Middle East Crisis Makes Tea Taste Bitter for Indian Exporters
Traders say that the new geopolitical developments related to America and Iran have made buyers cautious, affecting international orders. During the auction, orthodox leaf tea sales came under pressure. A total of 2,55,383 kilograms of tea was offered, out of which around 85 percent was sold. Although demand was not completely weak, the impact on prices was clearly visible.
The average price fell from 184.78 rupees per kilogram last week to 178.60 rupees per kilogram this week, a drop of nearly 6 rupees per kg.
According to BusinessLine, sources in the tea trade say that while actual demand for orthodox tea from Gulf countries still exists, buyers are currently adopting a wait-and-watch policy due to the prevailing situation. There is concern that if sea routes are affected or cargo gets stuck at other ports, it could lead to additional costs and delays. Because of this, many importers have postponed their buying decisions.
Anil George, President of the Tea Trade Association of Cochin, said that demand for orthodox leaf tea has not completely weakened, but buying has become very selective. Buyers from West Asia remained active in the market, while some support also came from CIS countries. However, export-based buying could not reach satisfactory levels.
While orthodox tea remained under pressure, the CTC dust tea segment saw better business. Good quality tea witnessed a price increase of 1 to 3 rupees per kg. In this category, 7,15,105 kilograms were offered and nearly 88 percent was sold. Some quantity was also withdrawn.
According to the report, the CTC market received the highest support from blenders, who accounted for nearly 61 percent of the total sold volume. Additionally, active participation from Kerala-based loose tea traders and buyers from other parts of the country provided extra strength to the market.
Traders believe that once the global situation stabilizes, export demand may pick up again.
