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P.S. Sundar

Coonoor , Sept. 2

ARTIFICIAL manipulation of prices at the weekend's tea auction here has helped to expose reality. "The factories in the small-scale sector (Indco and bought leaf) advised us not to sell below Rs 25 a kg for some grades, Rs 30 for some others and Rs 35 for few more. Quite unfortunately, sizeable volumes of these teas had to be withdrawn for want of bids at the asking price," an auctioneer told Business Line.

And, most of the teas withdrawn from the auctions could not be sold in private also for the same price.

"The buyers respected the request of the producers not to drop the prices any further. But, many teas were withdrawn without bids," noted the market report of the joint auctioneers. Wherever possible, the buyers paid around last week levels. Some 60 per cent of the leaf grades and 40 per cent of the dust grades were withdrawn unsold.

"The ground reality of the unilateral floor price move initiated by the factories was that most of the unsold teas were non-saleable for a higher price, given their low quality. We did pay some good price and picked up better quality teas", explained a leading buyer.

In fact, the market was helped to a great extent by the buyers for the Pakistani outlets. "Wherever possible, these buyers picked up blackish, well made and clean teas. Like last week, this time also, they supported both the dust and leaf grades", the auctioneer said. But the price paid was around last week levels of Rs 25 to 28 a kg.

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