Sri Lanka tea maintains strong demand

Recent Sri Lanka tea auctions saw strong demand from Japan, the UK and China, whilst shippers to the CIS (Commonwealth of Independent States) continued to be active at lower levels.

Total auction offerings comprised 6.1 M/Kgs while there was good demand.

However. tea exports for the month of February 2021 totalled 23.16 M/kgs, showing a decrease of  0.49 M/kgs vis-à-vis 23.65 M/kgs of February 2020.

Meanwhile, Sri Lanka tea production for the month of February 2021 totalled 22.38 M/kgs showed an increase of 4.17 M/kgs vis-à-vis 18.21 M/kgs of February 2020.

High Growns had remained static, whilst the Mid Growns had shown a marginal increase. Meanwhile, Low Growns recorded a fairly significant increase compared to the corresponding month of 2020.

January-February 2021 cumulative production totalled 45.50 M/kgs recording a gain of 5.35 M/kgs vis-à-vis 40.15 M/kgs of January-February 2020. On a cumulative basis, High Growns have shown a marginal decrease, whilst the Mid and Low Growns have shown an increase, with Low Growns showing the highest gain.

Estate offerings were marginally higher to the last and totalled 1.0 M/Kgs. Quality of teas on offer from the Western slopes continued to be useful, with a selection of seasonal quality teas on offer. Nuwara Eliya’s were limited in availability, yet comprised of some nice seasonal quality teas, whilst the Uva/Uda Pussellawa’s were fairly similar to last.

Best Western BOP’s – majority of the teas on offer declined Rs. 20 per kg and more following quality, whilst the corresponding BOPF’s declined Rs. 20-30 per kg and more.