Tea prices are rising at the Kochi auctions due to shortage of supply

Tea prices rose at the Kochi auctions due to strong demand and tight supply, with both CTC and leaf varieties posting higher yields. Auctioneers reported improved prices for good liquor teas, while select Nilgiri teas fetched attractive prices due to seasonal winter characteristics. | Photo credit: ANI

Auctioneers Forbes, Ewart & Figgis said the market was seeing a higher appreciation for good liqueur teas in sales. At least 96 percent of the supply of 6,92,410 kg was sold. The average price realization was up by ₹3 to ₹184 from ₹181 in the previous week. Select Nilgiri teas showed seasonal winter character and witnessed some attractive prices. Whole leaf and broken leaves were higher with wider margins of ₹5 to ₹10, auctioneers Forbes, Ewart & Figgis said.

Anil George, president of Cochin Tea Trade Association, said the CTC fabric market is expected to remain stable, constrained by limited crop availability and increased buying interest from major package companies. The price increase is largely attributable to production shortages.

Kenyan crop decline

Indian tea production declined due to adverse weather conditions, resulting in a pronounced imbalance between supply and demand. At the same time, Kenya faces a significant shortage of 44 to 48 million kilograms, further reducing global availability, he said.

Orthodox tea prices remained stable to firm, supported by continued demand from CIS markets. However, exports to the Middle East continue to face challenges due to geopolitical tensions between the US and Iran and between the US and Israel, which have disrupted transportation and payment mechanisms.

European demand remains supportive, driven by a growing preference for premium and specialty teas. Germany and Britain remain key markets, with Britain experiencing rapid growth in the supply of premium blends and specialties, alongside increasingly stringent compliance requirements, he said.

Switch to CTC tea

Export demand for Orthodox tea is expected to remain reasonable, although volumes may moderate as some buyers switch to CTC teas, which currently offer more attractive price propositions. With only a marginal increase in orthodox harvest volumes expected, the market remains broadly balanced, with exporters actively participating, he added.

MK Ajith, chairman of Tea Buyers Association, Kochi, said tea powder prices have increased by ₹30 to 50 per kg in the past month, increasing by ₹5 to 10 per week, mainly due to declining production in north and south Indian tea estates, thanks to extremely cold weather conditions.

Published on January 16, 2026