The emerging situation would be a relief to the tea exporting community in South India: Dipak Shah
Tea exporters in Coonoor are pinning hopes on getting orders for more shipments, thanks to a strong demand from Iraqi buyers after Erbil Expo was held in that country two weeks ago. Erbil, also called Hawler, is the capital and most populated city in the Kurdistan region of Iraq.
Dipak Shah, president of South India Tea Exporters Association told businessline that there has been considerable interest shown by Iraqi buyers for larger grades of CTC leaf in which its prices went up by Rs. 15 per kg over a period of three weeks. Coonoor is the main market for these particular grades and Iraq is the only country buying the grades in large quantities, he said.
The emerging situation, according to Shah, would be a relief to the tea exporting community in South India. It would generate more business, especially when there has been a subdued overseas demand for the brew due to the ongoing West Asian crisis.
However, he went on to add that the overseas markets are very volatile in the changing situations and the buyer community is vary of taking orders for large quantities.
Good sales in dusts
Meanwhile, in Coonoor tea auctions, 81 per cent of the leaf offerings was sold of the offered quantity of 14,43,640 kg. The dust market also witnessed good selling at 80 per cent out of the offered quantity of 4,24,461 kg in sale 44.
Global Tea Auctioneers said better medium sorts in CTC leaf were dearer by Rs. 1 to 2 and more at times in line with quality. But high-priced and better liquoring sorts were generally easier and, occasionally some quality lots sold dearer by Rs. 4 to 5 and more at times. The brokens were occasionally dearer by Rs. 1 to 2 and more at times.
However, the market was generally irregular with a very less demand noticed in the overall orthodox leaf sale. In CTC dust, high-priced and better liquoring sorts were lower by Rs. 2 to 3 and more at times.