Major blenders' participation pushed up tea prices at the Coonoor auctions, with very good demand in overall CTC leaves, according to The Hindu BusinessLine. Global Tea Auctioneers reported the leaf segment recorded 97 per cent sales of the 21,46,595 kg offered in sale 31, while the 5,89,436 kg of dust on offer saw 82 per cent sales.
Blender compliance-driven buying lifts South Indian teas
The demand is underpinned by the procurement policy of major blenders, which, according to traders, complies with prescribed pesticide residue standards and applicable regulatory requirements. This has facilitated blenders to focus more on the brew sourced from South India, a shift traders said is expected to continue for some time and would help South Indian teas benefit.
Traders noted that blenders are strengthening policy procurement with pesticide residue and other food safety requirements following compliance monitoring by regulatory authorities including the Tea Board, ensuring all tea sourced is compliant with the FSSAI maximum residue limits (MRLs) on pesticide residues. The leaf offering in sale 31 totalled 21,46,595 kg against 5,89,436 kg of dust, underlining the leaf-weighted composition of the auction catalogue.
Auction clearance rates
The sales percentage in leaf was 97 out of the offered quantity of 21,46,595 kg in sale 31, while the 5,89,436 kg of dust offered witnessed 82 per cent sales, according to Global Tea Auctioneers.
| Segment — Sale 31 | Quantity offered | Sales rate |
|---|---|---|
| CTC leaf | 21,46,595 kg | 97% |
| Dust | 5,89,436 kg | 82% |
Grade-wise price movements at Coonoor
In CTC leaf, price action across grades moved in mixed directions:
- High-priced teas were generally lower by ₹4-5 a kg and more at times
- Better liquoring sorts were dearer by ₹2-3
- Better medium sorts had good demand and sold steady to dearer by ₹2-3
- Medium sorts had good demand and sold dearer by ₹2-3
- Plainer sorts, bolders and brokens had very good demand and sold dearer by ₹6-7 per kg
- The remaining sorts sold fully firm to dearer by ₹2-3
In CTC dust, high-priced teas and better liquoring sorts were generally easier by ₹4-5, with occasional quality lots selling dearer by ₹2-3 and more at times. Primary orthodox dust grades sold lower by ₹2-3 and more at times, with some withdrawals, while secondaries and finer dusts sold barely steady to lower by ₹1-2 per kg, with few withdrawals.
The ₹6-7 per kg premium paid for plainer sorts and bolders and brokens signals active blender interest at the lower end of the quality spectrum, even as high-priced grades corrected by ₹4-5.
Nilgiris rainfall deficit points to firmer prices
Traders added that prices are likely to move up shortly, as the anticipated rains in the Nilgiris are 50 per cent lower than expected for the season. The rainfall shortfall is a key supply-side driver for South Indian tea production.
For commodity traders and procurement teams tracking the Coonoor market, the combination of blender-driven demand for compliant South Indian tea and the Nilgiris rain deficit points to sustained support for CTC and orthodox grades in upcoming sales. Auction clearance data from Global Tea Auctioneers and monsoon progress in the Nilgiris will remain the key indicators to watch.
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