Slackening exports have led to a rise in unsold quantities of tea, especially orthodox varieties, at Kochi auctions, forcing shippers to store the commodity in warehouses.
Since the warehouse space for tea in Willingdon Island are full, exporters are moving the commodity to coimbatore, a buyer focussing on exports told businessline. Increased arrivals due to a good crop in high ranges and subdued export demand are the contributing factors for the rise in unsold quantities by some 38 per cent out of the total offerings of 4,18,209 kg in sale 26.
Fair support from CIS nations
However, industry sources said geopolitical tension is likely to hit India’s tea shipments this year from traditional markets such as Iran, Turkey, Russia, Iraq etc.
The auctioneers Forbes, Ewart & Figgis said exporters to CIS countries lent fair support, while buyers from West Asia were selective and subdued. The market for select best Nilgiri brokens and the whole leaf was firm to dearer, while the rest was irregular and lower, witnessing a lot of withdrawals.
In CTC leaf, the quantity offered was 35,000 kg with a sales percentage of 72. Exporters operated at the bottom of the market.
In CTC dust, good liquoring teas and popular marks of Kerala was firm and dearer by ₹ two to ₹ three mainly because of the support of blenders whom together absorbed 60 per cent of the total quantity of 9,83,094 kg offered. Major blenders absorbed good liquoring varieties with black appearance. The average price realisation was up by ₹ three at ₹132 compared to ₹129 in the previous week.
In orthodox dust, primary grades were dearer and the sold percentage was 100 out of the 6000 kg offered.