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FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » Significant demand for Ceylon Tea from global South

Significant demand for Ceylon Tea from global South

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Namal


Senior Equity Analytic
Senior Equity Analytic
Support from Russia, Iran, CIS countries and Turkey was of note at the Colombo tea auctions, tea brokers said. Support from Libya and Iraq as well was a significant plus to the sales which boosted Colombo’s auction results last week.


Particularly Nuwara Eliya BOPs were reported to have gained Rs. 40 to 50 per kilo. Additionally, Westerns too sold well, the reports said.


Just about 1 million kilos were on offer on the Ex Estate catalogue.


Total quantity offered was 7.29 million kilos. Low growns offered 3.1 million kilos which also met with success.


Reports also suggested a slight drop in production, comparing results for March. March 2018 production was 28.6 million kilos. 2019 March production, as recorded by the Tea Board, was 28. 1 million kilos. Consensus was that this did not project debilitating influences.


The estate sector was reported to be functioning normally with no aftershocks from the Easter Sunday carnage influencing production.


However, analyzing January to March production results, this year crop achievement of 73.1 million kilos was 1.1 million kilos less than in 2018. First quarter results 2018 were 74.3 million kilos. Cumulatively, medium grown results were recorded in the plus segment, but comparatively high grown and low growns showed deficit in production.


Ceylon Tea Brokers reported Sri Lanka’s average for March was Rs.585.92 per kilo. March 2018 average was Rs. 613.75 indicating a drop of Rs. 27.83 per kilo.


Market conditions in the immediate future were predicted to be normal with no upheavals expected.

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