Export demand lift orthodox leaf tea prices in Kochi auctions

Widespread export demand, especially from CIS countries and West Asia, has lifted prices of orthodox leaf tea at Kochi auctions this week.

Increased shipments

Traders pointed out that 93 per cent of the offered quantity of 2,18,276 kg in the sale 4 was sold at an average price of ₹164. With the fag end of the financial year contributing toincreased shipments, exporters could procure more tea from the market to meet their trade commitments in the current fiscal.

The market for best Nilgiri whole leaf and broken remained steady-to-firm and sometimes dearer, while the rest was irregular and lower as a result of poor quality, the auctioneers Forbes, Ewart & Figgis said.

The market for CTC leaf was lower by ₹2-3 due to subdued demand from upcountry buyers and packeteers. The quantity offered was 57,500 kg, of which only 63 per cent was sold.

However, the market for dust varieties was lower due to subdued demand from upcountry and local buyers. Exporters were selective and operated at the bottom of the market.

Quantity offered in CTC dust was 10,64,146.70 kg and the market was lower by ₹5-10. As the sale progressed, good liquoring teas were steady-to-firm and sometimes dearer. The average price realisation was ₹170, at almost the same level as last week.

Crop arrivals

According to traders, the market is anticipating new crop arrivals in a fortnight. The distribution of tea through PDS kits by the State government has also affected the local demand for the brew in the market. Major blenders lent only fair support.

In the sale of orthodox dust, the market was lower and saw a lot of withdrawals. The quantity offered was 10,500 kg and exporters continued to be the main stakeholders.

COMMENT NOW