Guwahati

Category: North Indian Tea Market

Published Date

Written by Guwahati

WEEKLY ROUND UP

GUWAHATI SALE NO. 31

HELD ON 07,05/08/2015

Demand: Leaf and Dust : Good but eased with progress of sale.

Market Trend: Leaf & Dust: Brighter liquoring teas well competed for and were steady but eased during the

later part. Remainder irregular and easier following quality.

Buying Pattern : Leaf & Dust: TGBL fairly active with good support from WI and Internals .

HUL selective. Exporters quiet.

	LEAF	DUST	TOTAL	LAST SALE’S TOTAL
Offered Packages	94077	41013	135090	129443
Percentage sold	76.59%	70.02%	74.60%	72.49%

TOP NOTCHERS

BOP		BOPSM/BP		OF/PF
HALMARI	342	HALMARI	303	HALMARI	276
DUFLATING	280	MACKEYPORE	302	SOTAI	261
HALMIRA	275	DEHA	302	DUFLATING	256
MACKEYPORE	266	SOTAI	292	MADHUPUR	256
HIRAJULI	265	LUKWAH	291	HIRAJULI	254

PD		DUST		CD
HALMARI	274	HALMARI	282	MATIAPAHAR	274
SUNTOK	271	DUFLATING	272	OUPHULIA	271
MADHUPUR	266	SOTAI	272	KOOMTAIB	270
BANAMALIE	266	MADHUPUR	272	SUNTOK	267
MATIAPAHAR	266	BANAMALIE	272	BAHIPOOKRI	264

FUTURE OFFERINGS IN PKGS (Including Reprints)

CATEGORY	SALE NO. 32			SALE NO. 33
	2015	2014	(+/-)	2015	2014	(+/-)
CTC	90171	104987	-14816	98187	107098	-8911
ORTHODOX	7282	643	6639	2432	428	2004
DUST	39830	43176	-3346	43883	42450	1433
TOTAL	137283	148806	-11523	144502	149976	-5474

ARRIVALS FOR SALE - 34 (IN PKGS), CLOSED ON 05/08/2015

CATEGORY	2015	2014	(+/-)
CTC	119326	118981		345
ORTHODOX	7409	661		6748
DUST	45291	49255		-3964
TOTAL	172026	168897		3129

CACHAR TOP NOTCHERS

BOP		BOPSM		BP
RAMPORE	141	RAMPORE	156	BINNAKANDY	193
BOROKAI	129	HATTICHERRA	134	RAMPORE	156
HATTICHERRA*	128	BOROKAI	128	VASUNDHARA	140

OF/PF		PD		DUST
HATTICHERRA	148	RAMPORE	135	BOROKAI	122
RAMPORE	140	HATTICHERRA*	121	HATTICHERRA*	120
KOOMBER	140	LALBAG*	118	CHANDYPORE	100

*Sold by Paramount Tea Marketing (P) Ltd.

Kenya’s loss of tea output could mean India’s gain

A whopping 50 million kg (mkg) loss in production in Kenya due to drought in the first half of current calendar has thrown open a fresh opportunity for exports of Indian tea.“Kenya has had a bad year with production trailing behind 2014 each month until May. June was relatively a better month with production increasing marginally to 32.20 mkg from 31.94 mkg. However, the overall output in the first half fell to 175.13 mkg from 225.18 mkg,” Rajesh Gupta, compiler of Global Tea Digest, told BusinessLine.

This drop of 50.05 mkg marked a decline of as much as 22.23 per cent.This is significant because Kenya is the world’s largest exporter of black tea accounting for over a quarter of the global tea exports.As Kenya produces mostly CTC variety which is similar to the Indian output, there is scope to covert Kenya’s loss into India’s advantage.“The supply situation in India is favourable with production so far rising by as much as 29.86 mkg over the corresponding period of 2014 to reach 274.93 mkg,” Rajesh Gupta noted.

Mombasa auctions

As of now, Pakistan exerts strong demand in Mombasa auction for all available Kenyan tea. Afghanistan, Kazakhstan and Yemen are other strong bidders there. The UK is selective for some grades. Russia, Egypt, Sudan, Iran and Somalia which have been buying Kenyan teas are now facing the heat of high prices and limiting their offtake.Kenya has reportedly exported some 40 per cent less tea to its major markets, compared to last calendar, because of lower supplies and concomitant high price.

Bright outlook for India

“The reduced supplies from Kenya so far and the less possibility of the short supplies being made good in the near future brighten the prospects for Indian tea exports. We are aiming at increased shipments to Iran, the UK and rest of European continent where short supply of Kenyan tea is felt”, said D Hegde, former UPASI President and Director of The United Nilgiri Tea Estates Co Ltd, substantial portion of whose production is exported (as Chamraj tea).

“Producer-exporters are expecting a rise in shipments by this month-end or September beginning and a concomitant increase in Indian tea prices by at least 10 per cent”, he disclosed.Merchant exporters also see bright scope. “Indian exporters are aiming at Egypt and Pakistan where Kenyan teas are in short supply now. We are increasing our procurement and this should play a major role in halting the falling trend in prices of South Indian teas witnessed recently. This will help producers and small growers as well,” Hemant Shah, a leading exporter, opined.“Indications of increased demand from exporters are seen. Substantial portion of the teas auctioned by us belong to CTC grade manufactured by bought-leaf factories which are suitable in markets consuming Kenyan teas. We are waiting for a major revival in price now,” Ramesh Bhojarajan, Chairman, Coonoor Tea Trade Association, said.

Exports dip 13%.

India’s tea exports so far this calendar has been trailing behind the corresponding period of last year.According to Tea Board, till May, the latest period for which official data is available, India exported 76.09 mkg of tea worth Rs.1301.72 crore against 85.07 mkg worth Rs.1592.98 crore in January-May 2014.This marked a decline of 12.41 per cent in volume and 1.15 per cent in value.

Source – The Assam Tribune