Supplyco re-enters Kochi tea auction market after a gap of few months

The Kerala State Civil Supplies Corporation (Supplyco) has re-entered the Kochi tea auction market after a gap of a few months.

The State-owned entity bought 20,000 kg in sale 21. According to traders, the company’s return is expected to stabilise the auction market.

Supplyco was one of the major buyers of tea in the Kochi auction and a liquidity crunch is reported to have kept the firm has away from the market for long, traders said, adding that the company used to procure around 50,000-80,000 kg from the auction market in Kochi every week in good times, which it sold in the retail market, traders said.  

CTC dust withdrawals

Meanwhile, average price realisation in the CTC dust market dropped by ₹6 to quote at ₹143, compared to ₹149 in the previous week. Sales dropped to 78 per cent of the offered quantity of 6,28,527 kg. The market for good liqourings and high-priced popular marks was lower by ₹2 to ₹3, and witnessed withdrawals, the auctioneers Forbes, Ewart & Figgis said. Blenders were selective and operated at lower limits, and the blenders together absorbed 58 per cent of the total CTC quantity sold.

Demand was less in the orthodox dust market as well, with 28 per cent of the offered quantity of 6,500 kg being sold.

However, the active participation of exporters to the CIS and West Asian countries lifted demand for orthodox leaves, with 93 per cent of the offered quantity of 1,35,049 kg being sold. The CTC leaf market also saw strong demand, with 97 per cent of the offered quantity of 28,000 kg being sold. Brokens and Fannings were dearer by ₹2 to ₹3.