The Hindu Business Line : Coonoor tea prices drop on inadequate demand

Prices dropped on the average Rs 2 a kg at the third auctions of 2008 conducted by the Coonoor Tea Trade Association (CTTA) as the demand was inadequate to absorb at high bids the volume of 9.37 lakh kg on offer.

But, plainer sorts were the favourite of those looking for teas for blending. Consequently, the lowest price increased to Rs 42 a kg from Rs 39 at which level it ruled until now.

Exports

Export purchase was subdued. Pakistan bought cleaner blacker teas paying up to Rs 51 a kg, mostly to cover the short supplies from Kenya.

“Although Mombassa auctions continued for the second week, political uncertainty affects the trade.

There, Pakistan has to pay around $2.24 a kg – some 77 cents more than this time last year.

But, strengthened orders from Pakistan are yet to come in the post-violent market trend following the murder of Ms Benazir Bhutto.

“We are doing anticipatory buying”, an exporter told Business Line.

Other importers from Mombassa have not shifted their loyalty to India and so, no new buyer operated this week. The CIS bought medium bolder grades for around Rs 46 a kg.

Corporate buyers

Among the corporate buyers, Hindustan Unilever Ltd bought better medium leaf grades, but did not operate in the dust counter.

“Better medium CTC leaf grades were lower by Rs 1-2 a kg. Orthodox leaf grades eased Rs 2-3. Some 40 per cent of this variety was withdrawn.

Orthodox dust lost Rs 5-10. High priced CTC dusts eased Rs 2-3”, an auctioneer said.

Among the CTC teas from bought-leaf factories, Darmona Estate topped with Rs 99 a kg, followed by Homedale Estate Rs 90, Selva Ganapathy Supreme Rs 86, Warwick and Ella Estate Rs 83, Green View and Deepika Supreme Rs 80.

Among the orthodox teas from corporate sector, Curzon topped with Rs 144 a kg, followed by Kodanaad Rs 132, Glendale Rs 128, Curzon, Prammas and Corsley Rs 127, Kairbetta and Tiger Hill Rs 120, Havukal Rs 119, Nonsuch Rs 109, Erinkadu and Kil Kotagiri Rs 108, Terramia Rs 106, Katary Rs 105, Coonoor Tea Estate Rs 103, Sutton, Chamraj, Pascoe’s Woodlands and Craigmore Rs 102 and Parkside Rs 100.

Quotations held by the brokers indicated bids ranging from Rs 42 to 45 a kg for the plain leaf grades and Rs 64-77 for the brighter liquoring teas.

They ranged Rs 42-45 for the plain dust grades and Rs 63-78 for the brighter liquoring teas.