Producers who sold teas through the auctions of Coonoor Tea Trade Association (CTTA) during January have earned Rs 67 lakh less than in January 2010, reveals an analysis of the market reports. This has happened because lower volume was sold, and prices fetched also declined.

In all, there were four auctions in January. Totally, 3.93 million kg (mkg) was sold. This was marginally lesser than 3.94 mkg sold in January 2010. On an average, every kg fetched Rs 71.34 against Rs 72.88 last year.

Consequently, turnover dropped to Rs 28.04 crore from Rs 28.71 crore. This reduction of Rs 67 lakh marked a decline of 2.33 per cent over January last year.

In the case of orthodox teas, which are mostly exported, higher volume was sold but at lower prices. The volume sold increased to 3.24 lakh kg from 2.88 lakh kg, but the price fetched dropped to Rs 78.32 a kg from Rs 80.93.

In the case of CTC teas, mostly consumed within the country, both volume sold and prices fetched were lesser. The volume sold dropped to 3.60 mkg from 3.65 mkg and prices, to Rs 70.72 a kg from Rs 72.24.

“Export purchases had been weak in the last few weeks. Volumes could be sold only when prices were lowered. Purchase has practically come to a standstill for Egypt and Tunisia due to internal unrest. Prolonged severe winter in Europe and parts of the US has frozen waterways. Producers are concerned,” Dr S. Ramu, President, The Nilgiris Bought-Leaf Tea Manufacturers' Association, (TNBTMA) and CTTA Managing Committee member, told Business Line .

“Already, turnover in 2010 had been less than 2009. Now, we have earned still lower. This trend should be arrested with aggressive marketing inducing more buyers [to] bid higher to avoid distress sales when production picks up in coming months,” Mr Ramesh Bhojarajan, TNBTMA Vice-President and CTTA Managing Committee member, said.

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