Agri Business

Tea auction earnings rise 29%

Our Correspondent Coonoor | Updated on September 28, 2021

Volume sold increases by over one crore kg

Producers and traders who operated through the auctions of Coonoor Tea Trade Association have earned ₹123.45 crore or 28.63 per cent more till last month compared to the same period of the previous calendar year.

Our analysis of market reports reveal that this happened because, despite the average price remaining almost flat, 1.09 crore kg more tea was sold.

Limited price rise

The average price, which was considerably higher in the first half of the year, suffered a down-slide from July. By August end, the average price was ₹111.18 a kg – just 58 paise more than ₹110.60 during Jan-Aug 2020.

This helped increased absorption by both exporters and upcountry traders who had shown some hesitancy to buy when the asking price was more.

Also see: To overcome labour shortage problem, Tea Board promotes mechanisation

Consequently, the volume sold rose to 4.99 crore kg from 3.90 crore kg in Jan-Aug 2020 – a significant rise of 1.09 crore kg.

The higher volume helped overall earnings rise to ₹554.79 crore from the ₹431.34 crore in Jan-Aug 2020.

This marked a significant increase of ₹123.45 crore or 28.63 per cent in earnings.

Undisturbed auctions

One factor that helped earnings rise was minimal disturbance to auctions this year unlike the last calendar year when many sales had to be shelved due to Covid lockdowns.

However, the rise in prices felt last year because of increased demand arising from the belief that tea consumption helps build immunity has waned in the second half of the current calendar.

Buyers contend that they pay prices matching the quality of teas in the market.

Published on September 28, 2021

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