A subdued demand from buyers dragged tea prices down at Coonoor auctions last week, with rates of many varieties ruling lower.

According to traders, the market is expecting new flush in the second week of May, prompting many buyers to wait. This may be a reason for prices to drop, traders said.

With good rains in producing centres, tea production in this season is likely to be good and traders are expecting an improvement in tea arrivals to auctions platform.

Global Tea Auctioneers said high-priced and better liquoring sorts in sale 17 in CTC leaf was lower by ₹4-5 and more at times. The better medium sorts were barely steady and were lower by ₹1-2.  

In leaf orthodox, primary whole leaf grades had fair demand and sold fully firm to dearer by ₹4 -5. Brokens had fair demand and sold fully firm to dearer by ₹2 to 3.

Also read: As growers were hit, Indian Tea Association proposes introduction of floor price

High-priced teas and better liquoring sorts in dust CTC were generally easier by ₹5 to 6. Better medium sorts were barely steady to easier by ₹1 to 2, occasionally some quality lots sold fully firm to dearer by ₹1 to 2 also. Generally, a fair demand was noticed in the overall CTC dust sale.

Record-high output

The offered quantity offered in was 9,58,983 with a sales percentage of 89 per cent. Dust market witnessed arrival of 3,42,989 and 97 per cent sold.  

Rajesh Gupta, Managing Director, Global Tea Auctioneers, said South Indian tea production reported a drop of 7 million kg to 40 million kg from January to March 2023 compared with the same period a year ago. Sri Lankan tea production also reported a drop by 4 million kg to 59 million kg.

However, Indian tea production of 77 million kg during the period was a record high due to a healthy crop in North India, he said.

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