Sri Lanka tea prices recover

Oct 08, 2009 (LBO) – Prices of teas grown on the estates of regional plantations companies recovered at this week’s Colombo auctions, although those of low grown teas fell, brokers said. “Low grown teas once again declined in value, but met with fair general demand,” Asia Siyaka said.

High priced FBOP/FBOPF1 varieties of tea declined sharply this week. Forbes & Walker Tea Brokers said there was good demand for the ‘ex-estate’ teas but at irregular rates.

“Prices ruled firm to dearer particularly as the sale progressed,” they said.

There was an all-round price appreciation of 15-20 per kilo and more on the majority of the BOPF varieties of tea on offer.

The brokers described the recovery, after last week’s drop, as “an encouraging feature” notwithstanding the weak market in Mombasa, Kenya, the main competitor of Sri Lankan tea.

Shippers to the Commonwealth of Independent States and the tea bag sector showed renewed activity in the Colombo sale, Forbes & Walker Tea Brokers said.

Brokers Asia Siyaka Commodities said tight supply and more interest for better liquoring teas pushed prices up as the sale progressed.

Tea prices have remained buoyant this year