COONOOR AUCTIONS -- 8 ::

CTTA EARNINGS CONTINUE TO DROP

BY P S SUNDAR

                   The cumulative turnover at Coonoor Tea Trade Association (CTTA) auctions, which had fallen below last year at July end, continued to lag behind at August end.

Till April, players at CTTA auction had earned less compared to 2014 but in May and June, they earned more.  However, by July, the earnings dropped by ` 2.32 crore or 0.89 per cent compared to 2014.

This falling trend continued last month.   Although the volume sold till August had risen over last year by 15 lakh kg, that was possible only by sacrificing prices by ` 3 per kg.

Till August end, 35 auctions had been held.  Since about 25 per cent of volume had remained unsold in most auctions, producers reduced their asking price resulting in average price falling to ` 71.49 per kg from ` 75.39.    

The lower price helped higher absorption with the volume sold rising to 4.05 crore kg from 3.90 crore kg.

Nevertheless, the overall turnover dropped to ` 289.53 crore from ` 294.02 crore. 

This fall of ` 4.49 crore marked a decline of 1.53 per cent.

Following abrasions in Indo-Pak border close to Independence Day celebrations, Pakistan, the major buyer of Nilgiri teas, has not been buying at CTTA auction.

“However, following global shortage, export demand is felt for our tea but prices are inadequate to cover raising production cost”, CTTA Chairman Ramesh Bhojarajan told me. 

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