Agri Business

Tea auction earnings rise ₹ 164 crore or 50% till July

P S SUNDAR Coonoor | Updated on August 10, 2021

Demand up to build immunity by drinking tea

July was a month of concern to the tea producers and traders who operated through the auctions of Coonoor Tea Trade Association as prices tumbled sharply.

The average price could not reach ₹100/kg in any auction in July unlike the prices ruling above that threshold in every auction until June, reveals our analysis of the Market reports.

Besides, the average prices in the different auctions in July crashed to the lowest levels of more than a year.

Consequently, the cumulative average price in the seven months of the current calendar dropped to ₹114.32 a kg from ₹120.31 until June. However, it was more than ₹100.91 a kg fetched during January-July 2020.

The lower price in July helped better sale volume. The cumulative volume sold in the seven months rose to 4.30 crore kg from 3.25 crore kg sold during January-July 2020.

The volume sold this calendar was more also because there was only a skeleton disturbance to auction unlike last year when many auctions had to be cancelled due to lockdown restrictions.

Immunity booster tag

In most months this calendar, the demand from both upcountry buyers and exporters was more because of the rise in intake at consumers’ households in the backdrop of a general belief that tea helps to build immunity during the pandemic.

With 1.05 crore kg more tea being sold even as the average price rising ₹13.41 a kg, the overall earnings posted a significant increase in the seven months compared to last year.

The earnings in the seven months rose to ₹491.58 crore from ₹327.96 crore in January-July 2020.

This whopping increase of ₹163.62 crore marked an impressive gain of 49.89 per cent.

If this trend were to continue in the next five months, the overall earnings this calendar would be as much as ₹320 crore more than 2020, traders opine.

Published on August 10, 2021

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