Tea Market Report – Week 25

Kenya – Demand Strengthens, Absorption Improves

The Kenyan auction saw improved demand, with total offerings at 185K packages (down from 195K). Unsold stock dropped to 37%, from 44% the previous week. The average auction price increased by 5 US cents, closing at USD 1.95/kg.

• BP1s: Flavoury East of Rift (EoR) types remained firm to dearer; below best were irregular; plainer grades were mostly neglected.

• PF1s: Steady to selective demand, many lots at minimum prices. Medium types sold at irregular levels.

• Dust Grades: Better PD and D1s were firm, plainer dust grades showed improved demand.

📦 Key Buyers: Pakistan packers led, followed by Yemen, Egypt, and Kazakhstan. UK interest grew; Sudan remained absent.

🌦️ Weather: Generally favourable with scattered showers and thunderstorms. Crop harvest is steady in EoR and gradually rising in WoR.

📉 Outlook: Fresh tea availability is declining seasonally, but reprints are keeping volumes near 200K packages. Selective demand continues; market sentiment is dampened by Sudan’s continued absence.

Malawi – Steady Market Amidst Cold Weather

Demand remained steady but subdued, particularly in Thyolo and Mulanje, with rainfall at 34mm and 104mm respectively.

• BP1s & PF1s: Some demand at steady levels.

• PDs & D1s: No significant interest.

• Offgrades: Poorer leaves did well; cleaner types met selective demand.

🌿 Crop: Intakes are declining due to pruning and low temperatures.🔮 Outlook: Steady to easier.

Uganda, Tanzania, Rwanda, Burundi – Mixed Trends

• Uganda: Improved demand across grades, though prices were irregular. Crop expected to improve with rainfall.

• Tanzania: Steady demand, limited availability.

• Rwanda: Stronger demand, BP1s & PF1s firm to dearer; availability to reduce due to dry season.

• Burundi: More supply, but poor quality and reluctance from producers weakened demand.

Sri Lanka – Volatile Market, Prices Ease

Auction offerings were 6.61 Mn Kgs. The market remained irregular, impacted by Middle East tensions.

• Ex-Estate: BOPs down USC 10-20; BOPF down USC 10.

• CTC: Low grown PF1s and BP1s dropped; high grown PF1s were irregular.

• Leafy Teas: Mixed, with some varieties steady and others easing.

🌏 Outlook: Demand is mixed. Premium and tippy grades are weakening.

India – Mixed but Active Markets

• North India: Good demand overall. Assam brokens firm; others irregular.

• South India: Good liquoring teas firm to dearer; others easier or withdrawn.

• Orthodox Leaf: Selective demand at easier rates; tippy varieties held firm.

📈 Tea exports from India rose 9.92% in 2024.⚠️ Exporters remain cautious amid global geopolitical unrest.

Indonesia – Fair Demand, Local Interest High

Out of 4,840 packages, 18% remained unsold.

• Orthodox and CTC teas were steady to firm.

• Exporter interest improved; local demand for offgrades remained strong.🌧️ Heavy rains in Java continue; dry season has not yet begun.

Market Summary & Insights

📊 Average Auction Price

• Kenya: USD 1.95/kg (+5 cents)

📉 Tea Production – March 2025 vs 2024

• Kenya: ↓30%

• Sri Lanka: ↑25%

• North India: ↑18%

• South India: ↑77%

🧾 Notable Trends

• Reprints keeping weekly volumes afloat

• Declining availability in Kenya, Burundi, Malawi

• Sri Lanka market remains sensitive to geopolitical tensions

• Seasonal shifts shaping both supply and demand patterns