Kochi Auctions: Tea prices continue to drop

Tea prices – both CTC and orthodox varieties – continued to drop at Kochi auctions, despite good buyer participation.

Traders said arrivals from the high ranges had increased thanks to improved production following conducive weather conditions. Warehouses in and around the auction centres were full.

An exporter said tea prices had to come down to be able to compete with Sri Lankan brews in the global market. Prices in Kolkata had also started declining with increased arrivals, and a similar trend was witnessed in the South as well.

The orthodox market for whole leaf and brokens in sale 27 was lower by longer margin of ₹5 to ₹10 and sometimes more following quality. It also witnessed some withdrawals. At the same time, there was good demand from exporters to the CIS and West Asian countries. Upcountry buyers also lent fair support, the auctioneers Forbes, Ewart & Figgis said.

The CTC leaf market was lower, witnessing 92 per cent sales out of the offered quantity of 38,000 kg.

The CTC dust market was also lower despite strong demand, with 91 per cent of the offered quantity of 7,30,571 kg being sold. The blenders together absorbed 71 per cent of the total CTC quantity sold. The market for good liquoring teas was lower by ₹1 to ₹ 2, and witnessed some withdrawals. Traders said local buying was subdued.

The average price realisation was down by ₹2 at ₹142, compared to ₹144 in the previous week.

The Orthodox dust market was lower, with prices tending to ease. The offered quantity was 6,500 kg, with a sales percentage of 87.