The Hindu Business Line : Low volume on offer at Coonoor tea auctions

For the third consecutive week, the volume on offer for sale at the Coonoor Tea Trade Association (CTTA) auctions will be lower this week. The volume on offer has fallen to 10.69 kgs.

This is the lowest volume in the last 10 weeks. The previous low was on April 27 when the volume totalled 8.8 lakh kgs. It is said that erratic rains and high velocity winds have reduced harvests in many tea pockets in the Nilgiris leading to lower offer.Of the 10.69 lakh kgs, as much as 7.48 lakh kgs belong to leaf grades and the remaining 3.81-lakh kgs dust grades. Again, as much as 10.05 lakh kgs belong to the CTC variety and the remaining 0.64-lakh kgs orthodox variety.

Price movement

Even among the leaf grades, the orthodox variety is only 0.29 lakh kgs, while the CTC is 7.19 lakh kgs. Similarly, among the dust grade, the orthodox variety is only 0.35 lakh kgs, while the CTC is 2.86 lakh kgs.

Despite lower volume, the movement of the prices will depend on the response from upcountry markets. Last week, although the volume offered was low, prices fell by Rs 2 a kg as buyers for Maharashtra, Gujarat and Uttar Pradesh markets refrained from active purchases contending floods there as a deterrent to normal business.

"Some of our principals have lost the stock. In some cases, business has not taken place at the retail end. And, there are difficulties in the movement of the teas with water blocking the roads in many upcountry belts.