Tea prices in Kochi are steadily moving south. For the third consecutive week, prices have fallen following declining demand from North Indian buyers.

Demand from exporters was also subdued, while blenders and packaters lent only fair support. The offered quantity in sale number 40 was 5,60,688 kg, but the market was lower by ₹5 to ₹10. The decline in prices was more to the tune of ₹10 to ₹20, as the sale progressed, said auctioneers Forbes, Ewart & Figgis.

The average price realisation was also down at ₹178/kg against ₹191/kg in the previous week. Prices of orthodox dust were also lower by ₹5 to ₹10 on an offered quantity of 17,500 kg.

Also read: Prices at Coonoor auctions fall for third week in a row

“I would definitely say that the party is not over for South Indian teas. But prices during the fourth quarter are definitely not going to be what it was during Q3. However, Q4 prices this year will definitely be much better than in Q4 2019,” said Venkitaraman Anand, Whole Time Director and Chief Executive, Harrisons Malayalam Ltd.

According to him, North India produces approximately 65 per cent of its crop during July to November. This is roughly 7.5 lakh tonnes. The ensuing Puja season, in the fourth week of October, and the payment of bonus for workers, will put pressure on cash flows. Thus, a number of private sales have been taking place between the buyers and sellers in northern India.

Also read: Hit by Covid and floods, Kochi tea trade seeks financial support

“There is definitely a shortfall in the pipeline, but since the industry has been going through a rough patch, we cannot stock teas and wait for prices to bounce back. The buyers are also aware that the sellers have to keep selling due to cash flow issues,” he added.

Leaf prices were also down by a bigger margin of ₹5 to ₹10 due to subdued demand from exporters, especially to CIS countries.

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