Global Tea Market Highlights – Week 23

Victoria Vox Team
Jun 5
2 min read

Kenya – Demand Slows as Minimum Prices Impact Sales

Kenya’s Mombasa auction saw reduced activity this week, with 41% of the 212,000 packages offered remaining unsold — a significant rise from 31% the week prior. The softer demand was largely attributed to the recent introduction of minimum reserve prices by select producers, which may have discouraged buyers.

Despite this, the average auction price rose by 10 USC, closing at $1.91/kg.

BP1s: Flavoury KTDA East of Rift types remained strong, trading dearer; medium and plainer varieties saw weaker interest.
PF1s: Demand was selective but improved slightly, with prices mostly firm to dearer.
Dust Grades: Firm levels overall, though demand varied by type.

Active buyers included Kazakhstan, Egypt, Yemen, and Pakistan. Sudan remained absent from the market.

Crop & Weather: The March production figure stood at 37.9 million kg, with January–March output down 18% YoY. Weather remains rainy, which supports leaf growth.

Malawi – Demand Improving Despite Declining Crop

Improved buying activity was recorded, especially for BP1s, though other grades remained under pressure.

Weather: Chiperoni (dry/cool) conditions continue.
Outlook: Pruning is 75% complete; crop intakes are seasonally declining.

Uganda, Rwanda & Burundi

Uganda: All grades sold at firm to dearer levels, supported by steady rains.
Rwanda: BP1s and PF1s gained value; strong demand overall.
Burundi: Improved availability but limited buyer interest due to quality issues and sellers unwilling to meet market prices.

Sri Lanka – Fair Demand at Lower Rates

The Colombo auction offered 6.71 million kg, but bearish market sentiment led to mixed pricing.

Ex-Estate: BOPs and BOPFs were up USC 10–20. Uva BOPFs gained slightly.
Low Grown Leafy: Select best OP1s and BOP1s strengthened; others eased.
Dusts: High Grown Dusts gained by USC 4–8; secondary Dusts declined.

India – Steady Demand

North India: Orthodox teas (especially tippy sorts) remained firm to dearer. CTC demand was mixed.
South India: Orthodox fannings were stronger; CTC dusts traded around last levels.

India’s Orthodox teas continue to attract exporters, while domestic packers support CTC demand.

Indonesia – Slight Uptick in Demand

Indonesia saw improved buying for its 4,360 packages, with only 18% unsold.

Java/Sumatra: Orthodox and CTC grades mostly steady to firm. Some PF invoices varied based on quality.
Crop Outlook: Despite favourable weather, auction volumes remain low.

Vietnam – Weather Improves, Crop Grows

Flooding continues in some areas, but overall conditions have improved. With main season underway, leaf intake is up and factories are processing higher volumes.

Key Market Insights

📉 Kenya’s tea production is down 30% YoY for March 2025.

📈 Sri Lanka’s output is up 25% in March compared to 2024.

📉 Malawi’s cumulative Jan–Apr crop is down 7% despite a 13% gain in April.

📊 Auction Volumes:

Mombasa: 195,179 packages
Colombo: 12,419 packages
Guwahati: 166,142 packages