Midst euphoria that market conditions were good, last week the Colombo Tea Traders’ Association (CTTA) annual General Meeting (AGM) achieved precedence being the top news maker. Usual clinical organization that is now hall mark reputation at these events was again maintained. As reported by us yesterday, deputy Minister of Finance Dr. Sarath Amunugama chief guest did not quite respond in tangible terms to concerns raised by Chairman CTTA Avi de Silva on future focus for the industry.

In a rambling speech Amunugama did not identify any area that would receive Government attention but merely added kudos that although the industry had problems no employee was denied employment. Most others had downsized their commercial houses.

The market last week remained good. An outstanding feature was wide spread demand at both high and low elevations. Eastern Brokers reported overall gross average was approximately Rs. 363. per kilo This figure included Uvas as well. Some Uva prices which we would see presently were exceptionally outstanding.

Low growns however continued to dominate prices because of, mainly, Middle East demand. Demand from those sources did not wane, they said.

Although prices were good, Asia Siyaka Weekly tea market report said production in May declined 20 % to 25.5 million kilos. Last year the same period figure read 31.8 million kilos.

Reverting to the CTTA Annual report table 1 in that report recorded that China was the worlds leading producer. China’s production was 1.1 billion kilos in 2008. India produced 980 milllion kilos and Sri Lanka in fourth slot produced 317 . 6 million kilos last year. Kenya produced 345.8 million, kilos. World production was 3.7 billion kilos last year including all producer contries. Japan and Iran too have shown up as producer countries. Which to say the least was surprising. They are not celebrated tea producers.

All told, however the market was on an upward swing and this week too prices are expected to remain high.

All these good prices have not moved to cause good humour among planters. As reported last week, the collective agreement now lapsed continues to plague the Regional Plantation Companies, because wage increases have to be considered, but at what ceiling was the question not answered. Negotiations are at this given time on-going they said.

Uva mediums were significant obtaining high prices. Demodera bordering the low lying road net work leading to Bandarawela recorded good prices at Rs.530. per kilo. El Teb in Passara, on the main ( the only road) road leading deep in to the Madulsima mountains too had good prices selling a line of BOPF at Rs. 370. per kilo.

Of the Western Highs, Lipakelle in the Lindula hills, and Laxapana at the foot of the Peak Wilderness scored good prices, selling BOP at Rs. 405. per kilo.