Continuing war-related uncertainty in West Asia has dented export demand for orthodox teas at the Kochi tea auctions, resulting in a decline of ₹6 per kg for this particular variety, according to auctioneers Forbes, Ewart & Figgis.
Price Decline and Buyer Resistance
In Sale No. 24, the market faced buyer resistance following renewed geopolitical tensions between the US and Iran, Forbes, Ewart & Figgis reported. Exporters catering to West Asian and CIS markets offered only limited support, contributing to the price drop. Traders indicated that while demand for orthodox teas in Gulf countries remains fundamentally strong, uncertainty surrounding shipping routes and possible delays has prompted overseas buyers to postpone their purchases. Importers are wary of potential demurrage costs if consignments are held up at other ports on the transit.
Regional Demand Dynamics
Anil George, president of the Tea Trade Association of Cochin, said demand in the orthodox leaf segment remained good but selective. Buyers from West Asia stayed fairly active, while CIS countries also extended support. This suggests that the price weakness is driven more by logistical concerns than by a collapse in underlying demand.
Market Performance Details
The auction recorded an offering of 2,55,383 kg of orthodox leaf teas, with 85 per cent of the quantity sold. Average price realisation dropped to ₹178.60 per kg from ₹184.78 the previous week. In contrast, the CTC dust market witnessed better demand, with select good-liquoring varieties firm and sold at higher levels, gaining ₹1-3 per kg depending on quality. The offered quantity of CTC dust was 7,15,105 kg, of which 88 per cent was sold, with the market witnessing significant withdrawals. Blenders accounted for 61 per cent of the total CTC quantity sold. There was also improved buying interest from Kerala loose tea traders and upcountry buyers, lending additional support to the market.
| Variety | Offering (kg) | Sold (%) | Average Price (₹/kg) | Change vs Last Week |
|---|---|---|---|---|
| Orthodox leaf | 2,55,383 | 85% | 178.60 | -6.18 |
| CTC dust | 7,15,105 | 88% | Not specified | +1 to +3 |
Implications for Trade
For international buyers, particularly those in West Asia and CIS countries, the current uncertainty around shipping routes and potential delays remains the key risk. Importers may need to factor in higher demurrage costs and possibly seek alternative sourcing or routing strategies. For Indian exporters of orthodox teas, the limited support from traditional markets means they may need to explore other destinations or price more competitively. The relative strength of the CTC dust segment, supported by domestic buyers and blenders, provides a partial offset for Kochi auction overall. The market will be watching for any de-escalation in US-Iran tensions that could restore buyer confidence and stabilize shipping logistics.
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