This week’s Colombo Tea Auction which was held on Monday and Wednesday with Tuesday’s public Holiday on account of Prophet Mohamed’s Birthday, saw the demand from Russia much less whilst Japan and Hong Kong were selective, Lanka Commodity Brokers Director Jehan Algama told Daily News Business yesterday.
He also said that there was some interest from the “Tea Bag” sector operating for selected Middle Eastern Countries and Europe and that the Leafy Low Growns generally held last levels with fair activity from the C.I.S., Middle East and Turkey. “Tippy teas however, were irregularly lower on account of weaker demand from Iran in particular,” he said.
Meanwhile, Iraq has emerged as the top most importer of Sri Lanka Tea for the period January to October, 2018 having absorbed almost 33 Million kilos, compared to 27.9 Million kilos during the same period last year. Turkey, Russia and Iran follow with intakes of 29.7 Million kilos, 25.9 Million kilos and 20.1 Million kilos respectively, during the first ten months of this year.
Algama also said that Crop intakes in estates of all elevations have been maintained over the past week following favorable weather conditions.
“The upcountry plantations reported bright mornings and scattered evening showers whilst Low Growns generally experienced dry conditions,” he said.
The Department of Meteorology however, predicts shower conditions during the upcoming days on account of a depression developing in the Bay of Bengal. Latest reports indicate that rains have already been experienced in the Maskeliya /Upcot areas.
This week’s sale quantity of 6.8 Million kilos comprised of 2.9 Million kilos of Low Growns and 1 Million kilos of Ex Estate teas. The Low Grown quality was mostly similar to last, whilst, High Growns on offer in the Ex Estate catalogue saw a further decline both in leaf appearance and liquors.
A total of 1.06 Million kilos were on offer at this week’s Ex-Estate sale which was met with fair general demand at slightly lower rates. Better Western BOPs were lower by Rs. 20 to Rs. 30, whilst the others were lower Rs. 30 to Rs. 40 and at times even more.
Meanwhile, Asia Siyaka Commodities PLC Director/ Senior Vice President Sohan Samaranayake told Daily News Business yesterday “Low Growns met with general demand. Except for a Select best BOP1s, most others were firm on last. Well-made stylish OP1s were discounted, whilst others held firm on last week’s levels,” he said.
In the Tippy Small leaf catalogues FBOP1s held firm. Select best FBOPs were firm to dearer; best teas were irregularly lower, others were firm on last. Select best FBOPF1s sold at lower rates, whilst others held firm.
Except for a few select Western BOPFs which were about firm, others including below best and bottom were lower Rs. 20 to Rs. 40. Nuwara Eliya BOPs were sharply lower and difficult of sale, whilst their BOPFs were lower Rs. 20 to Rs. 40.
Udapussellawa BOP / BOPFs were a lower market by about Rs. 10 to Rs. 30. Clean Uva BOP / BOPFs were about firm; others were lower Rs. 10 to Rs. 20.
Record tea crop in Kenya has given a tough competition to Indian tea in the global markets in the second half of the year.
Indian teas have failed to maintain higher prices in the world market as Kenya is routing its higher produce in three key black tea markets –– Europe, Pakistan and Egypt.
Prices of Indian teas in the global market which was higher by 10% in the first half of 2018, compared with H1of 2017, have come down significantly in the second half.
Indian tea production in the first nine months of 2018 stands at 941.18 million kg which is almost at par with last year’s production for the same period.
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