Prices weak at global tea auctions

The weak trend in the international tea market is expected to continue for a few more weeks, according to market observers.

This is due to too many teas chasing too few buyers in the global market despite a marginal fall in output compared to last year. Global indications are that a higher crop is a possibility soon.Kenya has received useful showers on both sides of the Rift, and crop arrival at factories has already shown an increase.

Malawi, Sri Lanka and Indonesia are cropping more due to favourable rains. China and Vietnam are passing through main cropping season but Argentina's season is over.

In North India, a substantial part of the production is expected to hit the market soon.

However, absence of matching demand is hitting the market. Last week, 14 percent of Kenya tea remained unsold at Mombasa auctions as buyers took a 'wait-and-see' approach in the backdrop of rains promising increased supplies in coming weeks.

As much as 48 percent of Malawi tea remained unsold in Limbe auctions due to inadequate demand.

In Jakarta, 33 percent of Indonesian tea remained unsold. In Coonoor auctions, as much as 21 percent remained unsold despite prices crashing to the year's lowest bracket.

- The Hindu