India tea prices ease as plucking gains momentum

Tuesday, 5 November 2013 00:01 - - {{hitsCtrl.values.hits}}

Reuters: Tea prices in India, the world’s second-biggest producer, fell last week’s auction on higher supplies due to a pick-up in plucking amid moderate demand. The CTC (crush-tear-curl) grade leaf was sold at 144.44 rupees per kg, down 1.75% from the previous week’s auction, while the dust grade dropped 2.6% to 146.35 rupees per kg.

“Supplies are rising from gardens in Assam. This is the peak production season for them,” said a Kolkata-based dealer. “Exports demand is also weak for CTC due to cheaper supplies from Kenya.” Tea plucking in India usually picks up between July and October. Demand for tea usually rises in the winter season, which begins in November. The north-eastern state of Assam is the country’s top tea producer. The average price of top Kenyan tea weakened for a fifth straight week to $3.63 per kg from $3.74 at last week’s sale, traders said. India’s tea production in August rose 2.2% from a year earlier to 154.26 million kg, as the shortfall in output in the southern states was offset by higher plucking in key north-eastern states.