COONOOR AUCTIONS - 9 :
COONOOR TEA AUCTION AVERAGE PRICES SCALES THREE-YEAR HIGH –
CROSSES Rs 100/KG MARK
BY P S SUNDAR
A new chapter was opened in the auctions of Coonoor Tea
Trade Association (CTTA) at Sale No: 4 which concluded on Friday with the
average price crossing `
100/kg mark for the first time in three years.
For the first time in the history
of the 53 year-old Association, average prices crossed ` 100/kg mark in 2013 reaching ` 104.11/kg at Sale
No: 10 on March 8. The average price continued
to rule above `
100/kg for eight weekly auctions till April 26.
In between, the average price rose to an all-time high of ` 110.70/kg at Sale
No: 12 on March 21. This was
significant because 2013 was CTTA’s Golden Jubilee year.
This level continued to remain
unbeaten in any of the auctions held in subsequent weeks all through 2013, 2014
and 2015. On the contrary, prices
nosedived following inadequate demand at high bids when the volume offered was
more. Consequently, the average price
in the whole of calendar 2013 was `
89.32/kg, in 2014, `
73.01 and in 2015, `
72.43.
Since the last quarter of 2015,
prices have been rising due to increase in demand and 2016 opened with the
average price ruling `
90.41/kg. This rose to Rs 95.14 in the next auction and further to ` 97.05 last
week. Now, at the fourth auction for
2016, prices have averaged `
102.88/kg. This time last year, average
price was only `
78.78/kg.
“This is a welcome development
because we have been suffering from suppressed price last couple of years. Prices have risen to this high level as there
is shortage of tea in North India where auctions have been cancelled for some
six weeks and factories are closed for want of leaves for processing. We are seeing increased demand from
upcountry buyers pushing up the prices.
We expect the market to remain buoyant at least till March end because
volumes of North Indian tea are not expected to hit the market till then”, CTTA
Chairman L C Singhania told me.
However, the low volume on offer
is causing concern to the manufacturers.
“Prices are no doubt good but the volume offered this week was the least
in two years. Factories do not have
green leaf for processing and are working only for four days a week and that
too in single shifts. Our production has fallen by 60 per cent and to that
extent, our realisation has also crashed despite average prices crossing ` 100/kg. We are also concerned that the demand for
our top quality high-grown winter teas is inadequate at high bids. We are waiting for prices for these teas to
rise by at least `
20/kg more than the current levels”, Ramesh Bhojarajan, President, The Nilgiris Bought Leaf Tea Manufacturers’ Association, said.
“We are also worried that there is
less of tea leaf for harvest. Frost in
some fields and the continuous mist for most part of this winter has affected
the healthy growth of the tea bushes.
Although the higher price at the auction may lead to increase in the
price of our green leaf purchased by factories, the take-home money for us will
be less because of low volume supplied by us”, H Thiagarajan, President, Nilgiris Small Tea Growers’ Association, said.
At Sale No: 4 this week, despite the prices rising to new high, 91 per
cent of the offer of was bought due to increased demand but because of low
offer, the overall realisation crashed to `
6.77 crore – the least since April 2, 2015.
(response can also be sent to: pssundar.coonoor@gmail.com)
No comments:
Post a Comment