PLANTATIONS

John Keells Tea Market Report:

Ceylon Tea logos help industry

On April 4, the Government and the Sri Lanka Tea Board launched the Ozone friendly Ceylon Tea Logo and Ceylon Tea name as well as agro-climatic regional names and logos as certification marks under geographical indicators in order to add value to Premium Ceylon Tea, worldwide.

The use of new logos to market tea will also prevent overseas packers misusing the name by packing other origin teas as "Ceylon Tea".

It will also provide consumers authentic tea and will further strengthen and consolidate the position of Ceylon Tea in the international market.

The new logos under the geographical indicators comprises of specific Agro-climatic regions where tea is grown in Sri Lanka; Nuwara Eliya, Dimbula, Uva, Udapussellawa, Kandy, Ruhunu and Sabaragamuwa.

Sri Lanka is the only country in the world to be recognized as an Ozone friendly tea manufacturer and is targeting an export market of US $ 20 billion tea by 2020.

On the Global front production in major black tea producing countries, have been unpredictable due to erratic weather conditions. Although East Africa has had a little more rain recently, overall crop situation continues to cause concern as the rains have once again eased.

If the weather conditions do not improve Kenya in particular will be in danger of a poor second quarter as well, after experiencing a miserable first quarter where production dipped to 85.1 mkgs compared to 111.7 mkgs. in 2010, a negative variance of 26.5 mkgs.

India on the other hand has managed to recoup the loses with a good performance in March particularly from the Assam Valley where crops have doubled compared to 2010.

South Indian performance continues to be somewhat disappointing with a to-date deficit of 5.2 mkgs in the first quarter.

The good showing from Assam Valley has enabled all India crop to register a marginal increase of 0.4 mkgs in the first quarter when compared with 2010.

Sri Lankan crop on the other hand has had a very satisfactory performance in the month of March from all elevations, thereby registering a 3.0 mkgs increase in the first quarter.

With April crop too, likely to exceed the corresponding period of 2010 we could expect to see a satisfactory second quarter.

With the high intakes we have seen of late, the worry would centre on product quality which has taken somewhat of a beating Western Teas.

Select Best BOPs were barely steady, other good invoices declined Rs 10 to Rs 15, Below Best sorts eased by a similar margin and more, plainer varieties shed Rs 15 to Rs 20 on average. Select Best BOPFs eased Rs 10 to Rs 15, other good invoices were irregular following quality, Below Best sorts eased Rs 10 to Rs 15, plainer varieties declined Rs 15 to Rs.20 and more. Medium BOPs eased Rs.15 Rs.20 on average. BOPFs shed Rs 10 to Rs 15 and more.

Nuwara Eliya Teas

BOPs shed Rs 20 to Rs 30 on average, whilst the BOPFs eased Rs 15 to Rs 20 and more at times.

Uva Teas

BOPs declined Rs 10 to Rs 15, whilst the BOPFs were Rs 15 to Rs 20 easier. Uda Pussellawa BOPs declined Rs 10 to Rs 15 and more, whilst the BOPFs shed Rs 20 on average.

CTC Teas

Select Best Low Grown PF1s declined Rs 15 to Rs 20, others were Rs 10 to Rs 15 easier with a large volume remaining unsold. BP1s were Rs 20 to Rs 25 lower.

High and Medium PF1s shed Rs.15 to Rs.20 on average. BP1s eased Rs 10 to Rs 15 and more at times.

Low Growns

Fair demand. Select Best OP1s appreciated Rs 5 to Rs 10, Best types were fully firm, Below Best and poor sorts eased Rs 5 to Rs 10. Select Best BOP1s gained Rs 5 to Rs 10, Best types were irregularly lower by a similar margin, Below Best and poor sorts were firm to Rs 5 to Rs 10 lower at times. Select Best OPs declined Rs 20 to Rs 40, Best types too were lower by Rs 10 to Rs 15, Below Best and poor sorts shed Rs 5 to Rs 10. Select Best OPAs maintained last levels, however the balance eased Rs 10 on average. Select Best Pekoes appreciated Rs 20 to Rs 40, the balance were firm to Rs 5 to Rs 10 lower following quality. Select Best Pekoe1s shed Rs 10 to Rs 20, Best and Below Best types were steady, flaky types tended lower by Rs 5 to Rs 10.

