Prices of CTC and orthodox grades tea dropped at Kochi auctions as arrivals from production centres increased this week.
Traders said a conducive weather condition in the high ranges led to improved tea production, which is expected to continue. With more arrivals, the market is now witnessing a price correction and several warehouses situated nearby the auction centre premises in Willingdon Island are full.
There was a shortage for quite some time at the auction platforms due to extreme weather conditions that supported the price surge. A smooth trade will happen only when the prices remain stable, traders said, adding that a similar trend has been witnessed at Kolkata auctions with increased arrivals. This has facilitated upcountry buyers to meet their requirements from there itself.
86% orthodox leaf sold
Orthodox leaf market in sale 24 was lower with a sales percentage of 86 out of the offered quantity of 2,69,693 kg. Brokens and whole leaf was irregular and tended to ease. The average price realisation was down by ₹6 at ₹181 compared to ₹187 in the previous week. Exporters to Middle East and CIS countries were active and upcountry buyers lent only a fair support.
CTC leaf market was lower with a subdued export demand. The quantity offered was 31,500 kg.
CTC dust demand was good with a sales percentage of 86 out of the offered quantity of 6,08,328 kg. The market for liquoring teas was lower by ₹1 to ₹2 and witnessed some withdrawals. All blenders together absorbed 65 per cent of the total CTC quantity sold.
Orthodox dust was firm to dearer, witnessing 100 per cent sales out of the offered quantity of 4,500 kg.