Data released by the Customs indicate that tea exports up to the end of August have increased by 9% to 193.5 million kilograms this year compared with the previous year’s exports, which were recorded at 178.2 million kgs, Asia Siyaka Tea Brokers (ASTB) said.

It said the value of tea exports have risen by 23% to reach Rs. 34.4 billion during the period, compared to Rs. 28 billion earned in the comparative period last year. Tea exports to the Commonwealth of Independent States (CIS), which is the key market have grown by 24% this compared to last year, ASTB said.

Iran, Iraq and Libya, which are long standing traditional markets have increased their imports of Sri Lankan tea, while Japan, a key buyer of high grown teas has increased its imports by 39% to 4.9 million kgs during the period.

Meanwhile, low grown teas continued to dominate during this week’s (October 3-4) tea auctions, which saw a total of 5,709,007 kgs of tea being sold.

The low grown leafy grade tea quantity amounted to 1,139,240 kgs, while 908,102 kgs of the low grown tippy small leaf was also auctioned. From the Ex-Estate catalogues, 568,178 kgs were sold this week, while the quantity of the high and medium grown teas sold were lower, and was recorded at 302,729 kgs, ASTB said.

At this week’s auction, some of the low grown varieties which fetched top prices are: Pothotuwa (BOP1)-Rs. 226/-, Uruwela (OP1) Rs. 300/-, Sithaka (FBOP)-RS. 280/-, Kurunduwatte (FBOP1)-RS. 396-.

From the high grown westerns, Gouravilla (BOP) fetched Rs. 200/-, while (BOPF) grade was sold at Rs. 197/-. From the medium growns, Uva’s fetched the highest prices. Neluwa’s (BOP) grade was sod at Rs. 310/-, while BOPF grade coming from the UVA Highlands fetched Rs. 200/-.

ASTB said that the best westerns held firm, while the Nuwara Eliyas were fully firm. Brighter Udupusellwas gained Rs. 4/- to Rs. 6/-, while the best Uvas were irregular.

Among other medium growns, Kenilworth’s (BOP) fetched Rs. 284/-, while Dunkeld’s (BOPF) was sold at Rs. 166/-. Mahagastotte (BOP) from Nuwara Eliya had fetched Rs. 240/-, at this week auctions according to Asia Siyaka. It said that in the Ex-Estate catalogue, the end of the week.

ASTB reported that the weekly sale average for low grown teas, reached a record high on September 20th (highest since 1998). The sale a week after saw the average move up to Rs. 159.70. The sale average for the month of September, achieved a figure of Rs. 153.60, ASTB said.

Although sale average had broken new records, the low grown average in U.S. dollar terms was recorded at $1.96. In 1998, however, the dollar figure of the average was $2.30. This year’s record rupee sale average, is in fact 17% lower in dollar terms, due to the depreciation of the rupee, ASTB added. The drop in sale average in dollar terms indicate that the price of Sri Lankan tea in dollar terms has actually declined. ASTB said: "It indicates that depreciation of the rupee has played a bigger part than strengthening the demand when achieving the September landmark average."
(C. de S.)