As Indian tea prices drop, producers try shifting from orthodox to CTC
Downward trend in the price of orthodox securities tea It has reportedly paid some manufacturers in north India with dual production facilities to convert their products to CTC grades, dealers at Kochi auctions said.
According to the traders, the traditional prices in North Indian markets have been declining for some time and this may have forced some producers to shift to CTC keeping in mind the local market demand for dust grades. This will lead to a situation where auction dust bids will be on the higher side in the coming weeks. However, the dealers went on to say that no such practice has been reported from any auctions in South India so far.
The downward trend continues
Meanwhile, prices of conventional papers continue to fall in Kochi auctions with sales down 51 percent of the offered quantity of 3,83,165 kg. Average price realization decreased by seven rupees at 130 rupees as compared to 137 rupees in the previous week.
Auctioneers Forbes, Ewart and Figgis said prices continue to fall with large withdrawals for almost all grades due to weak export demand from the CIS and West Asia.
- Read also: Prices of orthodox tea at Connor auctions were also affected due to the refusal to export
Traders also said that the quality of the tea also declined due to the rush of crops caused by the rains.
Meanwhile, the dust market remains flat and steady, thanks to rapidly approaching Onam sales, traders said. They were also concerned about poor buying by government agencies, who last year bought nearly eight thousand kilograms from auctions to supply tea in Onam sets ahead of the festival season.
The quantity offered in the sale of CTC dust was in excess at 9,55,437 kg, and one rupee saw an average price achieved at $128. Good intoxicating tea was consistent in consistency and sometimes of higher quality. Mixers absorb 60 percent of the total amount of carbon tetrachloride sold. Kerala loose tea merchants and rural buyers gave their fair support.
Exporters were the major contributors to conventional dust with a supply quantity of 9000 kg and 91 percent of the sales.