The Hindu Business Line : Offers at Coonoor tea auctions drop to 10-week low

An analysis of the catalogues of the auctioneers shows that the volume of tea on offer for sale no: 46 of the Coonoor Tea Trade Association (CTTA) to be held here Thursday and Friday will be 10-week low.

The volume of 10.43 lakh kg is some 81,000 kg lower than the offer of last week. It is as much as 4.8 lakh kg lower than the offer this time last year.

Of the 10.43 lakh kg, fresh arrivals are reported to be 8.30 lakh kg. The balance comprises the teas remaining unsold in the previous auctions.

Of the 10.43 lakh kg, as much as 7.73 lakh kg belong to the leaf grades and 2.70 lakh kg belong to the dust grades. Again, as much as 9.81 lakh kg belong to CTC variety and only 0.62 lakh kg, orthodox variety.

Orthodox low

The proportion of orthodox continues to be low in both the leaf and dust grades. In the leaf counter, only 0.25 lakh kg belong to the orthodox while 7.48 lakh kg, CTC. Among the dusts, only 0.37 lakh kg belong to the orthodox while 2.33 lakh kg, CTC.

The low offer can trigger the prices upwards if the demand firms up. Last week, prices ruled Rs 3 a kg more for quality invoices.

Buyers from Maharashtra, Gujarat, UP, MP and Rajasthan showed keener interest in the last couple of weeks due to increased retail demand for Diwali festival. But, because of low offer, auctioneers expect matching demand this week as well. On the export front, the new-found enthusiasm from shippers to Pakistan is remaining subdued. “Uncertainty arising from the emergency there is affecting normal orders. We are taking a ‘wait-and-watch’ attitude right now”, an exporter told Business Line.