Prices plummeted to an average of Rs 90.36 per kilogram at sale 32 of the Coonoor Tea Trade Association's auctions, the lowest price not only of all the auctions held so far this calendar year, but also since March 20, 2020.
Because of the cheap price, the volume sale increased to a three-week high of 18.07 lakh kg. Almost all of the teas on sale were sold. Demand due to upcoming festivals such as Onam, Moharrum, Varalakshmi Virutham, Avani Avittam, and Krishna Jayanthi, also aided absorption, buyers stated.
As a result, profits increased to Rs 16.33 crore, the most in the past three weeks. It also meant that in only one week, profits climbed by Rs 2.96 crore, or 22.14 percent.
After a month, the maximum price reached Rs 300 per kg. Nisha Enterprises paid Rs 316 per kilogram for Homedale Estate's CTC Broken Pekoe grade, which was auctioned by Global Tea Brokers.
Crosshill Estate Premium grade, auctioned by Global Tea Brokers, topped the CTC Dust tea auction at Rs 220 per kilogram.
Pinewood Estate received a score of Rs 228 and Shanthi supreme a score of Rs 202, among other CTC teas. Kil Kotagiri received Rs 285 per kilogram, Kodanad Rs 241, Glendale Rs 227, Kairbetta Rs 207, Brookelands Gold Rs 206, and Havukal Rs 205 among orthodox teas.
Previously, on sale 31, the volume had plummeted to 19.64 lakh kg. This was the lowest volume of the last 15 weeks then.
Unfavourable weather conditions are claimed to have hampered the harvest in the fields, resulting in decreased factory production and, as a result, a lesser offer of prepared tea for the auction.
Last time, no tea could break the Rs 300 per kg barrier. The auctions were won by Chamraj orthodox tea, which sold for Rs 296 per kilogram. Homedale Estate Pekoe Dust grade, auctioned by Global Tea Brokers, was the most expensive CTC tea, selling for Rs 292 to Tea Services India Pvt Ltd. Crosshill Estate Premium grade, auctioned by Global Tea Brokers, topped the CTC Leaf tea auction at Rs 227.
Broker quotes ranged from Rs 76 to 78 per kilogram for basic Leaf grades to Rs 150 to 191 for the finest grades. They ranged from Rs 75 to Rs 79 for basic Dust ratings, and from Rs 150 to Rs 198 for the highest grades.
