Tea auction in Kolkata will not take place for three weeks between end-February and March, anticipating inadequate offerings from growers in the North Indian region.

The Calcutta Tea Traders Association (CTTA), which conducts auction in Kolkata, has decided to drop auction process at Sale No 9, 11 and 12, since offerings in these three weeks are expected to be lower, an official said.

According to sources, the other two auction centres – Guwahati and Siliguri – are expected to take a call this week on cancelling auction on the same grounds.

Weaker demand

This week (Sale No 4), there was a mixed trend in tea prices in the North India market compared with last week’s sale.

While prices were stable at the largest CTC market at Guwahati, Siliguri witnessed a marginal decline (CTC leaf). On the contrary, there was a 9.5 per cent drop in orthodox prices at Kolkata owing to end-season quality concerns and lower offtake by merchant exporters.

According to an industry insider, prices would have dropped further unless a section of buyers from Bihar and West Bengal picked up buying of cheaper teas.

“Prices are likely to remain under pressure till the first flush crop arrives in early March,” a Kolkata-based tea company official told Business Line.

Prices

While the average price of CTC leaf at the Kolkata centre was ₹129.25 a kg (₹132.58), average price for orthodox ruled at ₹122.92 (₹135.72). Only CTC dust average price at Guwahati centre was up. The average price of CTC leaf and dust ruled at ₹108.26 (₹108.77) and ₹106.95 (₹105.98). Average price of CTC leaf and dust stood at ₹110.58 (₹113.16) and ₹111.76 a kg (₹117), respectively.

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