Date:07/02/2005 URL: http://www.thehindubusinessline.com/2005/02/07/stories/2005020701200700.htm

Back Exporters bail out Coonoor teas

P.S. Sundar

Coonoor , Feb. 6

EXPORTERS bailed out the market when a volume of 11.16 lakh kgs of teas was offered for sale at the auctions conducted by the Coonoor Tea Trade Association here on Friday.

The buyers for Egypt, Iraq, Middle East, Pakistan, Russia and other CIS markets were seen actively bidding even as the domestic dealers and some corporate buyers were subdued.

The medium and plainer categories of CTC teas received good support from exporters to Iraq. "Tea Time" bought a lot of volume for Iraq. The buyers for Russian and CIS outlets preferred pekoes, SBOM, BOPL and other bolder grades. Ambo and Siewart and Dholakia bought cleaner, blacker and smaller grades of teas for Pakistan at around Rs 44 a kg. J.V. Gokal supported the market for the Middle East. On an average, the export sale ranged from Rs 42 to Rs 47 a kg.

On the corporate front, Hindustan Lever bought better medium teas, but paid around Rs 55 a kg. Duncans was selective in its buying, while GPI and Tata Tea refrained from purchasing.

Some buyers for the western India markets complained of a gradual decline in quality of the teas on offer. "You could blame it on the dry weather conditions, but these teas do not fetch the same price as the high grown winter teas for which the Nilgiris is famous," a buyer told Business Line. Consequently, the high priced teas lost Rs 3 a kg over the previous week.

Because of exporters' support, orthodox brokens got Rs 3 a kg more. Fannings, however, suffered withdrawals. In the CTC category, the brown fibrous sorts lost Rs 2.

Plain leaf grades got Rs 36-38 per kg and the brighter liquoring grades Rs 64-65. Plain grades of the leaf varieties fetched Rs 33-35, while the brighter liquoring grades got Rs 62-63.