Q1 prospects bright for S. Indian teas

Wednesday, 5 January 2011 00:01 - - {{hitsCtrl.values.hits}}

The South Indian tea market may remain buoyant in the first quarter of 2011 if producers ensure quality supplies and auction centres step up promotional efforts, trade sources contend.

Due to end-season crop tapering, the availability of teas in North Indian market has come down laying increased pressure on South Indian supplies. The scope for export of orthodox teas is bright and high grown Nilgiri winter orthodox tea is a premium product.

Due to lower supplies in the North, most of the available teas are absorbed.

“Nearly 95 per cent of the offer is being absorbed. Medium and plainer teas are mostly bought for stocking for future blending against probable orders. But, quality shows a seasonal decline. Quality will improve when the new season teas start coming. But, that will be around the beginning of March. Till then, the offering will be less and prices will follow quality,” Subodh Paul, Director, Contemporary Brokers P Ltd, Kolkata, told Business Line.

For South Indian orthodox teas, enquiries are coming from the CIS and Tunisia. The CIS, Dubai and Iran have been buying North Indian teas this week.

The best grades of North Indian orthodox teas fetched a price in the range of Rs 170-210 a kg while their South Indian counterparts ranged Rs 110-150. Fannings at the lower end averaged Rs 85-95 in the North and Rs 70-80 in the South.

North Indian crop will be lower because planters have started pruning in Assam, Dooars, Terai and Cachar.

Besides, night temperature is currently lower than last year. South India is also reporting lower production due to reduced sunshine hours.

Kenya and Indonesia are passing through dry conditions pulling down harvest. The season has closed in Vietnam and China. Sri Lanka is reporting steady crop because of favourable rains while Argentina planters are happy with good weather.