Rising demand lifts prices of lower grade teas at Kochi auctions
A rise in demand for secondary grades has lifted prices of teas, especially that of lower grades in CTC dusts, at Kochi auctions this week.
Traders attribute the momentum as a good sign for the entire market to move up in the coming days, especially with the easing of Covid relaxations that has led to the opening of hotels and restaurants.
However, arrivals of crop at the auctions were lower due to the inclement weather in the high ranges due to floods in October. The situation may lead to the absence of sufficient stock and will pressurise the prices, traders added.
On the leaf sales, traders said with sufficient stock there is no panic buying from North India and they would turn to South Indian auctions once the situation tightens with the start of the off-season during January-February.
The quantity offered in sale 44 in CTC dust was 7,39,653 kg and high-priced teas barely remained steady and lower. Medium and plainer teas witnessed better enquiries and prices appreciated. The average price realisation was low at ₹125 against ₹128 in the previous week.
In orthodox dust, primary grades was dearer and the quantity offered was 8,000 kg.
In leaf sales, the market for select best Nilgiri whole leaf and brokens in orthodox leaf was lower by longer margin of ₹5-10 a kg. The offered quantity was 3,13,009 kg. Exporters to West Asia and CIS countries lent useful support.
In CTC leaf, high-priced brokens was lower and the quantity offered was 68,000 kg.