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Gulf Tensions Ease, Boosting Kochi Tea Prices
17 Apr
Summary
- Orthodox tea prices rose by ₹4 per kg due to increased overseas demand.
- Sri Lankan supply disruptions have impacted production, favouring India.
- UAE and Russia are leading new orders for Indian tea exports.
Overseas demand has spurred a price increase of ₹4 per kg for orthodox tea at Kochi auctions. Traders noted that the cautious return of international buyers, particularly from the UAE and Russia, is supporting this positive price trend. It signals a potential de-escalation of tensions in the Gulf.
Supply chain issues in Sri Lanka, a major orthodox tea producer, have significantly impacted its production. Reports indicate that tea estates are operating with reduced capacity due to power shortages and fertilizer scarcity. This has created an opportunity for India to ensure steadier supplies.
The market for whole leaf and bro broken orthodox teas saw firm to dearer rates in Sale 16, with 93% of the offered quantity sold. Exporters were active, directing their purchases towards CIS and neighboring countries. The CTC leaf market also performed well, with 87% of the offered quantity sold, attracting export inquiries.
Despite fair demand, prices for most tea categories at Cochin auctions saw reduced levels. Popular and good liquoring teas experienced irregular trends and declined, while medium varieties eased further. Plainer sorts remained steady to easier, reflecting subdued buying interest. In CTC dust auctions, good liquoring teas dropped by ₹7 to ₹8, with many withdrawals due to low bids.
