The Nilgiris: Nilgiris is known for its high quality tea production and its export to northern states in the country and foreign countries.
The Nilgiris: Nilgiris is known for its high quality tea production and its export to northern states in the country and foreign countries.
The Tea Auction Centre in Coonoor which operates under the Coonoor Tea Trade Association allows for traders to participate in the auction and purchase tea powder. The tea auction price saw a hike in the first quarter (January and March)of this year.
International Management Consultant, Sundar says, “Rs. 27 crore is the increase in the first quarter of this year as compared to last year. Rs.7.40 is the increase for 1 kg tea, as well as 18 lakh kg tea powder was additionally sold, compared to the first quarter of the previous year.
On December 10, the Tea Board had ordered tea production in Northern states to stop due to snowfall which generally affects the yield of tea. Hence to compensate for the loss, traders mix poor quality tea leaves for sales, which led to the halting of auction of tea powders in Northern states. Following this, Northern state traders showed interest in purchasing tea from Southern states in large quantities. “Orthodox” brand tea powder produced during the winter season in Nilgiris was sold at a high price. Due to these factors, the average rate of 1 kg tea powder was Rs.1000.19 during the first quarter of this year. At the same period last year, it was Rs.92.79. Due to the increase in the requirement, the sales quantity was 1 crore 37 lakh kgs, with 1 crore 19 lakh kgs sold during the first quarter of last year. Hence the huge quantity of tea powder was sold at a high price," added Sundar.