The Hindu Business Line : Coonoor tea prices dip to new low

Prices had dropped to a new low of Rs 31 a kg at Sale No: 31 of the Coonoor Tea Trade Association here as the demand was inadequate to absorb the low offer at high bids. This was the lowest price so far in 2007.

Since producers did not find it prudent to withhold stocks in the context of the falling market, they allowed most invoices to be sold. Still, some 25 per cent of the 10.75 lakh kg on offer remained unsold for want of takers.

This was the lowest volume in the last seven weeks.

Medium teas

“Better medium teas continued to suffer sluggish demand and sold Rs 2 a kg lower. Browner sorts were withdrawn for want of bids. Plainer CTC leaf lost a rupee a kg. Broken and fannings among the orthodox leaf eased Rs 2-4 a kg. Clean secondary orthodox dusts sold Rs 1-2 a kg lower” an auctioneer told Business Line.

Buyers complained of a general decline in quality and picked up quality invoices for fair prices.

“Brighter liquoring CTC dusts fetched Rs 2 a kg more. Whole leaf orthodox leaf grades fetched Rs 1-2 more. Primary orthodox dusts fetched Rs 2-3 more”, another auctioneer said. Among the corporate buyers, Hindustan Unilever Ltd selected medium teas. JV Gokal bought whole leaf and broken orthodox leaf.

Export demand

Export demand continued to be sluggish. Pakistan buyers selected blacker types for around Rs 35 a kg. CIS shippers picked up some bolder grades for around Rs 36. There was no purchase for any other country.

Among the CTC teas from bought-leaf sector, no brand touched Rs 100 a kg this week. The highest bid was for Darmona Estate at Rs 99 a kg, followed by Homedale estate Rs 90. Green View and Vigneshwar got Rs 87, Kannavarai Estate Rs 86, Highfield Rs 82, Singara Rs 81 and Warwick Rs 80.

Orthodox

Among the orthodox teas from corporate sector, Curzon got the highest price of Rs 122 a kg, followed by Mailoor Rs 113, Glendale Rs 110, Kairbetta and Kodanaad Rs 102, Corsley, Tiger Hill, Havukal and Kilkotagiri Rs 100.

Quotations held by the brokers indicated bids ranging from Rs 31-34 a kg for plain dust grades and Rs 65-85 for the brighter liquoring teas. They ranged Rs 32-34 for the plain leaf grades and Rs 65-70 for the brighter liquoring sorts.