The Hindu Business Line : Coonoor tea auctions volume declines to 7-week low

Coonoor, Nov. 6 The volume catalogued for the auctions of the Coonoor Tea Trade Association (CTTA) to take place here on Wednesday has fallen to seven-week low.

The supply of 11.24 lakh kg is nearly 31,000 kg lower than last week’s offer. It is as much as 2.4 lakh kg lower than the volume offered this time last year.

Of the 11.24 lakh kg, fresh arrivals are reported to be 8.31 lakh kg. The balance comprises the teas remaining unsold in the previous auctions.

Of the 11.24 lakh kg, as much as 8.14 lakh kg belong to the leaf grades and 3.10 lakh kg belong to the dust grades. Again, as much as 10.73 lakh kg belong to CTC variety and only 0.51 lakh kg, orthodox variety.

The proportion of orthodox continues to be low in both the leaf and dust grades. In the leaf counter, only 0.20 lakh kg belong to the orthodox while 7.94 lakh kg, CTC. Among the dusts, only 0.31 lakh kg belong to the orthodox while 2.79 lakh kg, CTC.

Prices may rise

Auctioneers said that the low offer can help the prices to look up. Last week, when the volume was at a six-week low, prices rose on an average Rs 3 a kg as the increased demand in North India for Diwali helped the low volume to be absorbed at higher bids. Even the plain grades were bought for higher bids.