The Hindu Business Line : Coonoor tea prices drop

Prices once again slumped at the auctions of the Coonoor Tea Trade Association (CTTA) last week as demand was far inadequate to absorb the huge volume of 13.62 lakh kg offered, which was the second largest so far in 2006.

But, the demand continued to be sluggish resulting in the prices dropping by an average Rs 3 a kg.

When producers refused to sell at lower bids, it led to huge withdrawals.

"The medium CTC leaf grades faced a price decline of Rs 2 a kg. Substantial volumes were withdrawn.

The plainer teas were absorbed only when prices dropped Rs 3 or more. The bolder brokens lost Rs 3 -4 a kg.

Heavy withdrawals were seen on the range of orthodox leaf teas.

BOPF also witnessed sluggish demand and sold Rs 3-4 lower. Most CTC dusts lost Rs 2.

Plainer teas lost even more. Lesser high grown orthodox dusts also suffered withdrawals. Secondaries among them eased in price by Rs 4", explained an auctioneer.

Among the corporate buyers, Hindustan Lever Ltd (HLL) operated on better medium sorts.

JFK was seen supporting the bulk of brokens and fannings.

The whole leaf varieties were bought by internal dealers.

Western India buyers picked up flavoury primary orthodox dusts.

Karnataka buyers also lent useful support for this sort.

Exports

On the export front, CIS bought some medium and plainer grades at the lower end of the market.

Pakistan importers bought some clan black smaller brokens and fannings. But, in all, the purchases were restricted.

Among the CTC teas from bought leaf factories, Vigneshwar Estate got Rs 72.11 a kg, Darmona Estate Rs 70, Professor Rs 69.54, Kannavarai Estate Rs 68.04, Homedale Estate Rs 66.21, Sindu Estate Rs 66, Highfield Estate Rs 65.11 and Selva Ganapathy Supreme Rs 63.05.

Quotations held by the brokers indicated bids ranging from Rs 40 -42 a kg for the plain leaf grades and Rs 58-62 for the brighter liquoring grades.

They ranged Rs 38-40 for the plain dust grades and Rs 59-66 for the brighter liquoring grades.