The Hindu Business Line : Coonoor tea prices surge

THERE was an unprecedented increase in the prices at the auctions of the Coonoor Tea Trade Association (CTTA) here with many producers realising, for their select grades, as much as Rs 12-18 a kg more than the previous week. On an average, prices rose Rs 4-6.

The top prices for CTC teas were Rs 91.55 and orthodox Rs 137 a kg. The bottom level also improved to around Rs 54 a kg for the plain teas. Even the grades, which had been re-catalogued having remained unsold in the previous auctions, fetched Rs 48.

The increase has been substantial compared to the rock bottom price of Rs 20 a kg which the Coonoor auctions recorded last year. The offerings this week — 8.24 lakh kg — were the third lowest so far in 2006. The volume was 2.1 lakh kg lower than the corresponding sale of last year. The drop was due to frost.

Reports of a 25 per cent fall in the production in Kenya due to prolonged droughts activated the purchases for the Pakistani markets. "Pakistan is unable to get its full supplies from Kenya as before. Nor can it pick up Assam teas to substitute as production is yet to come to the market", a leading exporter to Pakistan told Business Line.

The exporters paid up to Rs 61 a kg. Seiwart Dholakia, Ambo Exports, JV Gokal and Madhu Jayanthi were active. On the domestic front, upcountry buyers picked up quality teas. Hindustan Lever Ltd (HLL) bought better medium grades. Darmona Estate got the highest price of Rs 91.55 a kg among the CTC teas from bought leaf factories. Homedale Estate came second at Rs 85.99, followed by Vigneshwar Estate and Hittakkal Estate at Rs 75.

Among the orthodox teas form corporate sector, Kodanaad estate got the highest price of Rs 137, followed by Curzon Rs 128, Corsely Rs 127.65, Tiger Hill Rs 123.55, Havukkal Rs 116.55, Mailoor Rs 114.35, Parkside Rs 112.99, Chamraj Rs 110, Craigmore Rs 109.65, Pascoe's Rs 107 and Colacumby Rs 101.99.

Quotations held by the brokers indicated bids ranging from Rs 48 to Rs 51 for the plain leaf grades and Rs 64-70 for the brighter liquoring grades.

Among the dust grades, the bids ranged Rs 51-56 for the plain grades and Rs 65-75 for the brighter liquoring ones.