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Sri Lankan tea prices up

April 30, 2009 (LBO) - Sri Lankan tea prices rose again at this week's auction, propelled by the weakening rupee and strong demand from the Middle East, brokers said.
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"Teas in the higher priced bracket continued to decline further following quality whilst the neat leaf coloury teas showed a firming up of prices. Poor leaf teas tend to be neglected.
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" Prices of most low grown teas, which account for the bulk of the output, went up while most types of high grown teas weakened.
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"The low grown market was substantially dearer this week with most varieties of tea recording price gains," brokers Asia Siyaka Commodities said in a report.

In the Large Leaf catalogues, OP/OPA varieties were well sought after with prices shooting up 30 - 50 rupees a kilo.

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In the Small Leaf catalogues FBOP/FBOPF1 varieties gained 20 to 30 rupees a kilo.

The rupee has fallen sharply against the dollar in recent weeks and is now trading around 121.

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Exporters had been demanding a depreciation of the rupee to make their teas more competitive after the currencies of key buying nations and other tea exporters weakened.

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At this week's auction in Colombo, prices of teas from

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