Agri Business

Coonoor tea auction Q1 earnings fall over 28%

PS Sundar Coonoor | Updated on May 08, 2020

Earnings from the Coonoor Tea Trade Association (CTTA) auctions in the first quarter (Q1) of current calendar have fallen by 28.17 per cent over the same period last year.

This has happened because 16 lakh kg less tea was sold despite the prices falling by ₹17.94 a kg, reveals our analysis of the Market Reports.

Till March, 12 auctions had been conducted when, to avoid the piling of unsold tea, producers sacrificed prices. The average price dropped to ₹82.21 a kg from ₹100.15 during Jan-March 2019.

Nevertheless, the volume sold dropped to 1.12 crore kg from 1.25 crore kg in Jan-March 2019. With less tea being sold at lower prices, the overall realisation in the first quarter dropped to ₹92.08 crore from ₹128.19 crore. This fall of ₹36.11 crore marked a decline of 28.17 per cent.

The auctions were held only till March 20. Sale 13 scheduled for March 26 and 27 could not be held due to the lockdown. This was later held on April 20.

And, that was the only auction held in the whole of April. The CTTA dropped Sale 13 to 17. Sale 18 was held on May 2 after repeated postponement. So, the earnings at the auctions crashed drastically in April.

Published on May 08, 2020

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor