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Tea Prices Soar on Cold Snaps & Low Supply
13 Feb
Summary
- Orthodox tea prices rose ₹15 per kg due to low offerings.
- Cold weather in high ranges is reducing tea production.
- Strong buying observed from CIS and Middle East countries.
Tea prices at the Kochi auctions have seen a significant increase, particularly for orthodox leaves which have risen by ₹15 per kg. This surge is a direct result of dwindling supply, exacerbated by falling temperatures in the high-range production areas.
The reduced output has led to lower arrivals at the auction platform. In Sale 7, orthodox leaves saw 97% sales out of 1,57,560 kg offered, with robust purchasing from CIS and Middle East nations. This trend of production shortage due to winter conditions is widespread across production centers.
Even CTC leaf experienced robust demand, with 91% sales from 37,000 kg offered. Both whole leaf and brokens, as well as CTC dust, saw firm to dearer prices. Blenders were significant buyers, absorbing 69% of the total CTC quantity sold.
