Buyers’ participation for the Sri Lankan tea auction resumed on a muted note this week after the trading was cancelled last week.
As per reports, there was reluctance on the part of Sri Lankan buyers to participate in the auctions and their low turnout was because of the ongoing financial crisis in that country, a top official in a leading tea manufacturing company in Kochi told BusinessLine. Nobody wants to buy tea and stock in these times of uncertainties — especially when business atmosphere was not conducive, he said.
South India to benefit
It is expected to take a couple of months for the government to come out with some drastic economic measures for business revival. Till then, the traders’ participation and the demand are likely to be subdued, he said adding that South Indian orthodox teas have started benefiting out of the crisis by receiving some orders and more firm enquiries from exporters.
Another trader pointed out that the crisis in Sri Lanka is expected to benefit South Indian auctions in the long-term.
Meanwhile, the average price realisation in orthodox leaf in Kochi auctions was up by ₹3 to ₹162 with active participation of exporters to CIS and West Asian countries. The quantity offered in sale 20 was 2,81,678 kg with 80 per cent being sold. The market for select best Nilgiri whole leaf and brokens was firm to dearer.
However, CTC dust price was lower by ₹2 at ₹129 mainly on the back of good arrivals of the crop. The market for good liquoring teas was lower by ₹3-5 per kg, especially for high-priced teas. All blenders together absorbed 70 per cent of the offered quantity of 11,27,847 kg. There was a subdued demand from loose tea traders.
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