Allround demand for low growns sustained
An allround demand for low grown teas was sustained at this week’s
auction that had a restricted quantity of tea on offer due to the
festive season.
The quantity of tea at this week’s auction dipped to around 4.8
million kilograms from the average volume of 6.8 to 7.5 million
kilograms. Of the total volume on offer low grown comprised 2.3 million
kilos.
The price of the stylish leafy grade increased from Rs.10 to Rs.20
per kg and the demand for Pekoe grade was sustained at the auction.
Tea Brokers said quantities on offer will stabilise and prices are
expected to pick up with strong demand from major importing countries.
Strong demand for the low grown tea was from Dubai, CIS, Turkey, Saudi
Arabia, Syria, Iran and Kuwait.
The High Grown market was down this week due to low offers.
The main tea export markets during the first three months of the year
was CIS which imported 14 million kgs, UAE 8.5 million kgs, Syria 6.8
million kgs, Iran 5.4 million kgs, Jordan 3.5 million kgs and Turkey 3.1
million kgs.
Sri Lanka’s tea production during the first three months was 18.1
million kgs, a decrease of 12.5 million kgs compared to last year’s
harvest of 30.8 million kgs.
A spokesman for Lanka Commodities Ltd. said that depreciation of the
rupee has a positive impact on Sri Lanka’s tea exports which was
affected by the over valued rupee. Meanwhile Somerset Estate managed by
Talawakelle Tea Estate PLC (Heyleys Plantations Services Ltd) achieved
an all time record price of Rs. 770 per kg in the western high grown
category for BOP grade at the auctions held in March.
(LF)
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