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.