Rising tea procurement from North India and a strong overseas demand lifted orthodox leaf prices at Kochi tea auctions. The sales witnessed 99 per cent of the two lakh kg offerings being auctioned off.
Traders said the North Indian buyers have started focusing now on South Indian auctions because of the MRL issues as well as rising tea prices which helped to realise a better market in Kochi. The demand was strong in sale 23 with buyers looking for quality teas and found strong markets in Russia, Turkey and Iraq. The higher prices in North Indian auctions in the second flush also facilitated traders there to scout for the brew across the South.
The auctioneers Forbes, Ewart & Figgis said there was a widespread demand from exporters to CIS and Middle East countries. The prices of whole leaf and brokens have appreciated by ₹3-5 and sometimes more depending on quality. Medium whole leaf was firm to dearer while brokens witnessed a strong demand with margins being higher by ₹5-10.
All sections active
CTC leaf also witnessed 100 per cent sales out of the 25,500 kg offerings with the market for brokens and Fannings dearer by ₹2-5. All the sections of the trade were active.
The CTC dust market was also strong with medium and plainer teas becoming dearer compared to high-priced teas which was lower by ₹1-2. The offered quantity was 5,72,303 kg, witnessing 93 per cent sales. All blenders together absorbed 63 per cent of the total CTC quantity sold.
The sales percentage in orthodox dust market was 100 out of the offered quantity of 3,500 kg with primary grades remaining steady and secondaries showing a decline. Exporters and upcountry buyers purchased a small quantity, the auctioneers said.