Russia-Ukraine war takes a toll on tea auctions

The Russia-Ukraine war took a toll on tea trade with exporters refraining from bidding in most plenty at sale 9 of the auctions of Coonoor Tea Trade Association.

On the a person hand, exporters claimed that orders have dried up for cargo to Russia, Ukraine, relaxation of CIS and even some European marketplaces.  On the other hand, they took a ‘wait-and-watch’ tactic prior to investing on teas as most were being unprepared to danger shipping to risky places.
“In all categories – CTC or orthodox, leaf or dust – export participation was subdued. In most heaps, costs fell up to ₹ 10 a kg in excess of the preceding 7 days as inside prospective buyers turned selective in the absence of keen export acquiring. In most tons, teas had to be withdrawn for want of bids”, Ravichandran Broos, Vice President, Paramount Tea Internet marketing (SI) P Ltd., explained to Business Line.
In general, the sector induced worry to the producers and traders since teas worthy of ₹ 5.81 crore remained unsold as there had been no takers for as a lot as 39 for every cent of the offer.  This is inspite of the common price tag crashing to underneath ₹ 100/kg for the very first time in various months. The regular selling price dropped to ₹98.57 a kg.
For that reason, in just a single week, the in general earnings at the auction declined by ₹ 1.21 crore or 11.55 per cent.
The bought leaf tea factory, Homedale Tea factory, which has been making new costs data 7 days just after week past one month produced but a further selling price report this week. 

“Our Broken Orange Pekoe Leaf quality, auctioned by World-wide Tea Auctioneers Pvt Ltd (GTAPL) topped the complete auctions when Sree Sai Corporation acquired it for ₹ 407 a kg. This is the highest value fetched by any tea in the normal auctions of CTTA so significantly this yr.   It is also the maximum cost fetched any of our teas considering that producing begun in our factory in 1949”, Homedale Handling Spouse Raman Menon stated.
In the CTC dust tea auctions, two grades of Homedale Estate, auctioned by GTAPL, topped at ₹ 380 and ₹ 371. All other grades got a lot less than ₹300/kg. Among the other CTC teas, Crosshill Estate Exclusive acquired ₹290, Darmona Estate and Pinewood Estate ₹260 each and every, Hiribil Excel ₹252 and Vigneshwar Estate ₹236.

Among the orthodox teas, Kodanad bought ₹240, Chamraj ₹235, Kairbetta ₹222 and Erinkadu ₹213.

Published on


March 07, 2022