The Hindu Business Line : Q1 tea sales fetch Rs 16-cr more at Coonoor

Producers who sold their teas through the auctions of the Coonoor Tea Trade Association (CTTA) in the first quarter of 2008 have earned Rs 16.65 crore more than in the same period last year because more volume could be sold despite the asking price rising.

An analysis of the market reports shows that the average price rose to Rs 53.36 a kg from Rs 49.21 last year. Still, a volume of 9.69 million kg was sold against 7.17 million kg last year.

Consequently, the turnover rose to Rs 51.93 crore from Rs 35.28 crore, marking an increase of Rs 16.65 crore or 47.19 per cent.

The biggest increase came in the CTC teas. Here, the price rose to Rs 53.14 a kg from Rs 48.02. Still, the volume sold increased to 8.94 million kg from 6.52 million kg.

But, more volume of orthodox teas could be sold only by dropping the prices. A volume of 7.5 lakh kg of orthodox teas was sold against 6.49 lakh kg by dropping the price to an average of Rs 58.59 a kg from Rs 61.13.

Pressure from exporters

Overall, more volume could be sold because of increased pressure from exporters in March arising from a 30 per cent drop in Kenyan crop due to drought. Preliminary predictions are that the overall Kenyan output in 2008 would be 10 per cent lower than last year. The short supplies have driven the prices to a whopping $2.47 a kg forcing many low-end operators to look for other suppliers. Some such importers from Pakistan operated at Coonoor auctions firmly in March. With North Indian auctions reporting low volume being lean season and even cancelling some sales, exporters’ presence was felt more in Coonoor.

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