Sri Lanka tea prices fell slightly at the latest auction on Wednesday as high-grown tea values declined, but brokers said the market remained firmer than usual at this time of year because of good qualities.
The expected gross sales average was 172 rupees ($1.75) per kg, from last week's average of 172.79 rupees, Forbes and Walker Tea Brokers said in a statement.
"The drop in the high-growns was expected. But they're still selling better than last year, mainly due to the kind of quality we're seeing," said Gimantha Jayasinghe, a broker at Forbes and Walker.
Among teas from the high-grown regions, Broken Orange Pekoes from Western planting region lost three to five rupees, while those from Nuwara Eliya declined by up to 20 rupees.
Broken Orange Pekoe Fannings also slipped, but the market for them was boosted by strong demand from the Commonwealth of Independent States, Jayasinghe said.
Low-grown teas saw a stronger sale, with best Orange Pekoes gaining five to 10 rupees and flowery types selling well.
There were 4.8 million kg on offer at this week's sale.
Brokers said prices could come down further as the amount on offer increases to 7.4 million kg next week, but that the market would still be stronger than at the same time last year, when prices were depressed by the war in Iraq.
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