COONOOR TEA AUCTIONS – 5:

 

26% COONOOR TEA REMAINS UNSOLD

 

 

By P S SUNDAR

 

 

The average price at Sale No: 27 of the auctions of Coonoor Tea Trade Association remained almost flat at ₹ 77.56 a kg but the sold volume dropped to 17.72 lakh kg from 19.17 lakh kg in the previous auctions resulting in the overall earnings to decline to ₹ 13.74 crore from ₹ 14.88 crore, marking a fall of ₹ 1.14 crore or 7.66 per cent in just one week.

This left teas worth ₹ 4.74 crore unsold as there were no takers for about 26 per cent of the offer.

This week also, no tea could enter the ₹ 300/kg bracket.

Homedale Estate’s Red Dust grade, auctioned by Global Tea Auctioneers Private Ltd., (GTAPL) topped the auctions when Benniel and Co., bought it for ₹ 290 a kg.

Homedale Estate’s Broken Orange Pekoe (BOP) grade, auctioned by GTAPL, topped the CTC leaf auctions fetching ₹ 256.   Crosshill Estate Special BOP, auctioned by GTAPL, got ₹ 255. 

Among other CTC teas, Shanthi Supreme got ₹ 226, Kannavarai Estate ₹ 225, Vigneshwar Estate ₹ 223, Deepika Supreme ₹ 221, Pinewood Estate ₹ 213, Riverside Estate ₹ 211, Hiribel Estate ₹ 203 and Bellatti Estate ₹ 202.

Among orthodox teas, Havukal got ₹ 282, Kairbetta ₹ 270, Chamraj ₹ 267, Nonsuch Orthodox ₹ 208 and Kodanad ₹ 205.   

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

 

 

 

 PRODUCTION -- 31:

INDIA PUSHES UP GLOBAL BLACK TEA OUTPUT DESPITE LOSS IN SL, KENYA

 

By P S SUNDAR

 

India has helped to overcome the loss in global black tea production in other major countries like Sri Lanka and Kenya and register an increase over the same period of last year.

 

Compiler of Global Tea Digest Rajesh Gupta told me, “Our compilation of the official data received from various countries shows that the global black tea production so far this year has increased to 600.89 million kg (mkg) from 586.61 mkg in 2021.  This increase of 14.28 mkg posts a gain of 2.43 per cent”.

 

Achieving a higher production has been a serious task because of lower output in many countries.

 

“In particular, Sri Lanka, which is reeling under economic crisis, produced 111.95 mkg against 133.81 mkg in 2021, marking a major decline of 21.86 mkg or 16.34 per cent”, Rajesh Gupta said.

 

“In Kenya, due to adverse weather, production dropped to 135.82 mkg from 140.97 mkg, posting a loss of 5.15 mkg or 3.65 per cent”, he said.

 

Malawi also posted a decline – from 28.82 mkg to 26 mkg, a fall of 2.82 mkg or 9.78 per cent, he noted.

 

However, all these losses were offset by the significant increase in India’s tea production.

 

“Our compilations of the latest data from Tea Board shows that production has risen to 320.06 mkg from 277.09 mkg.   This increase of 42.97 mkg marked a gain of 15.51 per cent.   This meant that increase in India’s production was more than the loss in Kenya, Sri Lanka and Malawi”, Rajesh Gupta explained.

 

India’s production would have been still higher had it not been for a fall in Tamil Nadu due to adverse weather.    “In Tamil Nadu, the output dropped to 63.40 mkg from 68.58 mkg – a fall of 5.18 mkg or 7.55 per cent”, Rajesh Gupta disclosed.  

 

“This pulled down the South India’s overall production to 94.67 mkg from 97.47 mkg, marking a decline of 2.80 mkg or 2.87 per cent”, he said.

 

“North India, on the other hand, produced 45.77 mkg or 25.48 per cent more to reach 225.39 mkg from 179.62 mkg”, he observed.  All regions here produced more except Dooars where the output dropped marginally.

 

Assam continued to top the country’s production table.  With an output of 127.76 mkg, Assam produced 38.85 mkg or 43.70 per cent more than last year’s 88.91 mkg, Rajesh Gupta revealed.

