Sri Lankan tea prices steady

31 Mar, 2004

Sri Lankan tea market held steady on Tuesday despite a price correction on some low-grown teas, and a poor sale for teas from the Western region.
Forbes and Walker Tea Brokers said in a statement the anticipated gross sales average was 168.85 rupees per kg - about the same level as last week - with the sale advanced by one day because of a general election on Friday.
"The low-grown prices had moved up by 10 to 20 rupees recently, so they came down, but there was good demand overall," said Dilan Polonowita, a broker at Forbes and Walker.
Best Broken Orange Pekoes and Orange Pekoes from the low-grown regions fell by about five rupees and flowery types lost up to seven rupees, but they saw good demand, mostly from Middle Eastern buyers.
Teas from the high-grown Western region declined sharply, with Broken Orange Pekoes falling 10 to 15 rupees and Broken Orange Pekoe Fannings (BOPFs) slipping eight to 10 rupees.
But those from Nuwara Eliya - the region thought to produce the island's best teas - compensated, with the best BOPFs from the region rising more than 15 rupees.
"The good teas will sell well right through April," said Polonowita, although the market will be disrupted a series of local holidays.
Next week's auction will be a one-day sale held on April 6 with 5.3 million kgs on offer, and the following sale will not be held until April 21.
About 5.3 million kgs came under the hammer at this week's auction.

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