West Asian crisis continue to hit Kochi tea auctions
The Israel-Hamas conflict continues to hit orthodox tea shipments from Kochi auctions with the sales percentage declining.
In sale 43, the sold percentage was only 52 out of the offered quantity of 1,41,543 kg in orthodox grades, and the average price realisation was down by ₹10 when both orthodox and CTC grades put together.
Traders fear that the worsening of the war situation in West Asia is likely to hit payments, discouraging buyers from placing fresh orders due to shipment delays. Traditional exporting countries such as Iraq, Egypt, and Iran have already reduced their intakes from the auctions and the business is expected to be further affected in the coming weeks. The closing down of North Indian market for pooja holidays has also affected the Kochi auction market, resulting in subdued sales from upcountry buyers.
Auctioneers Forbes, Ewart & Figgis said that exporters to CIS and West Asian countries were selective and subdued, and some major traditional exporters did not operate.
However, the CTC dust market witnessed strong demand, with 96 per cent of sales out of the offered quantity of 7,90,284 kg. Traders attribute this to lower arrivals due to climatic conditions in the high ranges, and prices are likely to go up further. The arrivals in forthcoming auctions are also on the lower side.
Good liquoring teas were firm and dearer by ₹3 to ₹5, especially popular marks of Kerala. There was also a better demand from loose tea traders.