Sri Lanka tea prices rise at Colombo auction
ECONOMYNEXT – Sri Lankan tea prices rose at this week’s Colombo auction with some types grown on plantation company estates on the western slopes of the central hills up by Rs.20-30 a kilo on better quality, brokers said.
Forbes & Walker Tea Brokers said there was “excellent demand” for the total of 6.0 million kilos came under the hammer this week.
There was “fair demand” for low grown teas, which make up the bulk of the crop, with prices of most varieties up or steady, the brokers said.
The overall quality of teas, from both company estates on the Western and Eastern planting districts, showed an improvement and consequently rose in price by Rs.20 a kilo and more as the sale progressed.
“Western BOPs where quality was improved gained Rs.20-30 per kilo and more whilst the others were firm and dearer to a lesser extent,” the brokers said. “Corresponding BOPFs appreciated up to Rs.50 per kilo where quality was improved whilst the others were firm and dearer to a lesser extent.”
Some tea from the eastern slopes also rose by Rs.10-20 a kilo, Forbes & Walker Tea Brokers said.
“This week’s appreciation in prices is indeed encouraging although in no way would offset the increased cost following the sharp decline in volumes particularly in respect of estates in the High and Medium Grown elevations manufacturing small leaf teas,” .
(COLOMBO, July 14, 2016)