Tea plantations in the high ranges of Kochi are currently experiencing a decline in crop arrivals due to the onset of winter. The decrease in leaf and dust grade tea arrivals is expected to continue until the pre-summer rains arrive in February or March. This decline in crop arrivals follows a 15-20% drop in the previous season, attributed to various factors.
The closure of North Indian tea estates during the winter season has led major packeteers and blenders to source quality tea from South Indian auctions, particularly orthodox leaves. In the recent auction, the orthodox leaf category saw a high sales percentage of 87%, with an average price realization of ₹195 per kg.
On the other hand, the CTC market witnessed lower prices, with only 66% of the offered quantity being sold. Good liquoring brokens remained dearer, while all sections of the trade were reported to be selective and subdued.
In contrast, the CTC dust market experienced strong demand, with a sales percentage of 90% and popular marks from Kerala appreciating in value. Export enquiries were noted at the bottom of the market, indicating a stable demand for CTC dust tea.
In the orthodox dust category, primary grades were firm and occasionally dearer, with exporters and upcountry buyers absorbing the bulk of the offerings. The overall market outlook for tea auctions in Kochi remains positive, with expectations of a revival in the sector once climatic conditions improve.
Overall, the tea industry in Kochi is facing the challenges posed by the winter season, but with strong demand for certain categories like orthodox leaves and CTC dust, there is optimism for a turnaround in the upcoming season.
