Sri Lankan tea prices fall

Sri Lanka's state minister of defence Ruwan Wijewardene (L) takes part in a press conference in Colombo on April 24, 2019. - A Sri Lankan security dragnet hunting those responsible for horrifying bombings that claimed more than 350 lives has scooped up a further 18 suspects, police said April 24, as pressure mounted on politicians to explain why no one acted on intelligence warnings. (Photo by ISHARA S. KODIKARA / AFP) (Photo credit should read ISHARA S. KODIKARA/AFP/Getty Images)

May 21, 2010 (LBO) – Sri Lankan tea prices fell sharply at this week’s Colombo auctions with a larger weight on sale, lower quality and reduced demand, brokers said. “Auction quantities were substantially higher this week and totalled 8.0 million kilos,” Forbes & Walker Tea Brokers said in a report.

“There was less demand and consequently many withdrawals owing to the lack of suitable bids.”

Forbes & Walker said the overall quality of teas from plantations company estates continued to decline with the greater majority of the teas on offer tending “plain” in quality.

“Consequently, prices took a sharp dip this week and on average lost 20-30 per kilo and more as the sale progressed.”

The brokers said they hope that this week’s sharp decline in prices would stimulate some additional buying interest at the forthcoming sales.

Tea prices usuall fall at this time of year owing to bigger crops and lower quality, in-between the main ‘quality seasons’.

Brokers Asia Siyaka Commodities said the market for low grown teas, which make up more than half the national production, also eased with prices falling for most varieties of tea.

“The most