The year 2006 has brought in a fresh flavour for the Nilgiris tea producers as the auctions held at Coonoor witnessed an upward trend both in volume and prices. |
This upward trend may be attributed to two reasons. First, since the teas from the North were damaged due to winter reductions, the traders are more dependent on the South. Also, with the improved quality in the last couple of weeks owing to the positive impact of frost on the high-grown winter teas, a premium product, the Nilgiris teas have a fair chance. |
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Although a volume of 7.52 lakh kg, lower than the 7.8 lakh kg offered on December 23 last year, was offered at the first auctions of the Coonoor Tea Trade Association (CTTA) held on January 5, the second sale witnessed an increase in the volume. |
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At the second sale on Jan 12-13, 10.42 lakh kg was offered with nearly 3 lakh kg more than the first sale for 2006. |
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The prices also recorded a surge as the teas offered at the first sale fetched around Rs 2 per kg more than the last sale of 2005. |
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Quotations held by the brokers indicate bids ranging from Rs 32 to Rs 35 a kg for the plain leaf grades and Rs 62 to Rs 69 per kg for the brighter liquoring grades. The bids range from Rs 34 to 36 a kg for the plain dust grades. |
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Sources told Business Standard that the rise in prices is due to the tight supply situation arising from a very low offer. Brighter liquoring teas witnessed buoyancy with upcountry buyers pressuring the market. |
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On the export front, there is a good demand for bolder grades from the buyers for CIS markets. According to trade sources, upcountry buyers like Iran are keen to place bulk orders in order to cater to the retail traders' needs. |
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