Better demand for Sri Lankan tea, prices still low
EconomyNext – Demand for Sri Lankan tea improved at this week’s Colombo auctions although prices remained below last year’s levels, brokers said.
“High and Medium Grown teas continued to witness a buoyant market with the BOPF grade appreciating in value for the sixth consecutive week,” Forbes & Walker Tea Brokers said.
Low Growns, which make up over half the crop, met with “fair demand”, they said in a report.
Tea prices had been in a prolonged slump since the second half of 2014 with the volume of unsold lots growing.
The tea price slump has been attributed to lower oil prices and political and economic problems in key markets like the Middle East and Russia.
Brokers John Keells said the Sri Lankan tea sales average for the month of June 2015 was 400.34 rupees a kilo, 65.86 rupees below that of the corresponding period of 2014.
Average prices of all three elevations remained below last year’s levels.
(Colombo/July 10, 2015)