A subdued export demand continues to weigh on orthodox tea sales at the Kochi auctions amid the escalating conflict in West Asia, according to traders and auction reports. The average price for orthodox leaf in Sale 29 slipped by ₹3 to ₹183 per kg, down from ₹186 in the previous week. Unsold quantities rose to 19% of the offered 269,479 kg, as exporters put purchases on hold due to rising freight charges, shipment delays, and port uncertainty.
Supply-Side Dynamics
Auctioneers Forbes, Ewart & Figgis reported that select grade whole leaf teas bucked the trend, witnessing a strong feature and appreciating by a longer margin of ₹10 to ₹15 and sometimes more. Meanwhile, CTC leaf was firm to dearer with a sales percentage of 96% out of the offered 29,593 kg. In the CTC dust segment, the market saw good demand, especially for good liquoring teas, with popular marks of Kerala steady to firm; the offered quantity was 729,953 kg achieving 86% sales. The dust orthodox market was firm to dearer with a full 100% sales out of 9,298 kg, with exporters remaining the main stakeholders.
Demand-Side Headwinds
Traders noted that exports are currently limited to Europe and Russia, while shipments to GCC and other West Asian markets have come to a complete standstill. The conflict has disrupted normal trade flows, with exporters citing uncertainty at ports and escalating logistics costs as key deterrents. Anil George Joseph, president of the Tea Trade Association of Cochin, stated that overall, the market continued to reflect stable demand for quality teas, with buying remaining selective amid cautious trade sentiment. Better quality teas commanded firm prices, while secondary and plainer grades faced resistance, reflecting current domestic and export demand dynamics.
Market Outlook
| Tea Category | Offered Quantity (kg) | Sales % | Price Trend |
|---|---|---|---|
| Orthodox Leaf | 269,479 | 81% | Down ₹3 to ₹183/kg |
| CTC Leaf | 29,593 | 96% | Firm to dearer |
| CTC Dust | 729,953 | 86% | Steady to firm |
| Orthodox Dust | 9,298 | 100% | Firm to dearer |
The data above from Sale 29 underscores the bifurcation in demand. While quality orthodox and specialty grades retain premium pricing, the broader orthodox segment remains under pressure from the West Asia crisis, which historically accounts for a significant share of Indian tea exports. Traders expect the standoff to persist until geopolitical stability returns, keeping export volumes subdued in the near term. The Tea Trade Association of Cochin continues to monitor the situation closely, with importers in Europe and Russia providing the sole bright spot for orthodox teas.
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