Sri Lankan tea prices rise on weaker rupee, lower volumes
ECONOMYNEXT – Prices of several grades of Sri Lankan tea rose sharly at this week’s one-day auction in Colombo mainly because of the limited quantity on offer and the recent depreciation of the rupee, brokers said.
The quantity of tea arriving at the Colombo auction this week decreased to 4,678,906 kilos from 6,448,809 kilos the previous week, while teas from estates fell to 828,334 kiloes from 1,085,489 kilos, Bartleet Produce Marketing said.
In teas from estates on the western slopes of the central hills, Best western BOP types rose Rs.40-50 a kilo while the BOPFs gained Rs.50 per kilo.
Forbes & Walker Tea Brokers said auction quantities were limited owing to the one-day sale on account of the Vesak Buddhist holidays.
“There was good demand,” the brokers said in a report. “The limited availability combined with the depreciation of Sri Lankan rupee could be considered important criteria for upward movement in prices this week.”
Prices of tea from low elevations, grown mostly by smallfarmers, were also higher or firm, the brokers said.
(COLOMBO, May 03, 2018)