Dropping tea prices In Kochi auctions boost export demand
Declining tea prices in Kochi auctions have perked up export demand for leaf varieties with some buyers, especially from Iraq, evincing interest in orthodox grades.
Traders said that exporters to CIS and Middle East countries are active besides noticing upcountry demand in sales. The rising tea prices in Kolkata also prompted buyers to turn to South India auctions to cater to the export demand.
However, continuing heavy rains in high ranges have affected the quality of tea arriving at the auction platform despite good arrivals, traders said.
The quantity offered in orthodox grades was 2,79,143 kg with a sales percentage of 88. The average price was down by around ₹10 at ₹161 compared to ₹171 in the previous week, the auctioneers Forbes, Ewart & Figgis said.
The sales percentage in CTC leaf was 94 out of the offered quantity of 36,500 kg. Major packateers lent fair support along with Kerala and upcountry buyers.
In CTC dust, the select best liquoring was dearer, while the rest was irregular and lower by ₹1 to ₹2 and witnessed a lot of withdrawals. The quantity offered was 8,83,366 kg and 52 per cent of the offerings was absorbed by blenders.
According to traders, improved crop arrivals have hit prices which are likely to continue. The sales percentage in orthodox dust was 100 out of the offered quantity of 10,000 kg. Exporters continue to be the main stakeholders.