The Kochi tea auction market witnessed a significant drop in offerings this week in the absence of declining production across plantations due to the prevailing hot weather. Offerings in the future also indicate a noticeable decline.
Traders said the prevailing dry weather in gardens also affected the quality of tea and resulted in the prices moving up.
In CTC dust, the offered quantities in sale 18 was 6,65,421 kg and the market reacted favourably for good liquoring teas with a strong demand and 85 per cent of the offerings were sold. All blenders together absorbed 55 per cent of the total CTC quantity sold.
Kerala loose tea traders and upcountry buyers lent useful support, auctioneers Forbes, Ewart & Figgis said.
91% of orthodox dust sold
Orthodox dust market also witnessed a good demand with a sales percentage of 91 out of the offered quantity of 12,000 kg. Exporters were the main stakeholders.
In orthodox leaf market, Iraqi buyers were the mainstay with other small buyers. However, the quality of the offered grades is posing a problem for shippers amid lower offerings. Traders said that there has been a good demand for South Indian brew in view of the rising tea prices in North India with the arrival of new crops and production drop.
Medium whole leaf and brokens in orthodox leaves witnessed strong feature and appreciated in value. The sales percentage was 95 out of the offered quantity of 1,03,153 kg. The average price realisation was up by ₹4 at ₹171 compared to ₹167 in the previous week. Exporters to CIS and Middle East lent fair support.
Overall there has been a financial crunch in the market with secondary buyers. There has been delay in payments leading to lower buying interests, traders added.