Raising apprehensions over the periodic structural changes in the auction platform implemented by the Tea Board, the Tea Buyers Association of Cochin has said these changes have been a matter of concern for buyers.
Despite numerous suggestions to improve the auction operating system, these recommendations remain pending with the Tea Board. “I appeal to the Tea Board to consider making the current auction system more user-friendly by incorporating the suggestions provided by our association over time, rather than overhauling the entire system”, Anil Kumar N Prabhu, president, Tea Buyers Association of Cochin, said.
On the export front, he said the current situation in the Middle East, particularly in Iran, Libya, and Syria, is a significant concern. Although exports from January to May in 2024-25 rose to 58.95 million kg compared to 50.77 million kg in 2023-24, he said high freight costs, insurance charges, and delays in shipment have adversely affected tea exports to Iran.
Addressing the 51st annual general meeting, Prabhu said severe heat waves followed by incessant rains this year have drastically reduced tea production in both North and South India. In the North, the production was down by 74 million kg, and in South India, it is down by 11.8 million kg, totalling a loss of 85.8 million kg.
Quoting industry experts, he said the loss is irrecoverable, as North India has only two more months of production left before the estates close for winter. Consequently, tea prices at auctions have surged, with recent increases of ₹40-50 per kg at the Cochin Tea Auction.