Percentage of tea sold increases on queries from CIS, West Asia
Rising sales percentage for orthodox tea grades boosted exporters’ confidence in Kochi tea auctions this week.
After a declining export buying in the last few weeks following the West Asian crisis, the percentage of sales in sale 45 gone up to 79 per cent out of the offered quantity of 1,96,095 kg. Traders said there has been widespread enquiry from CIS and West Asian countries and more exporters are coming forward to participate in the auctions, besides an uptick in upcountry enquiry.
A tea exporter in Kochi said the enquiry was robust from Iraq buyers who procure quantities in bulk. Last week, Coonoor auctions had also bagged good orders following a strong demand for larger grades of CTC leaf from Iraq after a tea expo conducted in Erbil in the Kurdistan region of Iraq. At the same time, small buyers from Turkey, Lebanon are also active in Kochi.
Low prices boost sales
He also attributed the rising demand to global trend of lower prices across tea producing nations that prompted overseas buyers to scout for orders. Export enquiries are a good sign even when the prices are ruling lower.
CTC leaf also registered a strong demand with brokens and fannings remaining steady to firm and dearer. The offered quantity was 46,500 kg with upcountry and Kerala buyers absorbing the entire offerings.
However, CTC dust grades witnessed a strong market on lower arrivals with good liquoring varieties was firm to dearer. The offered quantity was 5,29,732 kg with a sales percentage of 91. The average price realisation was also up by Rs. 2 per kg at Rs. 138 compared to last week, the auctioneers Forbes, Ewart & Figgis said.