Demand was subdued at South India tea auction centres, including Kochi, this week with upcountry and corporate buyers shifting their focus to North Indian tea auctions.
The situation is likely to continue for some more time, especially with the availability of ample quantity and good quality teas in North Indian markets. July, August, September and October are considered as the peak production season, forcing buyers to confine themselves to North Indian auctions for procurement, trade sources in Kochi said.
“In such a scenario, the third quarter is unlikely to favour South Indian teas and the prospects of CTC also do not look bright especially in the absence of local demand and restrictions in opening hotels and restaurants”, a tea company official said.
Besides, the orthodox tea importers are unlikely to be aggressive and active for the time being in view of rising freight costs, logistics issues, container shortage, etc, the official added.
At the Kochi auctions, prices of good liquoring teas and popular marks in CTC dust was firm, thanks to participation of blenders and Kerala buyers. However, the entire market in sale 37 was irregular and lower by ₹2-3 a kg. The quantity offered was 10,39,095 kg and only 77 per cent was sold. The average price realisation went up to ₹121 against ₹120 in the previous week.
In orthodox varieties, only 58 per cent was sold out of the offered quantity of 14,500 kg. The market was lower and witnessed a lot of withdrawals.
In leaf sale, the market for Nilgiri brokens and the whole leaf was lower and witnessed some withdrawals. The quantity offered was 3,55,382 kg and only 72 per cent was sold. Exporters to CIS and West Asia lent only fair support. The absence of sales in low-priced teas especially in secondary brokens pushed up average prices to ₹146 from ₹133.
In CTC leaf, brokens and fannings was lower by ₹2-4 a kg. However, the decline in prices was less for low-priced teas. The quantity offered was 62,500 kg.