Offerings rises in North Indian tea auction to 4.2 lakh

Last week at Sale No. 41, the total offerings (packages) at the three North Indian tea auction centres at Kolkata, Guwahati and Siliguri were 4,27,331 as compared to 1,52,290 in the corresponding sale of the previous year when No Sale was reported at Guwahati and Siliguri, according to J Thomas & Company Pvt Ltd, tea auctioneers.

At Kolkata, the total offerings were 1,46,843 (1,52,290) comprising CTC/Dust 1,03,190 (1,05,864), Orthodox 37,931( 40,886) and Darjeeling Tea 5,722 (5,540).

The corresponding offerings at Guwahati were 1,57,541 (No Sale) and at Siliguri 1,22,947 (No Sale).

Selected clean and better liquoring Assam CTC teas were firm to dearer while the remainder were irregularly lower following quality. Well-made Dooars sold readily at firm rates while the remainder tended irregularly easier. Tata Global was active. There was good support from Hindustan Unilever. Western India dealers were active for the liquoring sorts. There were fair enquiries from North India as well as local sections. Exporters operated on the bolder brokens and fannings.

Orthodox whole leaf grades sold at easier rates. Brokens and fannings followed a similar trend. Continental buyers operated selectively on the tippy sorts.

Darjeeling whole leaf and broken grades sold around last levels while fannings were irregularly lower. There was useful enquiry from traditional exporters. Hindustan Unilever was active with fair support from Tata Global. Local dealers operated for the brokens and fannings.    

Source: Business Line

Dooars tea sells readily at N. Indian auctions

Kolkata, Sept. 16:This week at sale No. 37, the total offerings (packages) at the three North Indian auction centres at Kolkata, Guwahati and Siliguri were 4,29,321 as compared to 3,93,232 in the corresponding sale of last year, according to the tea auctioneers, J Thomas & Company Pvt. Ltd. 

The offerings at Kolkata were 1,83,368 (1, 78,537) comprising 1,48,434 (1,31,620) of CTC/Dust, 29,198 (40,914) of Orthodox and 5,736 (6003) of Darjeeling Tea. In other words, the offerings of Orthodox and Darjeeling Tea have dropped. 

The offerings at Guwahati were 1, 35,625 (1, 15,335) and at Siliguri 1, 10,328 (99,360). 

Selected clean and liquoring Assam CTC teas were irregular around last while the remainder were lower. Well made Dooars sold readily while the remainder tended irregularly easier. There was good support from Tata Global and Hindustan Unilever. Western India dealers were active for the liquoring sorts. 

The inquiries from North India and local sections were fair. Exporters operated on the bolder brokens and fannings. 

Orthodox whole leaf grades sold at firm rates. Brokens and fannings were steady around last levels. Continental buyers operated on the tippy sorts. 

Source: The Hindu

Demand for quality teas at Kolkata sale

Kolkata: Last week, the selected CTC liquoring teas maintaining quality sold around last levels, while those showing a decline in quality were lower, according to tea auctioneers. Hindustan Unilever was active while there was selective enquiry from Tata Tea and other packeteers. Western India dealers operated for liquoring sorts while other internal sections were more active.

Darjeeling offerings tended lower following a decline in quality and were largely absorbed by the local market.

Nominal quantity of clean Orthodox teas met with better enquiry. Remainder sold irregularly lower following quality. Fair enquiry was seen from West Asia & CIS. North India operated on the whole leaf.

Auctioneer Carritt in trouble, defaults on payment obligations

Kolkata: Auctioneer Carritt Moran and Co. Pvt. Ltd has failed to pay tea producers who sold through it in the first week of January, in the first such instance in at least three decades.

Carritt—the second largest tea auctioneer in the world—was yet to fulfil payment obligations for Calcutta sale 1 as of Thursday.

“The shortfall was around Rs1 crore. That’s about 22% of Carritt’s total dues (for sale 1),” said an official of the Calcutta Tea Traders Association, or CTTA, which organizes the auctions. He spoke on condition of anonymity.

Producers have been allowed to withdraw their tea from its catalogue, said Roshni Sen, deputy chairman of Tea Board of India, the industry regulator.

“The decision was taken on request from sellers,” she said.

Lots from Carritt’s catalogue are being assigned to other brokers ahead of the next auction—Calcutta sale 4—on 27 January.

On Thursday evening, the Tea Board also ordered opening of an escrow account and asked people who have bought tea from Carritt to pay into it. This is aimed at making sure Carritt doesn’t divert money paid by buyers to service its own liabilities, Sen said.

Some people, however, might have already paid their dues to Carritt directly, and the money might have been diverted.

“So on Tuesday (27 January), when payments are to be made for (Calcutta) sale 2, Carritt might default again,” said the CTTA official.

The auctioneer, however, is expected to fulfil its payment obligations for the Siliguri and Guwahati auctions, he added.

Carritt, a 131-year-old auctioneer, has been lending to small and medium tea growers, mostly in south India, for many years.

The auctioneer had borrowed from private financiers to lend to tea producers. But many of these loans have not been repaid, and according to Carritt’s chairman P.K. Sen, the company was to receive around Rs36 crore from tea producers.

Carritt’s own liabilities are believed to be in excess of Rs50 crore, and even after setting off “all assets on its books, there’s a Rs30 crore gap,” said a tea industry official close to the Carritt management, on condition of anonymity.

Carritt’s Sen was not available to comment. Calls made to his cellphone were not answered.

Lending to tea producers was the only way to expand business during lean years, said the industry official.

“A broker typically lends against yet-to-be ready crop, and makes sure the crop is sold through it,” he explained. “Almost all brokers had got into that business, but Carritt is suffering because of bad cash management.”

Tea Board’s Sen said: “There were big management deficiencies in Carritt. We are trying our best to salvage the company, but it might have to be closed down.”

Carritt, which sells tea worth around Rs1,000 crore a year and earns 1% of that by way of commission, would never be able to pay off its liabilities with income from auctions, she added.

The Economic Times newspaper first reported in its Kolkata edition on Friday that Carritt was facing a financial crisis.

Even before Carritt collapsed, the Tea Board had asked management consultant Deloitte Touche Tohmatsu India Pvt. Ltd to examine if there were systemic risks and suggest measures to improve the tea auction system.

Deloitte is expected to submit its report in eight weeks, according to Roshni Sen.
“It is unfortunate that a company of such history and class (as Carritt) has come to this state. But I continue to have full faith in the auction system, and the measures adopted by the tea board will strengthen the system and make it more secure,” said Aditya Khaitan, managing director of McLeod Russel India Ltd, the world’s biggest tea company.

From: Live Mint