Tea prices at the Kochi auctions have experienced a decline, driven by muted demand and geopolitical tensions in West Asia. The auction, which featured Sale 23, saw a decrease in prices for popular grades across both categories.
Market Dynamics
The Kochi tea auction market was characterized by cautious buying sentiment and selective demand. Export demand for orthodox leaf teas remained subdued as buyers from West Asia adopted a wait-and-watch approach, anticipating further price corrections. The auction platform also began receiving new crop arrivals, adding to expectations of further price drops.
Supply Side Intelligence
The auctioneers Forbes, Ewart & Figgis reported that the CTC dust market was down by ₹2 per kg, with good liquoring teas steady to firm and sometimes lower. The offered quantity was 5,98,527 kg, with a sales percentage of 79. All blenders together absorbed 70% of the total CTC quantity sold. The average price realization was down by ₹2 per kg at ₹152.48 compared to ₹154.91 in the previous week.
Demand Side Intelligence
Domestic demand was also affected by the closure of hotels and roadside eateries following an LPG shortage. Anil George, President of the Tea Trade Association of Cochin, noted that well-made liquoring teas continued to attract buyer interest, while prices of popular grades declined by ₹1–2 per kg. The auction underscored sustained demand for teas with strong quality, brightness, and liquoring characteristics.
"The escalating crisis in West Asia has further prompted buyers in the region to defer tea purchases," said a trader.
Price Outlook
The outlook for tea prices at Kochi auctions remains uncertain, with geopolitical tensions and new crop arrivals likely to influence future price movements. Key upcoming data releases from the USDA and FAO will provide further insights into global tea market trends.
| Auction | Offered Quantity (kg) | Sales Percentage | Average Price (₹/kg) |
|---|---|---|---|
| CTC Dust | 5,98,527 | 79% | 152.48 |
| Orthodox | 1,96,900 | - | - |
