estate Special Rs 80.

Orthodox tea

Among the orthodox teas from the corporate sector, Corsley fetched the highest price of Rs 126 a kg, Havukal and Mailoor Rs 124, Kairbetta Rs 122, Curzon Rs 120, Kodanaad and Tiger Hill Rs 100.

Quotations held by the brokers indicted bids ranging from Rs 34-35 a kg for the plain dust grades and Rs 65-80 for the brighter liquoring grades. They ranged Rs 34.50-36 for the plain leaf grades and Rs 62-70.