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Tea producers and traders in the Nilgiris, the largest tea growing district in the South, are worried over lower earnings this year.
At Coonoor Tea Trade Association auctions, the volume sold has fallen by 3.29 lakh kg despite the average price falling by ₹5/kg, reflecting the absence of activated demand to absorb tea at high prices.
Till February-end, nine auctions were conducted with 9.47 million kg (mkg) being sold against 9.80 mkg in the same period a year ago.
Even this volume could be sold only when price dropped to an average ₹77.45 a kg from ₹82.44 last year.
Consequently, overall earnings in first two months of this year dropped to ₹73.35 crore from last year’s ₹80.79 crore.
This fall of ₹7.44 crore marks a decline of 9.21 per cent. This trend has been continuing in March as well.
Auctioneers fear that first quarter earnings will be 10 per cent less than last year.
Already, 2014 was bad for Nilgiris tea with overall turnover falling ₹112 crore from 2013. Now, 2015 is heading for still lower earnings.
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