Thursday, January 3, 2008

30-Week Low Volume At Coonoor Tea Auctions

Coonoor: The Coonoor Tea Trade Association’s (CTTA) auctions for the year 2008 open on Thursday with expectations of prices to look up because of the low volume on offer.

Only 8.37 lakh kg have been catalogued. This is the lowest of the last 30 weeks. It is some 4,000 kg lower than the offer of last week. But, it is as much as 3 lakh kg lower than the offer this time last year.

The arrival of fresh tea is low because of the frost impact in many producing pockets. Fresh teas are said to total 7.39 lakh kg. The balance comprises teas remaining unsold in the previous auctions.

Of the 8.37 lakh kg, as much as 5.75 lakh kg belong to the leaf grades and 2.62 lakh kg belong to the dust grades. Again, as much as 7.71 lakh kg belong to CTC variety and only 0.66 lakh kg, orthodox variety.

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The proportion of orthodox continues to be low in both the leaf and dust grades. In the leaf counter, only 0.28 lakh kg belong to the orthodox while 5.47 lakh kg CTC. Among the dusts, only 0.38 lakh kg belong to the orthodox, while 2.24 lakh kg CTC.

Prices may rise

Because of the low volume, prices could look up if the demand firms up. Last week, Gujarat supported quality invoices with handsome premiums. This trend is expected to continue in view of supplies tapering from the North-East gardens.

But, the export purchases cannot show mentionable improvement this week, auctioneers said. Market conditions have not become normal in Pakistan following the assassination of Benazir Bhutto. “This is certainly not the time for us to speculate,” an exporter told Business Line.

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