Sri Lanka tea prices recover as crops fall

CEAT Kelani Holdings Managing Director Ravi Dadlani (right) and Lanka Ashok Leyland CEO Umesh Gautham exchange the OEM agreement

Mar 04, 2010 (LBO) – Prices of Sri Lankan teas grown at higher elevations mainly by regional plantations companies recovered at this week’s Colombo auctions as quality improved and crops began to fall, brokers said. Auction average prices have stayed at record highs in the past two months, they said.

“The dearer trend in prices experienced this week could be attributed to the improved quality and the likelihood of a decline in volumes during the latter part of this month,” Forbes & Walker Tea Brokers said in a report.

The overall quality of offerings in the forthcoming sales shows a progressive improvement, they said.

“Therefore, it would be reasonable to anticipate a buoyant market during the forthcoming sales.”

A selection of teas from the western slopes of the central hills has shown a slight improvement.

“Consequently, these improved teas appreciated irregularly in value following quality,” the brokers said.

The ‘Western quality season’ when teas from that region produce their best quality and fetch high prices had been delayed.

Brokers John Keells said that although the weather in the ‘Western High Grown’ region during January had been erratic with a few showers being repor

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