Sri Lanka’s tea prices show marginal increase in second week of July
Tea prices in Sri Lanka have reportedly shown a marginal increase in the second week of July.
The Economynext quoting stock brokers have stated that the price has picked up due to the stronger demand low grown grades, after weakening prices through the month of June with increased volumes on offer.
Sri Lanka had sold 7 million kilograms in total with 1.1 million kilograms of Ex-Estate teas and 2.9 million kilograms of Low Grown (Leafy/Tippy) teas, according to the news report.
In the previous auction held on June 30 and July 1, Sri Lanka had sold 6.9 million kilograms of tea and Sri Lanka had recorded a monthly tea sales average of Rs. 615.67/3.3 US dollars in June.
Orthodox Teas
There had also been fair demand at easing rates for Ex-Estate while Low Grown (Leafy/Tippy) teas met with good demand, brokers have been quoted as saying.
In High grown BOP grades, Best Westerns had maintained last week’s prices after which price declined following special inquiry, while others declined by Rs. 10-20. Below best teas were irregular in prices.
According to reports, in Medium grown teas, Sri Lanka had recorded a tea sales average of Rs. 544.19 for the month of June 2020 as opposed to Rs. 430.74 in 2019.
OSL take:
The marginal increase shown in the sale of local teas is a positive sign of the growth potential in Sri Lanka’s tea industry. Tea is one of Sri Lanka’s leading export products and the current global conditions due to Covid 19 have promoted the drinking of tea as a remedy to the ailment. Drinking warm tea several times a day has been proposed as a prevention method of Covid 19. Therefore, foreign businesses/investors exploring business opportunities in Sri Lanka could look at the tea industry, which has much growth potential. The government of Sri Lanka has already introduced many incentives to the sector.
| Article Code : | VBS/AT/21072020/Z_6 |