

April tea earnings drop to Rs. 6.8 bn
*Shipped volumes this year at 14.8 million slates in at
minus 39 %
Brokers reports received by us have all said the market was strong last week, and that 'tea times' were substantially good; etcetera, etcetera, etcetera. But to- date earnings gleaned from customs data confirmed 14.8 million kilos were exported in April this year recording an alarming drop comparing 2008.The same period. 2008 earnings were. Rs.11.2 billion. Quantity shipped last year was 26 million kilos. That set the tone for a record year last year.
'How did this happen?' Plantation sources said 'Nothing grows without water. This year was one of those drought years.' 'Could this year be another El Nino year? 'Presently it does not point that way but who knows? You'd have to check that with the Met department.' We did. Quite unfortunately we did not have authoritative feed back. Further comment from that source will be reserved for our tea report next week.
End user destinations for Ceylon tea places Russia / CIS countries on the top rung who absorbed 17 million kilos. UAE,9.4, Syria, 8.2, and other Middle East countries who are all recorded usual buyers. Includes Japan as well. (Courtesy Asia Siyaka Weekly tea research report ). But what of the rest of the world? Don't they drink tea? Rhetorical question no doubt but such countries access their tea from other producer countries at cheaper prices.
On that score the Rupee revaluation would make export prices attractive, but realization on accrued benefits would take some time. However with guns going silent and progressive normalization of trade prospective buyers could include those countries we have lost . Notably Egypt, and Pakistan.
There are some positive influences though. Value added exports have been around 45 % this year to end April. Last year the figure reads 41 %.
Much in keeping with international demand this phenomenon records positive progression . More so that value added exports have had positive Tea Board support.
Demand last week was good, brokers said.
Ceylon Tea Brokers reported low grown BOP and BOP specials sold for Rs. 650. per kilo. There were also selections of flowery grades that fetched Rs. 2600 per kilo.
High grown averages were at around Rs. 340. per kilo at the upper end, with corresponding declines for the elevation at Rs.280.
All told the market was good and would be better during the weeks ahead. This week approximately 7 million kilos will be on sale brokers said.
News makers last week were Moray and Laxapana, in Maskeliya, and Mattakelle, Edinburgh and Sommerset in the Nanu Oya district returning outstanding prices.
Meanwhile Ceylon tea exports continued to record decreases to CIS countries, UAE, Syria, Jordan, to name few where Ceylons still command some clout. But that would soon erode if prices are not competitive.
Kenya now leads in Egypt, and Pakistan; both countries which had leader status for Ceylon tea demand.
Further silver lining pointers were that tea in packets, tea bags, instant tea, green tea, have all had increased demand this year.