Orthodox tea prices may gain on lower output

Traders are hoping for buoyancy in orthodox tea market in September due to lower production in many tea growing regions.

“We expect the north Indian orthodox production in September and beyond to be lower by eight million kg compared with the same period last year. This is because of a sharper fall in the night temperature which we expect to be more severe from mid-September,” Mr Subodh Paul, Director, Contemporary Brokers P Ltd, told Business Line .

“Catalogues show that the offering every week this month at Kolkata auction will be 4-5 lakh kg lower than the corresponding period of last year. This week only 4.75 lakh kg came up for sale,” he disclosed.

“Already, lower quality teas are fetching less prices. Brownish and lighter teas may not fetch good prices in coming weeks.

We expect overseas market sentiments to improve once there is stabilisation in financial market. Sri Lankan cropping months are over. The Island expects reduced supplies with lower temperature predicted in October. So, orthodox market will remain buoyant in September and beyond for quality supplies,” Mr Paul explained.

This week, the best quality orthodox teas fetched Rs 200-280 a kg in North Indian auctions and Rs 105-115 in South Indian auctions.

The low-end fannings got Rs 90-105 in North Indian auctions and Rs 60-70 in the South.

The CIS was strong on whole leaf orthodox in the North while Iran was selective on brokens.

Germany confined to select tippy lots. Iraq and Tunisia bought low-priced secondary grades.

The CIS and West Asia supported orthodox teas in South Indian auctions.

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