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| Sunday, 7 November 2004 |
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Tea exports rise by Elmo Leonard October's Colombo tea auction average is an all-time-record, being Rs 210.99 per kilogram. Tea prices have galloped every month since July this year. In dollar terms, October's tea average was $2.05 per kilo, the highest since August 1998's $2.07 per kilo. But with excessive rain being experienced in the past months COP will increase, while crops would drop, reduce profits of the plantation companies engaged in the high-mid sector elevations, Asia Siyaka (brokers) Vice President Anil Cooke said. The higher wage increases just worked out for plantation workers would also cut down plantation company profits, if any, the tea trade said. But tea smallholder in the low grown sector are currently sitting pretty with the Rs 29 to Rs 32 per kilo they receive for their green leaf sold to the factory owner. These smallholder cost of harvesting a kilo of green tea leaf works out to Rs 14 to 17 per kilo, brokers said. The breakdown of October's record tea average, elevationwise is, low growns - Rs 221.21 per kilo, high growns averaged Rs 194.16 per kilo and mid-growns, Rs 188.9 per kilo. The previous record prices obtained was in the month of September, elevationwise being, high grown teas - Rs 188.72 per kilo, mid-grown - Rs 170.64 per kilo and low growns - Rs 201.95 per kilo. Valuewise, exports up to end-September was Rs 53 billion, up from Rs 47 billion for the corresponding months of last year. Upto end September this year Russia and the CIS countries purchased 55 million kilos of tea from Sri Lanka. Also, indirectly, another 20 million kilograms of Ceylon tea reaches Russia and the CIS nations per year through other destinations, much through Turkey, which is our fourth largest buyer, the trade pointed out. Sri Lanka's exports of tea from January to September 2004 reached Rs 222.4 million kilograms, an increase of four million kilograms during the corresponding nine months of 2003. Sri Lanka's average FOB price for tea was Rs 240.34 per kilo upto end-September this year, against Rs 219 per kilogram, during the first nine months of 2003. During the current year exports upto September made up 36 percent of value-added teas in comparison to 41 percent in value added form from January to end-September last year. Cooke pointed out that one of the reasons for the drop in exports of value added tea was due to Libya, a large purchaser of value added forms buying less this year. Thus far this year, Russia and the CIS nations have purchased 55 million kilograms of tea, Syria and UAE are in second place, each having purchased Rs 22 million kilos. In 4th place is Turkey with purches of 18 million kilograms of tea and Iran, is next having taken 13 million kilos. |
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