Amid low arrivals, tea prices surge at Kochi auctions

Low arrivals (both in orthodox and dust grades) continue to hit Kochi tea auctions, resulting in price surge.

The offered quantity in CTC dust was 6,26,966 kg in sale 33, witnessing a sales percentage of 98. In orthodox offerings, it was 2,44,431 kg, the auctioneers Forbes, Ewart & Figgis said.

The market for CTC dust was dearer by ₹3 to ₹5 and the prices were higher with longer margin of ₹5 to ₹10 and sometimes more. All blenders together absorbed 52 per cent of the total CTC quantity sold. The average price realisation was up by ₹8 at ₹151 compared to ₹143 in the previous week.

According to traders, the continuing inclement weather in high ranges has hit tea production and the arrival was lower in the forthcoming auctions as well.

Orthodox dust market was firm to dearer with sales percentage of 88 out of the offered quantity of 6,500 kg.

The leaf market was also strong with a sales percentage of 85. Traders said that the rising tea prices in North India has forced buyers there to scout for tea from Kochi auctions, which witnessed a good demand for good liquoring and well-made teas. The average price realisation was up by ₹17 at ₹169 compared to ₹152 in the previous week.

The auctioneers said that clean black well-made whole leaf and brokens witnessed a strong feature and sometimes out-priced corresponding Nilgiri teas. Exporters to CIS and Middle East countries were also active.

CTC leaf also witnessed a strong demand with brokens and Fannings becoming dearer. There were hundred per cent sales out of the offered quantity of 38,500 kg.