Tea untouched by terror

Saturday, 25 May 2019 00:10 - - {{hitsCtrl.values.hits}}

Easter Sunday attacks leave tea exports untouched
April tea exports unchanged when compared to the same period a year ago
Value of tea exports increased by Rs. 5.5 b when compared to the previous year
But harvested crop declined 15.6% in April when compared with 2018
Main contributor Low Grown teas followed by High Growns
Iraq emerges as largest buyer, followed by Turkey, Russia and Iran

Tea exports for the month of April was recorded at 20.8 Mkg, which is identical when compared to the same period of the previous year, produce broker John Keells Ltd., said in their weekly report.

Sri Lanka harvested a crop of 23.6 Mkg during the month of April – a negative variance of 15.6% when compared to the crop harvested in April 2018. The main contributor for the 23.6M kg was from the Low Grown planting districts with 61.6% followed by the High Growns at 22.6% and the Medium Growns at 15.8%. When compared with the 2018 harvest, negative variances have been recorded in all elevations.

The FOB value was Rs. 12.19 above the FOB value of 2018. The cumulative export quantity for the four-month period this year was 94.4 Mkg at an increased FOB value of Rs. 844.14. As a result of a higher export volume of 4.7 Mkg for the year 2019, the to-date value of the Tea Exports have increased by Rs. 5.5 billion when compared to the previous year.

Iraq has emerged as the leading importer of Sri Lankan tea. The other major importers of Sri Lankan tea are Turkey, Russia, Iran and Libya. 1 Mkg of ex-estate teas met with irregularly lower demand. Select best Western High Grown BOPs were mostly easier with only a few selected invoices gaining. The below best and the plainer types were mostly easier.

Select best Western High Grown BOPFs were easier with the below best and the plainer varieties, too, following a similar trend. Nuwara Eliya BOP/BOPFs were easier with a large volume remaining unsold. Udapussellawa BOPs were easier, whilst the corresponding BOPFs were mostly easier with only a few invoices maintaining last levels. Uva BOPs were substantially easier.

BOPFs, too, followed a similar trend with poorer invoices remaining unsold. Low Grown CTC BP1s were barely steady, the High and Medium sorts mostly remained unsold. Low Grown PF1s were tending easier, the High and Medium sorts were firm.

There was lower demand for the 3.2M kg of Low Grown teas which were on offer. Select best and best OP1s were lower. BOP1s, too, witnessed an easier market. OP/OPAs were lower. Bold Pekoes met with irregular demand. Well-made Pekoe1s met with fair demand. In the Small Leaf segment, select best BOP.SP/BOPF.SP and BOPFs met with good demand. BOPs were lower to last. All FBOPF1s declined sharply. Select best FBOPF varieties were firm. All Premium Flowery Teas met with good demand.

There was fair demand from Russia and the C.I.S. countries, whilst Turkey and Iran were selective. Iraq and Libya lent fair support.