C O M M E N T S

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A total of 7.4 M/Kgs came under the hammer this week. Improved widespread demand for High and Medium Grown small leaf teas particularly the BOPF grade whilst the Low Growns met with fair demand.

Ex-Estate offerings comprised of 1.2 M/Kgs. Overall quality of teas on offer showed no significant change. Best Western BOP’s continued to sell at irregular rates whilst the corresponding BOPF’s gained Rs. 10/- per kg and more following quality. In the below best category a selection of brighter BOP’s gained Rs. 10-20/- per kg whilst the others were irregular. Corresponding BOPF’s gained Rs. 10-20/- per kg and more as the sale progressed for select invoices following special inquiry. Plainer BOP’s were irregular whilst the corresponding BOPF’s gained Rs. 30-40/- per kg. Nuwara Eliya’s were barely maintained and at times-difficult of sale primarily due to the uninteresting quality. Uva/Udapussellawa BOP’s were sold around last week’s levels whilst the corresponding BOPF’s were irregular following quality. High and Medium Grown CTC BP1s  continued to sell around last week’s levels whilst the corresponding PF1s gained Rs. 20-30/- per kg and more for the clean leaf teas. Low Grown BP1s gained Rs. 10-20/- per kg whilst the PF1’s were up to Rs. 50/- per kg dearer.

Wide spread interest from the shippers to the CIS. Improved demand from UK, Japan, Hong Kong and South Africa.

Low Growns comprised of 3.2M/kgs in the Tippy/Leafy catalogues. There was fair demand. In the Leafy catalogues, better BOP1’s / OP1’s were firm whilst others were barely steady following quality. Better OP/OPA’s too were mostly firm. Here again others were easier to last. Better PEK/PEK1’s though irregular were firm. A range of bold PEK’s however gained on last, whist the balance were barely steady. In the Tippy catalogues, better FBOP/FF1’s together with the cleaner secondaries were generally firm. Balance declined. Better Tippy invoices too were mostly dearer to last. Others however were irregular and lower to last. There was good demand from shippers to CIS, Dubai and Turkey whilst shippers to Saudi Arabia, Kuwait and Iraq too were active.

SRI  LANKA TEA EXPORTS -  MAY 2015

Tea exports for the month of May totalled 27.6M/kgs vis-à-vis 28.2M/kgs of 2014 showing a decrease of 0.6M/kgs. Total revenue too of Rs.16.4B for May 2015 show a decrease of Rs.1.9B vis-à-vis Rs. 18.3B of 2014. All though bulk tea has shown a growth YOY packeted tea / tea bags show a decrease vis-à-vis May 2015.

Jan-May 2015 cumulative exports too of 123.7M/kgs show a decrease of 3M/kgs vis-à-vis 126.7M/kgs of Jan-May 2014. Here again bulk tea exports have shown a growth whilst packeted tea and tea bags have declined. Total revenue too of 74.4B realized for Jan-May 2015 show a significant decrease of Rs.9.7B compared to Rs.84.1B realized during the same period of 2014.

When analyzing the major importers of  Sri Lankan tea, Turkey has emerged as the No:01 importer for the period Jan-May 2015 followed by Russia and Iraq. Other noteworthy importers are UAE and Iran. Further China together with India have shown a steady growth in imports during 2015 when compared to 2014. See more details on page No: 08 and 09.