Select Best BOP/BOP.SPs maintained last levels, Below Best and poorer sorts Shed Rs 5 to Rs 10.

A few Select Best wiry FBOPs advanced Rs 10 to Rs 20 and at time more, Best and Below Best types were lower by Rs 5 to Rs 10, poorer sorts shed Rs 10 to Rs 15. Select Best FBOPF1s maintained last levels, Best and Below Best types were lower by Rs 10 to Rs 20, poorer types too declined by a similar margin.

Select Best tippy varieties declined on last levels, Below Best and Best types shed Rs 20 to Rs 30, poorer types were lower by a similar margin.

Off Grades

Select Best liquoring Fngs1s depreciated by Rs 10 to Rs 15, whilst Below Best and poorer sorts were lower by Rs 15 to Rs 20. Select Best and Best BMs sold on firm levels, whilst the poorer sorts were lower by Rs 5 to Rs 10. All BPs depreciated Rs 20 and more at times. All Low Grown Fngs were lower by Rs 15 to Rs 20.

Select Best BOP1As along with the Best appreciated Rs 10 to Rs 15, whilst the Below Best and poorer sorts declined Rs 10 to Rs 20 and more at times.

Dust

Select Best Dust1s appreciated Rs 5 to Rs 10, whilst a few Dust1s in the Best category maintained last levels, Below Best and poorer sorts shed Rs 15 to Rs 20 and more at times.

Clean secondaries Dusts gained Rs 5 to Rs 10, whilst the Below Best types were firm, poorer sorts declined Rs 5 to Rs 10. Best Low Grown Dust/Dust1s appreciated Rs 5 to Rs 10, whilst the balance were irregularly lower.

Tea crop maintains average growth

Tea smallholders’ crops recorded an average growth during the first four months. However, during April the production dropped slightly due to the New Year holidays. Speaking to Daily News Business Tea Smallholders Association Chairman, Nevil Ratnayake said the production capacity of the small-scale tea manufacturers was commendable.

The association expects an average total production of around 320 million kilograms for the year.

To increase the production capacities the Tea Small Holdings Development Authority (TSHDA) and the Tea Research Institute (TRI) has introduced new varieties of clones, which could tolerate the droughts and the plant diseases. These clones are now being distributed among the farmers.

Chairman said dolomite, zink and sulphate are being used as alternative fertilizers to enhance the production and the fertilizer sprayers are being distributed to the 400 sub-committees under concessionary prices and instalments.

“With new technology and new methods being introduced we hope that the small tea growers would be able to achieve the desired targets by the end of the year,” he said.

C de S

Rubber fetches good prices

Indunil Hewage

The average price of a kilogram of RSS 1, RSS 2, RSS 3 and RSS 4 rubber recorded Rs 560, Rs 555, Rs 540.40 and Rs 530 respectively at the Colombo rubber auction held last week.

A Rubber Development Department official said the average price of a kilogram of Latex crepe1, Latex crepe 2 were Rs 618 and Rs 605 respectively.

Latex crepe 3, Latex crepe 4 recorded Rs 590 and Rs 518 respectively at the auction yesterday.

According to the Colombo rubber auction held on May 4, Latex crepe 1, Latex crepe 2, Latex crepe 3 and Latex crepe 4 were Rs 602, Rs 590, Rs 545 and Rs 535 respectively.

The average price of a kilogram of SC.CR 1X(BR) , SC.CR 2X(BR), SC.CR 3X(BR) and flat bark were Rs 505, Rs 482, Rs 464 and Rs 456 respectively at the auction held yesterday. According to the Colombo rubber auction held on May 4 2011, SC.CR 1X (BR) ,SC.CR 2X (BR) ,SC.CR 3X (BR) were Rs 525,Rs 481 and Rs 466 respectively.

Prices of rubber vary each week due to the barganing power of buyers.