Low arrivals due to crop shortage in production centres following rains last week and demand for the Onam festival lifted CTC dust prices at Kochi tea auctions this week.
The average price realisation for CTC dust in sale 33 was up by ₹5 at ₹146 against ₹141 in the previous week. The quantity offered was 7,29,953 kg and 94 per cent of the offerings were sold. The market was fully firm and irregularly dearer across all sorts, the auctioneers Forbes, Ewart & Figgis said.
According to traders, short purchases made by MNCs from South Indian tea auctions, including from Kochi, due to crop shortage in Kolkata buoyed prices. Many of the upcountry buyers have covered their requirements from Kochi, resulting in prices of several varieties going up.
Cecil Jose of Encil Global Beverages said the Sri Lankan crisis has boosted the demand for orthodox leaf varieties as well. The opening up of the Russian market and increasing demand from Iran, Europe benefited the trade.
At the same time, traders pointed out that the last week’s heavy rains in production centres hit the quality of orthodox tea, leading to subdued demand in the market. According to exporters, Iran buyers prefer only quality teas, while Russians looked for medium-quality teas. With the improvement in weather conditions, traders hoped that the market will witness the arrival of good quality teas by the end of this month.
The quantity offered in orthodox leaf was 3,27,906 kg and only 66 per cent was sold. The average price realisation was up by ₹5 at ₹172 against ₹167 in the previous week. Select best Nilgiri whole leaf and brokens ruled firm.