Rising overseas demand for South India orthodox tea grades in auctions has given a boost to the market.
Traders said that of late there has been a tremendous improvement in South India high-grown leaf teas due to quality improvement which resulted in good export enquiries. The emerging situation, according to the trade, is a good sign which would help fetch more orders from South India, especially when North Indian tea gardens will be shut for winter holidays.
Traders pointed out that the export demand has started picking up from the auctions especially from traditional overseas markets. The sale 49 in Kochi auctions has witnessed a ₹8 per kg increase in average prices for orthodox grades with a sales percentage of 84 out of the offered quantity of 1,92,940 kg.
The auctioneers Forbes, Ewart & Figgis said the market for Nilgiri whole leaf and brokens was firm with an active participation of exporters to West Asia and CIS countries.
The sold quantity CTC leaf was 91 per cent out of the offered quantity of 52,000 kg with upcountry buyers and loose tea traders lending fair support.
However, CTC dust market was lower by ₹1-3 following a subdued buying by blenders and upcountry buyers. Blenders together absorbed only 55 per cent of the 7,86,419 kg of the CTC offered. Kerala State Civil Supplies Corporation abstained from the market.
Orthodox dust market was also lower with exporters and upcountry buyers absorbing a small quantity.