PRICES -- 8:

TEA BOARD FIXES ` 17/KG GREEN LEAF AVERAGE PRICE

P S SUNDAR

Tea Board has fixed ` 17 a kg as average price for green leaf to be paid to growers by bought-leaf factories in the Nilgiris district during 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 a kg. This time last year, the average price was ` 14.50 a kg. The highest price in 2016 was ` 16.50 in May which tapered to ` 15 to 15.50 in subsequent months. It has been a meteoric rise since Dec 2015 when the average price was Rs 12.50.

The average price for green leaf, the raw material for factories, has been fixed high because the tea manufactured with such green leaf has been fetching higher prices at the auctions.

Since November 2016, the average price of black tea at the auctions of Coonoor Tea Trade Association (CTTA) is ruling above ` 100 per kg. In the 53 years of CTTA, average prices had risen over ` 100/kg only on sporadic occasions but now, it is consistently above this level for some months.

“But bought-leaf factories are facing shortage of green leaf due to drought. Factories are working only for five days a week resulting in lower production and concomitant lower earnings despite price rise”, CTTA Chairman Ramesh Bhojarajan told me.

“The arrival of tea to the auction has been low because of reduced manufacture. To that extent, farmers’ income has also come down due to lower harvest despite higher average price”, he added.

85% TEA SOLD

Meanwhile, about 85 per cent of the 9.43 lakh kg offered for Sale No: 13 of Coonoor Tea Trade Association (CTTA) auctions was absorbed with average price raising 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. Darmona Estate’s Broken Pekoe (` 236) and Homedale Estate’s Broken Pekoe, auctioned by Global tea Brokers (` 220) followed it.

In the CTC Dust tea auction, Homedale Estate’s Super Red Dust, auctioned by Global Tea Brokers, topped at ` 215.

In the orthodox market, Chamraj topped at ` 256 a kg followed by Kodanad at ` 246.

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