Producers who sold their teas through the auctions of Coonoor Tea Trade Association (CTTA) in the first two months of current calendar earned Rs 2.07 crore less than in the corresponding months of 2010, reveals an analysis of the Market Reports.

This is because of lower volume being sold despite prices rising marginally.

In all, eight auctions had been conducted in January and February. Totally, 7.01 million kg (mkg) was sold against 7.34 mkg in 2010. On an average, every kg fetched Rs 72.41 against Rs 71.97 last year.

This increase of 44 paise a kg was inadequate to help producers net more revenue as they sold 33 lakh kg less. Consequently, the overall turnover dropped to Rs 50.76 crore from Rs 52.83 crore. This reduction of Rs 2.07 crore marked a decline of 3.92 per cent over last year.

Orthodox

In the case of orthodox teas which are mostly exported, higher volume was sold at higher prices. The volume sold increased to 5.41 lakh kg from 5.22 lakh kg and the price fetched rose to Rs 82.09 a kg from Rs 80.78.

Ctc

In the case of CTC teas, which are mostly consumed within the country, the volume sold was less but the prices fetched were marginally more. The volume sold dropped to 6.47 mkg from 6.82 mkg. The prices increased to Rs 71.60 a kg from Rs 71.29.

Export purchases

Export purchases had been weak in the last few weeks. Purchase has practically come to a standstill for Tunisia, Egypt, Yemen, Libya, Bahrain, Jordan, Syria, Morocco, Algeria and Oman due to internal unrest in West Asian and North African countries.

This is affecting exports despite opening India Trade Promotion Centre in Cairo last year. Prolonged severe winter in Europe, the CIS, especially Russia, and parts of the USA has frozen waterways hindering tea movement. Some shippers to Pakistan are complaining of delayed payment.

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