Export enquiries, North India demand buoy Kochi tea auction prices

Export enquiries, North India demand buoy Kochi tea auction prices

Export enquiries, coupled with firm upcountry demand, lifted leaf tea prices in Kochi auctions this week.

The orthodox leaf market — especially for Nilgiri whole leaf and brokens — was higher by a margin of ₹5-10, sometimes more, following quality. The rising trend was evident in average price realisation, which went up to touch ₹163 in sale 11 against ₹155 in the previous week.

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Traders attribute the surging demand to the purchase of North Indian buyers from the South after the opening up of markets and commencement of production there.

However, lack of sufficient quantity and the availability of old stocks following the suspension of tea estate operations during November-December last year has forced them to tilt towards South for procuring fresh tea for blending. “We expect that the situation may continue till the end of April until the production in West Bengal and Assam improves”, a highly placed source in the auction market told BusinessLine.

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Demand may not improve

The auctioneers, Forbes, Ewart & Figgis, said that exporters to CIS countries and West Asia were active and the quantity offered was 1,81,795 kg.

CTC leaf also generated good demand following improved demand from upcountry buyers and exporters. The quantity offered was 49,000 kg.

However, the dust tea market was lower, with CTC prices declining by ₹2 to ₹5 and more, despite an improvement in the offered quantity at 11,29,971 kg. Blenders and State Civil Supplies Corporation continued to be active, while Kerala buyers operated hand to mouth. An improved demand was noticed from upcountry buyers and exporters. The average price realisation was down by ₹1 at ₹165. According to traders, they are not expecting any major improvement in demand in the short term.

Orthodox dust market was also lower and the offered quantity was 6,000 kg. Exporters and upcountry buyers absorbed a small quantity sold.

This article is auto-generated by Algorithm Source: www.thehindubusinessline.com

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