Lower crop from production centres and subdued demand impacted tea prices at Coonoor auctions last week.
The offered quantities for leaf grades in sale no 8 was only 8,92,514 kg and only 77 per cent was sold. Arrivals in dust grades were 3,01,247 kg and 81 per cent was sold.
Traders cited dropping mercury levels as the reason for the lower cop and because of this, tea factories are operating only twice a week.
In leaf CTC, the high-priced and better liquoring sorts were barely steady to dearer by ₹2 to ₹3 and more at times in line with quality. The better medium sorts were also lower by ₹1 to ₹2.
In leaf orthodox, primary whole leaf grades were occasionally dearer by ₹2 to ₹3, and the secondaries and fannings were lower by ₹2 to ₹3. In dust orthodox, primary orthodox dust grades sold dearer by ₹8 to ₹10, and more at times in line with quality. The secondaries and finer dusts were lower by ₹2 to ₹3.
Exports hit
Tea Industry Annual Review 2022, Rajesh Gupta, Managing Director, Global Tea Auctioneers said Indian tea production was still lower by 50 million kg from the peak production of 1,390 million kg in 2019. South India was short of 4.90 million kg, while North Indian production was in excess by 4.90 million kg.
South Indian centres suffered in export due to lower yield and subdued enquiries from Ukraine, CIS countries, and Europe. While the demand from Russia (medium teas) and Iran (premium tippy teas) maintained a momentum of shipments of orthodox teas.
North Indian producers take advantage of good demand for premium tippy orthodox exports to Iran and UAE during the second flush season between July to November 2022, he said.