Tea arrivals fall in Kolkata

Arrivals at Kolkata auctions have started dwindling this month on the back of lower production compared with the same period last year.

According to industry sources, sale 52, slated for the last week of December, would have 1.59 lakh packages compared with 1.84 lakh packages last year, while sale 51 would have 1.64 lakh packages compared with over two lakhs last year. Till October, production was down by 20 million kg and exports lower by 40 million kg.

Sources pointed out that with consumption increasing annually by 25 million kg, supplies would get tighter.

The main shortfalls have been in CTC and dust. "In CTC and dust, we are behind by 21 million kg," sources said.

In contrast, orthodox varieties were higher at around 0.93 million packages till mid-December compared with 0.58 million packages last year, and may add to exports.

While CTC and dust are predominantly consumed by the domestic market, exports lean towards orthodox tea.

While CTC is expected at 6.086 million packages till mid-December against 6.492 million packages last year, dust is seen at 1.733 million kg compared with 1.940 million kg. The shortage in supply could firm up prices. The current prices are a reflection of constrained supply.

Till December, 118.5 million kg of Assam CTC and dust were sold for an average price of Rs 75.74 per kg compared with 125.884 million kg sold last year at a price of Rs 75.02 per kg.

During the same period, around 209.81 million kg of orthodox varieties were sold at Rs 96.93 per kg compared with 127.74 million kg sold at Rs 106.22 per kg last year. Dooars tea fetched an average price of Rs 68.79 per kg for 53.772 million kg this year as against 51.451 million kg at Rs 69.30 per kg last year .

Cachar sold at Rs 59.79 per kg (11.308 million kg) compared with Rs 61.92 per kg (11.121 million kg) last year.