Buoyancy continued at the auctions of Coonoor Tea Trade Association for the second consecutive week, with the average price at Sale 24 that concluded on Friday rising to the three-year high level of ₹107.01 a kg.

The previous high was ₹107.47 a kg fetched on March 30, 2017. Besides, this week was the first time the average price crossed ₹100/kg mark since April 2019. This time last year, the average price was ₹93 a kg.

Importantly, as much as 93.68 per cent of the offer was sold. Compared with last week, the average price rose by ₹7.31 a kg – from ₹99.70 a kg to ₹107.01. Nevertheless, the sale volume increased by 2.02 lakh kg – from 12.88 lakh kg to 14.90 lakh kg.

With increased volume being sold at a higher price, the overall earnings this week rose to ₹15.94 crore from last week’s ₹12.84 crore, an increase of ₹3.10 crore or as much as 24.14 per cent in just one week.

For the first time in the recent months, strong demand was felt even from States hit hard by Covid-19, including Maharashtra, Delhi, Gujarat and Punjab, besides the neighbouring states of Karnataka, Andhra Pradesh and Telangana.

“Trade is limping back to normalcy in those States and the stock with the traders has depleted with no significant business operation in the last three months. Teas from North India are expensive for many traders due to limited funds at their disposal in the wake of the lockdown. They have increased their purchase at affordable Coonoor auctions, resulting in stronger demand and higher prices,” a trader told BusinessLine.

Related Topics
comment COMMENT NOW