Sri Lanka tea production to be impacted by bad weather

lanka-tea-estateSri Lanka’s tea production is likely to be further impacted as the country experienced its worst disaster from torrential rain since 2003 last week, a report said.

“The worst affected is the Southern and Sabaragamuwa provinces,” Forbes and Walker Tea Brokers said.

“Needless to say, the current scenario would adversely impact the tea production particularly in the Low Grown sector.”

The Colombo tea auction continues to realize record levels in both Rupee and USD terms primarily due to the deficit in availability.


The full report follows

At the end of the 05th month in 2017 prices at the Colombo tea auction continue to realize record levels in both Rupee and USD terms primarily due to the deficit in availability. Sri Lanka tea production is likely to be further impacted as the country experienced its worst disaster from torrential rain since 2003 last week. The worst affected is the Southern and Sabaragamuwa provinces. The death toll, from the floods and landslides rose to 194 as of last afternoon with 100 missing and 575,816 people from 149,678 families displaced. Needless to say, the current scenario would adversely impact the tea production particularly in the Low Grown sector.

This week’s total offerings were 7.5M/kgs of which 1.3M/kgs comprised of Ex-Estate teas. There was good demand for well-made Low Grown/ Leafy teas teas whilst the poorer sorts recorded a significant decline. High & Medium Growns small leaf – better teas were often easier following quality whilst it was encouraging to witness strong demand for teas at the lower end of the market.

In the Ex-Estate catalogues quality of teas on offer showed no significant change and consequently a greater weight of offerings comprised of fairly average quality teas. Best western BOP/BOPF declined Rs.20/- per kg. In the below best category BOP/BOPF declined Rs.10-20/- per kg. Plainer BOP declined Rs.10-20/- per kg whilst corresponding BOPF were firm and Rs.10-20/- per kg dearer particularly on last week closing levels. Nuwara Eliyas witnessed a sharp decline and could be attributed to the overall decline in quality. Uva/Udapussellawa BOP declined Rs.10/- per kg and more following quality. Corresponding BOPF, Udapussellawa – firm on last week levels whilst Uva’s – clean leaf teas were Rs.20/- per kg dearer whilst the others were mostly firm. CTC BP1’s were firm and upto Rs.20/- per kg dearer. Corresponding PF1’s – High Grown – mostly firm on last week closing levels. Medium and Low Growns Rs.10-20/- per kg dearer.

Interest from UK and the continent continued to be selective. Japan, Hong Kong and China were less active whilst shippers to CIS were fairly aggressive on a wide cross section of teas.

At this week’s sale Leafy/Tippy catalogues comprised of approximately 3.2M/kgs. There was good demand. In the Leafy catalogues BOP1/OP1’s were generally firm to dearer barring a few high priced teas which were irregular following quality. OP/OPA’s too were mostly firm with the below best/bottom end teas gaining Rs.10-15/- per kg. PEK/PEK1’s too followed a similar trend. In the Tippy catalogue select best FBOP’s were irregular. Others particularly the clean below best teas were fully firm. FF1’s too met with good demand and were mostly firm. In the Premium catalogues better teas attracted good demand and were mostly dearer. Others were fully firm. There was good demand from shippers to CIS, Turkey, Dubai, Iraq, Kuwait and Saudi Arabia.

Courtesy – LBO

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