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The turnover in the auctions of Coonoor Tea Trade Association has fallen 5.23 per cent in the first four months of the current calendar over the same period last year, reveals an analysis of the market reports.
This has happened despite fetching higher prices because less volume was sold. The demand was inadequate to absorb the teas at higher prices. When the asking price was more, only lower volume could be sold.
In all, 17 auctions had been conducted between January and April. The average price increased to Rs 70.64 a kg from Rs 67.23 last year. But this pulled down the volume sold to 1.38 crore kg from 1.53 crore kg in 2010. Consequently, the turnover dropped to Rs 97.48 crore from Rs 102.86 crore.
This decline of Rs 5.38 crore marked a fall of 5.23 per cent. This is causing concern to producers because the decline in earnings had been increasing month after month. In January end, turnover was 2.33 per cent less than January 2010. By February-end, the shortfall had increased to 3.92 per cent and to 4.68 per cent by March-end compared to the corresponding period of last year. Now, the shortfall has further risen to 5.23 per cent.
Producers contend that if this trend continues the turnover will be around Rs 12 crore less than in 2010. But already, in 2010, the turnover was Rs 23 crore less than 2009. Hence, this will result in a large cumulative loss.
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