The turnover at the auctions of Coonoor Tea Trade Association this week has been the lowest so far this year, reveals an analysis of the market reports.

This has happened because of lower sale volume and reduced price realisation.

The volume of 12.51 lakh kg offered itself was the lowest so far this calendar of which, 10.84 lakh kg were sold against 11.74 lakh kg in the previous week. This was the lowest volume sold so far this calendar.

The price averaged Rs 97.90 a kg against Rs 98.39 in the previous week. This was the lowest price average fetched so far this calendar except for Rs 97.53 recorded on January 18.

Consequently, the turnover dropped to Rs 10.61 crore from Rs 11.55 crore. This fall of Rs 94 lakh marked a decline of 8.14 per cent in just one week.

This was the lowest weekly turnover earned so far this calendar.

Reduced demand contained the price-rise despite a low volume on offer. Following prolonged snowfall freezing waterways and obstructing tea movement in Europe and the US, export demand was confined to plainer grades. Pakistan refrained from buying for the second consecutive week due to border tension. In the absence of competition from exporters, internal buyers were less active.

The major support to the market came from upcountry buyers who preferred brighter liquoring teas. They could buy CTC teas at an average price of Rs 98 a kg here against Rs 136 in Kolkata and orthodox teas at Rs 100 against Rs 151 there. Besides, the volume is inadequate in North India with some auctions at Kolkata listed for cancellation in March.

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