The ongoing LPG shortage dampened tea demand at the Kochi auction market this week, as reduced operations of hotels and roadside eateries led to a decline in local buying.
Traders said purchases weakened significantly with many restaurants and tea stalls remaining shut, impacting overall consumption in the state.
Anil George, president of the Tea Trade Association of Cochin, said bazaar demand declined amid LPG shortages affecting tea outlets, while export interest was limited to lower-end teas. There has been a decisive shift in market sentiment, with tightening demand and external disruptions exerting clear downward pressure on prices. Demand remained fair but distinctly selective, as popular liquoring grades eased by ₹3–5, while medium and plainer varieties declined by ₹2–3. Buyer participation was measured by blenders operating under reduced limits, he said.
CTC dusts down ₹5/kg
At Sale 13, the CTC dust market dropped by around ₹5 per kg, with blenders absorbing only 64 per cent of the 6,57,741 kg on offer, according to Forbes, Ewart & Figgis. Good liquoring teas saw prices fall by ₹2 to ₹3, and even more for powdery grades, despite an 88 per cent demand.
Plainer teas showed irregular trends, often selling at lower rates, with some lots withdrawn due to weak demand.
The orthodox dust segment also declined, with exporters and upcountry buyers taking up only small quantities of the 10,500 kg offered at the auctions.
In orthodox leaf, the unrest in West Asia led to a selective, subdued demand in Gulf markets, while CIS and neighbouring countries remained active in purchasing. The offered quantity was 1,62,652 kg, with whole leaf generally sold at firm to dearer levels. Brokens were firm to dearer, while the rest were irregular and lower, witnessing some withdrawal.
The CTC leaf market was good, with medium brokens, and Fannings were irregular and lower. The offered quantity was 38,500 kg with a sales percentage of 72.