Tea industry bounces back

by Lalin FERNANDOPULLE

The tea industry has bounced back with exports to all major markets growing firmly after a drastic setback last year due to the global recession and adverse weather conditions.

Director/CEO, Lanka Commodity Brokers Ltd., Sarath Sirisena said the tea export market has revived with strong demand for all categories of tea at last week's auctions which is a sign that the industry is regaining its lost momentum.

The price per kilogram of low grown was Rs 442 while high grown fetched Rs. 309 a kilogram.

The quantity offered at the auction was 5 billion kilograms.

The shortfall of tea on offer which has been continuing has influenced a strong demand for varieties.

The shortfall at last week's auctions was 39 million kgs of which around 25 million were the leafy variety. "Prices were good at the auctions and this trend will continue with strong demand from all traditional markets.

Tea prices are expected to be buoyant during the coming months", Sirisena said.

The Uva season which has commenced will add to the demand for better teas and prices will pick up.

The industry faced turbulent times due to the drought, delayed application of fertiliser and non-availability of working capital.

He said the brokers played a major role to sustain the industry during tough times by providing financial support to producers.

"The stimulus package to a certain extent has benefited the industry. The package did not reach the producers at the time they needed it", he said.