A strong demand from blenders pushed up CTC dust prices at Kochi tea auctions with a ₹2 increase in average price realisation this week.
All blenders together absorbed 59 per cent of the 6,52,759 kg of CTC in sale 4, witnessing a strong demand. The market was steady to firm and popular marks of Kerala continued to sell well, auctioneers Forbes, Ewart & Figgis said. Some export enquiries were noticed at the bottom of the market.
Orthodox dust market was lower and witnessed some withdrawal. The quantity offered was 9,000 kg with a sales percentage of 78. Exporters and upcountry buyers absorbed a small quantity. Traders said the prices are likely to go up further as the future offerings in the coming auctions are lower.
However, the leaf market was down due to the availability of low-quality teas, forcing buyers to stay away from the market, traders said. This was evident from the decline in average price realisation which was down by ₹9 per kg at ₹186 compared to ₹195 in the previous week. The quantity offered was 2,48,708 kg, witnessing a sales percentage of 93.
Traders optimistic
The market for whole leaf was irregular, while the lower end teas was firm to dearer. High-priced medium brokens declined, while the drop in price was less for medium and plainer teas.
The CTC leaf market was also down with brokens and fannings were irregular and lower. The quantity offered was 43,500 kg with a sales percentage of 73.
However, traders are optimistic on the improvement in the geopolitical situation which may result in more purchase orders for tea from overseas buyers in the coming days.
