Sri Lanka tea trade sees strong demand

July 17, 2010 (LBO) - Sri Lankan tea prices are likely to stay strong on good demand from consuming countries and possible shortages caused by disruption of production at key origins like India, officials said.
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Tea Exporters Association chairman Jayantha Keragala said Sri Lankan tea prices were attractive right now.

"At the moment we're enjoying very good prices for good teas and the 'below best' and 'bottom' teas as well," he said.

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"One reason for high prices is demand ahead of Ramazan in August. Buying for the winter will start from there onwards.

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"

He said a crop loss in Assam could push up prices for CTC type teas which are used in tea bags.

"There won't be a significant change in demand but definitely there will be an impact on CTC teas which have gone up at this week's auction by about 15-20 dollar cents.

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So there's a slight change there.
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"

He said good Sri Lankan teas still enjoy high prices and are expected to continue to do so.

Tea industry officials in India have said heavy rains prevented the application of pesticides to control pest attacks as well as fertiliser to boost yields.

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India's tea industry is reportedly worried about crop loss due to heavy showers in June and a
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