The Hindu Business Line : Coonoor tea prices decline on quality

Prices dropped at the auctions of the Coonoor Teas Trade Association (CTTA) over the weekend as the demand was inadequate to absorb the huge volume at higher bids. On the average, prices fell Rs 2 a kg over the previous week.

The volume of 11.73 lakh kg offered this week was the second largest for the whole of this year so far. Buyers complained of a general decline in quality.

"This is the problem when volume increases. Producers skip quality, but the market follows quality," an auctioneer told Business Line.

Quality teas commanded good prices. Over 10,000 kg fetched more than Rs 60 a kg. The quality teas of standard factories that have acquired a brand name for the types were sold for over Rs 70. But the medium and plain grades found no takers at high bids.

"Buyers asked for lower bids, but the producers were disinclined to sell at those prices. So, nearly 40 per cent of the offer had to be withdrawn," the auctioneer said.

Export demand was slack. Pakistan disappointed the sellers as it became choosy.

"The buyers picked up only highly black teas and not any black tea. For such teas, they paid up to Rs 55, but the volume bought declined," an auctioneer said.

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