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The cumulative turnover of the auctions of Coonoor Tea Trade Association (CTTA) in the first half of current calendar has fallen by 25.28 per cent compared to the same period of 2013.
This has happened because 23 lakh kg less was sold despite shedding prices by ₹19 a kg, an analysis of the market reports reveals.
Till June-end, 26 auctions had been held when both the export and domestic demand was slack.
Prolonged snowfall in the US, Europe and Japan freezing the waterways, Ukraine-Russia war-like situation, political uncertainties in West Asia and adequate availability with traders in Pakistan limited export purchases.
Most exporters picked up only low-priced teas.
In absence of competitive demand from exporters along with uncertainties associated with the Lok Sabha polls, domestic traders also kept away when the asking price was more.
Collectively, over 20 per cent of the offer remained unsold every week at CTTA auctions.
To liquidate the unsold stocks, producers reduced the average price to ₹79.47 a kg from ₹97.83 last year.
Still, the volume sold was only 2.64 crore kg against 2.87 crore kg last year.
Consequently, the cumulative turnover in the six months dropped to ₹209.80 crore from ₹280.77 crore.
This fall of ₹70.97 crore marked a decline of 25.18 per cent.
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