Orthodox tea prices at Kochi auctions rose by ₹4 per kilogram to an average of ₹184, supported by strong demand from CIS and West Asian exporters. Meanwhile, the CTC dust segment faced a slowdown, with clearance rates dropping to 70% amid cautious buying.
The Kochi tea auctions showed a clear split in performance during Sale 36, as robust export interest pushed orthodox tea prices higher while domestic CTC demand softened. Orthodox tea led the market, with average price realizations climbing to ₹184 per kilogram, up by ₹4 compared to the previous week.
This firm pricing for orthodox varieties was driven largely by consistent orders from CIS and West Asian markets. With 86 percent of the 1,89,521 kilograms offered successfully sold, it is clear that buyers are prioritizing high-quality, clean, and blacker tea varieties. This export-led demand has provided a cushion for producers in this segment.
In contrast, the CTC dust segment experienced a correction, tracking a typical post-Onam trend. Participation from blenders and packeting operators was noticeably subdued, resulting in only 70 percent of the 5,05,195 kilograms offered being cleared. This cooling in the domestic segment reflects a broader trend seen across Indian auction centers.
The contrast between these two segments highlights the current challenges facing the tea industry. While export-oriented orthodox tea remains stable, the domestic market is under pressure. In other major auction centers such as Kolkata, Guwahati, and Siliguri, average CTC tea prices have seen a decline of 15–17 percent since July 2026.
Several factors are creating a difficult environment for producers. Climate volatility is a significant concern, with heavy rainfall and pest infestations negatively affecting crop quality and production consistency. When the quality of the harvest is uneven, producers struggle to command premium prices, even when export demand exists.
Beyond production issues, the industry faces external economic and geopolitical risks. The ongoing crisis in West Asia has introduced complexities regarding trade payments and rising insurance costs, which could disrupt export pipelines if the situation persists. Additionally, as auction prices for CTC tea fall, the financial gap for growers is widening because input costs, such as labor wages and statutory bonuses, continue to rise.
Going forward, the key factor to track will be quality consistency. As rainfall patterns continue to affect output, the ability of producers to supply high-grade tea will dictate price levels. Investors and industry observers should also watch for how producers manage the current price-cost mismatch, especially if export demand for orthodox tea faces payment or logistical headwinds.