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At Sale No: 27 of Coonoor Tea Trade Association auction, average price plummeted to year’s lowest level of Rs 91.23 a kg barring Rs 90.65 recorded on May 7.
The price had averaged Rs 92.04 last week.
Prices dropped because of inadequate demand to absorb the year’s highest offer of 20.27 lakh kg.
As much as 32 per cent of the offer remained unsold for want of buyers despite shedding prices.
The export demand was weak. There was no purchase for Egypt due to the ongoing political crisis there.
In the past few weeks, Pakistan has been buying tea from Kenya where production has increased by 67 million kg over last year.
This week, there was only scanty purchase for Pakistan.
The CIS demanded tea for around Rs 71 – some Rs 20 less than the auction average.
Even some European countries were prepared to pay only Rs 75 due to economic crisis there.
With less competition from exporters, domestic buyers were also less active.
Besides, the devastating floods of North reduced demand from upcountry buyers.
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