Foreign inquiries raise hopes of orthodox tea exporters in Kochi auctions

An increase in the sale rate of orthodox tea varieties boosted the exporter’s confidence in the Kochi tea auctions this week.  After a decline in export purchases in recent weeks following the West Asian crisis, the share of sales  45 rose to 79 percent of the  1,96,095 kilograms offered. Traders said  CIS and West Asian countries received extensive inquiries and more exporters came to the auctions, apart from country-specific inquiries.  A tea exporter in Kochi said there is high demand from Iraqi buyers who have procured large quantities. Coonoor Auctions also received good orders last week due to strong demand in Iraq for larger  CTC magazines after the highway in Erbil, Kurdistan Region, Iraq. At the same time, small buyers from Turkey and Lebanon are also operating in Kochi.  

  Low prices increase sales

    He also attributed the trend of increasing global demand to lower prices in tea-producing countries, which forces foreign buyers to seek orders. Export inquiries are a good sign, even if prices are lower. CTC magazines also recorded strong demand as breaks and vents remained flat, firm, and more expensive. The quantity offered was 46,500 kg and buyers from Highlands and Kerala absorbed the entire supply. However, CTC powder grades proved to be a strong market with lower yields and fine liquid grades were much more expensive. Auctioneers Forbes, Ewart, and Figgis said the volume bid was 5,29,732 kg with a sell-through ratio of 91. The average price realization rose by ₹ 2/kg to ₹ 138 last week.

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