Agri Business

12-week low offering at Coonoor tea sale

P. S. Sundar Coonoor | Updated on August 10, 2011

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An analysis of tea brokers' listing indicates that 15.33 lakh kg is being offered this week at Sale No: 32 of the auctions of Coonoor Tea Trade Association to be held on Thursday and Friday. This is the lowest volume of the last 12 weeks. It is 98,000 kg less than last week's offer and 87,000 kg less than the offer this time last year.

Of the 15.33 lakh kg on offer, 10.53 lakh kg belongs to the leaf grades and 4.80 lakh kg belongs to the dust grades.

As much as 14.13 lakh kg belongs to CTC variety and only 1.20 lakh kg, orthodox variety. The proportion of orthodox teas continues to be low in both the leaf and dust grades.

In the leaf counter, only 0.60 lakh kg belongs to orthodox while 9.93 lakh kg to CTC. Among the dusts, only 0.60 lakh kg belongs to orthodox while 4.20 lakh kg to CTC.

Of the 15.33 lakh kg, fresh teas account for as much as 13.57 lakh kg. About 1.76 lakh kg comprises teas which remained unsold in previous auctions.

Amidst assurance from the Commerce Minister, Mr Anand Sharma, that he would provide stimulus to the country's exporters if the situation demands in the wake of the recession in importing nations following last week's Standard and Poor's downgrading of US credit rating, tea producers are awaiting export purchases at Sale No: 32 of the auctions of Coonoor Tea Trade Association to be held on Thursday and Friday.

Last week, nearly a quarter of the offer remained unsold and in the last few days, uncertainty loomed with tea traders forced to absorb the trade shock arising from the volatility in stock markets. Indications of recovery in the bourses were visible on Wednesday and tea producers cited Mr Sharma's description of volatility as ‘temporary turbulence' to woo exporters to auctions on Thursday.

Published on August 10, 2011

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