Global Tea Market Snapshot – Week 36

🏁 Kenya Auction – Smallest of the Year, Signs of Bottoming Out

• Auction volume: 125,000 packages (↓ from 153,000) – smallest sale of the year.

• Unsold stock: Down to 24% (from 35%).

• Average price: $1.95/kg (↓ 2 cents).

• BP1s: Mixed trends. KTDA East of Rift (EoR) and West of Rift (WoR) flavory lines held value or gained. Medium and plainer types traded irregularly.

• PF1s: Firm to dearer across quality grades. Pakistan continued strong demand. Plainer types struggled.

• Dusts (PD/D1): Good demand with firm to dearer pricing, especially for Egyptian buyers.

• Market sentiment: Pakistan, Yemen, and Egypt remained active; Sudan and local packers remained subdued. CIS and Russia were selective.

• Weather: Good rainfall continues across regions. Crop intake increasing modestly.

• Outlook: Fresh tea availability is steadily declining. Demand may firm up, especially if Sudan returns to market.

🇺🇬 Uganda

• Demand: Improved, with firm to slightly dearer pricing.

• Quality: Mixed leaf, seasonal brownish tones.

• Crop intake: Stable.

🇷🇼 Rwanda

• Demand: Strong across all grades.

• Quality: Excellent – peak season.

• Outlook: Availability expected to decline due to dry season.

🇧🇮 Burundi

• Supply: Increased.

• Demand: Minimal, hampered by poor quality and restrictive producer pricing.

🌏 Asian Market Highlights

🇱🇰 Sri Lanka – Colombo

• Auction offering: 5.105 million kg.

• High Grown Rotovane teas: Strong demand.

• Ex-Estate: BOPs and BOPFs gained USC 5–20.

• Low Grown: Select best OP1s gained up to USC 35. FBOPs, FF1s mostly firm. Dusts generally dearer.

• Offgrades: FGS1, BPs, OPAs, and Dusts showed strength.

• Outlook: Steady demand continues, buoyed by export interest.

🇮🇳 India

• North India: Fair to improved demand.

  • Dust: Select best Assams sold at easier rates. Plainers well absorbed.

  • CTC Leaf: Best Assams dearer. Fannings met less enquiry.

  • Orthodox Leaf: Mixed pricing. Clean teas sold well; lower quality faced withdrawals.

• South India:

  • Dust & Orthodox: Firm to dearer.

  • Leaf: Fair demand, cleaner types fared better.

  • No auction in Cochin due to holidays.

  • Buyers: Major packers (AVT, HUL), CIS, and exporters active.

🇮🇩 Indonesia

• Auction: 4,300 packages, 17% unsold.

• Orthodox: BOP/BOPF firm to dearer.

• CTC: Irregular.

• Outlook: Crop declining; auction volumes remain low.

🇻🇳 Vietnam

• Events: National Independence Day and severe storms in central provinces.

• Impact: North tea plantations unaffected; harvest in full swing.

• Supply: Stable.

• Pricing: Holding steady.

📊 Market Indicators

• Kenya production (Jan–Jun 2025): 283.2M kg (↓12% YoY).

• North India production (Jan–Jun): 350.3M kg (↑14% YoY).

• Sri Lanka production (Jan–Jun): 134.9M kg (↑6% YoY).

• Mombasa auction quantities: Continued downward trend week-on-week.

📌 Key Takeaway

While Kenya's auction hit its lowest volume of the year, improved demand and tighter supply hint at a potential market recovery. Buyers are returning cautiously, but major players like Sudan remain absent. South Asia and East Africa show promising signals, with quality driving demand in Sri Lanka and Rwanda. The coming weeks could see a rebound if conditions continue to tighten and buyer activity ramps up.