Indian tea exports slacken as half the offerings at Kochi auctions go unsold

Unsold quantities of tea, especially in traditional grades, continue to climb at Kochi auctions, reaching 49 per cent this week – one of the lowest levels in recent times.

Auctioneers at Forbes, Ewart, and Figgis cited a lack of export orders and declining overseas demand as reasons for the increase in unsold volumes. The quantity for sale of the 27 was 3,21,411 kg.

Late payments

The market witnessed a significant withdrawal in the absence of demand, especially from the CIS countries and West Asian countries. They attributed the reason to recession and inflation prevailing in European countries, which forced buyers to look for cheaper tea.

The recent devaluation of the Sri Lankan rupee has made tea from the island nation cheaper on the world market. Besides, late payments forced exporters to slow down their purchases. Russia’s demand for payment in dollars or yuan has exacerbated the situation, traders said, adding that stocks in warehouses are also rising in the absence of orders.

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The Nilgiri paper market and brokerage was lower by a margin longer than ₹5 to ₹10 and saw heavy withdrawals.

Demand for CTC sheets was good with 80 per cent of the 26,000 kg supply being sold. The more aggressive intermediate brokers were less aggressive, and saw some withdrawals.

Mixers support CTC dust

In CTC dust, the quantity sold was 70 percent, with liquid tea selling well mainly by blenders. The quantity offered was 9,87,079.80 kg. The popular label market was under 1 to 3 rupees. A decrease in demand was seen by loose tea traders and buyers in rural areas. The issuers were very selective and covered only a nominal amount.

In orthodox dust, the primary grades remained constant, while the secondary grades were lower.