Recovery Mode

Sri Lankan tea production has swung into rapid recovery mode following a weak first quarter, to end at 181.8 mn kilos to date, up from 3.6 mn kilos the previous year.

This follows a pick up in monthly production for each of the three months in the second quarter, which exceeded intakes for the same months last year, Asia Siyaka Commodity Brokers said Friday.

Crop production ended on a high note in July at 22.6 mn kilos, a 16 percent jump over last years 19.4 mn kilos.

Low Growns however, which peaked last year at 99.8 mn kilos, continues to trail behind at 96.6 mn kilos or 3.2 percent.

All the gains seen this year have come exclusively from the higher elevations, improving by 13 percent on last years 46 mn kilos, to end at 52 mn kilos.

Mid Growns have shown a marginal increase of 1.9 percent to date, over last year, remaining at around 32 mn kilos.

Asia Siyaka however forecasts a 21 mn kilos for August, slightly up on last years August figure of 20.9 mn kilos.

Dry weather in the Uva planting districts and in parts of the Low country, short heavy rains on the Weste side, coupled with recent labour issues following a wage dispute is likely to take its toll on August production, brokers said.