 

West Bengal’s production rose to 91.70 mkg from 85.11 mkg – an increase of 6.59 mkg or 7.74 per cent. 

 

(Response can also be sent to: pssundar.coonor@gmail.com) 

 

 

 

 

 FOR THE RECORD -- 93:

CUTTING TEA CONSUMPTION IN PAKISTAN ..

MAXIMUM RESIDUE LEVEL..

INDIA'S TEA OUTPUT RISING..

GLOBAL BLACK TEA PRODUCTION FALLING..

TEA BOARD FIXING GREEN LEAF PRICE..

(Articles in The Assam Review & Tea News, June 2022)

By P S SUNDAR.

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

 

COONOOR TEA AUCTIONS – 4:

 

NO TEA CROSSES ₹ 300/KG MARK

 

 

By P S SUNDAR

 

As producers left the market to the forces of demand and supply in Sale No: 26 of the auctions of Coonoor Tea Trade Association as against the fixing of the base price of ₹ 85 a kg in the previous Sale, 79.74 per cent of the 24.49 lakh kg on offer was sold as against 30.23 per cent in the previous week.

 

The average price dropped sharply to ₹ 77.60 a kg from ₹ 92.92 in the previous Sale.   In effect, teas worth ₹ 14.88 crore was sold marking an increase of ₹ 7.84 crore over the previous week.   This also mean a whopping increase of 111.36 per cent in just one week!

 

However, this left teas worth ₹ 3.78 crore unsold because there were no takers for as much as about 20 per cent of the offer.

 

No tea could enter the ₹ 300/kg bracket this week.  Kodanad orthodox tea topped the auctions at ₹ 273 a kg.  Among other orthodox teas, Havukal got ₹ 262, Kairbetta ₹ 241 and Glendale ₹ 240.

 

Among CTC teas, Crosshill Estate tea, auctioned by Global tea Auctioneers Pvt Ltd., topped when Nishanthi Traders bought it for ₹ 241 a kg.    Darmona Estate, Bathma Excel and Kannavarai Estate got ₹ 205 each and Shanthi Supreme ₹ 202. 

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

GREEN LEAF PRICE -- 1 

TEA BOARD FIXES GREEN LEAF PRICE AT OVER 2-YEAR LOW

 

 by P S SUNDAR 

 

Dr M Muthukumar IAS, Executive Director of Tea Board in the Union Commerce ministry has announced that the factories which purchased their raw material (popularly called bought leaf factories) green leaf from the small growers in The Nilgiris district in June must pay ₹ 12.68 per kg.

 

He has instructed field officials of the Board to ensure that no factory in their jurisdiction paid less than this price to the growers. 

 

However, this is the lowest price of more than two years.   The previous low was ₹ 12.19 per kg fixed way back in April 2020.

 

This is ₹ 1.17 less per kg compared to the price fixed for May.  That means, the average price has fallen by 8.45 per cent in one month.

 

This is as much as ₹ 7.24 less per kg compared to ₹ 19.92 fixed in June 2021.   That means, the price has crashed by as much as 36.35 per cent compared to this time last year.

 

Factory owners, however, contend that just as the Board fixes the price they have to pay to the growers, the Board must fix a minimum price for their tea at the public auction.

 

The President of The Nilgiris Bought Leaf Tea Manufacturers’ Association Dhananjayan said that unless the tea fetches a minimum of ₹ 85 per kg at the auction, factories will not be able to cover their production cost asper the price sharing formula fixed by the Tea Board.

 

The small growers are a worried lot.  Some of them hoisted black flags in their villages and destroyed their green leaf instead of supplying to the factories to protest the unremunerative price they get.

 

Dr Muthukumar said, “The price has been fixed based on the consolidated auction sale average price of the relevant teas of bought leaf factories”. 

 

He as assured to solve the problem of low prices after discussing with the stakeholders.

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

HAPPENING -- 9:

STORM IN THE TEA CUP:

FACTORY OWNERS WORRIED; GROWERS AGITATED

 

By P S SUNDAR 

 

The nearly one lakh members of the tea small grower families in The Nilgiris are now a worried lot as the factories (popularly called bought-leaf factories) to which they supply their green leaf have expressed their inability to pay the price fixed by Tea Board.

