Sri Lanka low grown tea prices recover
Oct 26, 2015 07:06 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT – The slump in Sri Lanka’s tea export shipments and earnings continued in September 2015 but demand and prices for low growns teas, which make up the bulk of production, have shown signs of recovery at recent auctions.
Forbes & Walker Tea Brokers said tea exports for September 2015 fell two million kilos to 24.6 million kg from a year ago.
The slump came from higher value tea bags and packeted tea while bulk tea exports grew.
Total tea export revenue fell 2.7 billion rupees to 14.7 billion rupees in September 2015 from the year before.
But prices for low growns improved sharply at last week’s Colombo auctions, brokers John Keells Ltd. said.
“There was a welcome improvement in demand for the 3.2 million kilos of Low Grown teas that were on offer,” they said.
“It was pleasing to note that, after a lapse of a considerable period of time the Low Grown net sale average of last week’s auction, advanced sharply by 20 rupees.”
The brokers said there was good demand from buyers from Russia, the biggest market for Ceylon tea, while buyers from key Iranian and other Middle Eastern markets were “fairly active”, they said.
But John Keells Ltd. said total revenue from tea exports in the eight months to September 2015 were still down by a significant 24 billion rupees to 134.74 billion rupees when compared to the same period in 2014.
“The drop in the approximate average unit F.O.B. value per kilo of 61.63 rupees, when compared to the same 2014 period, too has had a noteworthy negative impact in the export earnings.”
The export quantities too were lower by 15.28 million kilos at 226.09 million kilos.
(Colombo/October 26 2015)