The easing of tensions in West Asia revived export demand for orthodox teas at the Kochi tea auctions this week, pushing the average price realisation up by around ₹13 per kg.
Tea traders said buyers from Russia, Iran, Iraq and other Middle Eastern countries resumed placing orders for orthodox teas following the reopening of shipping routes. Improved crop quality, aided by recent rains in the high ranges, has also contributed to stronger enquiries from overseas markets.
Strong buying interest from overseas markets
Auctioneers Forbes, Ewart & Figgis said there was a robust demand in Sale No. 26, with whole leaf orthodox teas ruling firm to dearer by ₹5-10 per kg and sometimes more. Of the 3,17,738 kg offered, 98 per cent was sold, registering strong buying interest, particularly from West Asian markets.
The CTC leaf segment also witnessed healthy demand. Medium brokens and fannings remained steady to firm, while plainer varieties traded at higher levels.
Quality teas find support, medium varieties face pressure
Anil George, president of the Tea Trade Association of Cochin, said clean, black and well-made orthodox teas sold at firm-to-dearer levels, supported by active buying from West Asia and CIS countries. The CTC dust market also recorded strong demand, although popular, well-liquoring varieties were mostly steady to occasionally easier to obtain.
According to the auctioneers, 7,68,917 kg of CTC dust was offered in the auction, with a sales percentage of 86. Blenders accounted for 68 per cent of the total CTC quantity sold. While good liquoring teas were barely steady and declined by ₹1-2 per kg, medium-quality teas witnessed significant withdrawals due to subdued buying interest.