Even as tea trade around the globe has taken off for Easter and some auctions did not take place this week due to closure for Good Friday, market observers predict a weak trend for a few more weeks.

This follows a situation of too many teas chasing too few buyers in the global market despite a marginal fall in output compared to last year.

Global indications are that a higher crop is a possibility in April. Kenya has received useful showers on both sides of the Rift, and crop arrival at factories has already shown increase. Malawi, Sri Lanka and Indonesia are cropping more due to favourable rains this week. China and Vietnam are passing through main cropping season but Argentina’s season is over. In North India, substantial part of the production is expected to hit the market from this month.

However, absence of matching demand is hitting the market. This week, 14 per cent of Kenya tea remained unsold at Mombasa auction as buyers took a ‘wait-and-watch’ approach in the backdrop of rains promising increased supplies in coming weeks. As much as 48 per cent of Malawi tea remained unsold in Limbe auction due to inadequate demand. Colombo traders were on Easter holiday. In Jakarta, 33 per cent of Indonesian tea remained unsold. In Coonoor auctions, as much as 21 per cent remained unsold despite prices crashing to the year’s lowest bracket.

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