The Hindu Business Line : Coonoor tea slips on low demand

Prices fell by Rs 3 a kg over the previous week at the auctions of the Coonoor Tea Trade Association (CTTA) here yesterday, as the demand was inadequate to absorb the huge volume at higher bids.

The volume of 11.33 lakh kgs was the highest quantity to be offered so far this year. It surpassed the so far highest volume of 10.87 lakh kg of last week.

"But, such mass production brought with it a decline in quality. There were browner teas which could not fetch higher prices. So, prices were steady where the quality was retained. In some cases, where the quality was better, prices also rose", an auctioneer told Business Line.

Quality, deciding factor

Thus, while the medium and plainer CTC leaf grades were barely steady, the blacker, cleaner and smaller sorts gained Rs 2-4 a kg. This included grades like BP, BPS and fannings. On the contrary, the broken grades of orthodox leaf lost Rs 2-4. The fibrous sorts could be sold only when the prices were dropped by Rs 6. The well-made blacker medium CTC dust grades maintained their last week levels, but others shed 50 paise a kg.

Some 15 per cent of the offer could not be sold at all. Only around 4,000 kg of the total volume fetched Rs 60 or more per kg.

Exports

On the export front, Pakistan bought blacker teas for around Rs 42 a kg. Iraq picked up medium grades - BP, BOPS - for Rs 41-43. CIS was less active, while no other exporter purchased.

On the corporate buyer front, Hindustan Lever Ltd showed interest on brighter liquoring and better medium broken varieties. A. Tosh and Sons picked up whole leaf orthodox grades.

Among the CTC teas from bought-leaf factories, Darmona estate got the highest price of Rs 91.90 a kg. Homedale Estate came a distant second at Rs 73.45 followed by Highfield Estate Special at Rs 73 and Kannavarai Estate Rs 71.55.

Among the orthodox teas from the corporate sector, Prammas got the highest price of Rs 125.09 a kg followed by Kodanaad Rs 114.55, Corsely Rs 106, Curzon Rs 105 and Havukkal Rs 104.

Quotations held by the brokers indicated bids ranging from Rs 39-40 a kg for the plain leaf grades and Rs 62-68 for the brighter liquoring teas.

The bids ranged from Rs 41-42 for the plain dust grades and from Rs 64-68 for the brighter liquoring teas.