COONOOR AUCTION -- 7 ::

CTTA TURNOVER FALLS AGAIN

BY P S SUNDAR

                The cumulative turnover at Coonoor Tea Trade Association (CTTA) auctions, which had shown rising trends over 2014 two months, has once again fallen below last year by July end.

Till April end, players at CTTA auction had earned less compared to 2014 but in May and June end, they heaved a sigh of relief with earnings rising over 2014.

The relief was short-lived.   Although the volume sold has risen over last year by 20 lakh kg, that was possible only by sacrificing prices by ` 5 per kg.

Till July, 31 auctions had been held.  Since about 25 per cent of the volume offered had remained unsold in most auctions, producers reduced the asking price to encourage consumption.   This resulted in average price to fall to ` 72.24 per kg from ` 77.20.  

The lower price helped higher absorption with the volume sold rising to 3.58 crore kg from 3.38 crore kg.

Nevertheless, the overall turnover dropped to ` 258.62 crore from ` 260.94 crore. 

This fall of ` 2.32 crore marked a marginal decline of 0.89 per cent.

However, Pakistan, the major buyer of Nilgiri teas, has not been showing interest in the last couple of weeks.

The abrasion in Indo-Pak border close to Independence Day celebrations has upset trade sentiment.   Last week, there was no mentionable purchase for Pakistan.

“On Thursday also, there was no active purchase for Pakistan.  We are taking a ‘wait and watch’ approach before investing”, an exporter told me. 

(response can also be sent to: pssundar.coonoor@gmail.com)