Sri Lankan tea prices stagnate below 2013 levels
ECONOMYNEXT – Sri Lankan tea prices this year have remained below the levels two years ago in both rupee and US dollar terms at the Colombo auctions, according to an analysis done by a brokerage.
The January – August 2015 cumulative average of 405.91 rupees a kilo at the Colombo auction was 65.63 rupees lower than the 471.54 rupees fetched in the same 2014 period, Forbes & Walker Tea Brokers said.
“These levels are even lower than the 2013 levels in US dollar and Sri Lankan rupee terms,” they said in a report.
Prices have fallen along with other commodities while Sri Lankan tea has been particularly hit hard because of turmoil in key markets like Russia, where the rouble was devalued, and the Middle East.
The Colombo auction averages of all three elevations at which tea is grown on the island were lower in 2015 compared with 2014 on a cumulative basis, the brokers said.
The High Growns average of 384.12 rupees a kilo was 37.06 rupees lower than the January – August 2014 average while the Medium Growns average of 365.94 rupees was 50 rupees lower.
The auction average for Low Grown teas, which make up the bulk of the crop, fell 79.78 rupees to 423.57 rupees a kilo in the Jaunary – August 2015 period from a year ago.
“These levels show a decrease in US dollar terms compared to January – August 2014,” the brokers said. (Colombo/September 5 2015)