Heavy rains and a flood-like situation in Kerala has affected Kochi tea auction market, leading to a subdued demand from local buyers and loose tea traders.
The offered quantities in CTC dust in sale 31 were lower at 8,57,657 kg and traders expect arrivals to decline further in the forthcoming trading sessions in the wake of rains in the high ranges.
However, active participation of Kerala State Civil Supplies Corporation and private companies, including Indcoserve, are holding the market by procuring 72 per cent of the total quantities sold. Supplyco purchased close to two lakh tonnes, purportedly for the inclusion of tea in the food kits to be supplied by the State Government through PDS for the ensuing Onam festival. The state-owned company is expected to procure 8 lakh kg before the festival season to meet the demand, traders said.
Dusts rule low
The upcountry buying was selective, while exporters absorbed more quantities compared with last week. But, their purchase was confined to the bottom of the market. Forbes, Ewart, and Figgis said good liquoring teas appreciated more compared to high-priced teas. High-priced and popular marks were firm and irregularly dearer by ₹2-3.
The average price realization was up by ₹1 at ₹135. In orthodox dust, the market was lower and a small quantity of 9,000 kg offered was absorbed by exporters. However, the leaf market witnessed a good demand with 80 per cent of the offered quantities of 3,96,940 kg in orthodox grades were sold thanks to ample purchase made by overseas buyers. Exporters to CIS and West Asian countries lent fair support.
CTC leaf varieties reported a good demand with broken prices ruling firm, while fannings remained dearer. The offered quantities were 54,500 kg.