Agri Business

Export demand pushes up leaf tea prices in Kochi auctions

V Sajeev Kumar Kochi | Updated on May 01, 2021

However, higher crop arrivals cap the upside

Exporters’ participation in large numbers pushed up prices and sales of leaf varieties at Kochi auctions this week, leading to a good demand.

CIS and West Asian exporters were active compared to last two weeks and this has resulted in 88 per cent sale of the offered quantity of 2,28,943 kg. The average price realisation in sale 17 went up to touch ₹153 against ₹149/kg in the previous week, the auctioneers Forbes, Ewart & Figgis said.

The market for select best Nilgiri, whole leaf and brokens in orthodox leaf was also firm and dearer. In CTC leaf, brokens and Fannings was dearer by ₹3-7, with 91 per cent of the quantity sold out of the offerings of 55,000 kg.

However, traders pointed out that rumours of a lower crop in North India in April has prompted leading blenders in North India to source leaf varieties from Kochi and this has led to a better upcountry buying demand.

CTC dust market was lower by ₹3-5 and the decline in price was ₹10 per kg and sometimes more. It also witnessed heavy withdrawals. There was a subdued demand from major blenders including Supplyco and Incoserve, which covered only a nominal quantity.

Local buyers continue to operate hand to mouth, while there was an improved enquiry from upcountry buyers and exporters.

Higher crop arrivals

Improved crop arrivals also impacted prices, wherein the average price realisation was down by ₹4 per kg to ₹131 compared to ₹135 in the previous week. The offered quantity has gone up to touch 12,23,708 due to good crop arrivals from the plantations, but the quantity sold was only 71 per cent.

Orthodox dust market barely remained steady and tended to ease. The volume offered was 7,000 kg in which exporters and upcountry buyers absorbed a small quantity.

Published on April 30, 2021

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