FBOP/FF1 tea met with improved demand

Forbes and Walker Tea Brokers in a media release said that 6.3 m/kgs comprising of 0.84 m/kgs of ex-estate offerings along with 5.5 m/kgs of main sale teas came under the hammer at the auction concluded this week.

On Wednesday, Low Grown sale approx. 2.9 m/legs came up for sale in the leafy/tippy catalogues. Well made FBOP/FF1 met with improved demand this week and prices too were clearer to last. Small leaf teas with tip too were stronger to last. Leafy teas, however, particularly the OP/OPAs continued to decline in value with the exception of a few select best. OP1/BOP1s too were irregular with only the select best teas gaining on last levels. Pekoes, however, were dearer to last. There was good demand from Saudi Arabia, Dubai, Syria, Turkey and CIS, the release said.

The relatively larger weight of High & Mid Grown teas came up for sale at the ex-estate auction concluded this week. There was selective demand and prices were most often lower to last. Buyers seemed to follow quality closely which resulted in consecutive invoices from the same estate varying significantly in price. Best BOPFs which maintained quality along with improved below best varieties saw an upward movement in price. Others where quality was not maintained were in lower feature. Better Nuwara Eliyas met with good demand and sold at dearer levels with some invoices of BOPFs selling in excess of Rs. 300/-. CTC varieties too lost out in price barring the BP1s which sold at dearer levels. Shippers to UK, Japan and the Continent appeared to be very selective whilst shippers to the CIS operated on a cross section of BOP/BOPFs, the release added.

The total sale average for November declared at Rs. 160/91 is substantially Rs. 10/77 higher when compared with the Rs. 150/14 average for the same period last year. The largest growth has been from the High Growns. The High Grown sale average of Rs. 160/25 shows a substantial growth of Rs. 20/72 when compared with the Rs. 139/53 average during the same period last year. The Medium Grown average of Rs. 139/54 for the period records a growth of Rs. 14/52 when compared with the Rs. 125/02 average during the same period last year. The Low Grown average of Rs. 166/19 shows a growth of Rs. 3/22 when compared with Rs. 162/96 average for the same period last year, the release said.

The total sale average of Rs. 148/24 for the period January/November records a decline of Rs. 1/07 when compared with the Rs. 149/31 average for the same period last year. The Low Grown average of Rs. 160/46 for the period reflects a decline of Rs. 2/91 when compared with the same period last year. Medium Grown average of Rs. 125/26 reflects a marginal decline of cts. -/11 when compared with the Rs. 125/37 average for the same period last year. The High Grown average of Rs. 136/81 has been the only sector to show a growth of Rs. 1/67 when compared with the average of Rs. 135/ 14 for the same period last year.

Total exports for October of 27.9 m/kgs shows a growth of 3.9 m/kgs when compared with the 23.9 m/kgs exported during the same period last year. The largest growth has been from shipments of tea in packeted form which reflects a growth of 2.4 m/kgs . Shipments of tea bags too reflects a growth of 0.14 m/kgs whilst tea in bulk form reflects a growth of 0.7 m/kgs

Export earnings of Rs. 6.1 billion for October shows a growth of Rs. 0.83 billion when compared with the Rs. 5.3 billion of export earnings during the same period last year. Revenue generated from export of teas in packeted form shows a substantial growth of Rs. 0.47 billion whilst earnings from shipment of tea in bulk form reflects a growth of 0.10 billion.

Exports of 246.4 m/kgs for tile period January/October 2003 shows a marginal growth of 53,000 kgs when compared with the export of 246.3 m/kgs during the same period last year. Exports of tea in packeted form reflects a growth of 17.67% whilst exports of tea in bags reflect a growth of 8.48% when compared with the same period last year.

Export earnings of Rs. 54 billion shows a growth of Rs. 1.2 billion when compared with the Rs. 52.8 billion of export earnings during the same period last year. The largest growth has been from earnings of export of tea in packeted form which records a growth of Rs. 1.6 billion. Export earnings from tea bags also reflects a growth of 0.68 billion, the release said.

CIS continues to be the No. 1 market for Sri Lanka tea. Exports to CIS reflects a growth of 7.28% when compared with the same period last year. Exports to Libya, Turkey, Jordan, Saudi Arabia and Japan reflect a growth when compared with the same period last year. The largest decline in exports has been from shipments to Iran which reflects a negative variance of 12.09% when compared with the same period last year. Exports to Syria, UAE, UK and Finland also reflects a decline when compared with the same period last year, the release said.