C O M M E N T S

The 50^th and final sale of the year which concluded today had on offer a total of 6.5 M/Kgs. There was fair demand mostly at lower levels to last.

Ex-Estate offerings comprised of 1.1 M/Kgs. Quality of offerings of Western High Grown’s were mostly lower to last whilst Uva/Udapussellawa’s showed no significant change. Best Western BOP’s declined Rs. 10/- per kg whilst corresponding BOPF’s declined Rs. 20/- per kg and more for select high priced teas of the previous week. In the below best category brighter BOP’s declined Rs. 10-20/- per kg whilst the others declined Rs. 5-10/- per kg. Corresponding BOPF’s declined Rs. 10-30/- per kg. Nuwara Eliya’s continued to witness disappointing demand primarily due to the uninteresting quality levels. Udapussellawa BOP’s declined a Rs. 10/- per kg on average whilst the Uva’s were irregular. Corresponding BOPF’s declined Rs. 20-30/- per kg and more following quality. CTC BP1’s were firm and Rs. 5-10/- per kg dearer whilst the PF1’s too followed a similar trend and on average declined a Rs. 20/- per kg.

Most markets were less active-possibly a combination of the plainer quality and the ensuing holiday period.

This week’s Low Growns comprised of 3M/kgs in the Leafy/Tippy catalogues. There was fair demand at slightly lower levels. In the Leafy catalogues, better OP1’s together with clean BOP1’s were firm to irregularly dearer. Others were barely steady following quality. Better OP/OPA’s too declined Rs.5-10/- per kg and more. Prices at the lower end however were fully firm to dearer. Better PEK/PEK1’s maintained. Others however declined Rs.5-10/- per kg and more. In the Tippy catalogue too with the exception of a few select best FBOP/FF1’s all others and the cleaner secondaries declined Rs.5–10/ per kg and more. In the Premium catalogue too most teas were irregularly lower compared to the preceding sale. Shippers to Turkey, Dubai, Iraq, Saudi Arabia, Kuwait together with CIS were active this week.

Sri Lanka Tea Exports – November 2015

Sri Lanka Tea Exports for November 2015  totalled 26.3M/kgs showing a decrease of 2.6M/kgs vis-à-vis 28.9M/kgs of November 2014. Bulk tea exports have shown a growth YOY whilst packted tea and tea bags have shown a decrease. Total revenue of Rs.15.4B realized for November 2015 too show a decrease of approximately Rs.2.6B vis-à-vis Rs.18.01B of November 2014.

January – November cumulative exports totaling 281.5M/kgs too show a decrease of 16M/kgs vis-à-vis 297.5M/kgs of January – November 2014. Here again Bulk tea exports have shown a growth whilst Packted tea and Tea bags show a fairly significant decrease. Total revenue too of Rs.166.9B realized for January – November 2015 show a decline of 27.3B vis-à-vis194.2B of January – November 2014.

Russia followed by Turkey and Iraq have emerged as the largest importers of Sri Lankan Tea for January – November 2015. Iran and UAE are some of the other noteworthy importers. Meanwhile Pakistan, India and China too show a fairly significant growth in imports during the period under review. (See more details in page 08)

Sri Lanka Tea Production – November 2015

Tea production for the month of November totalled 25.2M/kgs vis-à-vis 29.9M/kgs of November 2014 showing a decrease of 4.7M/kgs. All elevations show a decrease in production when compared to the corresponding month of 2014. When analyzing January – November 2015 cumulative production of 305.3M/kgs, too show a decrease of 8.4M/kgs vis-à-vis 313.7M/kgs of January – November 2014. Hereagain High/ Low Growns show a decrease YOY whilst Medium Growns show a marginal gain.

Total CTC production for November 2015 of 1.5M/kgs show a decrease of 0.4M/kgs vis-à-vis 1.9M/kgs of the corresponding month of 2014. Low Grown production for the month of November 2015 show a gain vis-à-vis November 2014 whilst High and Medium Growns show a decrease.

January – November 2015 cumulative CTC production   totalled 18.1M/kgs showing a decrease of 0.6M/kgs vis-à-vis 18.7M/kgs of January – November 2014. Here again Low Growns have shown a growth YOY whilst High and Medium Growns have shown a decrease. 

Best Wishes for a

Merry Christmas & Happy New Year!