The Hindu Business Line : Tea slips at Coonoor sales

PRICES at the auctions of the Coonoor Tea Trade Association (CTTA) declined on sluggish demand from the domestic buyers, poor response from the exporters and technical snag in the electronic auctions.

Domestic buyers complained that the uncertainty arising from the implementation of the VAT in some States led to uneven tax structures forcing the upcountry dealers to take a `wait-and-watch' approach. Even the corporates refrained from active purchase. Hindustan Lever Ltd picked up some medium and better liquoring brokens. Indcoserve bought some better medium smaller grades. All other corporate buyers were silent.

Exporters continued to disappoint the producers with Iraq finding a cheaper supply source from Sri Lanka. "Our principals tell us that they could buy teas from Sri Lanka for $1.45 a kg, while India quotes $1.60 to $1.70," a leading buyer told Business Line.

Buyers for Pakistani market quoted a few lines of the better made varieties. They paid around Rs 46 a kg.

There was some buying by Russia of the bolder grades. Girnar Exports and J.V. Gokul lent useful support.

As for the technical snag , the problem continued this week.

In effect, medium varieties were lower up to Rs 2 a kg over the previous week.

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