There were no takers for about 26 per cent of the offer worth ₹ 5.60 crore at Sale No: 15 of the auction of Coonoor Tea Trade Association despite the average price crashing to year’s lowest level of ₹ 114.80 a kg.
On the one hand, the volume offered – 18.65 lakh kg – was the year’s second highest quantity.
On the other, demand was not matching this supply as some upcountry buyers said that before investing on high priced teas, they would wait to see if there would be any trade restrictions in the wake of second wave of Covid-19.
Also, volumes of teas from the North-East are likely to hit the market in coming weeks after the winter closure of the factories there.
Exporters were selective for the same reason.
“The green tea of Pascoes Woodlands topped the entire auctions this week when Radhika Traders bought it for ₹ 300 a kg”, Ravichandran Broos, General Manager, Paramount Tea Marketing (SI) P Ltd, who auctioned this tea, told BusinessLine.
Chamraj got ₹ 281, Kodanad ₹ 276, Kairbetta ₹ 261, Havukal ₹ 253, Glendale ₹ 247, Kil Kotagiri ₹ 222, Nonsuch Orthodox ₹ 221, Mailoor ₹ 212 and Devashola ₹ 210.
Among CTC teas, Pinewood Estate got ₹ 244, Crosshill Estate Special ₹ 228, Vigneshwar Estate ₹ 203 and Kannavarai Estate ₹ 200.
“Prices dropped as the market underwent correction following high prices in the recent months”, a buyer said.