Agri Business

Less demand despite low prices at Coonoor tea auctions

PS Sundar Coonoor | Updated on July 05, 2021

Earnings drop ₹3.50 crore in just one week

The average prices remained almost flat at Sale No: 26 of the auctions of Coonoor Tea Trade Association compared to the previous auction as the increase was just 37 paise a kg to reach ₹95.88 a kg.

To that extent, this was not only among the lowest price of all the auctions held so far this calendar but the lowest since May 15, 2020 when the average price was ₹93.93 a kg.

Despite the price crash, only 84.90 per cent of the offer was sold against 88.08 per cent sold in the previous week because of less demand for many varieties on offer. The volume sold dropped to 19.63 lakh kg from 23.37 lakh kg in the previous week.

Consequently, the overall earnings declined to ₹18.82 crore from previous week’s ₹22.32 crore. This meant a decrease of ₹3.50 crore or 15.68 per cent in the earnings in just one week.

“The CTC Pekoe Dust grade of bought leaf tea factory Homedale Tea Factory, auctioned by Global Tea Brokers, topped the entire auctions when we bought it for ₹ 317 a kg,” G Thiagarajan, Proprietor of Shree Abirami Enterprises, told BusinessLine.

“The easing of the lockdown has brightened our prospects to reach tea connoisseurs who prefer such high-priced teas which possess ‘value for money’. This tea has unique flavour, taste and appearance,” he said.

The green tea from Pascoes Woodlands, auctioned by Paramount Tea Marketing (SI) P Ltd., was bought by Radhika Traders for ₹301 per kg. No other tea could cross ₹300/kg level.

Among orthodox teas, Kodanad got ₹260, Chamraj ₹256, Glendale ₹235, Nonsuch Orthodox ₹231, Kil Kotagiri ₹216, Mailoor ₹213, Brookelands Gold ₹202 and Kairbetta ₹200.

Among other CTC teas, Crosshill Estate Special ₹233 a kg, Pinewood Estate got ₹216, Hittakkal Estate ₹210, Bellatti Estate ₹206 and Shanthi Supreme and Vigneshwar Estate ₹204 each.

Published on July 05, 2021

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