Commodities

Orthodox tea exports from Kochi auctions to West Asia continue to struggle

V Sajeev Kumar | Updated on January 24, 2020 Published on January 24, 2020

Traders cite geopolitical tensions in the wake of the Iran-US stand-off for the declining export demand

Orthodox tea shipments from the Kochi auctions continue to be hit following sluggish export inquiries, especially from West Asian markets. Of the 2,65,136 kg on offer, the quantity sold in Sale no 4 was only 45 per cent. Normally, orthodox tea sales in the auctions are in the range of 60-70 per cent. Traders cited geopolitical tensions in the wake of the Iran-US stand-off for the declining export demand for orthodox tea to West Asia. The price drop for this particular variety was in the range of ₹5-7.

Moreover, the emerging situation has forced importing countries to ask for delayed payments. Since Iran has stopped tea shipments, traders who specifically cater to that market could not liquidate their available stocks. However, Russian buyers seem to be utilising the opportunity of dropping prices by procuring more, traders said. Exporters to CIS countries lent only fair support but were very selective.

Tunisia operated at a very low level, while West Asian exporters abstained from the market.

The CTC dust market also saw subdued export demand, with exporters operating at a lower level. The dust domestic market was also down by ₹1-3 and sometimes more following quality. Blenders were not active in the market, said auctioneers Forbes, Ewart & Figgis.

The total quantity on offer in CTC grades was 10,39,763 kg and the average price realisation remained almost the same, at last weeks level of ₹115.93 per kg.

The market was lower for orthodox dust and the small quantity offered was absorbed by exporters. The total quantity offered was 8,500 kg.

In the CTC leaf category, the market for good liquoring brokens barely remained steady and the total quantity on offer was 38,000 kg. Exporters also operated at lower limits.

Monica/Carady Goody SFD quoted the best price of ₹149 among the dust varieties. Chamraj FOP came to the top in leaf grades, quoting ₹255 per kg.

Published on January 24, 2020
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