The Hindu Business Line : Coonoor tea offers continue to be high

Volume offered for the auctions of Coonoor Tea Trade Association (CTTA) continues to be high with brokers’ catalogues for Sale No: 23 to be held on Thursday and Friday totalling 13.22 lakh kg – the highest for a single auction in two years. This is 81,000 kg more than last week’s offer. It is as much as 6.9 lakh kg or 109 per cent more than the offer this time last year.

Fresh arrivals are said to be 10.79 lakh kg out of 13.22 lakh kg on offer. The balance comprises teas remaining unsold in previous auctions.

Fresh arrivals are increasing because of the favourable rains which have kindled growth in tea bushes. Auctioneers said that for a few more weeks, volume would be 3-4 lakh kg more than last year.

Of the 13.22 lakh kg on offer, as much as 9.52 lakh kg belong to the leaf grades and 3.71 lakh kg belong to the dust grades. Again, as much as 12.39 lakh kg belong to CTC variety and only 0.83 lakh kg, orthodox variety.

The proportion of orthodox teas continues to be low in both the leaf and dust grades. In the leaf counter, only 0.32 lakh kg belong to orthodox while 9.19 lakh kg, CTC. Among the dusts, only 0.51 lakh kg belong to orthodox while 3.20 lakh kg, CTC.

“Volume is, no doubt, high, but prices will look up like last week if domestic and export demand continues to be strong. High Sri Lankan and Kenyan tea prices are forcing some importers to buy affordable Indian teas”, an auctioneer told Business Line.

Upcountry buyers are scouting for quality offers for which, they are prepared to pay reasonable price. But, they have a general complaint that quantity increase has sacrificed quality. Buyers for Rajasthan market said that in the wake of Gujjars agitation blocking transport, tea movement is also hit. “Only now, normalcy has come back after the Jaipur bomb blast. Gujjar stir is affecting trade. We are watching the situation before firming up purchases”, a buyer said.