Teas worth ₹4.76 crore remained unsold at Sale 4 of the auctions of Coonoor Tea Trade Association that concluded on Friday as there were no takers for as much as 38 per cent of the offer.

This was despite the average price crashing to ₹82.85 a kg, the lowest of all auctions held so far in calendar 2020. Unviable situations prevailing in select foreign markets pulled down the enthusiasm of exporters to bid.

“From the time the conflict between the US and Iran began, volatile situations rule the economy in Iran and most countries with which it maintains trade relationship. This has affected Iran’s purchases of tea in India,” an exporter told BusinessLine.

In particular, the orthodox teas, which Iran and connected markets prefer, have suffered. More so, the demand for medium and plainer teas has been tellingly selective.

Upcountry buyers said that based on the proactive measures the Centre announces in the forthcoming Union Budget, the tea market may look up in February and beyond.

The turnover nosedived to ₹7.64 crore from ₹8.96 crore in Sale 3. This marked a fall of as much as ₹1.32 crore or 14.77 per cent in just one week. For that matter, this was the lowest turnover of any sale in the last few years.

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