Agri Business

North Indian tea buyers focus on South Indian brew boost prices in Kochi auctions

V. Sajeev Kumar Kochi | Updated on July 17, 2020 Published on July 17, 2020

A declining North Indian tea production coupled with buyers’ shifting focus on South Indian teas has boosted prices of both dust and leaf varieties at Kochi auctions this week.

Sources in the sector said that several packateers in North India have shifted their procurement from South Indian auctions following the production drop there. The flood situation in the North-East may further reduce production and the upcountry procurement from South Indian auctions is expected to strengthen in the coming months. This will likely to push up tea prices in Kochi as well, the sources said, citing the rise in the average price realisation here which went up to ₹125.46 per kg from ₹117.74 in the previous week.

In Sale 29, the quantity offered in dust varieties stood at 7,60,261 kg and the market for grainier varieties such as PD, RD, SRD was higher by longer margins of ₹10-15 and more especially good liquoring teas with black appearance. Powdery grades were steady to occasionally dearer by ₹5-10 and sometimes more, said the auctioneers Forbes, Ewart & Figgis.

There was a good demand for orthodox dust with the market for primary gradesdearer by ₹5 and sometimes more, while the secondary grades were steady. The quantity offered was 20,500 kg with an active participation of upcountry buyers.

The upcountry buyers was active on CTC leaves as well which is evident from the sale of 98 per cent of the offered quantity of 85,000 kg. The market was higher by ₹3-10 and sometimes more, across the board and sometimes outsold the respective dust grades.

The active participation of exporters to CIS countries and other destinations lifted the prices of orthodox leaf, with the market for select best Nilgiri brokens and whole leaf was firm to dearer. The quantity offered was 3,48,789 kg with the sale of 79 per cent.

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Published on July 17, 2020
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