Agri Business

Rising unsold teas, price dip at Kochi auctions leave trade worried

V.Sajeev Kumar Kochi | Updated on July 02, 2021

Prices drop at this week's sales, leaf market an exception

Rising unsold quantities of tea and consistent drop in prices in the auctions is worrying the trading fraternity in Kochi.

Earlier, unsold quantities in the auctions were below one lakh kg, but this has slowly moved up. According to traders, the unsold quantities in the last two auctions were approximately three lakh kg.

They cited the reasons for the absence of retail tea sales as the closing down of hotels in the pandemic situation, coupled with the free distribution of the brew by the government agencies through the food kits supplied through PDS. According to them, this has adversely affected consumer demand.

The subdued demand was evident in this week's auctions as well, as a large quantity of CTC dust was out-listed in Sale 26 due to low bids or lack of bids. The lower demand was reflected in the average price realisation, which was down by ₹3 per kg at ₹123 from ₹126 in the previous week.

The quantity offered was 10,98,344 kg and only 74 per cent was sold. The market for good liquorings barely remained steady. Medium and plainer was irregularly lower by ₹5 to ₹10.

Orthodox dust market was also lower, witnessing a lot of withdrawals. The quantity offered was 19,500 kg and a small quantity was absorbed by exporters and upcountry buyers.

However, the leaf market was up to a certain extent with select best Nilgiri, whole leaf and brokens in orthodox grades was firm to dearer. The average price was up at ₹166 against ₹152. The quantity offered was 2,94,890 kg, with a useful support extended by exporters to CIS and Middle East, the auctioneers Forbes, Ewart & Figgis said.

In CTC leaf, the market for select best brokens and fannings remained steady and occasionally dearer. The remainder was lower by ₹5 to ₹10 and witnessed a lot of withdrawals. The quantity offered was 88,500 kg and only 38 per cent was sold. Exporters operated at the bottom of the market and absorbed negligible quantities.

Published on July 02, 2021

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