Increased arrival coupled with subdued overseas demand dragged orthodox tea prices in Kochi auctions, with the averager price realisation dropping by ₹12 per kg.
Traders said orthodox offerings improved both in North India and South Indian auctions with the arrival of new crops. Following lower prices in North India last week, South Indian prices also showed a declining tendency with a lot of withdrawals.
Change in bidding system
However, some traders attribute the price drop to the recent modification carried out by the Tea Board in the auction system, which reported to have made difficulties for buyers in placing bids. Though the objective of the changes was to speed up sale process, it resulted in less participation, price drop, and heavy withdrawals, traders said, adding that Coonoor, Coimbatore auctions have witnessed similar phenomenon.
The quantity offered in sale 20 in Kochi was 3,27,459 kg; the sold percentage was only 72 per. The market for Nilgiri whole leaf and brokens was lower by ₹5 to ₹10, witnessing a lot of withdrawals. The auctioneers Forbes, Ewart & Figgis said exporters to CIS and West Asia were selective amidst subdued demand. The market for secondary brokens from all segments witnessed a weak feature and lost in general.
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CTC leaf market was also lower by ₹2 to ₹3 and the quantity offered was only 36,000 kg with a sales percentage of 80 per cent.
The CTC dust market was also lower with a sales percentage of 82 per cent out of the offered quantities of 8,65,657 kg. The market was lower by ₹1 to ₹2 and witnessed some withdrawal. The average price realisation was lower by ₹2 per kg at ₹135.98. Kerala loose tea traders, upcountry buyers and exporters were selective and subdued.
In orthodox dust, exporters absorbed the small quantity of the total offerings of 4,000 kg.