Tea production picking up
Charumini de Silva
Sri Lanka has recorded a tea crop of 21.6 million kilograms (Mkgs) in
February. This is around 1.8 mkgs lower than the corresponding period
last year. A crop of 42.6 mkgs has been harvested during January and
February, which is 9.3 mkgs lower than the crop attained during the
corresponding period of 2010 Lanka Commodity Brokers Limited said.
The High and Medium elevations have shown deficits of 2.2 Mkgs and
1.9 Mkgs, while the crop of low growns is 5.1 Mkgs below last year’s
statistics. Lanka Commodity Brokers Limited Consultant Jehan Algama said
although production figures show a negative outlook in the first two
months, auction prices indicates a significant growth compared to the
same period last year.
For this year up-to-date the Colombo auction’s total average tea
prices has increased from Rs 382.91 to Rs 394.67, which is an
improvement of 11.76 percent.
Even though the auction volumes were low the prices were higher than
last year.
He said with the favourable weather conditions tea crops will
increased significantly. There will be marked growth in high and medium
grown tea production. This increase of tea production will help to catch
up the low performance during the first two months. “We expect that the
country will have an increased tea production by next month,” Algama
said.
Japan bought its usual quota last week amidst its natural calamity,
which is a good indication, he said.
Rubber production reached its highest levels throughout the first two
months. At present, one kilogram of crepe and sheet rubber is sold over
Rs 500. Due to the massive earthquake and tsunami, which triggered in
Japan recently the production of automobiles has declined.
Nevertheless, rubber prices will improve gradually as the situation
in Japan is a temporary setback. With the massive expansion in the
automobile industry production will stabilize and as a result the
increase of global rubber demand will lead to a price increase in the
world market too. |