May 06, 2011 (LBO) – Sri Lankan tea prices fell for the second week at the Colombo auctions with brokers warning that surging crops and a drop in quality could reduce prices further and bring down earnings of producers. “Overall a lower market,” Forbes & Walker Tea Brokers said in a report. “Auction offerings were fairly similar to last week and totalled 8.0 million kilos.”
Except for good quality teas from estates of plantations companies and those at the lower end of the market, prices of most others fell.
“A selection of brighter BOPs and BOPFs in the ‘Best’ category were selectively dearer following special inquiry whilst all other teas in the ‘Best’ and ‘Below Best’ categories witnessed an easier trend and often lost 10-20 rupees per kilo,” the brokers said.
“Once again, the teas at the lower end of the market met with good demand and sold at fully firm to selectively dearer rates.”
Brokers Asia Siyaka Commodities said there was “fair general demand mostly at lower levels” at this week’s auction for low grown teas which make up the bulk of the crop.
Pekoe varieties eased 10 – 15 rupees a kilo while in the ‘Small Leaf’ catalogues ‘select best FBOP and FBOPF1’ types fell 10 – 20 rupees with