Sri Lanka tea prices seen rising on lower crops
ECONOMYNEXT – Sri Lankan tea prices are expected to continue their recovery in the months ahead as quality improves and because of the shortfall in production of orthodox varieties, brokers said.
Tea crops on plantations have been declining because of dry weather and auction prices have picked up.
“Ceylon tea prices in the second half of 2016 are likely to show a further upward movement due to the global shortfall in orthodox teas primarily due to the crop shortfall in Sri Lanka,” Forbes & Walker Tea Brokers said.
Tea production in the island up to May this year is about 10% or 15 million kilos lower than in the same 2015 period. Tea production is also lower in south India.
Brokers said there was good demand at this week’s Colombo auctions.
(COLOMBO, July 08, 2016)