Demand high for tea this year

Indunil Hewage

The demand for Lankan tea has been strong throughout this year.

Asia Siyaka Commodities CEO Anil Cooke said prices eased steadily as a result to the current levels below the same time in 2009.

Low grown tea has attracted strong demand until early April and prices eased and thereafter teas sold at an attractive level,” he said.

World supply from major tea exporting nations has increased sharply. Available tea production data up to May 2010 shows that Sri Lanka has produced 134 million kilograms.

This is an increase of 27 million kilograms more than last year. Similarly India has produced 235 million kilograms, 19 million kilograms more than last year.

Kenya has recorded the highest tea increase for the period January to May 2010 with a production of 183 million kilograms.

This is an increase of 69 million kilograms more than last year. Sri Lanka is going into the Uva quality season and availability from higher elevation will ease during this period. These world famous quality teas will attract new demand from seasonal buyers, Cooke said.

He said Low Grown tea will see a slowing down in demand with the fasting period in Middle-East and North African markets.

“With warm conditions easing as summer is nearing its end in third quarter, the demand will pick up.”