Agri Business

US-Iran stand-off hits Russian buying of orthodox tea from Kochi

V Sajeev Kumar Kochi | Updated on January 17, 2020 Published on January 17, 2020

The entire quantity of 9,000 kg of orthodox tea offered in Sale No 3 remained unsold. BIJU BORO

CTC prices decline at auctions following subdued demand

Geopolitical tensions following the stand-off between the US and Iran seem to have impacted the offtake of orthodox tea varieties from Kochi auctions this week.

The entire quantity of 9,000 kg of orthodox tea offered in Sale No 3 remained unsold and traders attributed this to reduced offtake by Russia in the last fortnight. Russia is a major buyer of South Indian orthodox tea and this particular variety finds markets in Iran as well from there.

Besides, several other Gulf countries, such as Libya, Iraq and Turkey, are also procuring South Indian orthodox tea from Kochi auctions on a limited scale, traders said. The demand for the variety from CIS countries and West Asia was also subdued, they added. Tunisian exporters operated at a lower level, too.

CTC prices decline

Meanwhile, CTC prices declined at the auctions following subdued demand. The quantity on offer was 10,84,664 kg and the price fell by ₹1-3. The price decline was greater as the sale progressed and witnessed some withdrawals, said auctioneer Forbes, Ewart & Figgis. The average price realised was also down at ₹115.86 per kg.

However, major blenders continued to be the main buyers. Exporters operated at the bottom of the market, while Kerala and upcountry buyers offered fair support.

In Cochin CTC dust quotation, good varieties fetched ₹114-150, mediums quoted ₹87-132 and plain grades stood at ₹75-85.

Leaf sales

In leaf sales, the market for Nilgiri brokens, whole leaf and Fannings in the orthodox tea segment barely remained steady, and tended to ease. The quantity on offer was 2,79,590 kg and the average price realisation was up at 132.96 per kg.

The market for CTC leaf was fair and the quantity on offer was 41,000 kg. Exporters operated at the bottom of the market very selectively.

Monica/Carady Goody SFD quoted the best prices of ₹150 in dust grades, while Chamraj FOP was at the top in leaf, quoting ₹242 per kg.

Published on January 17, 2020
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