Tea Market Report – Week 8 (20 February 2025)

Kenya – Steady Demand at Easier LevelsMombasa auction offered 196,000 packages with 27% unsold. The average price remained stable at USD 2.12/kg.

• BP1s: Flavoury East of Rift (EoR) types held firm with some dearer lots; others were irregular to easier. West of Rift (WoR) BP1s trended easier.

• PF1s: EoR met better absorption, especially from Pakistan. WoR traded irregular to easier, with brokers reluctant to drop reserve prices.

• Dust Grades: Best EoR PD/D1s held value, while better medium and plainer types saw improved demand, trading firm to dearer.Active buyers included Egypt, Yemen, Sudan, Pakistan, and local packers. Kazak and Russian activity was slower.Weather: Cloudy with light rainfall; crop intakes dropped slightly due to seasonality.Outlook: Supply to remain below past years’ levels; demand may slow further approaching Ramadan.

Malawi – Improved DemandLimbe market saw strong demand across most grades.

• BP1s traded slightly below valuation.

• PF1 Seedling met strong demand at firm prices.

• D1s and Offgrades held steady; poor leaf dust types sold 5 USC below valuation.Weather: Rainy week, especially in Thyolo. Crop intakes steady; cup quality slightly affected but liquor brighter.Outlook: Steady to dearer.

Other African Markets

• Uganda: Maintained demand, brighter teas firm, balance slightly easier.

• Tanzania: Improved demand with growing volumes.

• Rwanda: Quality brokens firm; others easier.

• Burundi: Improved availability but nil demand due to seller price expectations.

Sri Lanka – Mixed Trends with Reduced DemandColombo offered 5.86 million kg.

• Ex-Estate: Best BOP/BOPF stable with some special interest; others eased by 5-10 USC.

• Uva/Nuwara Eliya BOP/BOPF held firm.

• Low Grown CTC: PF1s stable; BP1s gained 5-10 USC.

• Medium Grown: OP1s varied, some up 10 USC; FBOPs & FF1s eased.

• Low Grown Leafy & Premium: Mixed trends; some grades firm, others down 10-15 USC.

• Dusts: High grown dearer by 5-10 USC; secondary dusts easier.

India – Mixed Demand, Confirmed Production DropIndia officially reported a 7.8% drop in 2024 production, down 110 million kg.

• North India: Orthodox & CTC saw good demand, but prices eased due to end-of-season quality.

• South India: Orthodox teas gained steadily; local CTC demand remained strong.Forecasts suggest drought risks similar to 2024; clearer outlook expected by mid-March.

Indonesia – Reduced Export Demand, Local Support Ahead of RamadanJakarta offered 7,400 packages with 27% unsold, mainly West Sumatra types.

• Java/Sumatra Orthodox & CTC traded steady to firm.

• Exporters less active, but local packers remain strong buyers.Weather: Continued daily rainfall, supporting healthy crop levels.