Orthodox tea prices in Kochi drop by ₹12 on subdued overseas demand 

Increased access coupled with weak external demand dragged the Orthodox tea Prices are at auctions in Kochi, with the average achieved price dropping by Rs 12 per kilogram.

Traders said traditional bids have improved in the North Indian and South Indian auctions with the arrival of new crops. After falling prices in North India last week, South Indian prices also showed a downward trend with a lot of pullbacks.

Change in bidding system

However, some traders attribute the price drop to a recent adjustment made by a company tea board in the auction system, which he reported had difficulties for buyers bidding. Although the changes were intended to speed up the sale process, they have led to less participation, lower prices and large withdrawals, the dealers said, adding that Coonoor Auctions, Coimbatore has seen a similar phenomenon.

The quantity offered for sale in Kochi 20 was 3,27,459 kg. Only 72 percent sold was each. Nilgiri whole leaf and fish market used to be less than 5-10 rupees and saw a lot of withdrawals. Auctioneers Forbes, Ewart, and Figgis said that exporters to the CIS and West Asia have been selective amid lower demand. The secondary brokers market from all sectors witnessed a weak and losing edge in general.

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The market for CTC paper was also lower by ₹2 to ₹3 and the quantity offered was only 36,000 kg with a turnover of 80 per cent.

The carbon tetrachloride dust market was also lower with sales of 82 percent of the supplied quantities of 8,65,657 kg. The market was $1 to $2 lower and saw some pullback. The average price achievement was Rs 2 lower per kg at Rs 135.98. Kerala loose tea traders and rural buyers and exporters were selective and submissive.

In the traditional dust, the exporters absorbed the small amount of the total offering of 4000 kg.