Sri Lanka tea crops seen improving

Oct 27, 2011 (LBO) - Sri Lanka's tea production is expected to revive with the return of weather conditions conducive to growing tea with demand also improving at the Colombo auctions, brokers said.





Brokers Asia Siyaka Commodities said low grown teas, which make up the bulk of the crop, "met with improved widespread demand" at this week's Colombo auction.

"We have had reports of weather conducive for growth in the Eastern and Western sectors which is a welcome change to the dry conditions that prevailed in the past two months," brokers John Keells said in a report.

"Moderate crops were reported from all the elevations.

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Crops had slumped in the last two months owing to bad weather hitting overall tea production and prompting brokers to revise forecasts that the output would exceed last year's.

John Keells said that the island's tea crop up to September 2011 was 245.

1 million kilos, 3.1 percent below last year's production.

Brokers said many growing regions experienced sunny mornings and evening showers, weather seen as conducive to growing tea.