Tea prices surged at the Kochi auctions driven by strong demand and tight supplies, with both CTC and leaf varieties witnessing higher realisations. Auctioneers reported improved prices for good liquoring teas, while select Nilgiri teas fetched attractive rates due to seasonal winter characteristics.
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A strong demand, coupled with supply tightness, helped tea prices – both CTC and leaf varieties – surge at the Kochi Auctions.

The auctioneers Forbes, Ewart & Figgis said the market in sale 2 appreciated more for good liquoring teas. At least 96 per cent of the 6,92,410 kg offerings were sold. The average price realisation was up by ₹3 at ₹184 against ₹181 in the previous week. Select Nilgiri teas showed a seasonal winter character, witnessing some attractive prices. The whole leaf and broken were higher by wider margins of ₹5 to ₹10, the auctioneers Forbes, Ewart & Figgis said.

Anil George, Chairman of Tea Trade Association of Cochin said the CTC dust market is expected to remain steady, constrained by limited crop availability and increased buying interest from major packeteers. The price uptrend is largely attributable to production shortfalls.

Kenyan crop drop

India’s tea output declined due to adverse weather conditions, resulting in a pronounced supply–demand imbalance. In parallel, Kenya is facing a significant shortage of 44–48 million kilograms, further tightening global availability, he said.

Orthodox tea prices remained steady to firm, underpinned by sustained demand from CIS markets. However, exports to the Middle East continue to face challenges owing to geopolitical tensions between the US and Iran and between the US and Israel, which have disrupted shipments and payment mechanisms.

European demand remains supportive, driven by a growing preference for premium and specialty teas. Germany and the UK remain key markets, with the UK experiencing rapid growth in premium blends and specialty offerings, alongside increasingly stringent compliance requirements, he said.

Switch to CTC teas

Export demand for orthodox teas is expected to remain fair, though volumes may moderate as some buyers switch to CTC teas, which are currently offering more attractive price propositions. With only a marginal increase in Orthodox crop volumes anticipated, the market remains broadly balanced, with exporters actively participating, he added.

M K Ajith, President of Tea Buyers Association, Kochi, said that powdered tea prices have been rising by ₹30 to 50 per kg in the last month, with a ₹5-10 rise every week, mainly due to declining production across North and South Indian tea estates, thanks to extreme cold weather conditions.

Published on January 16, 2026



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