Orthodox tea prices at the Coonoor auctions declined by Rs3 to Rs4 per kg for whole leaf grades, with some varieties witnessing steeper falls, as the ongoing crisis in West Asia dampened export demand, according to tea traders. The disruption comes at a critical time for India's orthodox tea trade, with the Gulf region historically a key market.
Impact on Orthodox Tea Prices
According to Global Tea Auctioneers, the primary orthodox dust grades were lower by Rs5 to Rs6 per kg and more at times, with some withdrawals. Secondaries and finer dusts eased by Rs1 to Rs2 per kg. The decline was driven largely by subdued export enquiries as geopolitical uncertainties weighed on buying sentiment. However, the impact was partly offset by the peak crop season during June and July, which saw higher arrivals in both dust and leaf categories, ensuring a healthy sales percentage.
Auction Supply and Sales
At Sale No. 29, the quantity offered in the leaf category stood at 21,81,607 kg, of which 92 per cent was sold. In the dust category, 6,53,203 kg was offered, registering an 85 per cent sales percentage, as per Global Tea Auctioneers. Increased arrivals helped prices remain largely stable, supported by strong domestic demand. The higher volumes during the flush season provided a buffer against the export slump.
CTC Segment Movements
In CTC leaf, high-priced teas were barely steady to dearer by Rs3 to Rs4 per kg and more at times in line with quality. Better liquoring sorts were lower by Rs4 to Rs5 per kg with some withdrawals. Generally, a fair demand was noticed in the overall CTC leaf sale.
For CTC dust, high-priced teas were generally easier by Rs4 to Rs5 per kg with few withdrawals. Better liquoring sorts were barely steady to occasionally dearer by Rs2 to Rs3 per kg.
The table below summarises the price movements across segments:
| Segment | Grade/Quality | Price Change (Rs/kg) | Demand Note |
|---|---|---|---|
| Orthodox leaf (whole) | Standard | -3 to -4 | Subdued export demand |
| Orthodox dust (primary) | Top grades | -5 to -6 | Withdrawals reported |
| Orthodox dust (secondary) | Secondaries & finer | -1 to -2 | Easier trend |
| CTC leaf | High-priced | +3 to +4 (steady to dearer) | In line with quality |
| CTC leaf | Better liquoring | -4 to -5 | Withdrawals |
| CTC dust | High-priced | -4 to -5 | General ease |
| CTC dust | Better liquoring | +2 to +3 (barely steady) | Occasional dearer |
Outlook for Coonoor Tea
Tea traders noted that export demand remained subdued due to uncertainties in the Gulf region, but the arrival of the peak crop season ensured that overall volumes stayed healthy. The strong domestic demand during Sale No. 29 helped cushion the impact on prices. Market participants will closely monitor geopolitical developments and next week's auction trends to gauge recovery prospects for orthodox tea shipments.
For commodity traders and procurement teams, the diversion of orthodox teas toward the domestic market may offer short-term price support, while the export-oriented segment faces headwinds until stability returns to West Asia. The high sales percentage of 92% in leaf and 85% in dust suggests that domestic buyers are absorbing the available supply, which could limit further downside.
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