The Hindu Business Line : Coonoor tea prices fall on sluggish demand

TEA prices dropped by Rs 3 per kg on an average over last week when a volume of 16.65 lakh kg comprising 12.29 lakh kg leaf and 4.36 lakh kg dusts was offered for sale at the auctions conducted by the Coonoor Tea Trade Association here on Friday.

"The demand was generally lower than last week. In particular, we had difficulty in selling dust grades, as the demand was sluggish from both the domestic and export buyers. On the whole, some 40 per cent of the teas offered were withdrawn for want of adequate bids," an auctioneer told Business Line.

While Hindustan Lever Ltd selected better medium varieties, Tata Tea bought some select grades.

Exporters to Pakistan were seen scouting for better-made smaller grades and bought them from Rs 37-40 per kg. While shippers for Iraq purchased brokens for around Rs 40, those for Russia bought grades such as Pekoes and SBOPs for around Rs 37.

The internal market was rather subdued. The buyers for Maharashtra and Gujarat said that because of the dislocation in business and the loss arising from the recent floods, there was a cash crunch.

Arising from low demand, the bright liquoring sorts lost Rs 2 per kg over the previous week. The medium and plainer teas lost Rs 3.

Among the CTC teas from bought leaf factories, Darmona Estate topped at Rs 79 a kg, while Vigneshwar Estate came second at Rs 67, followed by Hittakkal Estates at Rs 62.

Quotations held by brokers indicated a range of Rs 20-23 a kg for the plain grades and Rs 58-66 for the bright liquoring teas. For the plain leaf grades, the bids ranged from Rs 22-25, and for the bright liquoring ones Rs 55-62.

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