A slowdown in buying especially from European and Russian markets with the onset of winter has hit orthodox tea prices in Kochi auctions. The prices of some categories of orthodox leaves dropped while others ruled on a steady level in sale 47.
Traders said overseas procurement during November end and December will be lower with the start of the winter and shipments for orders can be made only by December end or early January, depending on the weather.
There is also a slowdown in the global market both at the buyer and seller levels due to various issues, such as the Ukraine War, the Iran crisis, and inflationary pressures which have resulted in subdued demand.
Insider’s view
A leading exporter in South Indian auctions said export trends are slightly on a weak tone may be on several reasons and it is difficult to pinpoint each one of them.
It can be evaluated only when some buyers opt out of procurement for weeks. A couple of ups and downs in today’s market can be expected and weekly fluctuations are common in these times.
The auctioneers Forbes, Ewart & Figgis said that the average price realisation in the orthodox market was down by ₹6 at ₹175 against ₹181 in the previous week. Out of the offerings of 4,06,647 kg, the sold quantities were only 87 per cent.
Dust market
The dust market also dropped in the absence of local buying and it is reported that the liquidity crisis again hit the market after the festive season. This has resulted in more unsold quantities.
The North Indian market is also witnessing a slowdown in purchases despite availability of quality teas during the winter times, traders said.
The market witnessed a declining trend with the CTC market lower by ₹2 to ₹4. This was reflected in average price realisation which witnessed a ₹3 drop at ₹136 against ₹139.
Of the total offerings of 8,97,225 kg, unsold quantities were 21 per cent. Traders attributed the drop to diminishing local demand because of subdued buying.