Agri Business

Kerala loose tea traders lift prices at Kochi auctions

V Sajeev Kumar Kochi | Updated on October 16, 2020 Published on October 16, 2020

Since tea offering was low buyers from all parts of Kerala stepped up procurement   -  K_MURALI_KUMAR

Improved demand from loose tea traders has lifted prices, especially of powdery grades at Kochi auctions this week.

The market was higher by ₹5 to ₹10 and 95 per cent of the offered quantity of 5,64,070 kg in sale 42 was sold. The strong demand reflected in average price realisation, which was up at ₹183 per kg vis-à-vis ₹175 in the previous week.

According to auctioneers Forbes, Ewart & Figgis, all sections of the trade believed that the South Indian crop would improve by the end of September and the beginning of October.

Rain impact

But view this was altered by the heavy rains and winds that lashed the plantation areas. Since the offering continued to be low, buyers from all parts of Kerala stepped up their procurement that were operating at a hand-to-mouth level when the prices were high.

The orthodox dust price was also higher by ₹5 to ₹10 on an arrival of 15,000 kg.

Other factors

However, a section of the trade said that it was not the weather alone that impacted offerings. Almost all estates converted to leaf production from dust and bought leaf tea factories so as to cater to the North Indian demand and tis also contributed to the low arrivals, said Cecil Jose of Encils Global Beverages.

However, leaf sales were down with the market for Nilgiri brokens and whole leaf in orthodox grades was lower by longer margin of ₹5 to ₹10. There was a selective buying by upcountry and exporters. The quantity offered was 2,67,449 and the average price realisation was down at ₹161 against ₹166.

The CTC leaf market was also lower by ₹5 to ₹10. The arrived quantity was 87,000 kg.

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Published on October 16, 2020
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