Agri Business

Leaf prices gain at Kochi auctions on export, upcountry buying

V.Sajeev Kumar Kochi | Updated on June 06, 2021

Workers belonging to tea-tribe community pluck tea leaves at an estate (file photo)   -  PTI

Rising demand forced North Indian blenders to turn to South Indian auctions

Amidst a consistent price drop for dust grades, rates for leaf varieties increased at Kochi tea auctions this week. Strong purchase from exporters and upcountry buyers pushed up the average price realisation by ₹8 per kg.

Trade sources said the rising demand and lower production in Assam and Bengal has forced many North Indian blenders to turn to South Indian auctions. However, they focused more on Kochi auctions for their procurement and less from Coonoor, as lockdown restrictions in Coimbatore is hindering the movement of cargo to North Indian destinations.

“The emerging demand is unlikely to sustain for long as the North Indian crop season starts from July,” sources said.

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Orthodox leaf market in sale 22 was firm to dearer and the prices of medium, whole leaf and brokens was higher by ₹5-10 and sometimes more. The quantity offered was 2,44,506 kg and 95 per cent was sold. Exporters especially to West Asian and CIS countries were active.

A good demand was noticed for CTC leaf as well and the market was steady to firm and occasionally dearer following quality. The quantity offered was 72,500 and 94 per cent was sold.

However, the dust market, especially CTC varieties continued to decline and was lower by a longer margin of ₹5-10 following a subdued demand from blenders. The institutional procurement by Incoserve and Supplyco was very minimal, while local buyers operated hand to mouth.

The quantity offered was 7,95,099 kg and 83 per cent was sold. The subdued demand was reflected in the average price realisation that dropped to ₹136 from ₹143 in the previous week.

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On the complaints of higher quantity procurement by institutional buyers and its impact on local tea sales, trade sources pointed out that such higher quantity purchase is based on the government policies and the entire tea trade is benefiting by providing a movement in the market, that too without hitting the production.

In orthodox dust, the market was lower by ₹5-7. The quantity offered was 13,000 kg and exporters absorbed the small quantity offered.

Published on June 04, 2021

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