COLOMBO TEA AUCTION 15/07/2015

C O M M E N T S

********************

A total quantity of 7.7 M/Kgs were on offer this week. High and Medium Growns met with good demand, with the BOPF grade continuing to appreciate in value whilst Low Growns met with fair demand.

Ex-Estate offerings were similar to last and totalled 1.2 M/Kgs. There was good demand particularly for the BOPF grade. Best Western BOP’s gained Rs. 10-20/- per kg and more following quality whilst other Western BOP’s were irregular. Corresponding BOPF’s gained Rs. 10-30/- per kg. Nuwara Eliya BOP’s were irregular whilst BOPF’s declined Rs. 20/- per kg and substantially more for last week’s high priced teas. Uva/Udapussellawa BOP’s declined Rs. 5-10/- per kg whilst the corresponding BOPF’s appreciated by Rs. 10-30/- per kg. High and Medium Grown CTC teas on average gained Rs. 10-30/- per kg whilst Low Grown PF1s appreciated Rs. 50-100/- per kg and more. Liquoring leafy teas were totally neglected and majority of the teas remained unsold.

Shippers to UK, the Continent and Hong Kong were less active whilst South Africa continued to operate selectively. There was improved demand from shippers to CIS on a wider cross section of teas.

Low Growns comprised of 3.5Mkgs in the Leafy/Tippy catalogues. There was fair demand on all. In the Leafy catalogue better BOP1’s together with a range of clean/improved OP1’s were fully firm. Others were however barely steady. Better OP/OPA’s too were mostly firm. Here again teas at the lower end declined Rs.5-10/- per kg. Better PEK/PEK1’s too were firm whilst others declined Rs.5-10/- per kg. In the Tippy catalogue too better FBOP’s together with FF1’s maintained. A range of cleaner secondaries too maintained. Others were mostly lower following quality. Tippy invoices met with better demand and were mostly dearer to last. Shippers to CIS, Dubai, Iraq, Turkey and Saudi Arabia were active this week.

Darjeeling Tea Facing Competition from Nepal

Nepal is a relatively new entrant. So the soil is virgin and the teas are young. “Climatic conditions are not very different and young teas have their advantages. For one, they are brighter. But Darjeeling teas have a pedigree. The uniqueness during quality cropping periods are unmatchable,”.

“There is an initial flavouring in Nepal teas that are very similar to Darjeeling but it is not long-lasting. Not everyone is looking for a very lasting flavor,”the Duncans official adds. The price for the lasting flavor is steep; the teas from Nepal are about half the price. According to Tea Board of India data, as of 2013-14, imports from Nepal were 10.44 million kg verses total imports of 19.23 mn kg. The switch to Nepal teas is only one of the many problems affecting Darjeeling teas.

Extracted from : New Delhi – Business Standard – 14^th July 2015