Sri Lanka tea trading continues it’s upward trend fetching a record price of Rs 700 per kilo of upcountry and low country at the recent auction held in Colombo on Friday 8, estate superintendents said.
This was an increase if Rs 100 compared to statistics of the previous tea auction, they pointed out adding that it is good sign for the future of the industry as the country’s tea has fetched a high price despite the 40 percent drop in the yield.
Sri Lanka tea demand in the world is growing as foreigners are drinking more tea during corona virus shut down period.
Approximately 4.5 million kg of tea was on offer at this auction and with the conclusion of this Sale, the Colombo Tea Auctions are now on schedule. There was good demand for most varieties of teas on offer.
Ex-Estate offerings comprised of 0.65 million kg. Quality was reasonably maintained. Strong demand continued for the BOPF grade, particularly from the Western Planting Districts, whilst the broken varieties were irregular and tended easier.
Most Low Grown teas continued to sell well. Off Grades - liquoring varieties were easier, whilst the Low Grown types continued strong. Improved demand for Dust varieties and records a Rs. 10-20 per kg gain all round.
However, over the past 3-4 weeks, tea prices have shown a significant increase. In comparing prices realized at the last Auction vis-à-vis the corresponding sale in 2019, Rupee auction prices have shown a gain of 20%-25% and to a lesser extent in USD terms.
(LIN)