Orthodox tea exports from Kochi auctions have halted as rising freight costs and port delays impact shipments to West Asian and GCC markets. The decline in export activity has led to 19% of offered orthodox tea remaining unsold in recent auctions, with average prices dropping to ₹183 per kilogram. Domestic buyers remain selective, focusing primarily on high-quality tea segments.
The tea trade in Kochi is facing a significant slowdown as the ongoing conflict in West Asia disrupts traditional export routes. Exporters operating out of the Kochi auctions have largely paused new shipments to the Gulf Cooperation Council (GCC) and broader West Asian countries. This disruption is driven by a combination of surging freight charges, prolonged transit delays, and instability at major ports, which have made it difficult for exporters to maintain profitable margins.
As a result of this logistical pressure, export focus has shifted almost entirely toward markets in Europe and Russia, leaving a notable surplus of tea intended for West Asian buyers. The impact on the auction floor was immediate during Sale 29, where 19% of the 269,479 kg of orthodox tea offered remained unsold. The average price for this category fell to ₹183 per kilogram, down from ₹186 in the previous week.
Despite the broader export challenges, the market continues to show a divide based on quality. While average and secondary grades have faced resistance from buyers, high-quality whole leaf teas have shown resilience, with some grades appreciating by ₹10 to ₹15 per kilogram at auction. The Tea Trade Association of Cochin noted that buyers are currently exercising caution, preferring to purchase only the best available lots while remaining hesitant toward plainer varieties.
Contrasting with the struggles in the orthodox leaf segment, the CTC (Crush, Tear, Curl) tea market has maintained steadier performance. The CTC leaf segment saw a 96% clearance rate for the 29,593 kg offered, trading at firm prices. Similarly, the CTC dust segment experienced good demand, particularly for well-liquoring teas, with 86% of the 729,953 kg offered finding buyers. The orthodox dust market also performed well, recording 100% sales for the limited 9,298 kg offered, supported by consistent interest from exporters who remain active in that specific category.
Investors and stakeholders in the tea sector will likely monitor the duration of these logistical disruptions and any potential shifts in freight rates. The ability of tea producers to pivot toward domestic demand or alternative export markets will be key to stabilizing prices for lower and secondary grade teas in the coming weeks. The primary monitorable remains whether the current price dip in orthodox leaf tea is a temporary market adjustment or a sustained trend resulting from the loss of key export destinations.