Improved buying of orthodox grades for exports boost tea prices at Kochi auctions

The sales percentage of orthodox grade teas at Kochi auctions increased following an improved buying by exporters, boosting the trade.

Traders said the percentage of sales in orthodox grades out of the offered quantity of 2,03,101 kg is moving step by step to reach 89 per cent in sale 48, which they believe is a good sign. The market will likely boost further at this price point, especially after improved enquiries from West Asia and CIS countries. A majority buyers are using Dubai as their hub for tea exports to destinations such as Iraq, Iran, Russia and several other areas.

According to traders, the starting of winter is expected to bring good quality teas in the auction by mid-December which would expect to boost the market further.

Auctioneers Forbes, Ewart & Figgis said upcountry export demand was more and the market for Nilgiri whole leaf witnessed a strong feature, appreciating by ₹5-7 a kg. Nilgiri brokens and Fannings were also dearer. The average price realisation was up by ₹4 at ₹139.

Dusts lower

However, dust market was lower by ₹1-2 due to a subdued buying by blenders. They absorbed only 35 per cent of the offered quantity of 7,76,146 kg of CTC. The average price realisation was down by ₹2 at ₹133. Though there was an improve demand from loose tea traders, Supplyco did not operate.  

Orthodox dust market was also lower with a sales percentage of 34 out of the offered quantity of 5,500 kg. Exporters absorbed a small quantity.