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)

 FOR THE REOCRD -- 91:

TEA GASTRONOMY AT GATEWAY HOTEL, COONOOR..

INDIA PRODUCES MORE TEA..

WORLD BLACK TEA OUTPUT RISES..

AUCTION EARNINGS FALL..

TEA BOARD ANNOUNCES YEAR'S LOWEST PRICE FOR GREEN LEAF..

STASI TO HOLD A NATIONAL CONFERENCE..

MAN-WILD ANIMAL CONFLICT CAUSING CONCERN..

DAUGHTERS OF TEA INDUSTRY BENEFIT FROM PROVIDENCE COLLEGE PROGRAMMES..

(articles in The Assam Review & Tea News, Nov 2021)

By P S SUNDAR

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

 EXPORTS -- 3

OMICRON VARIANT THREAT MAY HIT INDIA’S WINTER TEA EXPORTS:

LOW CHRISTMAS SALES FEARED

 

By P S SUNDAR

 

The threat of various stages of lockdown and closure of entry for foreigners and foreign goods in many countries due to the now-spreading Omicron variant of coronavirus is causing a new challenge and concern to India’s tea exports.

 

“Although it is too early to gauge the impact of Omicron on India’s tea shipments, we are concerned that Christmas markets are being closed in some European countries for fear of the spread of coronavirus in any variant form.  Over a dozen countries have taken precautionary measures to close borders at least for a few days now”, L Vairavan, an exporter told me.    

 

“Some parts of Germany have announced that rising Covid-19 cases is causing so much concern that protecting people is their priority for which lockdown is imposed.  We fear that this will have a cascading impact in other parts of Europe as well.  Transport restrictions mean lesser possibility to export tea”, he said.

 

Generally, when winter builds up in Europe and more so in the CIS with waterways freezing, transportation becomes difficult and tea exports suffer.   Last year also, Covid lockdown along with harsh winter in such countries affected smooth trade for Indian tea.

 

“Many countries used to import our tea ahead of Christmas to build stocks during harsh winter but this year, exporters had a testing time with shortage of sea containers and prohibitive transportation cost.   In some cases, importers pointed out that transportation cost was more than the tea in the container”, Vairavan said.

 

Till August, the latest period for which Tea Board’s official data are available, the price of exported Indian tea rose to an average of ₹ 272.92 a kg from 230.84 in Jan-Aug 2020, marking an increase of 18.23 per cent.

 

But, the higher price pulled down the volume shipped to 118.84 million kg (mkg) from 134.47 mkg in Jan-Aug 2020 – a decline of 11.62 per cent.  

 

However, because of the higher price, the overall earnings from exports rose to ₹ 3,243.37 crore from ₹ 3,140.04 crore in Jan-Aug 2020 – a gain of 4.49 per cent.

 

Germany matters a lot to Indian tea exports price-wise and earnings-wise.   Germany is among the few countries which bought a higher volume of tea from India this year paying a higher price than last year.   This year, Germany imported 5.78 mkg (Jan- Aug: 5.16 mkg) at ₹ 343.84 a kg (₹ 250.47 a kg) spending ₹ 198.74 crore (₹ 129.24 crore).

 

The CIS continued to top India’s tea export table but with a lower volume, price and value than last calendar.   CIS imported 28.18 mkg (34.51 mkg) at ₹ 188.44 a kg (₹ 164.97) spending ₹ 531.02 crore (₹ 569.32).

 

Volume-wise, Iran followed at 15.47 mkg (23.87 mkg) paying ₹ 254.74 a kg (₹ 267.23) and spending ₹ 394.08 crore (₹ 637.87 crore).

 

Price-wise, Ireland paid the highest price of ₹ 748.65 a kg (₹ 742.59).

 

Value-wise, next to the CIS, the USA topped at ₹ 408.23 crore (₹ 254.40 crore).

also reachable by clicking:

https://www.thehindubusinessline.com/economy/agri-business/omicron-threat-may-hit-indias-winter-tea-exports/article37783769.ece

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