Exporters continued to refrain from bidding in most lots of Sale No 10 of the auctions of Coonoor Tea Trade Association mainly due to the uncertainties arising in trade from the Russia-Ukraine war.
While exporters don’t hold any fresh orders at high bids from Russia, rest of CIS or Europe, by and large, they are taking a cautious approach of not taking risks by investing or shipping to volatile destinations.
“Export buying was totally absent in CTC Leaf auction. In other auctions, export buying was subdued and very selective. In most lots, prices dropped up to ₹ 10 a kg over the previous week. Nevertheless, there were sizable withdrawals”, auctioneer Ravichandran Broos, Vice President, Paramount Tea Marketing (SI) P Ltd., told Business Line.
The market caused concern to producers and traders as teas worth ₹ 5.89 crore remained unsold because there were no takers for as much as 34 per cent of the offer. This was the highest volume of teas remaining unsold in the recent many weeks.
This was despite the average price crashing to ₹ 93.49 a kg – the lowest so far this calendar.
Support by upcountry buyers
The market was supported by upcountry buyers in the absence of active export purchase. Teas from North India are unlikely to hit the market in volumes before April as plantations there are closed for winter. So, domestic traders from Delhi, Gujarat, Rajasthan, Maharashtra, Punjab and even Karnataka are scouting for quality South Indian teas now. This has pushed up demand for some categories of teas in the South.
Homedale Estate’s Super Red Dust grade, actioned by Global Tea Auctioneers Pvt Ltd., (GTAPL), topped the entire auction when Tea Services India Pvt Ltd., bought it for ₹ 375 a kg. Two other grades of Homedale Dust teas, auctioned by GTAPL, followed at ₹ 373 and ₹ 364 each. Crosshill Estate Special dust grade, auctioned by GTAPL, fetched ₹ 320.
In the CTC Leaf tea auction, Homedale Estate’s tea, auctioned by GTAPL, topped at ₹ 331.
Among other CTC teas, Darmona Estate got ₹ 277, Pinewood Estate ₹ 25 and Vigneshwar Estate 231
Among orthodox teas, Chamraj got ₹241 and Kairbetta ₹230.