The Hindu Business Line : Coonoor tea prices dip to 10-year low in 2005

THE average price at the auctions of the Coonoor Tea Trade Association (CTTA) in 2005 was the second lowest in the last decade. The average was Rs 36.03 a kg, the lowest price after Rs 34.55 recorded in 2003 since 1995.

Volume sold - 4.16 crore kgs - was also the second lowest in the decade as the lowest was in 2003 at 4.06 crore kgs.

Thus, in 2003 and 2005, the prices fetched were the lowest because of the demand failing to absorb the teas at higher bids. "This reiterates the need to activate the demand for sustained business," said an auctioneer.

Of the 4.16 crore kgs sold, 3.85 lakh kgs belonged to CTC variety and only 0.31 lakh kgs belonged to the orthodox variety. In 2004, a volume of 4.43 crore kgs was sold, comprising 4.08 crore kgs of CTC and 0.35 crore kgs of CTC teas.

In 2005, the turnover dropped by Rs 42 crore (or 22 per cent) to Rs 150 crore over the previous year.

On an average, every kg of tea sold in 2005 fetched Rs 7 less.

The drop was more in the case of CTCs where the average price of at Rs 35.15 a kg was almost Rs 8 lower than the previous year. The average price of orthodox teas was Rs 47.01 a kg - Rs 4 lower.