The production figure when compiled is also expected to be an all time record in excess of 320 million kgs, compared with the previous high of 318.7 million kg harvested in 2008.
Due to the increase in the prices and production, the gross turnover for the Colombo auction reached a record level of Rs 118.7 billion, improving on last year’s figure of Rs 102 billion.
It is good to learn that Sri Lanka Tourism will work closely with the Tea Board, for a win -win situation
Despite the tighter controls on importation of teas for blending and re-export and despite the rupee appreciating 3.1 percent against the dollar during the year, the export value both in Rupees and in dollars can also be expected to have gone above the records, the latter which was at 1.2 billion dollars, achieved in 2008.
When looking to forecast, it can be observed that other commodities too had a good run last year, with rubber prices in Sri Lanka advancing well above previous record levels. Latex rubber 1X grade reached Rs 598 whilst sheet rubber RSS 1 advanced to Rs 540. Sri Lanka’s economy would have achieved a satisfactory growth of between 7.5 and 8 percent in 2010 but a senior economist has indicated that growth may decline this year, based on a similar scenario of the global economy. The central bank however, has targeted 8.5 percent growth and inflation to be below 5 percent.
Given this scenario, it is difficult to forecast an improved performance for tea in the new year. Nevertheless, the sales have commenced on a positive note, with a lot of buyer inquiry around, and it is likely that the market will be buoyant, in the first quarter.
For the rest of the year, weather and world crop situation will have a significant effect on prices.
It was evident last year that around the world, climatic conditions were moving towards extremes, be it rain or sunshine.
This will not assist Tea growing, as excessive rain or sunshine will not be conducive to growth.
On the Marketing of tea, it is good to learn that Sri Lanka Tourism will work closely with the Tea Board, for a win -win situation. There is much for both industries to benefit through a cohesive program.
The 1.1 mkgs. of Ex Estate teas on offer this week met with fair demand being firm to Rs 5 easier at the commencement and improved by Rs 5 to Rs 10 towards the latter part of the sale.
Western High Grown BOPs were Rs 5 to Rs 10 easier, however ended the sale being firm to Rs 5 to Rs 10 dearer, BOPFs too which were initially lower, concluded being firm to dearer. Nuwara Eliya BOPs were irregular following quality whilst BOPFs were Rs 5 to Rs 10 easier.
Uva BOP and BOPFs too were irregularly lower. High and Medium PF1s were Rs 15 to Rs 20 dearer, whilst Low Grown invoices were mostly firm.
Western Teas
Select Best BOPs declined Rs 20, other good invoices shed Rs 5 to Rs 10, Below Best sorts eased Rs 10 and more, plainer varieties declined Rs 10 on average.
Select Best BOPFs were barely steady, other good invoices shed Rs 10, but gained as the sale progressed, Below Best sorts which were firm to easier at the commencement advanced Rs 5, plainer varieties were firm to easier. Select Best Medium BOPs advanced Rs 15 to Rs 20, others declined by a similar margin. BOPFs eased Rs 10.
Nuwara Eliya Teas
A few bright BOPs were firm, others declined Rs 5. BOPFs eased Rs 5 to Rs 10 on average.
Uva Teas
BOPs declined Rs 10. Coloury BOPFs advanced Rs 5 to Rs 10, others were firm to easier. Udapussellawa BOPs declined Rs 5 to Rs 10, whilst the BOPFs were firm.
CTC Teas
Select Best Low Grown PF1s advanced Rs 10, others shed Rs 10 on average. BP1s declined Rs 10. High and Medium PF1s advanced Rs 5 as the sale progressed. BP1s were firm to irregular.
Low Growns
Fair demand. Select Best OP1s were firm to Rs 5 to Rs 10 dearer, however the Best types were irregularly lower by a similar margin, clean Below Best and poor types advanced Rs 10 on average, others were mainly firm. Select Best BOP1s along with the Best types declined sharply by Rs 30 to Rs 50 and more at times, Below Best and poor sorts were firm to Rs 5 to Rs 10 lower.
Select Best OPs were steady, Best types were irregularly dearer by Rs 5 to Rs 10, Below Best and poor sorts were firm on last levels.
Select Best OPAs eased Rs 10 to Rs 20, Best types were firm to Rs 3 to Rs 5 lower at times, Below Best and poor sorts were irregularly lower by a similar margin.
Select Best Pekoes were lower by Rs 30 to Rs 50, however the balance maintained last levels. Shotty Pekoe1s appreciated Rs 20 to Rs 40 and more at times, Best types too were dearer by Rs 5 to Rs 10, Below Best and poor sorts were steady. Excellent demand for Tippy Teas. Select Best and Best BOP/BOP.SP advanced Rs 5 to Rs 10, Below Best types maintained last levels, poorer types gained Rs 5. Select Best and Best FBOPs advanced Rs 5 to Rs 10, Below Best types tended irregular, poorer varieties eased Rs 5 to Rs 10. Select Best and Best FBOPF1s moved up to Rs 5, Below Best types tended a little irregular poorer types shed Rs 5 to Rs 10. Select Best and Best tippy varieties met with good demand and advanced above last, Below Best types were irregular, poorer types were lower by Rs 5 to Rs 10
Off Grades
Select Best liquoring Fngs1s were lower by Rs 10, whilst the Best and the Below Best types depreciated Rs 5 to Rs 10, poorer sorts were lower by Rs 10. Select Best BMs appreciated by Rs 10, whilst the Best and the Below Best types were irregularly dearer by Rs 5, poorer sorts appreciated Rs 5. All BPs appreciated Rs 10. All Low Grown Fngs depreciated Rs 10. Select Best BOP1As were firm to last levels, whilst the Best and Below Best were firm to dearer Rs 5 on average, poorer sorts however were easier by Rs 5 to Rs 10.
Dust
Select Best Dust1s declined Rs 5 to Rs 10, whilst the others in the Best and Below Best category too shed Rs 10 to Rs 15 and more at times, poorer sorts declined Rs 3 to Rs 5. Clean secondaries appreciated Rs 5 to Rs 10, whilst the balance were firm, poorer sorts appreciated Rs 10 to Rs 15 and more at times. Clean Low Grown Dust1s were firm at last, whilst the Best and the Below Best types gained Rs 5 to Rs 10 on average.
source - www.dailynews.lk
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