Responding to the tea producers’ concerns over rising imports against declining exports, the Tea Board of India passed an order on 11th November, by which tea importers are mandated to mention the origin of the tea on the sale invoices. Importers cannot blend imported tea with GI-protected Indian tea (Darjeeling, Kangra, Assam (orthodox), Nilgiris (orthodox)) and pass it off as Indian-origin tea.  Producers of Darjeeling tea have been asked not to procure green leaf from outside the GI area. This is expected to act as a clampdown on cheap imports into India from Nepal and Vietnam, and allow Indian exports to keep their quality, markets, and prices. 

India Tea Auction Prices 

In auctions, Sale 48 continued to see good demand for CTC, Orthodox, and Dust at Kolkata. Hindustan Unilever was active for CTC and Dust. The Middle East was active for orthodox tea. Guwahati also saw good demand for leaf and dust. Tata Consumer Products was active for CTC dust. In the south, CTC fared better than orthodox. In Cochin, CTC saw good uptake from domestic buyers while exporters for CIS countries and the Middle East focussed on Orthodox. Over 600 kilos of green tea on offer in Coonoor remained unsold. 

*New audio to be uploaded 12-9-2021

PHOTO CAPTION: Shizhao, Zhuqi Township, Chiayi County, Taiwan Photo by Eric BARBEAU on Unsplash

We are nearing the close of the tea season in north India. Most estates and factories will close by mid-December for winter. The last plucking dates will be announced by the Tea Board. 

Tea Biz caught up with tea exporter Pranav Bhansali of Bhansali and Company to understand how this season has been for the Indian tea industry. He says, “Quality tea have been selling at fantastic premiums for CTC and Orthodox teas, even at this late stage of the season. This is surprising, especially for CTC teas, since it is unusual to see the major packeteers and blenders being this aggressive and active on quality produce at this time of the year.” 

As far as exports are concerned, Bhansali says, “Indian tea exports have taken a hit this year due to high CTC prices in India and weather disruptions. Supply chain disruptions and container shortages are expected to continue into 2022. On the bright side, Iran continues to be the largest consumer of Indian Orthodox teas.”

India Tea Auction Prices 

In auctions this week, Kolkata saw strong demand for Orthodox, CTC, and Dust with some demand for Darjeeling tea. Orthodox tea found takers from Middle East buyers. Compared to last week, there were fewer out lots in Sale 47. Guwahati saw good demand for tea with major blenders active for both CTC leaf and dust. In the south, Cochin saw good demand with the Middle East and CIS countries showing good support for orthodox leaf. Coonoor too saw good demand with more than 90% of CTC leaf and dust sold. Major blenders were active, absorbing nearly half the CTC leaf on offer. However, 346 kilos of green tea on offer remained unsold.  

*New audio to be uploaded 12-02-2021

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

Looking at the auctions this week, Kolkata saw good demand for all CTC, Orthodox, and Dust. Hindustan Unilever was active for CTC while the Middle East was active for Orthodox. CTC and Dust saw fewer out lots this week. The quantity of Darjeelings on offer this week was higher and prices were up marginally. In the batting order for Assam tea, Gatoonga has taken the top place above Halmari and Hookhmol. Guwahati also saw good demand, with major blenders active. Hindustan Unilever was also active. Prices remained largely the same as the previous week, however, they are better than corresponding 2019 prices. In the south, Cochin saw better demand for Orthodox leaf over CTC leaf with higher demand from domestic buyers. Comparison with 2020 prices however show a decrease this year for Sale 46. In Coonoor, CTC leaf continued to see good demand with 90% of the total offering sold while 93% of Orthodox dust was sold. Also in Coonoor, 244 kilos of green tea on offer sold for an average price of Rs 200 per kilo. Coimbatore saw the lowest uptake of Orthodox Leaf at 16% sold.

India Tea Auction Prices 

*New audio to be uploaded 11-25-2021

PHOTO CAPTION: Munnar, India Photo by Ravi Pinisetti on Unsplash

After concerns about cheap imports of tea from Nepal, the focus has shifted to Kenya. Kenyan tea imported and blended with Assam, Darjeeling, Nilgiri, and Kangra tea are impacting the quality of Indian tea being sold. Indian media reported that imports from Kenya have seen a 146% year-on-year increase between January and August this year. The Tea Board has taken a stern stance, with tea importers being asked to report storage of imported tea to be used for distribution, within 24 hours of storage. The Board will do random checks of these teas to ensure they conform to requirements for tea distribution within the country. The Board has also issued circulars to tea stockists asking for reports on the quantity and quality of imports made.

PRICES

In Markets this week, Kolkata saw good demand, especially for Dust. CTC and Orthodox too saw good demand. Prices remained nearly the same as the previous week. Guwahati saw good demand with major blenders active. In the south, Kochi saw good demand for CTC Leaf with upcountry buyers expressing interest. Exporters to CIS and the Middle East were active for Orthodox Leaf. CTC Dust saw better demand from local buyers, upcountry buyers, and major packeteers. Small quantities of orthodox dust were sold, with exporters choosing it. Coonoor saw better demand for CTC leaf compared with orthodox leaf. As winter sets in, attention is expected to turn to the south for teas. 

India Tea Auction Prices 

*New audio to be uploaded 11-18-2021

PHOTO CAPTION: Bagged CTC tea ready for shipment

This week, the big news is the invitation to Indian tea companies to participate in Iraq’s first tea festival. Iraq was a significant market for Indian tea until 2006, when the government of Iraq procured tea from India under the UN food for oil program. The import of tea was around 80 million kilos, with nearly half coming from India. Today, Sri Lanka is the major supplier to Iraq. The invitation from the Baghdad Chamber of Commerce comes as a boost at a time when Indian exports are struggling, even as competition from Kenya and Sri Lanka intensifies. 

AUCTIONS

In markets this week, Kolkata saw good demand for all teas. Middle East buyers were active for orthodox tea, while Hindustan Unilever was active for Dust and Darjeeling. Prices were not significantly different from the previous week. Guwahati also saw good demand with major blenders active for both leaf and dust. Prices were higher by Rs 7-10 from the previous week. Siliguri saw better prices this week compared to the previous week. 

In the south, there was no sale in Coimbatore. In Cochin, prices were marginally higher than the previous week. Exporters to the CIS and Middle East were active for orthodox leaf. Fannings sold well to exporters and teabag manufacturers. In Coonoor, 90% of the CTC leaf was sold, with major blenders being the main buyers. Orthodox leaf also saw good demand, with whole leaf grades seeing a marginally higher price. Exporters were active for orthodox leaf, while CTC dust saw major blenders active. One hundred twenty-four kilos of green tea on offer were sold, averaging at Rs 281 per kilo. 

India Tea Auction Prices 

*New audio to be uploaded 11-10-2021

PHOTO CAPTION: Munnar tea garden, Kerala, India. Photo by Adobe iStock