Tea Trade Takeaways
Tea markets opened the second trading week of 2026 on a steady-to-firm footing as post-holiday buying met structurally constrained supply across major origins. Auction price discovery continued to favor well-made teas, while average descriptions cleared selectively as buyers focused on near-term coverage rather than forward extension. Colombo remained supported by exporter demand for high-grown teas, while Assam liquidity grades set direction in North India. Mombasa prices held within narrow weekly bands despite reduced catalogues, reflecting disciplined buying rather than demand weakness. Across origins, exporter resistance remained evident, reinforced by currency dynamics and elevated input costs.
Summary by Major Auction Center
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Colombo (Sri Lanka) | High-grown teas continued to attract steady interest, supported by exporter demand for January shipment. Medium and lower elevations showed uneven clearance, reflecting quality dispersion.
Kolkata / North India | Assam liquidity grades remained the primary price-setting mechanism. Buying was functional, with limited appetite for forward coverage.
Mombasa (East Africa) | BP1 and PF grades held narrow ranges on balanced demand. Buyer selectivity increased toward the end of the week.
Indonesia | Auction activity remained secondary to direct sales, with most volumes moving through contractual channels. Specialty orthodox demand was selective.
Sources: Asia Siyaka Brokers | Lanka Commodity Brokers | Forbes & Walker | Tea Exporters Association (Sri Lanka) | Tea Coffee & Spices Association | EATTA | Tridge
Currency & Inputs
Currency movements and elevated input costs continued to shape early-year trading behavior. Labor, energy, and logistics costs remain embedded in exporter pricing assumptions.
Sources: Reuters | FAO Inputs Monitor
Outlook (90-Day Horizon)
The near-term outlook points to selective firmness through Q1 as demand unfolds against higher cost structures. Quality differentiation is expected to remain pronounced.
Sources: FAO IGG Tea | ITC Geneva
Trade Signals (Six-Month Horizon)
Six-month signals suggest disciplined sourcing and cautious inventory rebuilding. Cost pressures and compliance requirements continue to constrain aggressive discounting.
Sources: USTR | European Commission Trade Notices
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India
Retail: Retail pricing remained stable post-holidays, with limited discounting across major packaged tea brands.
Wholesale: Wholesale buying focused on replenishment, with blenders cautious outside core liquidity grades.
Auction: South India CTC auctions averaged broadly in line with late-December levels, reflecting reduced volumes rather than weaker demand. Selective premiums were recorded for cleaner Nilgiri and orthodox lots, while average descriptions cleared unevenly.
Direct Sales: Direct sales emphasized Q1 shipment execution and contract continuity.
Sources: Tea Board of India | Economic Times
East Africa
Retail: Retail demand in key importing markets remained steady, with no material pricing disruption reported.
Wholesale: Wholesale trade was cautious but sufficient to absorb mainstream grades without price slippage.
Auction: Mombasa BP1 and PF grades traded within narrow weekly bands on balanced supply and demand. Better-presented invoices achieved firmer realization toward the close of the sale.
Direct Sales: Exporters reported steady near-term inquiries, focused on prompt shipment.
Sri Lanka
Retail: Retail prices remained elevated in Middle Eastern channels, supported by currency weakness and supply discipline.
Wholesale: Wholesale trade favored bright, well-made invoices, with limited appetite for average descriptions.
Auction: Colombo auction averages remained firm week-on-week, supported by exporter demand for high-grown teas. Medium and lower elevations showed wider dispersion, reflecting quality variability and selective buying.
Direct Sales: January shipments to Gulf markets remained active, while East Asian specialty demand was measured.
Sources: Asia Siyaka Brokers | Lanka Commodity Brokers | Forbes & Walker | Tea Exporters Association (Sri Lanka)
Indonesia
Retail: Domestic prices remained stable, with limited retail volatility reported.
Wholesale: Wholesale activity focused on specialty improvement lots rather than volume buying.
Auction: Auction visibility remained limited relative to other origins, with prices largely guided by recent direct-sale benchmarks.
Direct Sales: Exporters reported steady contractual shipments, prioritizing specification clarity.
Sources: Indonesia Statistics | Tridge | ITC Geneva
Next Week’s Forecast
Trading next week is expected to remain selective, with outcomes driven by catalogue quality and buyer attendance.
Sources: FAO IGG Tea
