Increased tea prices in overseas markets seem to have facilitated leading manufacturers to focus more on exports, which led to lower arrivals of the brew in Kochi auctions.
A senior official from a leading plantation company said the pivot towards exports is resulting in lower tea offerings at auction platforms. This decrease can be attributed to two main factors: manufacturers holding back produce for export due to better prices and the adverse impact of winter on tea crops in high-range areas, which has directly affected the quantity of tea available for sale.
Despite the higher costs of shipping tea to overseas destinations, he said the attractive export price makes this a viable strategy for manufacturers. This suggests that the financial gains from selling at higher prices abroad outweigh the logistical expenses, making exports an appealing option.
The emerging situation highlights the interconnectedness of domestic and international markets and how shifts in demand and pricing on a global scale can impact local supply dynamics, he said.
“We are getting good orders mainly from European countries including from the UK, Poland, Turkey etc,” he said.
Realisation down
The quantity offered in sale 5 in Kochi was 1,71,000 kg with a sold percentage of 92. The auctioneers Forbes, Ewart & Figgis said the Middle-East and CIS countries were the main stakeholders, while some upcountry interest was also seen.
The average price realisation was down by ₹5 at ₹138 a kg on account of higher sales in the low medium and secondary grades.
CTC dust market also witnessed lower arrivals at 6,44,044 kg with good liquoring teas lower by ₹1-2 a kg and sometimes more especially high-priced teas. All blenders together absorbed 52 per cent of the total CTC quantity sold. There was a fair demand from loose tea traders and upcountry buyers.