There was a crucial meeting last Friday convened by the Tea Board ( by whom seems sketchy at this point in time), and decisions reached were that 25 % Tea already bought and paid for by The Tea Board would be re-sold. Tea stocks bought was stored in Brokers’ go downs, as reported by us over the past few weeks. This would ease storage capacity Brokers said.

However equally important was that the decision to aid all Tea factories through bridging funds was taken at this forum. It was decided 15 days expenditure be made available immediately to each entity to tide over the financial crisis. Modalities were being discussed and details would be revealed today, or sometime during the week indicating nitty gritty and detailed mode of its implementation. ‘Extremely good news’. ‘Not all we expected but not too bad. said many sources in the Tea Trade notably the Tea Factory Owners’ Association.

Wide ranging benefits although seemingly insignificant would mean that factories purportedly closed would re-open. More importantly that small holders could continue production, and their leaf would be accepted.

It was however stressed that expediency could not be allowed to damage the industry further, and small holders should now adhere to norms and standards of leaf harvesting.

Plantation sources were not available for comment when this report went to press, but they too would have salutary remarks that the entire problem was partly solved. Not fully, but partly so. Nevertheless somebody appears to have blinked.

Meanwhile Brokers’ Weekly Tea Market reports indicated bleary news. The auctions seemed dead they said. Not usual bluster and fervid activity one sees at normal auctions. Although quality saw improvement Westerns and Mediums declined and did not fetch prices they deserved.

Sri Lanka tea Board in its October report, confirmed October production had declined and was now at critical levels. October Tea production at 23.9 million kilos was low compared to 2007. The lower harvests indicated drop of approximately 8 %. Last year October figure was 26 million kilos harvested. Reasons for crop drop was that small holders did not fertilize and Plantations companies, some of them, had reduced their fertilizer inputs. All tied up with prohibitive cost of fertilizer, they said.

Asia Siyaka Brokers report said October production was lowest since 2005.

However forex earnings have now topped 1.6 billion dollars to end October. Total exports January to end October this year recorded 270.8 million kilos notably highest on record. Dollar gains are also recorded to be highest on record.

Shipments to main export destinations continued. CIS, UAE, Iran, Turkey, and Saudi Arabia.

Interestingly volume exports to Syria, Kuwait, have shown increases. Also noted was Japan Germany the Netherlands and Austria had increased their intake. Particularly Western High growns.

Rupee earnings have topped a massive figure of 118. 3 billion recording 30 % increase over last year.