The Tea industry seems to be plagued with one debacle after another. Late last year there was unprecedented drop in prices. Nobody wanted ‘The best tea in the world’ and market forces forced Ceylon tea out of the international tea scene. ‘They’, whoever ‘they’ could collectively be styled buyers purportedly caused some ‘dark’, influences to take stride and panic hit the tea industry.

However, first auction this year things seemed to brighten and offerings from all elevations moved up. Chairman Colombo Brokers Association Sarath Sirisena said ‘The market moved up yes; but don’t for one moment think we are out of the woods. We are not. Last week was good, after almost three months of continuous ‘Up again, down again’ symptoms of uncertainty it was refreshing, more so very welcome’. Sirisena was concerned though. That indications were that crop targets would not be met. Questioned why, he said low growns particularly were recording minus production returns, and when final crop figures are collated later this month such revelations would abruptly negate what ever euphoria worked into a climax that tea was after all a winner, than a looser.

‘Could it be that low growns were now adhering to standards and plucking two leaves and a bud, rather than the unpardonable habit five leaves and a bud? Sirisena said ‘no comment’.

Reverting to quoted comments from Chairman Asia Siyaka Tea Brokers Ltd, Anil Cooke, who said, at the height of the tea crisis last year, that tea had resilience to return to its usual ‘Ceylon Tea’ Brand standing, what he said then perhaps prophetically, seems now to have come true. Last weeks performance was good brokers said.

Our strap line above said there were problems. The Asia Siyaka weekly tea Market report said that it was now highly unlikely that crop would surpass or get anywhere near the best year on record. That being 2006, when 326 million kilos was produced.Tea Board data released last week showed that Nevember production at 24.6 million kilos, was the lowest since 1999. Production drop was indicated primarily from low grown elevations where decline was observed to be 23 %.

Adding to tea woes exports in November at 22.3 million kilos was down 15 % comparing 2007. Last year November production was 26.1 million kilos. Added to these insurgent rumblings, we have some information that all is not well with the RPCs.

We would report fully on this aspect next week.

Earnings to end November 2008, were at record levels in excess of Rs. 127.6 billion. Well above 2007 at Rs 102.1 billion. It was recalled that 2007 was certainly not a good year. Tea did maintain their leading status as being the highest net income earner.

There was alround ‘Hey fellow well met ‘ camaraderie at the auctions last week.. Question was would it last.

General consensus was that onset of the Western quality season would have stabilizing influences on production, and attraction of traditional buyers would be more positively pursued.