Global shortfall, higher demand keep Sri Lankan tea prices high
ECONOMYNEXT – Sri Lankan tea prices are seen remaining high this year on account of the global shortfall in production, with good demand seen at recent auctions, brokers said.
“During the first three months of 2017, price levels at the Colombo auctions have shown an increase over the same period in the previous year,” John Keells Ltd. said in a report.
“While world tea production is sluggish, tea prices are expected to remain moderately high in 2017 due to the rise in tea consumption.”
Crop deficits have been recorded in Kenya, South India and Sri Lanka over the past 12 months compared to the previous year, creating a global shortfall.
Asia Siyaka Commodities said there was good demand at this week’s auction for both low-grown teas made mainly by small farmers and those produced by regional plantation company estates, although prices fluctuated.
In the ex-estate catalogues, a few best Western BOP types were lower by 20-30 Rupees a kilo following quality, while others were fully firm at 10 Rupees higher.
Best BOPF teas from the Nuwara Eliya region went up sharply by 30-50 Rupees more.
(COLOMBO, March 31, 2017)