ECONOMYNEXT – Sri Lankan tea prices have fallen to their lowest levels since March 2012 with low grown varieties, which make up the bulk of the crop and are produced by small farmers, the worst affected, according to the latest analysis of data by brokers.
The Colombo tea auction monthly average price for September 2015 was 368.18 rupees a kilo, down 71.33 rupees from 439.51 rupees a year ago, Forbes & Walker Tea Brokers said.
The average prices for all three elevations were down with low grown teas, cultivated in the southern plains, the worst hit.
The High Growns average price of 379.81 rupees a kilo for September 2015 was 19.62 rupees below that of September 2014 and the Mediums at 334.37 rupees, had fallen 46.82 rupees from a year ago.
“Low Growns too totaling 372.01 rupees a kilo had shown a significant decrease of 88.57 rupees compared to 460.58 rupees of September 2014,” the brokers said in a report.
“These averages also show a decrease even in US dollar terms compared to the corresponding period of September 2014.”
Forbes & Walker Tea Brokers said the January- September cumulative average price for 2015 of 401.08 rupees a kilo was 66.60 rupees lower than in the same 2014 period.
“Here again these averages show a decrease in US dollar terms compared to 2014. It is also relevant to note that 2015 prices are lower to 2013 levels in Sri Lanka rupee and US dollar terms.” (Colombo/October 08 2015)