Lower demand and increased arrivals coupled with modification in the auction system dragged tea prices at Coonoor tea auctions, which witnessed ₹4-5 kg drop in average price realisation.
The percentage of tea sold in sale 20 was also down at 74 per cent in the leaf category compared to 86 per cent in the previous sale, while the drop in dust sales was around 16 per cent, traders said.
The drop in average price realisation in dust sales was around ₹4 at ₹109 compared to ₹113 in the previous week.
Good amount of withdrawals
According to traders, tea prices in almost all varieties of teas have dropped with a good amount of withdrawals.
They cited the modification in the auction system by the Tea Board as the reason for the downward price trend even though it has been introduced to speed up the sales process.
Global Tea Auctioneers said the quantity offered in leaf sale was 13,29,064 kg, while in dust it was 6,36,377 kg.
In CTC leaf, high-priced and better liquoring sorts were lower by ₹6 to ₹8 with some withdrawals. The better medium sorts were also easier by ₹3 to ₹4 with fair withdrawals. The mediums were also lower by ₹4 to ₹5 with a fair amount of teas being out-listed due to a lack of bids.
In leaf orthodox, the primary whole leaf grades were easier by ₹6 to ₹8, and occasionally some quality lots sold dearer by ₹4 to ₹5. The brokens were lower by ₹4 to ₹5.
The high-priced and better liquoring sorts in CTC dust were lower by ₹8 to ₹10 and more at times. The primary orthodox dust grades were generally easier by ₹5 to ₹6, while secondaries and finer dusts were barely steady to easier by ₹2 to ₹3 and more at times.
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