The declining trend in North Indian tea auctions seem to have started reflecting in Kochi sales as well, registering a drop in prices both for dust and leaf varieties.
The market for good liquoring and popular mark teas in CTC dust barely remained steady and tended to ease by ₹1 to ₹3 in sale 48. The drop was more as the sale progressed. Low medium and plainer teas were irregular and sometimes lower with longer margins of ₹5 to ₹10. PD grades witnessed a weak feature and the prices generally dropped, said the auctioneers Forbes, Ewart & Figgis. However, procurement by blenders and packaters was on the higher side as AVT, Kerala State Civil Supplies Corporation and Encil Global Beverages together absorbed 75 per cent of the total 7,25,276 kg CTC quantity offered. There was a subdued demand from loose tea traders and upcountry buyers.
A section of the traders raised a concern over the move by Supplyco to procure blended dust tea through e-tender without participating in the auctions. This may further depress the prices in Kochi, traders said.
Since tea manufacturers are shifting back to dust from leaf production due to improvement in prices in the last few weeks, the quantity offered in leaf varieties has come down, leading to a price drop. Most leaf varieties are now being shifted to the Conoor and Coimbatore auctions following a demand for this variety there, traders said.
The average price realisation in leaf varieties was down at ₹160 per kg against ₹170.52 in the previous week. CTC leaf market was lower by ₹5-10 and witnessed heavy withdrawals due to low bid or lack of bid. Exporters operated at the bottom of the market and covered negligible quantity.