Sabarimala pilgrimage, Christmas perk up CTC tea demand at Kochi auctions bl-premium-article-image

V Sajeev Kumar Updated - December 15, 2023 at 04:13 PM.

Financial crunch keeps Kerala state firm Supplyco away from the sales

Woman picking tea leaves by hand in a green tea farm. | Photo Credit: cueapi

The Sabarimala pilgrimage season and ensuing Christmas festival have revived the CTC dust market in the Kochi auctions

In the CTC dust market, 91 per cent of the 7,89,940 kg on offer was sold, with blenders absorbing 55 per cent. Of this, AVT alone purchased 33 per cent of the totalquantity sold, said auctioneers Forbes, Ewart & Figgis.

Supplyco – the second largest blender in Kerala – has not been active in the auction market for quite some time. Traders attributed its non-participation to a financial crunch. Tea purchase by Supplyco has dropped to around 25,000 kg per week, from 1.5 lakh kg earlier.

Russian interest continues

At the same time, sale of orthodox leaves continues to move up on demand from Russian buyers. Normally, Russian buyers procure more tea during December, before the start of the winter, and the shipments reach there after 45 days, after the season ends in that country. Exporters to West Asia and other destinations lent only fair support, traders said.

In sale 50, 82 per cent of the 1,95,987 kg of orthodox grades was sold, fetching an average price of ₹149.62 per kg. The select best Nilgiri whole leaf and brokens was firm to dearer, the auctioneers said.

According to traders, the orthodox leaf grades also witnessed some upcountry interest due to the end of the season in the Kolkata auctions. This has facilitated buyers to scout for cleaner varieties from South Indian auctions, and the trend is likely to continue till March-April, with production in North Indian tea gardens re-starting.

Published on December 15, 2023 10:19

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