Orthodox Tea Prices Slip at Kochi Auctions Amid Subdued Overseas Demand

Orthodox tea prices at the Kochi auctions remained irregular across grades during the week, characterized by selective buying despite reasonable demand. According to traders, overseas buying was subdued as the market awaited the outcome of the US mid-term elections, an event participants expect could eventually revive tea purchases in West Asian markets.

Reflecting the cautious market sentiment, the average price realization declined by ₹4 to stand at ₹175 per kg, compared to ₹179 per kg in the previous week. Auctioneers Forbes, Ewart & Figgis reported that prices for certain orthodox grades were lower, with margins widening by ₹5 to ₹10 per kg, and in some cases by even more. The total quantity offered under orthodox grades stood at 3,08,280 kg, out of which 83 percent was sold.

Trading operations during the session also faced disruptions due to technical glitches on the TradeForge auction platform, though normal operations were subsequently restored after a few hours.

In the dust market, prices of liquoring teas registered a decline of ₹2 to ₹3 per kg. Blenders absorbed 67 percent of the total offered quantity of 7,24,798 kg.

Anil George Joseph of the Tea Trade Association of Cochin noted that market performance remained selective, with quality serving as the primary determinant of price realization. Select, well-made, and good-liquoring teas attracted reasonable interest, whereas medium and plainer varieties faced pricing pressure and withdrawals.

Commenting on the infrastructure challenges during the sale, Joseph highlighted that technical interruptions on the new TradeForge platform underscore the critical need for system reliability. Technology is expected to strengthen price discovery, transparency, and transaction efficiency rather than disrupt the functioning of the trade, with the path forward relying on improved quality, enhanced market access, and dependable auction infrastructure.

"The recent trend in the Kochi tea auctions highlights the sensitivity of traditional commodity markets to global macroeconomic developments and export market dynamics. Furthermore, the technical disruptions experienced on the TradeForge platform emphasize that digital infrastructure in agricultural trade must be robust and reliable. For businesses operating in traditional supply chains, technology adoption must go hand-in-hand with operational resilience to ensure seamless price discovery and protect stakeholder margins during periods of subdued global demand." — Dr. Shishir Gupta, Founder & CEO, StartupLanes