Subdued buying by loose tea traders impact prices at Kochi auctions

Subdued buying from Kerala Loose Tea traders has pulled down tea prices, especially that of dust grades, in Kochi auctions this week.

The CTC market was down by ₹1-2 a kg in sale 24 and declined more as the sale progressed. Loose tea traders continued to be restricted and are yet to come out of the effect of lockdown. These traders cater mainly to hoteliers, who are yet to start their operations fully. AVT continued to be the major buyer, but was selective and absorbed lesser quantity compared to the last two weeks.

The quantity offered was 11,87,648 kg, in which 68 per cent was sold. The average price realised was ₹104. Kerala State Civil Supplies and major blenders lent fair support, the auctioneers Forbes, Ewart & Figgis said.

The quantity offered in orthodox dust was 19,000 kg and a small quantity was absorbed by exporters.

In leaf variety, strong export demand boosted sales of orthodox leaves with Nilgiri whole leaf appreciating by ₹5-10. The quantity offered was 2,75,146 kg, which realised an average price of ₹137, up from the previous week. Exporters to CIS countries and other destinations were active.

However, the sale in CTC leaf witnessed an important feature where brokens and Fannnigs are out-priced the corresponding dust grades of the same estate. Of the offered quantity of 51,500 kg, 91 per cent was sold with the active participation of major blenders along with upcountry buyers.