Sri Lanka tea crop recovers, prices head down

March 25, 2009 (LBO) - Sri Lankan tea prices have weakened with the end of the Western quality season, although the better quality offerings still fetched higher prices at the last auction.
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Brokers said rains have been reported from most tea planting districts and crop intakes have shown a slight increase in certain areas.

Supply will remain tight in the next few auctions because of the effects of prolonged drought but recover by mid-April with prices likely to weaken.

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The drought, delayed fertiliser application and pruning of bushes by farmers caused the crop to fall sharply earlier this year.

The months after March are usually a period of heavy crops when prices weaken.

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Brokers Asia Siyaka Commodities said the market last week took a downward trend.

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Prices of most varieties of low grown teas, which make up the bulk of the output, fell although a few fetched record prices.

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In the Large Leaf catalogues Better OP1 varieties lost 30 - 40 rupees a kilo.

In teas grown by regional plantations companies prices were mixed.

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Select high priced Western BOPF types were irregular, but all others gained 10 - 15 rupees a kilo.



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"High priced seasonal teas

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