Container shortage and soaring freight rates seem to have started impacting tea prices in Kochi auctions especially for leaf varieties. The emerging situation has forced traders to slow down their procurement of orthodox leaf.

This was evident in the quantity sold which was only 59 per cent out of the 2,86,151 kg offered in the auction. Traders pointed out that exporters to CIS countries and West Asia was selective and confined to primary grades.

The average price realisation was also down at ₹7 per kg compared to previous week. The market for Nilgiri whole leaf and brokens becomes irregular and was lower by longer margins of ₹5-10.

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The export demand was also subdued in CTC leaf with high-priced brokens and Fannings was irregular and lower. The quantity offered was 59,500 kg, witnessing a fair demand.

Meanwhile in the dust sales, a shortage in the offered quantities has lifted the prices especially of CTC dust. There was a good participation from blenders with a market for good liquoring and popular marks remained steady to firm and sometimes dearer.

The quantity offered was 7,69,270 kg. Lower arrivals in the auctions were because of the rains in producing regions at the beginning of August. Exporters confined to the bottom of the market and covered a nominal quantity. Kerala Loose Tea traders and upcountry buyers lent fair support.

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In orthodox dust, the quantity offered was only 11,500 kg where the sold quantity was only 42 per cent. Primary grades remained steady while secondary was lower and witnessed some withdrawal.

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