Renewed overseas buying pushed up orthodox leaf prices at Kochi auctions, witnessing ₹5 per kg increase in the average price realisation.
Traders said overseas buyers from countries such as Iraq, Tunisia and Turkey have restarted their procurement, especially secondary grades and good-quality teas. There has been a good enquiry from West Asian destinations as well. A single buyer alone has procured more than 50,000 kg.
At the same time, auction platforms continue to witness lower arrivals and sources in the tea sector attributed the reason to climate change, which is badly hitting production in growing centres, which was down by around 20 per cent. Besides, the incidents of pests and diseases are also impacting production. A good pre-monsoon shower in the first week of May is expected to increase production.
Realisation up
The offered quantities in sale 16 was lower at 1,79,017 kg in which the sales percentage was 92 per cent, registering a strong demand. The average price realisation was at ₹161 compared to ₹157 in the previous week. In CTC leaf, the quantity offered was 31,000 kg with only 78 per cent sold. Upcountry buyers lent fair support along with loose tea traders.
However, the active participation of blenders and packers lifted CTC dust prices with good liquoring teas remained steady to firm and sometimes dearer. The quantity offered was 6,88,387 kg with a sales percentage of 90 per cent. All blenders together absorbed 60 per cent of the total quantity sold, while exporters operated at the bottom of the market, covering a nominal quantity. The average price remained at ₹139 like that in the previous week.
In orthodox dust, the quantity offered was 1,500 kg with a sales percentage of 100 per cent with primary grades remaining steady and secondaries lower.