Kochi tea auctions recorded a sharp uptick in orthodox tea prices this week, with the average realisation climbing by around ₹13 per kg, according to market participants. The rally was driven by revived export demand from West Asia following an easing of geopolitical tensions in the region.
Price Recovery at Kochi Auctions
Auctioneers Forbes, Ewart & Figgis reported robust demand in Sale No. 26, with whole leaf orthodox teas ruling firm to dearer by ₹5–10 per kg and sometimes more. Of the 3,17,738 kg offered, 98% was sold, reflecting strong buying interest particularly from West Asian markets. The CTC leaf segment also saw healthy demand: medium brokens and fannings remained steady to firm, while plainer varieties traded at higher levels. In the CTC dust segment, 7,68,917 kg was offered with a sales percentage of 86%, and blenders accounted for 68% of the total CTC quantity sold.
Supply-Side Factors: Improved Crop Quality
Tea traders attributed the price strength partly to improved crop quality, aided by recent rains in the high ranges. Clean, black and well-made orthodox teas sold at firm-to-dearer levels, supported by active buying from West Asia and CIS countries, said Anil George, president of the Tea Trade Association of Cochin. However, medium-quality teas in the CTC dust segment witnessed significant withdrawals due to subdued buying interest, while good liquoring teas were barely steady and declined by ₹1–2 per kg.
Demand-Side Drivers: West Asian Buyers
The easing of tensions in West Asia has reopened shipping routes, prompting buyers from Russia, Iran, Iraq and other Middle Eastern countries to resume orders for orthodox teas. This revival in export demand was the primary catalyst for the price increase, according to tea traders. The robust demand from the region is expected to continue as shipping infrastructure normalises.
Auction Data Summary
| Segment | Quantity Offered (kg) | Quantity Sold (%) | Price Trend |
|---|---|---|---|
| Orthodox Whole Leaf | 3,17,738 | 98% | Firm to dearer by ₹5–10/kg |
| CTC Dust | 7,68,917 | 86% | Good liquoring teas steady to easier by ₹1–2/kg; medium quality withdrawn |
Auctioneers Forbes, Ewart & Figgis said there was robust demand in Sale No. 26, with whole leaf orthodox teas ruling firm to dearer by ₹5–10 per kg and sometimes more.
Market Outlook
With West Asian demand expected to remain steady and crop quality supporting prices, orthodox tea prices are likely to hold firm in the near term. However, the weakness in medium-quality CTC dust suggests that buyers are discriminating on quality, which could cap upside for plainer grades. The next auction will provide further clarity on demand continuity and inventory levels.
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