The National Sales Average (NSA) of Tea for March and exports in February saw mixed sentiments, according to broker Forbes and Walker.
It said NSA for March 2020 decreased marginally to Rs. 595.22 per kilo, on account of last two auctions of the month being rescheduled for April. The NSA in February was Rs. 601.99 and March figure was a decrease of Rs. 6.77.
However, in comparison to March 2019 average of Rs. 585.92, the 2020 figure shows an increase of Rs. 9.30.
High Growns TSA of Rs. 560.10 for March 2020 is down by Rs. 11.48 month on month vis-à-vis Rs. 571.58 of February 2020. When compared to March 2019 average of Rs. 571.06, it is a decrease of Rs. 10.96. Mediums averaging Rs. 540.07 for February 2020 have recorded an increase of Rs. 01.95 vis-à-vis Rs. 538.12 of March 2020.
When compared to March 2019 average of Rs. 510.16, shows an increase of Rs. 29.91. Low Growns too totalling Rs. 625.78 for March 2020 have recorded a marginal decrease of Rs. 03.51 vis-à-vis Rs. 629.29 of February 2020.
Meanwhile, it shows an increase of Rs. 14.70 YOY when compared to Rs. 611.08 of March 2019.
Forbes and Walker Tea Brokers said when analysing the January-March 2020 cumulative average of Rs. 594.81, an increase of Rs. 09.51 is recorded vis-à-vis Rs. 585.30 of January-March 2019.
High Growns for the period January-March 2020 of Rs. 554.19 have shown a decrease of Rs. 19.62 vis-à-vis Rs. 573.81 of January-March 2019. Mediums averaging Rs. 520.82 have shown an increase of Rs. 09.86 vis-à-vis Rs. 510.96 of January-March 2019. The Low Growns totalling Rs. 628.36 for January-March 2020 have shown an increase of Rs. 19.51 vis-à-vis Rs. 608.85 of January-March 2019.
In a related development, tea exports in February 2020 totalled 23.6 M/kgs showing a marginal gain of 0.1 M/kgs vis-à-vis 23.5 M/kgs of February 2019.
Forbes said Bulk Tea has remained static, whilst Tea in packets and Tea Bags have shown a marginal growth YOY. Total revenue however for February 2020 of Rs. 19.5 billion show a decrease of Rs. 0.2 billion vis-à-vis Rs. 19.7 billion of January-February 2019.
Consequently, the FOB value for February 2020 has declined to Rs. 827.38 showing a decrease of Rs. 12.32 vis-à-vis Rs. 839.70 of February 2019.
January-February 2020 cumulative exports totalled 45.7 M/kgs vis-à-vis 47.2 M/kgs of January-February 2019, thus showing a decrease of 1.5 M/kgs.
Export of tea bags showed a marginal growth YOY, whilst Bulk tea and Packeted tea have shown a decrease. Total revenue for the period January-February 2020 of Rs. 37.6 billion too shows a decrease of Rs. 2.6 billion vis-à-vis Rs. 39.9 billion of January-February 2019 resulting in the FOB value for the period recording Rs. 823.26, a decrease of Rs. 23.68 vis-à-vis Rs. 845.94 of January-February 2019.
Iraq has emerged as the largest importer for the period January-February 2020 followed by Turkey and Russia. Meanwhile, fourth position is occupied by Iran, whilst Azerbaijan, Saudi Arabia, China, Chile and the US are other noteworthy importers. It is also relevant that destinations such as UAE, Libya and Syria have shown a significant decrease in imports, Forbes and Walker Tea Brokers added.
(FT)