Tea earnings at all time high, reaches Rs. 51.7bn by end April

By Steve A. Morrell

Customs Data released last week confirmed tea exports to end April this year at 20.6 million kilos were about 3 percent less than a year ago. However rupee earnings from January to April recorded an all time high at Rs. 51.7 billion. The dollar equivalent was US$ 467 million, up from US $ 399 million a year ago, tea brokers said.

"This was possible because of the appreciating rupee against the dollar. The rupee has gained around 3 percent from a year ago," broker said.

Tea Trade comment on the collective agreement completed last week between Plantation Trade Unions, and Plantation Companies was that Ceylon Tea , already an expensive brand would further pressurise the industry to maintain high standards if the product was to achieve competitive standing in world trade centres.

Comments from the Planters’ Association of Ceylon (PA), was that the agreement signed was an equitable solution that would benefit workers , but given its full implementation, Chairman PA, Lalith Obeysekera said workers who report to work above the working man-day norm would gain considerably. He also said there was no acrimonious action from trade unions prior to negotiations which he said was significant.

( The Financial Review of the ‘Island’, carried details of the collective agreement early last week).

The main export market was Russia who held about 26 percent market share. Iran’s import as at April this year was a substantial increase of 35 percent or 10.1 million kilos. The UAE, Syria, and Turkey, were other major importers, brokers said.

China’s entry at the Colombo auctions last week was quite out of the ordinary. China too was a leading tea producer; but its advent in Colombo for black tea indicated that demand for black tea was increasing. China usually producers and markets green tea.

Auction volumes would continue to be large the next few weeks with volumes facing the auctioneer, at about 8 million kilos. Prices would be maintained and gradually moved up. Consultant / Director, Lanka commodity Brokers Ltd., Jehan Algama said the bottom of the market was now past; "from here on prices would go up," he said.

Of the Western Mediums top prices were realized by Kenilworth, at the Ginigathhena Pass. Imboolpitiya, in Nawalapitiya, and Craighead, in Dolosbage.

Waltrim in the Western Highs scored with a top price of Rs. 470. El Teb and Mahadowa, both properties managed by Stassens’ Madulsima plantations , score with top prices for the elevation. Both Estates situated deep in the High land hills in Madulsima.

source - www.island.lk