Sri Lanka tea prices seen recovering

Sri Lanka's Prime Minister Ranil Wickremesinghe arrives with flowers to receive blessings at the Gangaramaya Buddhist Temple, Colombo, Sri Lanka on Wednesday 4 April 2018. On wednesday (4), Wickremesinghe survived a no-confidence motion in the Sri Lankan parliament with a 46 vote majority after a 12-hour debate with 122 MPs voted in his support while 76 MPs voting to remove the prime minister. (Photo by Tharaka Basnayaka/NurPhoto via Getty Images)

June 05, 2008 (2008) Sri Lankan tea prices appear to have bottomed out with widespread demand returning to the Colombo auctions which have been enjoying a strong market this year, brokers said. “There was improved wide spread demand,” Forbes and Walker Tea Brokers said in a report on this week’s auction.

“For the second consecutive week prices continued to move up quite substantially, notwithstanding the large volumes and relatively uninteresting quality.”

The brokers said that given the recovery, “it would be reasonable to conclude that market has in fact bottomed off and prices hence are likely to harden in the future sales.”

The improvement in prices at the other auction centres could possibly also have contributed to the improved demand this week at the Colombo auctions.

The Colombo market took a downturn a month ago with the end of the ‘Western’ quality season, when teas grown on the western slopes of the central hills are at their best quality and fetch high prices.

The onset of rains also led to a surge in crops and a seasonal drop in quality.

“High- and mid-grown small leaf teas continued to met with excellent demand for the second consecutive week, whi