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The Tea Board has fixed ₹17 a kg as the average price for green leaf to be paid to growers by bought-leaf factories in Nilgiris district in April.
“All bought-leaf factories in Nilgiris are advised to adhere to this average price while buying green leaf from the farmers. All field officials of Tea Board will ensure that no factory in their jurisdiction pays less than this average price,” Tea Board’s Factory Advisor Rakesh Taluru said.
This is the third consecutive month that the average price has been fixed at ₹17/kg. This time last year, it was ₹14.50 a kg. The highest price in 2016 was ₹16.50 in May, which tapered to ₹15-15.50 in subsequent months. It has been a meteoric rise since December 2015, when the average price was ₹12.50.
The average price for green leaf has been fixed high because the tea manufactured with it has been fetching higher prices at the auctions.
Since November 2016, the price of black tea at the auctions of Coonoor Tea Trade Association (CTTA) is ruling above ₹100/kg. In the 53 years of CTTA’s operations, prices have risen over ₹100/kg only on rare occasions. But now it has consistently been above that level for several months.
“But bought-leaf factories are facing shortage of green leaf due to drought. Factories are working only five days a week, resulting in lower production and concomitant lower earnings despite the price rise,” CTTA Chairman Ramesh Bhojarajan told BusinessLine . “The arrival of tea to the auction has been low because of reduced production. To that extent, farmers’ income has also dipped due to lower harvest despite higher average price,” he added.
About 85% tea soldMeanwhile, about 85 per cent of the 9.43 lakh kg offered for Sale No: 13 of CTTA auctions was absorbed, with the average price rising to ₹107.47 a kg from previous week’s ₹106.87.
Homedale Estate’s Broken Orange Pekoe, auctioned by Global Tea Brokers, topped the Leaf auctions and the entire CTC market when Sree Sai Corporation bought it for ₹246 a kg. This was followed by Darmona Estate’s Broken Pekoe (₹236) and Homedale Estate’s Broken Pekoe, auctioned by Global Tea Brokers (₹220).
In the CTC Dust auction, Homedale Estate’s Super Red Dust, auctioned by Global Tea Brokers, topped the sale at ₹215.
In the orthodox market, Chamraj topped the list at ₹256 a kg followed by Kodanad at ₹246.
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