The earnings at the auctions of Coonoor Tea Trade Association (CTTA) in calendar 2020 rose to an all-time high of ₹846.22 crore from ₹536.51 crore in 2019, reveals an analysis of market reports.
This has happened despite shedding some auctions due to lockdown arising from the nation’s fight against Covid-19.
Also, this is without considering sale 53 held on June 22 to mark the International Tea Day.
Arising from the general belief that tea helps to strengthen the immune system, the demand increased pushing up the prices.
Also, due to the enormous reduction in production in the North, upcountry buyers stepped up their purchase at CTTA auctions and since there was a general improvement in quality of the teas, they paid a higher price.
For the first time in the annals of CTTA, average prices ruled above ₹100/kg in every auction for six months creating all-time high records in many weeks.
In 2020, many factories received prices unheard of since manufacturing started in their units.
Consequently, the average price rose to ₹127.06 a kg in 2020 from ₹89.27 in 2019.
Nevertheless, the volume sold increased to 6.66 crore kg from 6.01 crore kg.
In effect, 65 lakh kg more tea was sold fetching as much as ₹ 37.79 more kg on the average.
This resulted in the overall earnings to rise to ₹846.22 crore from ₹536.51 crore in 2019 marking a gain of ₹309.71 crore or 57.73 per cent.
This article is auto-generated by Algorithm Source: www.thehindubusinessline.com
