Tea Prices at Kochi Auction Surge Amid Frost and Supply Constraints
Tea prices at Kochi auction witnessed a notable rise last week as frost conditions in the Nilgiris led to reports of crop loss, while the absence of sales during the Christmas week further tightened availability. These factors combined to push prices higher at the Kochi tea auction, reflecting strong demand amid limited supply.
Strong Performance in CTC Dust Segment at Kochi Auction
The market remained firm in Sale No. 53, with CTC Dust recording an impressive 99% sales of the offered 6,43,763 kg. Average price realization increased by ₹7 per kg, settling at ₹174, compared to ₹167 in the previous week. This strong performance played a key role in lifting overall tea prices at Kochi auction.
According to auctioneers Forbes, Ewart and Figgis, good brewed teas became ₹2–₹5 more expensive as sales progressed. Medium varieties displayed stronger attributes and gained ₹5–₹7, while granulated plain teas remained stable to firm. Powdered grades also showed price improvement. Collectively, blenders absorbed 63% of the total CTC quantity sold, underlining sustained domestic demand.
Conservative Dust Market Shows Mixed Trend
The conservative dust market remained fair, with primary grades holding stable to slightly higher levels. However, secondary grades faced shortages and witnessed a significant number of withdrawals. Out of 8,000 kg offered, domestic buyers absorbed only limited quantities, keeping the segment relatively subdued compared to CTC dust.
Low Production and Festive Demand Support Tea Prices
The Cochin CTC Dust Auction (Sale No. 53)—the final sale of the year—closed on a strong note. Tea prices at Kochi auction were supported by reduced production due to low temperatures and winter chill in high-altitude regions such as Munnar. Seasonal demand from the Sabarimala pilgrimage and Christmas festivities further strengthened buying sentiment.
Blender Demand Pushes Medium and Plain Grades Higher
Commenting on market trends, Anil George, President of the Tea Trade Association of Cochin, noted that CTC dust prices rose by ₹4–₹6 per kg, with select lots attracting higher premiums. Medium and plain grades recorded sharper gains of ₹8–₹10 per kg, driven mainly by blender demand. While local market inquiries improved, export demand for plain teas remained limited.
Selective Buying in Leaf Tea Auctions
Leaf tea auctions continued to see selective demand. Premium, well-made whole leaf and broken grades sold irregularly around previous price levels. The overall sales percentage stood at approximately 70%, indicating cautious buying behavior among traders.
Outlook for Tea Prices at Kochi Auction
With winter conditions persisting in key producing regions and demand remaining steady, tea prices at Kochi auction are expected to stay firm in the near term. Market participants will closely watch production trends and post-festive demand to assess price direction in the coming weeks.
