ECONOMYNEXT – Sri Lanka’s Ceylon tea prices fell 50-150 rupees per kilogram at an auction on May 3, due to increased offerings and strengthening of the rupee, data showed.
Total auction volume was increased to six million kilograms and there was good general demand, Forbes and Walker tea brokers said in a report.
“The lower trend in prices perhaps could be attributed to increased volumes, lower quality and a marginal strengthening of the Sri Lankan Rupee” Forebes and Walker said.
The weekly sale average fell by 96.98 rupees to 1155.94 rupees from 1252.92 rupees, according to data.
High Growns
The High Grown sale average was down by a fast 88.81 rupees to 1,126.98 from 1,215.79 rupees, Ceylon Tea Brokers said.
Ex-Estate offerings totalled 0.80 million kilos.
Quality of teas from the Western, Nuwara Eliya and Uda Pussellawa planting districts showed a slight decline particularly in the liquoring characteristics, whilst the Uvas’ were barely maintained, Forbes and Walker said.
BOP and PF prices fell by 150 rupees and the price of BOPF fell by 100 rupees while BP1 fell by 50 rupees per kilo.
Ceylon Tea brokers said, the drop in quality was the main reason for the price drop.
Low Growns
Price of OP/OPA and PEK were down by 100 rupees while OP1 and BOP1 went down by 50 rupees.
Low Growns comprised 2.4 million kilos.
The average price of Low Grown however, fell 111.68 rupees to 1,203.83 rupees per kilo in the last auction.
Leafy and Semi Leafy catalogues met with fair demand, whilst the Small Leaf categories were easier.
“In the Leafy and Semi Leafy catalogues, OP1’s, in general, were firm. A selection of BOP1’s too sold on last levels, whilst the balance was easier,” Forbes and Walker said.
Select best teas in PEKOE/PEKOE1 together with full range of bold PEK’s were steady while some were falling. Cleaner below best and the rest were irregular.
In FBOP/FBOP1 Select best and best were irregularly lower, others were too easier.
Medium Growns
The Medium Growns sale average fell 51.51 rupees to 1,005.91 rupees last week.
FBOP and FBOPF1 fell 150 rupees per kilo and PEK1 fell 100 rupees per kilo.
However, OP1 was up 50 rupees per kilo.
In the Low Grown category – here again the BP1’s continued to sell well, whilst the PF1’s often declined by Rs. 50 per kg on average, Forbes and Walker said. (Colombo/May 7/2023)