The Sri Lanka Tea Board confirmed last week , March tea production at 18.1 million kilos was a huge minus variance of some 12.1 million kilos. Just for March mind. March 2008 brought in production figures of 30.8 million kilos. Taken as a percentage it was even more depressing at 41 percent. in the minus category.

Common question that could invariably prop up ‘What is happening?’. Simple answer to an otherwise complex question, is severe drought conditions that prevailed 1st quarter this year. Add to that dismal picture was frost bite late December and into January, that devastated vast tracts of tea land in Nuwara Eliya, and upper reaches of Talawakelle. ‘Nothing grows without water’ said a Planter we spoke to in Maskeliya.

There did emerge some good news though. Customs data analyzed by Asia Siyaka Research, said exports in March 2009, was 29 million kilos; increase of 8 percent .on 2008. Last year exports for March recorded 26.8 million kilos. Supporting that fact was that earnings this year at Rs. 12.4 billion, was more than last year. Last Year records were that earnings were Rs11.4 billion. But the tea sector was not complacent with these plus readings.

Most planting districts reported rains have come. Subject to April showers and good growing conditions, meaning warm mornings and wet afternoons. Crop increases over the past few weeks recorded positive returns. On sale this week would be approximately 6.7 million kilos. Next week expected auction quantity would be higher. At 7.3 million kilos.

Would there be market changes because of increased tea on offer? Director, Ceylon Tea Brokers Ltd., Russell Tennekoon said a reasonably well made tea would sell, and sell well. Not astronomical prices, but sufficient to bring out some form of good humour among planters.

Low growns lost quite substantially Q1 2009. This elevation produced 27.1 million kilos. But last year crop returns were 50.1 million kilos. Similarly crop losses were recorded at all elevations.

Last week 4.9 million kilos were cataloged for auction. Prices were at reasonable levels.

.Last week we reported US imports increased 10 % and that their main supplier was Argentina.. We also said Ceylon Tea was nowhere in sight. We now have some details supporting what we said . Import from Argentina was 45,317 metric tons. Sri Lanka exports to the US was merely 2879 metric tons. Strangely, they also import tea from Germany, Canada, UK, where there is not even the semblance of a tea bush , or tea tree grown in those countries.

Exporters to Australia include Sri Lanka, as being the 2nd largest. But Australia too buys from improbable sources for instance UK, United Arab Emirates, Germany, the US , Singapore too.( Singapore has nothing to export except Management.). But still Australia buys from Singapore.