Overseas Demand Lifts Orthodox Tea Prices in Kochi Auctions

Strong overseas demand has lifted the orthodox tea market in Kochi auctions, leading to a ₹10 per kg rise in average price realization. Traders reported that 97 per cent of the offered quantity of 2,60,784 kg in Sale 41 was sold, driven by active procurement from buyers representing Russia, CIS countries, Africa, and the Middle East.

Market participants attributed the surge in buying to the settling of pending payments from earlier sales, which facilitated overseas buyers in placing fresh orders at the auctions. This trend is expected to continue for the time being, contingent upon crop availability. Meanwhile, rains in the high ranges are viewed as a positive sign for quality crop arrivals on the auction platform.

Auctioneers Forbes, Ewart & Figgis noted that broken grades remained firm and at times dearer, reflecting good quality. The CTC leaf market also witnessed strong demand, with brokens and fannings holding firm to dearer positions. Anil George Joseph of the Tea Trade Association of Cochin stated that robust demand persisted for orthodox leaves, with select clean, black, well-made whole leaf, mid-leaf, and bolder brokens commanding firm to dearer rates alongside active participation from Middle East buyers.

Conversely, the CTC market saw lower trends, with popular and good-liquoring sorts dropping by ₹1 to ₹2 alongside some withdrawals. According to auctioneers, the quantity offered in CTC dust stood at 6,45,163 kg, with liquoring teas slipping by ₹1 to ₹2. Blenders collectively absorbed 66 per cent of the total CTC quantity sold.

Meanwhile, orthodox dust remained firm to dearer, achieving a 100 per cent clearance rate out of the offered quantity of 6,611 kg. Stakeholders remain optimistic as quality arrivals continue to support market momentum.