The Hindu Business Line : Coonoor tea volumes continue to be low

The arrivals to the auctions of the Coonoor Tea Trade Association (CTTA) continue to be low. For the Sale No: 50, the catalogues of the brokers have added up to a volume of 9.57 lakh kg.

Although this is some 20,000 kg more than the offer last week, it is less than the 10-lakh kg, mark for the fourth consecutive week. It is some 80,000 kg lower than the offer this time last year. Frost in many tea growing pockets is said to have reduced the harvest.

Around 9.14 lakh kg of the 9.57 lakh kg are fresh arrivals. The balance comprises teas remaining unsold in previous auctions.

Of the 9.57 lakh kg, as much as 6.58 lakh kg belong to the leaf grades and 2.99 lakh kg belong to the dust grades. Again, as much as 8.82 lakh kg belong to CTC variety and only 0.75 lakh kg, orthodox variety.

The proportion of orthodox continues to be low in both the leaf and dust grades.

In the leaf counter, only 0.32 lakh kg belong to the orthodox while 6.26 lakh kg, CTC. Among the dusts, only 0.43 lakh kg belong to the orthodox while 2.56 lakh kg, CTC.

Low offer can help the prices to look up as in the previous weeks if the demand firmed up, auctioneers said. Last week, prices generally rose Rs 2 a kg.

With winter reducing the crop prospects in the North, auctioneers expect increased demand from upcountry buyers. Winter high grown Nilgiri teas can enjoy premium pick-ups if the quality is good.

Last week, the major export demand came from Pakistan. The demand from CIS, Poland and Egypt was subdued.

If winter turns hostile in Europe and the CIS, the export purchases would be hit as transportation becomes difficult in the frozen water ways, an exporter told Business Line.