Tea sales average low for second consecutive month

The tea industry continues to witness dampened progress with February sales average remaining within bearish territory for the second consecutive month this year.
Latest statistics show that the tea sale average for February dropped Rs.14.42 to Rs. 403.87 from Rs. 418.29 recorded in the corresponding month of  the previous year.
In dollar terms, February 2016 average of US$ 2.68 showed a decrease of US$ 0.33 vis-à-vis US$ 3.01 of February 2015.

The figure posted this month is lower to that of recorded in January 2016 where the sales average of Rs. 410.94 per kilo was recorded, a Rs. 13.20 drop from previous year.
While averages of all three elevations compared to 2014 levels show a significant decrease, both in rupee and dollar terms, low grown teas were the most impacted.

High grown teas for the month recorded Rs.423.80 as against Rs.412.50 the previous year, but medium growns and low growns recording a year- on-year (yoy) dip of Rs. 11.26 and Rs. 22. 55 to Rs. 379.24 and Rs. 403.03, contributed significantly to the drop. The total CTC average for February recorded Rs.386.04.

While CTC high growns recorded Rs.369.63, CTC medium growns stood at Rs.374.93. CTC low growns recorded Rs.400.34. According to Ceylon Tea Brokers, the Western High elevation average for February 2016, which recorded Rs.439.99, shows a higher average than the corresponding period last year which recorded Rs.426.46 (+Rs.13.53).

“This is the only elevation which records a higher average for the month of February in comparison to the same period last year as well as cumulatively for the year 2016 when compared to the same period 2015,” it stated in its latest report. At the latest tea auction a total of 6.2 Mkgs came under the hammer. Forbes and Walker Tea Brokers noted that low grown types continued to witness an irregularly firm market whilst High and medium grown small leaf teas met with fair demand although at irregular rates following quality. Improved activity was observed from shippers to the UK and Japan mainly for the seasonal teas. Limited interest was shown from South Africa, Hong Kong/China while shippers to the CIS countries were selective and often operated at the lower end of the market.