Tea producers and traders who operated through the auctions of Coonoor Tea Trade Association (CTTA) so far this calendar have earned 3.98 per cent less than in 2018.

This happened because 25 lakh kg less tea was sold even as the average price remained flat, reveals our analysis of the Market Reports.

Till November-end, 48 auctions were conducted. To reduce unsold tea stockpile, the producers sacrificed prices.

Buyers contended that in the context of slow growth in the country’s economy, the economic and taxation policy must be revised to put in more money in their hands to help them invest in high-priced teas.

The inadequate demand resulted in the volume sold falling to 5.61 crore kg from 5.86 crore kg in January-November 2018. This is despite the producers sacrificing prices resulting in the average price hovering around the 2018 level – ₹89.89 a kg.

Consequently, the overall earnings dropped to ₹504.28 crore from ₹525.17 crore in January-November 2018. This fall of ₹20.89 crore marked a decline of 3.98 per cent.

In December, only three auctions will be held before the market closes for a fortnight for Christmas and New Year celebrations all over the world. At this rate, trading sources expect the turnover in 2019 to be around ₹545 crore compared to ₹568 crore earned in 2018.

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