Weekly Tea Market Report – Week 24

🌍 Global Market Summary

This week’s auctions saw selective demand across major tea-producing regions, with total global volumes easing slightly. Mombasa auction offerings dropped to 195K packages (from 212K last week), with 44% remaining unsold—attributed to reserve pricing by Kenyan producers and a seasonal slowdown during Eid-ul-Adha.

The overall market sentiment remains steady to easier, as crop intakes decline due to seasonality, yet demand is expected to pick up in the coming weeks.

🇰🇪 Kenya – Soft Demand Amid Reserve Price Impact

• Total Offerings: 195,000 pkgs | 44% unsold

• Market Tone: Selective demand, especially for KTDA East of Rift (EoR) teas.

• BP1s: Flavory EoR types traded firm to dearer; medium and plain grades varied. WoR grades met selective packer interest.

• PF1s: Firm at minimum reserve levels; plain types easier.

• Dusts: Mixed tone, with better PD/D1s firm and plainer types trading irregularly.

• Key Buyers: Kazakhstan (strong), Egypt & Yemen (steady), UK & Pakistan (selective); Sudan absent.

• Weather: Heavy rains in many areas, with increased daytime temperatures and cool nights.

• Outlook: Steady to slightly easier. Seasonal decline in production continues.

🇲🇼 Malawi – Steady Demand

• Demand remained steady.

• Crop intakes expected to remain low during the winter season.

• Weather: Cloudy, warm days and cold nights.

🇷🇼 Rwanda – Improved Demand

• Strong interest, especially for BP1 and PF1, with prices firm to dearer.

• Outlook remains positive.

🇧🇮 Burundi – Low Interest

• Despite improved availability, poor quality and high asking prices led to weak demand.

🇺🇬 Uganda – Softer Market

• Demand eased across all grades.

• Region enjoying healthy rainfall, with expectations of crop improvement.

🇹🇿 Tanzania – Limited Availability

• Steady demand at irregularly steady rates.

🇱🇰 Sri Lanka – Mixed Sentiment

• Auction Volume: 6.66 million kg

• Ex-Estate: BOPs easier by USC 10–15; BOPFs mixed.

• Uva Teas: Stronger – BOP up by USC 15, BOPF up by 6–8.

• CTC Low Grown: PF1s steady, BP1s gained by USC 15.

• Leafy Teas: Declined overall. Best OP1s dropped by USC 30.

• Dusts: High Grown Dusts down USC 10–20; Low Grown Dusts slightly dearer.

• Overall: Less demand, but seasonal quality variation influenced results.

🇮🇳 India – Good Demand

• North India: Strong demand across Orthodox and CTC. Best Assams remained firm or appreciated.

• South India: Dust CTC and Orthodox saw fair demand; Leaf grades traded selectively.

• Buyers: HUL, Tata, exporters, CIS and Middle East buyers active.

• Production for 2025 still expected to be down 12–15%.

🇮🇩 Indonesia – Improved Demand

• Total Offerings: 3,320 pkgs | 18% unsold

• Orthodox and CTC types traded steady to firm.

• Crop conditions remain highly favourable, but much of the tea may be moving through direct contracts, not auctions.

📉 Production & Price Highlights

Region	May 2025 Prod.	May 2024	YTD 2025	YTD 2024
Kenya	37.9M kg (↓30%)	54.3M kg	136.9M kg (↓19%)	168.7M kg
Sri Lanka	24.4M kg (↑25%)	19.6M kg	61.5M kg (↑5%)	58.3M kg
North India	49.4M kg (↑5%)	46.9M kg	60.4M kg (↑23%)	49.2M kg
South India	15.7M kg (↓7%)	16.9M kg	47.5M kg (↓3%)	49.0M kg
Malawi	6.8M kg (↑13%)	6.0M kg	24.9M kg (↓7%)	26.8M kg