Sri Lanka tea prices still lower than last year in dollar terms

April 20, 2012 (LBO) – Sri Lankan tea prices rose again at this week’s auction after rising in the previous sale but remain below last year’s levels in US dollar terms after a sharp rupee depreciation. “Medium and low grown teas have shown a growth year-on-year in rupee terms,” Forbes & Walker tea brokers said.

“High grown prices remain below the corresponding sale prices of 2011. Although we have seen a growth year-on-year in rupee terms, we remain below the corresponding prices of 2011 in US dollar terms.”

The weekly auction average for the last sale of 396.54 rupees a kilo (3.06 US dollars) for the second consecutive week was higher than the corresponding sale average of 2011 of 373.27 rupees (3.35 dollars), the brokers said.

The average for teas grown at medium elevations of 358.36 rupees a kilo (2.27 dollars) was up 4.72 rupees compared with 353.64 rupees (3.18 dollars) in 2011.

“Low growns too totalling 418.72 rupees a kilo (3.23 dollars) show a significant gain of 37.78 rupees vis-a-vis 380.94 rupees (3.42 dollars) of 2011,” the brokers said in a report.

However, the auction average price for high grown teas of 357.70 rupees (2.76 dollars) was 8.42 ru