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Tea prices, which have been falling week after week over the past month, crashed to a new low this week at the auctions of the Coonoor Tea Trade Association (CTTA). The average price at Sale No: 24 this week fell to ₹77.92 a kg. This was the lowest price since November 27, 2015.
It was as much as ₹22 less per kg compared to this time last year and ₹30 less compared to the price at the beginning of 2017.
“Such low prices will reduce the return to factories. In turn, the factories will reduce the payment to small growers from whom they had bought the green leaf. Collectively, the earnings will crash for both manufacturers and growers”, said CTTA Chairman Ramesh Bhojarajan.
This week, only three CTC tea grades from bought-leaf factories managed to enter the high-price bracket of ₹200/kg.
Of them Vigneshwar Speciality tea, auctioned by Paramount Tea Marketing, topped the Dust Tea auction and the entire CTC market when Oswal Tea Traders bought it for ₹211 a kg.
In the CTC Leaf tea auction, Homedale Estate’s Broken Orange Pekoe Fanning, auctioned by Global Tea Brokers, topped at ₹203. Homedale Estate’s Broken Pekoe followed at ₹201.
Considering the falling prices, Tea Board has lowered the district average price for green leaf for June to ₹14 a kg from ₹15 in May.
Bought-leaf factories cannot pay an amount lower than this price while buying green leaf from small growers.
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