In the three quarters of the current calendar, tea producers and traders who operated through the auctions of Coonoor Tea Trade Association (CTTA) have earned a whopping ₹178.66 crore or 44 per cent more than in the same period of 2019.
This happened because 32 lakh kg more tea was bought at ₹31.60 a kg more on the average, reveals an analysis of the market reports.
Because of a massive fall in North Indian production due to lockdown and adverse weather, upcountry buyers scouted for teas from the South when they discovered that they could source quality teas from The Nilgiris at affordable prices.
This increased demand pushed up the average price at CTTA auctions to ₹123.82 a kg from ₹92.22 in January-September 2019.
Nevertheless, the volume sold rose to 4.72 crore kg from 4.40 crore kg in January-September 2019.
With more tea being sold at higher price, the overall earnings rose to ₹584.43 crore from ₹405.77 crore in January-September 2019 – up by ₹178.66 crore or 44 per cent.
In October, however, prices started tracing downward trend as buyers showed resistance to bid high contending that the prices had risen exorbitantly in the last couple of months.
After peaking to new records, the average prices at CTTA auctions have now fallen to July levels.