Commodities

Coonoor tea auction earnings increase 59% on higher demand

PS Sundar Coonoor | Updated on November 16, 2020 Published on November 16, 2020

Shortage of teas in North India due to lower production made upcountry buyers purchase more in the Coonoor auctions

Demand-inducing factors including Covid-19 have helped tea producers and traders operating through the auctions of Coonoor Tea Trade Association (CTTA) earn whopping ₹270.80 crore more till last month this year compared to the same period of 2019 – a growth of 58.86 per cent.

“Covid-19 has risen the awareness among people across the globe to strengthen their immunity and because of the general belief that tea contributes to improving immunity, the demand for quality teas at the CTTA auction from domestic and export traders increased pushing up the prices,” CTTA Chairman L Vairavan told BusinessLine.

Buyers said that they found an overall improvement in the quality of the teas offered at CTTA auctions and hence purchased more volume at higher prices. As there is a shortage of teas in North India due to lower production arising from prolonged lockdown and adverse weather, upcountry buyers bought more tea in the Coonoor auctions.

Till October end, a volume of 5.70 crore kg had been bought against 5.05 crore kg during January-October 2019. The average price increased to ₹128.23 a kg from ₹91.11.

As 65 lakh kg more tea was bought at ₹37.12 per kg more, the overall earnings rose to ₹730.91 crore from ₹460.11 crore.

This marked a whopping increase of ₹270.80 crore or 58.86 per cent in 10 months.

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Published on November 16, 2020
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