Falling prices at Coonoor sales worry tea growers

Plunging tea prices are causing concern to producers who sell their produce through the Coonoor Tea Trade Association (CTTA) auctions.

So far, 18 auctions have been conducted this calendar and, of late, prices have been falling on a weekly basis. In the last three months, average prices have dropped by ₹5 a kg.

“Last week, prices averaged ₹74.38/kg. This was the least barring the first two sales of this calendar year. Even after reducing the price by ₹2.12 over the previous week, there were no takers for 31 per cent of the offerings. So, low offtake and that too at low price is causing concern,” CTTA Chairman Ramesh Bhojarajan told BusinessLine.

Last week, only Super Red Dust grade of Darmona Tea Industry, auctioned by Paramount Tea Marketing, entered the 200-a-kg bracket when Antony Tea Traders bought it for ₹204. The highest price in Leaf auction was ₹186 fetched by Homedale Estate tea, auctioned by Global Tea Brokers.

For the past few weeks, export purchases had remained weak. Collectively, producers are stressing on measures to activate domestic and export demand as prices are currently ruling some ₹7 a kg less compared to this time last year.

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