Sales numbers: 39 of the Coonoor Tea Trade Association auctions have gone down in the history of contemporary tea trade, being one of the worst auctions on all three parameters – volume, value and earnings.
The exporters refrained from making purchases stating that they did not get the printed catalogs for auction on time as is the usual case.
In addition, some exporters said they would have to wait for an improvement in the global transport situation before investing in more tea in the context of widespread shortage of sea containers. “It is not so much the order from the importers that worries us more than the possibility of fulfilling the orders due to the shortage of containers. We are also spending time in convincing the importers about the significant increase in the cost of transportation”, said an exporter.
In the absence of competition from exporters, internal buyers became selective. Some upcountry buyers said they paid a price that matched the quality of the tea on offer.
In fact, many lots, especially the higher priced teas on offer, had to be withdrawn for lack of adequate bids and producers had to reduce their asking prices to clear the pile of unsold tea.
As a result, the average price fell to ₹ 90.12 per kg. This was not only the lowest price among all the auctions held so far in this calendar, but also since March 20, 2020, when the average price was ₹82.32 per kg.
Nevertheless, due to low demand, the sales volume declined to 12.07 lakh kg. This was the lowest sales volume of the last six months; The previous low was 10.31 lakh kg sold on 1 April.
Read also: Is Tea Auctions the Right Price Finding Platform?
Due to less tea being sold at a lower price, the total earnings came down to ₹10.87 crore – ₹1.79 crore or 14.14 per cent less in just one week. This was not only the lowest grossing among all the auctions held so far in this calendar year, but also since November 27, 2020, when the earnings stood at ₹9.29 crore.
No tea could be sold for more than ₹300/kg this week. CTC Broken Peco Grade of Homedel Estate, auctioned by Global Tea Auctioneers Pvt Ltd (GTAPL), topped the entire auction when Tea Services India Pvt Ltd bought it for ₹297 per kg.
In the CTC Dust Tea Auction, the Red Dust grade of Homedale Estate, auctioned by GTAPL, topped the chart at Rs.280 per kg.
Among other CTC teas, Crosshill Estate Premium received ₹229, Pinewood Estate ₹211 and Vigneshwar Estate ₹206.
Chamaraj got ₹ 276 in traditional tea.
Overall, tea worth ₹9.50 crore remained unsold as there were no buyers for about 47 per cent of the quantity on offer.
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