Iran remains a major buyer at the Kochi tea auctions, particularly for quality orthodox grades, purchasing more than half of the offerings in this category. According to traders, Iran buyers used to buy in large quantities from Sri Lanka, but the island's current unrest has allowed them to source their grade from Kochi.
The rise in tea prices in Kolkata auctions to around 500 per kg has also compelled Iran buyers to travel to South Indian auctions, particularly Kochi, which offers their preferred grades exclusively.
Around 80% of black tea buyers in North India prefer Kochi for specific varieties, with prices starting at 350. This allows them to blend the brew for export markets.
Turkey has also begun to focus on Kochi auctions for high-quality teas. Tunisia and Iraq, on the other hand, are looking for much cheaper and secondary grades, while Russian buyers prefer low-priced teas.
The amount of orthodox varieties available in sale 30 was 8,80,000 kg. However, at Rs 165, the average price realization was down by around Rs 20 per kg. Traders attributed the trend to increased secondary type offerings.
Meanwhile, the upcoming Onam festival season has also resurrected the CTC dust market, with Kerala State Civil Supplies Corporation (Supplyco) emerging as the major buyer, acquiring approximately one lakh tonnes.
According to traders, the State government's announcement to provide food kits through the Public Distribution System during the festival season has enabled Supplyco to enter the tea auction market because they want to include tea packets in the kits.
