The Hindu Business Line : Demand for quality tea at Coonoor sales

COONOOR tea auctions were closed on Thursday on account of Republic Day. The auctions scheduled for the day would be held on Friday. The sale of dust grades would be held on Saturday.

In all, a volume of 8.4 lakh kg — some 28,000 kg more than last week — has been catalogued. Of them, as much as 6.2 lakh kg belong to the leaf grades and 2.2 lakh kg, the dust grades.

Again, as much as 7.75 lakh kg belong to the CTC variety and only 0.65 lakh kg, the orthodox variety.

During last year's corresponding sale, as much as 11.13 lakh kg were offered. Despite a lower offer, prices have taken a beating in the last two auctions as the demand was inadequate.

In the last fortnight, prices have fallen Rs 6 a kg compared to the opening sale of 2006.

"Export purchases had practically reduced. Barring some sporadic pick up by Pakistan, there have been no mentionable purchases. News has come in that Iran is buying from Sri Lanka, while Russia holds sufficient stocks to face the winter. This casts a heavy dependence on the upcountry purchasers," an auctioneer told Business Line.

But, even in the domestic market, there is hardly any noticeable improvement in the purchase of plain teas.

Around 40 per cent of such teas had suffered withdrawals in this year's auctions.

On the other hand, quality teas are fetching premium prices. Good liquoring teas fetch higher prices and some orthodox teas from the corporate sector are in great demand.