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Monday, May 18, 1998

Calcutta tea prices slide further; CTC eases 

Baren Bhattacharya  
May 17: The Calcutta tea sale No 19 held this week saw an overall downtrend with prices of all grades slackening further. CTC sale marked an easy trend despite good demand.

There were 26,252 packages of CTC on offer this week of which about 80 per cent is consumed by the buyers. A nominal weight of Dooars sold between Rs 82 per kg and Rs 93 per kg showing a drop by Re 1 per kg to Rs 4 per kg. The Good Assams, however, eased once gain by Rs 2-4 per kg and were selling at Rs 88-95 per kg. Some lines of selected Assams sold well at higher levels with medium Assams selling between Rs 74-80 recording a fall by Rs 4 to Rs 6 from the past levels.

Liquoring varieties of teas were lifted by the western India buyers with West Bengal buyers extended worthwhile support. The CTC brokens enjoyed some export enquiry. CIS buyers opted for cheaper varieties of teas. Brooke Bond remained less active while Godfrey Phillips was selective.

In the Darjeeling section sale saw an improved demand on an offering of 4495packages. An improved quality Darjeeling line sold at attractive prices and was absorbed by traditional exporters. Continental buyers on the other hand remained confined in the whole leaf grade teas at last levels. The fannings elicited good export inquiry. The remainder brokens and fannings were consumed by the West Bengal and other domestic buyers.

Easy trends were also witnessed in the orthodox section where 21,556 packages were put up for sale. The orthodox sale opened to a good demand and about 80 per cent of the offering has been sold. All whole leaf sold lower by Rs 5-10 per kg and were selling between Rs 80 per kg and Rs 85 per kg. Brokens prices fell by more than Rs 5 per kg in line with the quality with the stalky variety easing further. Fannings also ruled dull. Good buying support was offered by CIS buyers while Middle-East buyers operated with limited strength. Fannings absorbed by the West Bengal dealers while exporters took limited interest on fannings.

There were 7,979 packages of dustteas on offer this week and about 85 per cent sold. This reflects good demand. The market opened to a steady note but slackened with the progress of the sale. A nominal weight of Dooars dust sold between Rs 76 per kg and Rs 80 per kg as against Rs 75 per kg and Rs 80 per kg ruling for the past week. The medium Dooars ranged further low between Rs 72 per kg and Rs 75 per kg. Good Assams, pecoe dusts declined to Rs 77-80 per kg compared to Rs 82 per kg to Rs 85 per kg. The medium sorts, however, dropped at Rs 73 per kg to Rs 77 per kg showing a loss by Re 1 to Rs 2 per kg. The remainder also staged low by Rs 2-3 per kg. Tbe best Assams once again realised attractive prices. West Bengal, Gujrat and Maharashtra buyers operated with fair strength while Tata Tea offered limited support with Brooke Bond remaining quiet.

Fair inquiry was forthcoming from the other domestic buyers.

Guwahati sale

The Guwahati sale no 20 registered steady trend for the CTC teas while firm to easy trend for the dustscategory.

In the CTC section of the Guwahati auction, wherein 66,777 packages were offered, trading opened to a good demand with 90 per cent sale. The better liquoring CTC realised attractive prices compared to the past levels while remainder tended to be low. Good and better liquoring teas were selling at last levels, the rest of the offering declined by Re 1 to Rs 2 per kg in line with the quality. The Cachar teas offered in the sale absorbed at lower levels than the sale no 19 held last week. Brooke Bond operated selectively while Godfrey Phillips lent better inquiry. Nestle and Eveready were also fairly active with improved support from the Gujrat and Maharashtra buyers for better teas. Cachar and medium grade teas were lifted by the internal sections while CIS operated for selective grades upto the level of Rs 60 a kg.

Guwahati dust sale also met with good general demand with a sale of 90 per cent of an offering of 28,701 packages.

The better liquoring dusts sold around last levels registering afirm trend while the remainder tended easy by Rs 2 per kg and at times more. The fibrous variety, in particular, declined further. Cachar teas, however, found a lower market with prices declining further. Tata Tea and Nestle absorbed fairly large quantity of teas with Brooke Bond being selective. Better varieties once again lifted by Gujrat and Maharashtra buyers with other domestic buyers lending worthwhile support.

Chittagong Sale (Bangladesh)

The season's first sale at Chittagong (sale No 1) witnessed very restricted demand. There was a very nominal quantity of tea on offer prices of which dropped sharply towards the closee. The market opened on a firm note, but declined with the progress of the sale. A small quantity of Churamoni dust, a good liquoring variety attracted strong competition among exporters and realised higher prices.

Among the exporters, Poland was active. Hindustan Lever along with other domestic buyers were very selective in their bidding. Brokens sold between Taka 48 per kgto Taka 90 per kg, fanning between Taka 57 per kg to Taka 65 per kg.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.

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