ECONOMYNEXT – Although Sri Lanka’s tea output is lower this year compared with last year, prices have picked up at the Colombo auctions, with the price of mainstay low-grown teas hitting a two-year high, brokers said.
Given the limited availability of tea at auctions, overseas buyers are following quality “very closely” and all well-made teas were absorbed at attractive prices, brokers John Keells Ltd. said.
“The weekly low-grown auction averages moved up quite sharply during the month of July and surpassed Rs500 a kilo at sale No: 33 after a period of over two years,” the brokers said in a report.
The last best average of Rs500 a kilo was achieved in Sale No: 29 in July 2014.
John Keells said auction average prices for high and medium grown teas too followed a similar trend at lower levels.
“It is therefore imperative that all producers strive to maintain a good neat leaf appearance along with brighter infusions and full liquors in order to derive maximum benefit of the present market conditions,” they said.
Low-grown teas make up the bulk of the island’s crop and are grown mainly by smallholder farmers.
(COLOMBO, Sept 09, 2016)