At Sale No. 43 at Kolkata tea auction this week, the average price of Orthodox dropped vis-a-vis that in Sale No. 41, while the average price of CTC remained virtually unchanged.

Sale No. 42, which was due last week, was dropped on account of Durga Puja.

According to tea auctioneers, J Thomas & Company Pvt Ltd, the average prices of Orthodox were lower at Rs 147.50 per kg compared with Rs 205.95 per kg at Sale 41. The corresponding figures for CTC were Rs 147.01 (147.10) per kg.

Tea industry sources attributed the lower average Orthodox price to the drop in quality — larger arrivals of post second flush varieties.

“The quality second flush have all been sold,” the sources observed. “The CTC prices too will go the same way once the share of bought leaf factories (BLFs) in the total offerings starts rising.”  

The sources concede that there are BLFs producing good quality teas. But the major problem facing them is the indifferent quality of green leaves produced by most small growers.

Referring to the complaint of low price for green leaves — much lower than the Tea Board stipulated prices — being offered by many BLFs to small growers, the sources expressed doubt if the system of announcing leaf prices for small growers on a month-to-month basis is really a rational approach.

“Besides, the small growers are rarely happy, even after extracting a plethora of benefits from the government”.  

This week at Kolkata auction, an estimated 79.7 per cent (84.78 per cent) of Orthodox and 77.08 per cent (73.51 per cent) of CTC offerings were sold.

santanu.sanyal@thehindu.co.in

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