Commodities

Offer for Coonoor tea auctions decline sharply

PS Sundar Coonoor | Updated on January 24, 2019

The falling trend seen in the past few weeks in the volume coming up for the auctions of Coonoor Tea Trade Association continues this week when for Sale No: 4 concluding on Friday, the volume catalogued has crashed to 13.12 lakh kg.

This is as much as three lakh kg less than the offer of last week. In the last fortnight itself, the volume offered for the auctions had fallen by about six lakh kg.

Harsh winter conditions including frost attack in many low-lying areas have reduced the harvest of green leaf and hence the supply of the manufactured black tea.

Consequently, only 13.12 lakh kg is coming up for sale this week against 16.12 lakh kg last week. This is the lowest volume in the past many weeks.

Of the 13.12 lakh kg, as much as 12.11 lakh kg belongs to CTC variety and only 1.01 lakh kg, orthodox variety. The proportion of orthodox teas continues to be low in both leaf and dust grades. In the leaf counter, only 66,000 kg belongs to orthodox while 6.95 lakh kg, CTC. Among the dusts, only 35,000 kg belongs to orthodox while 5.16 lakh kg, CTC. In all, 7.61 lakh kg belongs to Leaf grades and 6.51 lakh kg, Dust grades.

Homedale Estate’s Peko Dust grade, auctioned by Global Tea Brokers, topped the entire CTC market last week when Tea Services India P Ltd bought it for ₹262 a kg. In the CTC Leaf tea auctions, Homedale Estate’s Broken Orange Pekoe Fannings grade, auctioned by Global Tea Brokers, topped at ₹215 a kg.

Quotations with the brokers indicated ₹84-90 a kg for plain Leaf grades and ₹120-135 for the best grades. For plain Dust grades, they ranged₹82-88 and for the best grades, ₹125-135.

Published on January 24, 2019

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