Nilgiris tea trade also hit as stocks await transport

The tea industry and traders in the Nilgiris are worried over the non-movement of teas bought in auctions to destinations in upcountry markets due to stoppage of truck movement from Tamil Nadu to Karnataka.

“For the past two weeks, lorry movement from the Nilgiris to Karnataka has been affected. Normally, 20 loads of tea (about 10,000 kg each) pass through Karnataka each week from the Nilgiris. Since two weeks, there has only been scanty movement. Our teas go to Karnataka for consumption and also via Karnataka to North Indian destinations. These are affected,” LC Singhania, Chairman, Coonoor Tea Trade Association (CTTA), told BusinessLine.

“Buyers in the Coonoor auction are unable to get payment teas bought for different destinations in the North because the teas are not moving out of the Nilgiris. As of now, there is cash crunch to the extent of ₹4 crore among traders here,” he said.

“If this condition continues for the next two weeks, an alarming situation will develop as even warehouses will not be able to take in more teas. That will mean a total standstill for tea trade from the Nilgiris,” he lamented.

Producers are equally worried. “Tea factories are working for only five days a week and that, too, in single shifts because of low arrival of green leaf for processing due to dry weather. The low supplies have helped prices to rise in the CTTA auctions to an average of ₹101.28 a kg, the highest in six months. However, with less than 10 lakh kg being sold, our overall realisation has fallen,” said Ramesh Bhojarajan, President, The Nilgiri Bought Leaf Tea Manufacturers’ Association.

“Now, the non-movement of trucks to Karnataka and beyond has created uncertainty for our teas. We fear upcountry buyers will stop bidding if teas do not move, leading to a price crash. With low volumes and falling prices, the economy of small-scale operators will be doomed,” he feared.

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