The Hindu Business Line : Coonoor tea prices drop

Prices generally dropped by Rs 2 a kg at the auctions of the Coonoor Tea Trade Association (CTTA) here on Friday as the demand failed to push up the bids for the huge volume on offer.

The volume of 14.65 lakh kgs offered was the second highest so far this year.

"Most CTC leaf grades lost Rs 1 a kg. Smaller brokens lost much more. Bolder grades could be sold only when the bids were accepted for Rs 2 lower. Most orthodox leaf grades eased by Rs 2-3. BOPFs met with sluggish demand and suffered withdrawals. Plainer CTC dusts lost Rs 1 a kg while powdery sorts eased further. Choppy residual orthodox dusts were absorbed at levels lower by Rs 3," an auctioneer told Business Line.

But brighter liquoring quality teas fetched higher prices than last week. Well-made medium sorts could fetch last levels. Whole leaf orthodox leaf grades came to a dearer market. Overall, the withdrawals were lower this week.

Exports

Pakistan was the main supporter on the export counter. While the prices paid by the exporters ranged from Rs 39 to 44 a kg, more volumes were absorbed. "This helped us to reduce the unsold stock. Pakistan was selective in the previous few weeks, but this week, it absorbed volumes," an auctioneer said. CIS bought some medium varieties. Iraqi buyers absorbed the bulk of the orthodox leaf offerings.

Among the corporate buyers, Hindustan Lever Ltd bought better medium sorts. Karnataka buyers absorbed the bulk of the plain CTC dusts. Western Indian buyers were more active this week than the recent weeks and picked up CTC leaf and orthodox dust grades.

Quotations held by the brokers indicated bids ranging from Rs 38 to 40 a kg for the plain leaf grades and Rs 56 to 62 for the brighter liquoring sorts. For the dust teas, the bids ranged from Rs 37.50-38.50 for the plain sorts and Rs 59 to 70 for the brighter liquoring sorts.