COLOMBO TEA AUCTION 20/05/2015

C O M M E N T S

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Overall Auction offerings recorded a significant increase and totalled a 8.5 M/Kgs. Low Growns continued to meet with better demand whilst High and Medium Grown teas continued to weaken further with the poorer teas being discounted significantly.

Ex-Estate offerings comprised of 1.6 M/Kgs. Overall quality showed a decline on last. Best Western BOP/BOPF’s where quality was maintained were firm and selectively dearer following special inquiry whilst the others declined irregularly in value. In the below best category too a small selection of brighter BOP’s gained Rs. 5-10/- per kg whilst others together with the plainer sorts declined Rs. 15-30/- per kg. Corresponding BOPF’s in the below best category declined Rs. 20/- per kg whilst the plainer sorts declined Rs. 10/- per kg and more as the sale progressed. Nuwara Eliya BOP’s declined Rs. 20-30/- per kg and substantially more following quality whilst the corresponding BOPF’s had a few select invoices which appreciated in value following special inquiry. Here again the remainder declined Rs. 10-15/- per kg. Uva/Udapussellawa BOP/BOPF’s declined Rs. 20-30/- per kg in most instances. CTC teas witnessed a slightly better demand for the clean leaf teas. However the majority for the High and Medium Grown teas tend to be discounted following “poor dry leaf appearances”. Liquoring leafy teas continued to meet with exceptional demand and most teas on offer realized between prices ranging from Rs. 500/- to Rs. 1500/- per kg.

Shippers to the CIS were reasonably active although at much lower levels to last. Other markets continued to participate although in a selective manner particularly following quality.

Low Growns comprised of approximately 3.7M/kgs in the Leafy/Tippy catalogues this week showing an increase of 0.4M/kgs. There was demand particularly for the well made teas. In the Leafy catalogue better OP1/BOP1’s maintained, others tended irregular. Better OP/OPA’s were firm to dearer, others were irregularly lower. Best PEK/PEK1’s were irregularly dearer. Bolder types gained Rs.10-20/- per kg and more. In the Tippy catalogue, better FBOP/FF1’s were dearer with the cleaner below best sorts maintaining. Bottom end irregular. Well made Tippy invoices continued to attract good demand particularly the leafier tippy teas. Cleaner below best maintained, others were barely steady. Shippers to CIS, Turkey, Syria, Dubai, Iraq and Libya together with Iran and Saudi Arabia were active this week.

SRI LANKA TEA EXPORTS - APRIL 2015

Tea Exports for the month of April 2015 totalled 22.9M/kgs showing a decrease of 0.4M/kgs vis-à-vis 23.3M/kgs of April 2014. Bulk teas have shown a growth YOY. Packeted teas have remained static whilst tea bags show a decrease vis-à-vis April 2014. Total revenue realized of Rs.13.5B for April 2015 too, show a decrease of Rs.1.7B vis-à-vis Rs.15.2B of April 2014.

Cumulative exports too for the period January – April 2015 of 96.1M/kgs show a decline of 2.4M/kgs vis-à-vis 98.5M/kgs of January – April 2014. Here again bulk tea have shown a growth YOY whilst packeted tea and tea bags show a decrease compared to the same period of 2014. Total revenue too of Rs.57.9B realized during January – April 2015 has shown a decrease of Rs.7.9B compared to Rs.65.8B realized during the same period of 2014. (As detailed in page no.08)

Turkey has emerged as the no.01 importer followed by Russia and Iraq. It is also relevant to note that Russia has become the second largest importer with a significant decrease in the volume shown compared to the same period of 2014. On the other hand Iraq has shown a substantial growth vis-à-vis the same period of 2014. Other noteworthy importers are UAE and Iran. UAE too has shown a fairly significant growth in 2015. China, India and South Africa too have shown a noticeable increase in volumes during the period under review when compared to the same period of 2014.

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