|
|
 |
 |
 |
| Thursday, 11 September 2003 |
 |
|
 |
Business | |
| News Business Features Editorial Security Politics World Letters Sports Obituaries
|
Market comment : Iraq's tea order coming through Industry sources have confirmed that the Coalition Provisional Authority (CPA) in Iraq has upgraded tea into the essential food item category. UN's administrative body that manages the Oil for Food program, will re-activate a part or all of the tea tender previously awarded under the 13th round to Sri Lanka. The World Food Program is due to contact some of the Sri Lankan traders who had initially bid to supply Iraq prior to change of government. We understand that initial approval has been granted for approximately 5 mn kg of tea, the balance 2-4 mn kg could be approved in due course. LCs are yet to be opened and the original prices still apply. The delayed confirmation of this order initially cost the producer sector dearly. With the market now on the rise, the export segment will be hard pressed to perform at the initial low prices contracted. The Low Grown market barely held for Small Leaf varieties and stylish leafy teas. Stylish OP1/BOP1s continued their poor run and slipped further in value. In contrast there was better demand for selected best small leaf varieties, OPAs, OPs and Pekoes. Uncertainty in the Iranian border has been reported as a reason for the present weakness for small leaf teas. Uva season begins to bubble - A wide cross section of seasonal quality teas from Uva, Udapussallawa and Nuwara Eliya tea growing regions attracted more demand and prices often moved up sharply. Producers would welcome the higher prices being paid for early Eastern seasonal quality offerings. Buyers operating for Japan, Germany, the Netherlands and Russia actively competed for the useful range of BOP, BOPF and speciality grades on offer. Better Westerns continues to hold last week's high levels with the BOPFs in particular attracting good demand. India to subsidise orthodox production? - We quote a report: The tea industry has urged the Union government to give incentives to orthodox teas, which are suitable for exports, in order to raise their production. In a year when Indian tea exports are experiencing a poor off take, the industry wants a stronger focus on higher production of orthodox teas. At a meeting with the Union Commerce Ministry, the industry barons, Tea Board officials and exporters stressed the need to make production of orthodox teas more attractive so that fresh efforts can me made to regain lost markets in Russia and other CIS countries. Indian Tea Association Chairman, Bharat Bajoria, said that the industry in consultation with the Tea Board, which is a part of the Commerce Ministry, has submitted a proposal that calls for a subsidy of Rs. 7 per kg or orthodox tea production. Given that August and September are the two heaviest cropping months, the industry is keen that the government make the effort to disburse the subsidy to the orthodox tea producers as soon as possible. (Asia Siyaka Commodities (Pvt) Ltd Weekly Tea Report) |
|
News | Business | Features
| Editorial | Security
Produced by Lake House |
