Tea Prices 

In Sale 26, Kolkata saw a good demand for all tea types this week. Prices for CTC Leaf and Dust were similar to the previous week but Orthodox and Darjeeling continued to see improved prices. Darjeeling tea especially saw a jump of Rs 100 per kilo. In the south, CTC Leaf did well at Cochin, while Orthodox Leaf did reasonably well. Exporters to the Middle East were active. Orthodox Dust continues to be absorbed completely. Coonoor continued to see good demand for orthodox leaf, and major blenders were active for CTC Leaf. 

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Tea Price charts, courtesy TSigma Consultancy

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Tea Prices 

South India continues to see rising demand for its orthodox tea as buyers look for a replacement for Sri Lankan exports. Factories that have the capability to produce both CTC and Orthodox teas are leaning heavily towards orthodox production.

In Coonoor, the Nilgiri Bought Leaf Tea Manufacturer’s Association and its members set a fixed base price at Rs 85 for teas on offer. Their concern was that the price at auctions does not cover cost of production. The green leaf price is fixed by the Tea Board every month. Average auction prices are as low as Rs 78 per kilo, and the BLFs say that they need it to be Rs 90 or higher to meet cost of production. The problem is compounded by high volumes of unsold tea. This week too, there were high out lots, at 70% unsold in CTC Leaf and Dust categories. The move to fix base price has now been withdrawn as the Board insists that it is market-driven.

Orthodox tea saw good uptake. Cochin continues to see good response to leaf teas and Orthodox Dust from exporters. In north India, Kolkata saw good demand for all tea types with marginally higher prices compared to Sale 24. Average prices for Darjeeling went up from Rs 268 to Rs 382 in Sale 25, with fewer out lots. Guwahati and Siliguri continued to see good demand for teas.

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Tea Price charts, courtesy TSigma Consultancy

North & South India Sale 25 Closing Figures

TPR22 CHART India Tea Price Watch NI Closing Figures Sale 25 25Junel Hazarika

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The weather continues to be of concern, particularly in Assam. The state continues to see heavy rain and the capital city, Guwahati has seen flooding. Neighboring states of Tripura, Meghalaya are also seeing heavy rains. Rains expected in the southern tea belt of the Nilgiris and Kerala as well. 

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Tea Prices 

In north India, orthodox leaf did well, and saw good uptake, followed by orthodox dust, with prices higher than the previous week. Only a little more than half the Darjeeling on offer was sold, with low average prices. In Kolkata, Middle East was active for orthodox tea. Hindustan Unilever was active for both CTC Leaf and Dust in Guwahati.  The south saw an improvement in sale of both CTC and orthodox leaf tea although prices were lower. CTC Leaf saw good uptake from upcountry buyers in Cochin who also bought the entire lot of Orthodox Dust. Coonoor continued to see interest from exporters for Orthodox Leaf. About 100 kilos of green tea on offer was sold for Rs 305 per kilo.

On 20th, Monday, Sale 53, the special sale offering tea plucked on International Tea Day (May 21st) took place. Amalgamated Plantation’s Borhati Garden sold a tea for Rs 35,001 per kilo while Goodricke’s Badamtam in Darjeeling sold a lot for Rs 25,0001 per kilo. 

Tea Price charts, courtesy TSigma Consultancy

North & South India Sale 24 vs 23

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Assam is facing heavy rains causing landslides and flooding. The Indian Met Department has issued a red alert for the next few days for the state. A road linking Assam with neighbouring Arunachal Pradesh was damaged. The capital city of Guwahati is seeing severe damage with loss of life also being reported.

Darjeeling and other parts of the northeast, including Meghalaya and Arunachal Pradesh are also expected to receive heavy rain with red alerts issued. The south which sees monsoon in early June saw the rains arrive early but there has since been a lull, pointing to a probable deficit in rainfall this season.

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Tea Prices 

There were more out lots in Sale 23 which is a cause for some concern. The highest selling category remains Orthodox Dust across India. In the north, Orthodox Leaf sold well in Sale 23 while CTC Dust did better in the south. 

In Kolkata, orthodox tea is still seeing a good demand from exporters to the Middle East and CIS countries. Auction average price has increased in the last month for CTC and Orthodox Leaf although Darjeeling is at its lowest price realisation in a month, at average Rs 248.13. Guwahati saw marginally higher prices than Sale 22 but continues to have about 40% unsold. In the south, Cochin saw reduced demand for Orthodox Leaf although good Nilgiri leaf saw better price compared to Sale 22. Coonoor too saw subdued demand for CTC leaf. All the Green tea on offer was sold. 

Tea Price charts, courtesy TSigma Consultancy

North & South India Sale 23 vs 22

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This week has seen a growing focus on the MRL levels in tea as news of shipments being rejected for non-compliance was reported. Industry leaders link this to the revision in the MRL levels of the chemical, Quinalphos, on the advice of the Tea Research Association. The Food Safety and Standards Association of India (FSSAI) has also been conducting random testing of samples and the Tea board has issued a circular that all producers must meet the FSSAI parameters to be made suitable for sale. This again points to the variations in MRL standards across the different markets of the EU, Japan, and India. There is no single standard and producers are forced to comply to wherever their markets are. Anshuman Kanoria, Chairman of the Indian Tea Exporters Association was quoted as saying, “FSSAI should bring more chemicals under MRL and the standards of most should be nearer the international standards considering the long-term health of the tea industry.’’

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Tea Prices 

Kolkata saw good demand for orthodox tea and CTC although prices remained low, similar to Sale 21. Exporters were active for Darjeeling although average prices dropped further. In Guwahati, Hindustan Unilever was active for both Leaf and Dust. Prices went up by Rs 7 from Sale 21 but is lower than Sale 22 for the previous year. In the south, Coonoor continued to see good demand for orthodox leaf from exporters and domestic buyers.  Cochin also saw a good uptake of Orthodox Leaf and Dust with 100% Dust sold. Exporters to the CIS and Middle East were active for leaf while upcountry buyers bought the entire Dust available. 

Tea Price charts, courtesy TSigma Consultancy

North & South India Sale 14-22, Comparison between 2021 and 2022

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PHOTO CAPTION | CREDIT: Photo by Aravinda Anantharaman