People who should have been real winners with price appreciation over the past few weeks are still losers. We specifically refer to Planters, the plantations, and the small holders.

Prices in Colombo have been good. Usually when the Rupee depreciates against the Dollar price differences add relief to the production sector. This did not happen this time. Cost of production ( COP), although gradually decreasing, has at this point of time not recorded significant advantages to the bottom line on the plantations, said plantation sources.

Minister of Labour Relations and Manpower Athauda Seneviratne said last Friday at the ILO forum on Social Dialog that the Tea industry was doing well and did not need the stimulus package offered by the Government to tide over the cash strap now plaguing the industry. What was not mentioned was that plantations were subject to high costs and first three months performance recorded losses of approximately Rs. 200 per kilo.

Plantations were now hard put to recoup these losses and also have the Plantations turn the bottom line to one of stimulating profit.

Sneviratne’s assessment was therefore inaccurate said plantation sources.

Plantation Companies were further stressed that the collective agreement negotiated with Unions first quarter 2007, had lapsed and the new agreement had to be negotiated incorporating demands that would be decided at discussions already commenced.

Neither the Planters’ Association of Ceylon, (PA) nor the Employers’ Federation of Ceylon (EFC) have given any inkling on basis for negotiations. We have not had any feed back from Unions.

Meanwhile brokers weekly tea reports indicated another week of good demand for just 4.4 million kilos that passed through the auctions last week.

All elevations recorded good demand including filler teas from mid grown elevations. Velai Oya on the fringe of the Hatton hills, and Craighead on the Dolosbage border recorded good prices. However a surprise entrant to the top price bracket is Hatale, in Panwila leading to the Madulkelle basin. Hatale secured Rs. 320 per kilo for OP1. Indications are that their top billing standard would be sustained.

Western High growns had usual best sellers score again. Laxapana, Glentilt, and Brunswick, at the foot of the peak wilderness, and Kirkoswald, in the Bogowantalawa Valley were bood price scorers in this elevation.

Of the Nuwara Eliyas, Mahagastota, Lovers Leap, Kenmare, and Tommagong came up best in the market.

At this week’s sale volumes will be at 4.9 million kilos. Slight improvement since last few weeks.

Asia Siyaka Tea Brokers Ltd., reported in their weekly market report that Darjeeling would be approved by the European Commission as geographical Indications, a recognized standard in Europe as being a preferential commodity.

This would leave Ceylon tea another step behind and perhaps further contribute to its decline in Russian and Middle East markets.