 

Factory owners are frustrated that the price they get for their teas at the public auctions are inadequate to cover their cost of production.   They are also concerned that substantial volumes of the teas are remaining unsold at the auctions.

 

The Nilgiris Bought Leaf Tea manufacturers’ Association has informed the Joint Secretary of plantations in Union Commerce Ministry Diwakar Nath Misra that the average price at the auctions of Coonoor Tea Trade Association has crashed to ₹ 78 per kg from ₹ 122 this time last year.

 

“It was highlighted that in the prevailing circumstances, unless the tea sells above ₹ 90 per kg at the auctions, we would not able to cover the cost of production as per the price sharing formula fixed by the Tea Board”, Association President Dhananjayan said.

 

The Association conducted an all-members emergency meeting and decided to fix the basic price at the auction at ₹ 85 per kg, he said.

 

However, this seriously affected the sale at this week’s auctions since teas worth a whopping ₹ 16.27 crore remained unsold as there were no takers for as much as 70 per cent of the 7.58 lakh kg which was offered. 

 

As factory owners sent the message that they cannot pay the small growers the price fixed by Tea Board unless they get this average price, some small growers hoisted black flag on their houses and destroyed their green leaf without supplying to the factories.   

 

When contacted Tea Board’s Executive Director for South Zone, Dr M Muthukumar IAS told me, “I have taken over the office only now.  I am already examining the issue to find an amicable solution after consulting the stakeholders”.

 

Among the 30 per cent tea which was sold this week, the average price was ₹ 92.92 per kg and Homedale Estate tea, auctioned by Global Tea Auctioneers Pvt Ltd., topped when Badhusha Tea Company bought it for a significant price of ₹ 314 per kg.   This was the only tea which crossed ₹ 300/kg level.

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

COONOOR TEA AUCTIONS -- 2:

IMPROVEMENT IN EARNINGS 

By P S SUNDAR

Sale No: 20 of the auctions of Coonoor Tea Trade Association which concluded just a day before the International Tea Day (May 21) brought in some relief to the beleaguered producers and traders as there was an improvement in the overall earnings.

 

Considering that nearly 23 per cent of the offer had remained unsold in sale No: 19, it was a relief that nearly 82 per cent was sold in Sale No: 20.

 

However, this could be achieved only by sacrificing the asking price.  The average price dropped to ₹ 87.56 a kg from ₹ 89.01.  

 

The lower price helped the volume sold to rise to 16.45 lakh kg from 13.48 lakh kg.

 

As increased volume was sold which overtook the loss in price, the overall earnings rose to ₹ 14.40 crore from ₹ 11.99 crore, marking a gain of ₹ 2.40 crore or 20.10 per cent in just one week. 

 

This week, exporters’ purchase was better.   “Strong export enquiry was seen for Orthodox leaf and CTC dust and leaf.  With major blenders and upcountry buyers lending support to this, the overall demand showed marked improvement”, Ravichandran Broos, Vice President, Paramount Tea Marketing (SI) Pvt Ltd., said.

 

Homedale Estate teas continued to top the auctions.  Homedale Pekoe Dust grade, auctioned by Global Tea Auctioneers Pvt Ltd., (GTAPL), topped the entire auctions when Viaan Impex bought it for ₹ 355 a kg.   Crosshill Estate Special, auctioned by GTAPL, followed at ₹ 311.

 

In the Leaf tea auctions, two grades of Homedale Estate, auctioned by GTAPL, topped at ₹ 310 and 305 each.

 

Among other CTC teas, Darmona Estate got ₹ 243, Hiribel Excel ₹ 230, Pinewood Estate ₹ 221, Vigneshwar Estate ₹ 217, Shanthi Supreme ₹ 215, Hittakkal Estate ₹ 214 and Kannavarai Estate ₹ 203.

 

Among orthodox teas, Kodanad got ₹ 255, Kairbetta ₹ 247, Havukal ₹ 237, Glendale ₹ 213, Chamraj ₹ 204, Corsley ₹ 203 and Nonsuch Orthodox ₹ 203.

