The Hindu Business Line : Prices decline in Kolkata, Guwahati tea auctions

Kolkata May 13 CTC leaf and dust teas at Guwahati and Kolkata auctions were in good demand with prices following a decline in quality. At the Siliguri auction on Thursday, there was a change in market trends with improved demand, and as a result, the prices were firm to dearer. At all the three centres, the domestic loose tea buyers were active, with selective export inquiry on bolder brokens.

Darjeeling teas met with good demand, but prices were lower following quality. The traditional exporters as well as those to the UK and the Continent operated.

Orthodox teas

Orthodox teas were also in good demand with the prices of all the clean and better categories ruling firm to dearer except the larger brokens that sold at irregular levels. For the remainder, the prices followed the decline in quality. The shippers for the CIS countries were active with fair support from those for the West Asia.

PRODUCTION TRENDS

The production in all the growing regions in the North East has suffered due to the prevailing high temperatures. The Tea Board recently released the crop figures for March showing a decline in production by an estimated 7.4 mkg. However, the exports in March recorded a healthy increase of 5.5 mkg over the corresponding month in the previous year.

The all India auction average from January to March 2007 shows an increase of Rs 1.85 per kg over the same period of the previous year. The prices are expected to be dearer in next two months.