Oct 16, 2009 (LBO) – Prices of Sri Lanka’s high grown teas rose at this week’s Colombo auctions with brokers saying the market is likely to remain buoyed by a continuing global shortage. Some teas grown on the estates of regional plantations companies fetched record prices but many teas from the low grown regions fell, brokers said.
“Growing conditions in most producer countries are still far from ideal,” Forbes & Walker Tea Brokers said.
“Therefore, taking into considering the global shortfall in production as of now, it is unlikely that we would witness any significant correction in prices in the near future.”
Tea production in Sri Lanka and the other main export origins, Kenya and Indiam have been reduced sharply by drought.
The global production shortfall has put upward pressure on tea prices, both in auctions at export origins, as well as in consuming countries.
The brokers said fairly strong buying from shippers to the Commonwealth of Inpendent States and the tea bag sector were the main contributory factors for the enhanced prices.
Brokers Asia Siyaka Commodities said ‘Better Western BOP’ type teas gained 10-20 rupees a kilo on average at this week’s