The 12-day long riot in Assam has resulted in a rise in Nilgiri tea prices although reports have it that the riots have not directly affected the movement of Assam tea.

There is a noticeable increase in the demand for Nilgiri tea from upcountry buyers. “It is all right to contend that tea movement has not been hit in Assam but until normalcy returns, we don’t see wisdom in investing on teas there. We are procuring teas from other markets, the Nilgiris included, to sustain our business”, a trader told Business Line .

Following higher demand, prices have moved up at the auctions of Coonoor Tea Trade Association. Prices now average Rs 78.58 a kg against Rs 76.43 a fortnight ago, that is, before the Assam riots. In particular, prices of dust grades have risen sharply from Rs 77.45 a kg to Rs 81.83. The prices of leaf grades have risen to Rs 77.48 from Rs 76.07.

“Internal buyers are fairly active in both the dust and leaf auctions. They have been exerting marked pressure on exporters as well,” an auctioneer said.

Collectively, about 93 per cent of the teas on offer were sold at this week’s auction against about 90 per cent last week and 89 per cent a fortnight ago.

This week 81 marks of CTC teas got Rs 100 and more. Homedale Estate tea, auctioned by Global Tea Brokers, topped the CTC market at Rs 155 a kg. Darmona Estate got Rs 151, Vigneshwar Estate Rs 147, Shanthi Supreme Rs 140, Blue Monte Speciality Rs 137 and Professor Rs 134. Among orthodox teas from corporate sector, 34 marks got Rs 100 and more. Chamraj got Rs 208, Curzon Rs 166, Havukal Rs 161, Kairbetta Rs 158, Glendale Rs 150, Devashola and Highfield Estate Rs 146 each and Corsley Rs 134.

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