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COONOOR, June 11

THE prices at the Coonoor tea auctions this week are ruling nine-year lows reversing the trend so far to rule higher than last year's eight-year low levels.

This week, the leaf grades averaged Rs 34.76 a kg against Rs 36.12 this time last year. The dusts grades lost much more fetching Rs 34.96 a kg against Rs 39.08 in the comparable week of last year.

Consequently, every kg of tea sold fetched on an average Rs 1.90 lower to record Rs 34.80.

Because of the fall in the recent prices, the increase in the cumulative average of the teas sold in the first five months of this year over the eight-year low of last year had also come down. Now, the average is Rs 39.72 a kg against Rs 36.64 last year.

A fall in the export demand is pulling down the prices of the orthodox teas. This week, orthodox broken fetched up to Rs 3 a kg lower although the orange pekoes managed to rule firm.

Likewise, in the dust category, while the best grades were steady, others were sold for around Rs 2 a kg lower.

For the CTC teas, because of the poor returns, some plantations in Kerala have reportedly allowed their workers to pluck the leaves, sell and keep for themselves the sale value to escape the burden of paying wages in the period of loss.

These leaves are sold for as low a price as Rs 4.50 to factory owners. The factories in turn are selling the teas manufactured from these leaves as `Nilgiri teas' for Rs 28 a kg.

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