|
A better deal for Sri Lankan Tea Colombo brokers have become jubilant over the relationship between Egypt and Kenya hitting a new low, with the former cutting down on imports of Kenyan tea.
Following Wednesday’s tea auctions brokers report, the possibility of this benefiting Sri Lanka in the short term.
Asia Siyaka, one of the top commodity brokering companies says: ``reports reaching us from Egypt indicate that the Egyptian government has expelled Kenya form the list of COMESA members entitled to export tea into the country at concessionary duty rates.
This is said to be a retaliatory measure by Egypt when Kenya withdrew tariff concession granted on Egyptian rice. It is effective from July 8.
This however, affected Egypt following the Palestinian trouble with Kenya over rice.
Pakistan brought around 28% of Kenya’s tea exports, while Egypt purchased 24%.
They were the two highest buyers of Kenyan tea.
``When Egypt joined COMESA and extended duty concessions to African producers, Kenya reciprocated similarly on rice.
This shut out Pakistani rice from the Kenyan Market. With strong protests arising from Pakistan, Kenya last week slashed import duty on Pakistani rice and re-imposed duty on Egypt.
The issue had been simmering since last year, when Egypt blocked Kenyan exports.
Low Kenyan production and reduced Egyptian buying during the height of summer may leave room for negotiations."
Meanwhile, according to Asia Siyaka, low growns has had a very good deal at the auctions.
According to the figures 2.6 million kgs of low growns had been on offer and met with better demand.However, Eastern Brokers say a total quantity of teas amounting to 6.1 million kilos was on offer. This was a decline of 1.4 million kilos on the last auctions.As for the improvement in price, Asia Siyaka says:`` There was more interest for Pekoes and OP grades in the below best and lower categories which recorded a further increases on last week’s high levels. Price declines were recorded for the FBOPF1 grades. Stylish leafy varieties continued strong and we expect this trend to continue for the next 2-5 weeks. In the ex-estate catalogues there was more general demand for liquoring teas from both sides of the island. For the first time this season a range of Udapussellawas moved up in value. Better liquoring Westerns too were well sought after and a selection moved up sharply in value. Meanwhile, as forecasted last week the weather has steadily improved on the Eastern side of the island. Conditions conducive for the manufacture of brighter and more pungent teas have been reported. Sings are that a progressive improvement in the conditions could be expected."
Bartercard’s trade volume tops Rs. 300m
Sri Lankan businesses have bartered goods and services to the value of Rs. 300 million since the country’s first cashless trade exchange opened 44 months ago, the exchange operator, Bartercard Lanka Limited has announced.
This milestone figure was achieved on June 30, 2000 at the end of three months of average trade volumes of more than Rs. 10 million a month, the company said.
Bartercard’s Managing Director Johnny de Saram said trading in value terms had grown significantly, from an average of under Rs. 1 million in Bartercard’s first year of operations to a monthly average of Rs. 9 million over the next 32 months. "We have clearly established that barter trade is a viable alternative to the cash economy", Mr. De Saram said.
The exchange has to date processed more than 27,000 barter transactions at an average of about 30 per working day. The membership base exceeded 1,100 businesses at end June, and has been growing at about 90 new members per month over the last quarter, Mr. de Saram said.
Bartercard Lanka’s diverse member base ranges from small proprietorship to medium and large corporates who provide goods and services to one another via the computerised exchange, which maintains a credit and debit system using a unit called "Trade Rupees".
Elaborating on how the exchange works, Bartercard’s Manager Trading Angela Jumar cited the example of a restaurant that needed its printing done for Rs. 30,000. As a direct barter, the restaurant would need to find a printer who would accept Rs. 30,000 in meals in return. The chances of that happening are unlikely. With the Bartercard system the restaurateur pays for the printing in "Trade Rupees" which are the equivalent of cash Rupees, for accounting purposes. The restaurateur is now Rs. 30,000 in trade debit and the printer is Rs. 30,000 in trade credit.
The Restaurant now owes Trade Rs. 30,000 worth of meals to the Bartercard network and not to the printer. The Printer can use his Trade Rupees credit for whatever products and services he desires from the network, either here or overseas, she said.
Popular items traded on the Bartercard exchange include office automation products, printing air freight, courier services, advertising, promotional services, media air time, catering, jewellery, garments, interior decor, motor engineering, computer hardware and software, construction services and materials and hotels.
This year Bartercard has also focused on promoting the concept as a means for business to give their staff cards to purchase their personal needs as an additional incentive, as a perk or in lieu of additional allowances to ease the burden of the rising cost of living, Mr. De Saram added.
Bartercard Lanka is a member of Bartercard International, the fastest-growing chain of trade exchange in the world. It is a BOI-approved venture involving the Golden Key Credit Card Company, the Peoples Venture Investment Company (PVIC), Equity Investment Lanka (Equill) Bartercard International of Australia, Marased (Pvt) Ltd., and R. A. Associates.
