Date:24/05/2005 URL: http://www.thehindubusinessline.com/2005/05/24/stories/2005052400661000.htm

Back Tea prices drop at Coonoor auctions

P.S. Sundar

Coonoor , May 23

HUGE offer, sluggish demand, sharp price decline and heavy withdrawals marked the tea auctions conducted by the Coonoor Tea Trade Association this week end. Prices of many teas dropped to new lows.

Demand was far low for the huge volume of 15.48 lakh kg, comprising 10.53 lakh kg of leaf and 4.95 lakh kg of dusts.

Among corporates, Hindustan Lever Ltd and J.V. Gokal were very selective, while others such as Tata Tea, Duncans, GPI and Goodricke did not buy at all. Even the Indcoserve, which picked up some dust grades for its "Ooty Tea" project in the recent weeks, refrained from buying now.

On the export side, there was some enquiry for Pakistan for the limited volume of blacker, grainer type at around Rs 42 a kg. With the prices dropping, the buyers for Poland picked up some plainer and medium teas between Rs 26 and Rs 32. There was no purchase for any other market.

The buyers for the Gujarat, Maharashtra and Punjab markets complained of a general decline in quality. The buyers also said in the declining market with huge offers on card, the prices would drop further.