All eyes are on Ukraine this week. Specific to tea and trade Russia is the biggest buyer of Indian tea. Between April-November 2021, India exported 22.57 mn kilos of tea to Russia, and 1.12 mn kilos of tea to Ukraine.

The Krishi Jagran reported that exports to Australia were once again open, which is good news. Australia reportedly paid an average of $5.76 per kilo of tea up by about 20 cents from the same period last year. Australia had closed borders last year due to the pandemic but this news somewhat offsets losses from low exports to the US, Canada, and Europe, where various reasons, not limited to the Ukraine invasion, have caused reduced tea shipments. 

Across India, the first flush season is officially open. Some Darjeeling gardens have begun showcasing their offerings although they have not made it to auctions or retail channels yet. But all signs point to an excellent first flush. 

India Tea Prices

North India continues to have a quiet week. There were no auctions in Guwahati. Here’s a look at quantity purchased and price for orthodox leaf, by the top 3 buyers:

1. 41 tons for Rs 145 per kilo
2. 29 tons at Rs 128 per kilo
3. 11 tons for Rs 146 per kilo.

CTC Leaf sold the most, with 124 tons bought for Rs 203 per kilo. 

In the south, CTC dust sold the most with quantity and prices by Top 5 buyers as listed:

1. 164 tons at Rs 146 per kilo
2. 79 tons for Rs 157 per kilo
3. 48 tons at Rs 95 per kilo
4. 45 tons at Rs 127 per kilo

900 tons of CTC leaf was sold, led by two buyers whose combined purchase was 305 tons.

 Tea Price Comparison charts, courtesy TSigma Consultancy

*New audio uploaded 2-23-2022

PHOTO CAPTION | CREDIT: Adobe iStock

India Tea Prices

It’s been a quiet week as north India conducted auctions only in Guwahati. Plucking has just begun and teas are yet to arrive. In Darjeeling, Rohini Tea Estate brought out its first batch of spring teas. In the south, auctions took place across all the auction centers. Orthodox leaf saw good demand in Cochin, with 83% of the offering sold. Prices were marginally higher than the previous week. A comparison of prices for the same week places 2022 between 2020 and 2021. Exporters to CIS countries and the Middle East were active. CTC Leaf, on the other hand, saw more upcountry buyers. The pattern was seen in Coonor as well, where Orthodox leaf saw better demand. Buyers were selective for CTC Leaf while exporters and domestic buyers were active for orthodox leaf. 

 Tea Price Comparison charts, courtesy TSigma Consultancy

*New audio uploaded 2-23-2022

PHOTO CAPTION | CREDIT: Jay Shree Tea Industries 2022 First Flush Darjeeling photo via LinkedIn

The Tea Board of India announced plucking dates for north India: February 14th for Assam and all of the northeastern states of India, and the Terai and Dooars regions; February 21st for the Darjeeling hills and Sikkim; March 7th for the northern states of Himachal Pradesh (home to Kangra) and Uttarakhand where winters are longer. The plucking dates and winter closure have been a means to reduce indiscriminate plucking to uphold some quality standards. 

There is an expectation for a good first flush this year. Setting the mood, Assam has announced its first record sale at the auctions with Sale 6. The Nahorchukbari factory processes leaves procured from small growers in Nahorchuk, Ekoratoli and Naduwa Dikom area in Dibrugarh district and produced a tea named Golden Pearl, an orthodox black tea that was bought by Assam Tea Traders for Rs 99,999 (USD 1320) per kilo. 

India Tea Prices

Cochin saw good demand for Orthodox and CTC Leaf and CTC Dust with over 80% of the offerings sold. Exporters to CIS countries were active for Orthodox Leaf while CTC Leaf saw more domestic buyers. Coonoor saw good uptake of CTC Leaf thanks to major blenders and exporters. Guwahati too saw good demand for both Leaf and Dust although average prices were slightly lower than Sale 5. Kolkata saw good demand for all tea types with Middle East active for all tea types and exporters active for Darjeeling. 

 Tea Price Comparison, courtesy TSigma Consultancy

*New audio uploaded 2-18-2022

PHOTO CAPTION | CREDIT: Munnar, India Photo by Meriç Da?l? (@meric) Unsplash

It’s snowing in Darjeeling, the first time since 2007, yet another sign of climate change. Gardens remain closed in north India but planters say this weather points to a good first flush next month.

Meanwhile, the discussions on policies, prices, reforms continue. This week, the Indian Tea Association has proposed a minimum floor price for both made tea and green leaf. The group has sought the government’s nod to implement this. The price they propose will be linked to the cost of production plus the quality of the tea. In Assam, Chief Minister Himanta Biswas Sarma announced the Assam Tea Industry Special Incentive Scheme to help 40 tea gardens develop resorts in a bid to build tea tourism as added revenue. 

India Tea Prices

In auctions, Cochin saw good demand for both leaf tea and dust with over 80% on offer sold. Exporters to CIS and the Middle East were active for orthodox leaf while upcountry buyers were active for CTC leaf.  Blenders were active for CTC dust despite the subdued interest from big buyers such as INDCOSERVE and SUPPLYCO. Coonor saw good demand for quality teas.

Tea Price Comparison between Sale 5 and Sale 4, courtesy TSigma Consultancy

*New audio uploaded 2-11-2022

PHOTO CAPTION | CREDIT: Thekkady Tea Estate, Idukki, Kerala, India. Photo by Deep Goswami

The tea industry in India has responded to the announcement of the proposed Tea Act, a bill for consideration replacing the Tea Act of 1953. The Tea Board of India had sought comments on the amendments from the stakeholders within a stipulated time (11 days). In Assam, the various trade unions have written to the government demanding more time to go over the bill. They state that this rush to source responses defeats the democratic process by which stakeholder opinions are sought and heard. Additionally, they say that the tea workers have not been considered as stakeholders and this is a significant omission that must be rectified. How the bill will address the real concerns of the tea industry stakeholders remains to be seen. 

India Tea Prices

Sale 3 saw good demand for teas across the auction centers. In north India, the Middle East for active for orthodox tea while Darjeeling, leaf, and dust teas saw more internal players. Tata Consumer lent good support to CTC while Hindustan Unilever was active for dust. Hindustan Unilever was active in Guwahati for both leaf and dust teas. In the south, Coonoor saw an improvement in demand for CTC leaf. Major blenders were selective, picking up about 33% of the total CTC leaf. Cochin saw good demand for both leaf and dust. 

Tea Price Comparison between Sale 3 and Sale 2, courtesy TSigma Consultancy

*New audio uploaded 1-28-2022

PHOTO CAPTION | CREDIT: Assam garden in full summer flush. Photo by Roopak Goswami, Assam, India