Quality concerns weigh on Sri Lanka tea prices despite increased supply

The auction offerings increased to a 5.6 million kilogrammes (M/Kgs) this week vis-à-vis a 5.1 M/Kgs on offer the previous week. 

There was fair general demand. 

The Ex-Estate offerings comprised of 0.84 M/Kgs and the overall quality was barely maintained.  

The Best Western BOP/BOPFs were mostly firm and easier, perhaps following a decline in quality. The teas in the Below Best category were irregular, though continued to sell around last levels, whilst the prices at the lower end tended to decline by Rs.20 per kilogramme and more as the sale progressed. 

The Nuwara Eliyas once again were irregular and barely steady. The Uda Pussellawas – Better teas, were Rs.20-40 per kilogramme easier, whilst the others, which declined substantially the previous week, made a correction and often appreciated by Rs.50 per kilogramme and more. 

The Uva BOPs were firm and easier, particularly for the better teas, whilst the corresponding BOPFs declined by up to Rs.50 per kilogramme.  

The High and Mid Grown CTC teas showed no significant change in the overall pricing, whilst the teas at the lower end continued to be less sort after and the higher volume of unsold teas continued. The corresponding Low Grown PF1s - Select invoice, were firm, whilst the others declined by Rs.20 per kilogramme and more for the poorer sorts.  

Most traditional markets continued to operate perhaps with less activity for typical Iranian type teas. 

The Low Growns totalled approximately 2.4 M/Kgs. The Leafy, Semi-Leafy and Tippy categories met with fair demand, whilst the Premium category continued to witness less demand.

In the Leafy and Semi-Leafy catalogues, the Select Best and Best BOP1s were firm, whilst the balance together with the bolder varieties were irregular. the OP1s, in general, were firm, whilst the OPs were dearer. 

The teas at the bottom were lower. The OPAs in general gained, whilst the poorer sorts declined. The Select Best and Best PEKs were firm, whilst the Below Best together with the bold/open varieties declined in value. 

The tea at the bottom were dearer, whilst the high-priced PEK1s were lower. The Best varieties maintained, whilst the Below Best together with the mixed/open types were easier. The clean leaf teas at the bottom were fully firm.

In the Tippy catalogue, the well-made FBOPs, together with the cleaner Below Best, maintained, whilst the balance was irregular, following quality. The Select Best and Best FF1s, together with the cleaner Below Best, were firm to dearer, whilst the balance was irregular, following quality. 

In the Premium catalogue, the Tippy teas, in general, declined substantially and remained unsold, due to a lack of suitable bids, whilst the teas at the bottom were irregular.