Sri Lanka LG tea meets strong demand

Indunil HEWAGE

Sri Lanka’s Low Grown tea again met with strong widespread demand at last week's Colombo Tea auction and the average tea prices of low grown tea are expected to further increase due to fluctuation in the local currency market and a possible shortfall in global black tea production.

The prices of low grown tea are above the last year’s level and if this trend continues, the country will be able to do better than last year as far as revenue is concerned.

7.10 Mnkg tea were on offer last week in the Colombo tea auction and 3.37 Mnkg were low grown main grades and 2.56 Mnkg were high and mid grown main grades. BOP1s posted much higher prices while stylish OP1s declined in value. All small leaf teas posted much higher prices due to exceptional demand, a tea broker said.

“However, high cost of production is identified as one of the major issues the local tea industry is facing, the situation needs to be arrested immediately, otherwise we will become less competitive in the global tea market.

“A large percentage of local tea goes as bulk form and we urgently need to take measures to add value to its core products,” a official said.