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

REPRESENTATION -- 1

UPASI URGES TN GOVT TO REGULARISE FERTILISER SUPPLY

By P S SUNDAR 

Even as summer showers brought in welcome ambiance in different parts of Tamil Nadu, tea planters in Nilgiris and Anamalai regions are a worried lot because there is acute shortage of fertilisers especially Urea and Muriate of Potash.(MOP)

P P Cherian, President United Planters’ Association of Southern India (UPASI), said that the problem is more due to distribution hurdles  in the State.

He said that Nitrogen is the major nutrient for tea and its deficiency will lead to susceptibility to pest and disease as also deterioration in the quantity and quality of tea.    So adequate application of Urea and MOP should be facilitated.

He said that these fertilisers are applied after the rains in April, May, June, September, October and November. Timely application for at least five times a year is necessary.

The UPASI President said that lack of fertiliser is affecting the production and employment potential in Tamil Nadu Plantation. This is significant because Tamil Nadu accounts for 71.2 per cent of South India’s production.

Observing that both Nitrogen and Potassium are equally important for sustainable yield, he said that UPASI has been representing for adequate supply of them to the union Ministry of Chemical and Fertiliser.

However, the State Government of Tamil Nadu has not attached due importance for the distribution these fertilisers which is paralysing the tea Industry which is plagued by high wages and increased production cost.

The UPASI President said that immediate attention towards this is necessary for the survival of the tea industry in Tamil Nadu.

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

FOR THE RECORD -- 92:

 BHARAT AUCTION LAUNCHED IN SOUTH INDIA..

CROSSHILL SETS UP NEW PRICE RECORD ..

INDIA'S TEA PRODUCITON RISES ..

MORE BLACK TEA IN THE WORLD..

BLISTER BLIGHT IN THE NILGIRIS..

MIXED FORTUNE FOR TEA EXPORTS..

LESS EARNINGS AT CTTA AUCTIONS..

TEA BOARD FIXES UP GREEN LEAF PRICE AT MONTH END ..

(Articles in The Assam Review & Tea News, Jan 2022)

By P S SUNDAR

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

 COONOOR TEA AUCTIONS -- 1:

NO TAKERS FOR 21% COONOOR TEAS:

EXPORT PARTICIPATION WAS SELECTIVE

 

P S SUNDAR

 

Teas worth ₹ 2.67 crore remained unsold at Sale No: 5 of the auctions of Coonoor Tea Trade Association (CTTA) as there were no takers for as much as 21 per cent of the offer.   In particular, the export participation was selective causing withdrawal in many lots.   

 

“Exporters are a worried lot now.   The Russia-Ukraine situation is escalating causing uncertainly in trade.   Orders from importers in Russia and the rest of CIS as also many European countries have practically dried up”, L Vairavan, an exporter told me. . 

 

“Besides, the heavy snowfall resulting in different states declaring emergency situation in the USA is hitting tea shipment prospects.  Tea exporters are concerned that their consignment might not reach the destination with frozen water and roadways”, he pointed out.

 

“Now, Canada is facing emergency due to massive agitation against the Government’s orders on mandatory vaccination against Covid which also causes ‘withdrawal symptoms’ among tea exporters here”, he noted.

 

“The only Silverline in the otherwise gloomy export front is the upswing in demand for Indian teas because of the economic emergency in Sri Lanka whose tea exports are facing threat but given the volatile situation throughout, exporters here are unable to cash in on this immediately”, observed Vairavan who is the immediate past Chairman of CTTA.

 

“The inconsistency in the screen display of the auction lots due to cloud server issues in the newly introduced Bharath Auction module is also affecting exporters’ active participation”, he observed.

 

“Our Broken Pekoe grade, auctioned by Global Tea Auctioneers Pvt Ltd.,  (GTAPL), helped us create a new price record when Tea Services India Pvt Ltd., bought it for ₹ 395 a kg.  This is the highest price fetched by any of our teas since manufacturing started in our factory in 1949”, Homedale Tea Factory’s Managing Partner Raman Menon said.

 

In the CTC dust auction, two grades of Homedale, auctioned by GTAPL, topped fetching ₹ 375 and ₹ 371 each.

 

Two grades Crosshill Estate Special, auctioned by GTAPL, fetched ₹ 331 and ₹ 300 each.  All other CTC teas fetched below ₹ 300/kg.

 

Among orthodox teas, Kodanad was the only one to cross ₹ 300/kg when it reached ₹ 311. 

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