Demand for tea soars as production dips following winter in plantations

The arrival of tea will be low till March

Updated - February 06, 2023 07:51 am IST - THIRUVANANTHAPURAM

Image for representation purpose only.

Image for representation purpose only. | Photo Credit: Thulasi Kakkat

Strong demand aided by low production due to winter has lifted the domestic market of south Indian tea in the last few auctions held in the State. The latest auction held in Kochi witnessed 99% of CTC dust and 100% of orthodox dust tea offered for auction being sold, fetching an average price of ₹152.73 a kg.

The auction of CTC leaf and orthodox leaf also witnessed strong demand with blenders and local buyers evincing keen interest.

According to the auctioneers Forbes, Ewart & Figgis, Kochi, around 100% of the total quantity of CTC leaf and 70% of orthodox leaf in the auction were also sold, fetching an average price of ₹155 a kg.

According to the buyers, there was a significant drop in production of tea since December following the onset of winter in the high ranges, especially in north Indian plantations.

The arrival of tea will be low till March and this is expected to push up the demand for tea from south India in the local market for at least the next couple of months, says the auctioneer.

The demand would have soared further had the trade ties between India and Pakistan been normal, which is nearly frozen since 2019. The blenders from Pakistan used to buy large quantities of south Indian CTC dust to blend it with the tea they procure from countries such as Kenya. Now, there is only a nominal quantity of tea is routed to Pakistan from here via Dubai, they say.

Meanwhile, the export demand for orthodox leaf is subdued considering 70% of the offered quantity being sold. This is mainly because of the subdued demand from CIS (Commonwealth of Independent States) countries.

“The production will be low in the quarter of the calendar year and the demand for tea in the market will be high at least till the April-May period due to the imbalance of supply and demand,” says Sanjith R. Nair, secretary, United Planters’ Association of Southern India (UPASI).

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