Commodities

Coonoor tea auction Q1 earnings fall over 28%

PS Sundar Coonoor | Updated on May 08, 2020

Earnings from the auctions of Coonoor Tea Trade Association (CTTA) in the first quarter (Q1) of current calendar have fallen by 28.17 per cent over the same period of 2019.

This has happened because 16 lakh kg less tea was sold despite the prices falling by ₹17.94 a kg, reveals an analysis of the market reports.

Till March, 12 auctions had been conducted when, to avoid the piling of unsold tea, producers sacrificed prices. The average price dropped to ₹82.21 a kg from ₹100.15 during January-March 2019. Nevertheless, the volume sold dropped to 1.12 crore kg from 1.25 crore kg in the same period.

With less tea being sold at lower price, the overall realisation in the first quarter dropped to ₹92.08 crore from ₹128.19 crore. This fall of ₹36.11 crore marked a decline of 28.17 per cent.

The auctions were held only till March 20. The Sale 13, scheduled for March 26 and 27, could not be held due to the lockdown. This was later held on April 20.

And, that was the only auction held in the whole of April.

Published on May 08, 2020

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