Tea sales slip at Kochi auctions

The quantity of tea sold through Kochi auctions has dipped marginally in the first half of 2007 to 33.64 million kg at an average price at Rs 57.53 per kg compared with 36 million kg at Rs 52.36 a kg. Tea exports declined on the rupee's appreciation.

This was announced by Tea Buyers Association President Krishnakumar J Shah at the annual general meeting of the association in Kochi.

He said that despite the drop in quantity, the Cochin Tea Auction Centre could maintain its top position in terms of quantity and average auction price among the south Indian auction centres.

The tea sector, reeling under crisis for many years, had started picking up after the Union commerce ministry formulated and implemented specific packages. However, the rupee's appreciation had an adverse impact on tea exports with realisations dropping on high interest rates and increase in sea freight rates.

Tea exports from south India have continuously declined since March 2007, recording a drop of 16 million kg during the first half of 2007. Exports through Kochi port during the period was 37.2 million kg. These factors have made south Indian tea uncompetitive to the tune of 10-15 per cent in terms of price in the international markets.

Shah said that the government concessions were not enough to overcome the rupee's appreciation as far as tea exporters were concerned.

The managing committee of the Tea Buyers Association, has elected M K Ajit as the President for 2007-2008. Mustafa Moosa and Jinesh C Dagli were unanimously elected as vice-president and honorary secretary respectively.