57 per cent of tea on offer unsold amid poor demand at Coonoor auction

Demand at the post Diwali auctions (Sale No: 47) of the Coonoor Tea Trade Association has been weak and despite prices dropping by as much Rs 7.76 a kg over the pre-Diwali levels, teas worth Rs 16.78 crore have remained unsold, with no takers for as much as 57 per cent of the offer.

In effect, more teas remained unsold than were sold at the auctions, forcing producers to look for buyers outside the auctions or to take up the option of re-cataloguing them for future auction.

The rising trend in Covid-19 cases in some states, including Delhi, Maharashtra, Uttar Pradesh, Punjab, Himachal Pradesh and Rajasthan, has led to trade restrictions, forcing upcountry tea buyers to adopt a ‘wait and watch’ stand.

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Also, with limited resources at their disposal following the prolonged lockdown and the festival spending, buyers have refrained from buying more teas for now.

Buyers have also been hesitant to bid high, contending that they had paid high prices in the past few weeks when buoyancy was brimming over.

Turnover drops

Collectively, the post-Diwali auction turnover dropped to Rs 12.56 crore from the pre-Diwali level of Rs 19.15 crore, marking a loss of as much as Rs 6.59 crore or 34.41 per cent.

Homedale Estate’s Superfine Red Dust grade, auctioned by Global Tea Brokers, topped the auctions this week, when GLT Enterprises bought it for Rs 291 a kg. Homedale Estate’s Pekoe Dust grad, auctioned by Global Tea Brokers, followed at Rs 273 at the dust tea auctions.

In the CTC leaf tea auctions, Homedale Estate’s Broken Orange Pekoe Fannings grade, auctioned by Global Tea Brokers, topped at Rs 280.

Among other CTC teas, Shanthi Supreme fetched Rs 241, Pinewood Estate Rs 213, Deepika Supreme Rs 211, Waver Tree Rs 210, Kannavarai Estate Rs 203 and Riverside Estate Rs 201.

Among orthodox teas, Havukal topped at Rs 231, followed by Glendale Rs 226, Kodanad Rs 221, Kairbetta Rs 216, Devashola Rs 212, Lockhart Rs 211, Goldsland Rs 210, Kil Kotagiri Rs 202 and Siruvani Rs 200.