Lanka's tea production to exceed 320 MKg

Sri Lanka's tea production is expected to exceed 320 MKg according to a study done by the Tea Board (SLTB).

Estimated annual production for 2005 is 325.3 MKg, the SLTB third quarter Tea Report said.

A dismal period for greater part of the quarter was witnessed with lower prices, large action withdrawals and teas of mediocre quality being the main reasons for this situation. The auctions in July and August saw tea prices lower than their corresponding sales of 2004. However, with the advent of quality UVAs and low growns eliciting better demand, there was an overall improvement of 8% in September, compared to August.

The producers were the worst affected during this period.

Quantity on offer at the auctions declined from over 7.5 MKg offered at the early sales in the third quarter to around 5.5 MKg at latter sales. This decline in the offerings of tea may have resulted in the 16.6% appreciation of the prices during this quarter.