Rising purchases from domestic buyers and lower arrivals pushed up prices of cloth and leaf tea at the Kochi auctions this week.
Traders said a drop in crop production in northern India due to the onset of winter led traders to look for tea from the south. The export demand also forced them to buy tea here. However, adverse weather conditions in the higher regions have adversely affected the quality of tea arriving at the auction platform.
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Average price realization rose by ₹1 to ₹167.
Auctioneers Forbes, Ewart & Figgis said there was strong demand for CTC fabric, with 91 per cent of the quantities on offer of 6,44,123 kg sold. The market for tea with good liquors was stable to strong and more expensive. All blenders together absorbed 62 percent of the total CTC quantity sold. However, the expensive popular brands of powdery Kerala grades showed a decline. There was fair support from domestic buyers and loose tea traders.
The demand for CTC is decreasing
In the Orthodox dust, the lower numbers remained stable, while others were lower and observed some retreat. The quantity offered was 7,000 kg with a sales percentage of 77.
In orthodox magazine, demand was strong with a sales percentage of 87 out of the quantity offered of 1,91,946 kg. The market for whole leaves and broken pieces was higher, while the rest was lower and irregular. Exporters to the Middle East and the CIS remain active.
There was less demand for CTC leaf, while the broken and fannings market remained lower, causing a major pullback. All parts of the trade were subject.
