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Recouping crop losses are now a P 1 item in all tea growing countries and according to compilation recorded by Eastern Brokers Ltd.., deficit performers seem to have taken action to reduce their minus bottom lines. Particularly India. Their vigorous rebound has shed desultory returns seen about six months ago, Their present crop returns are speedily reducing deficit bottom line, and all tea monitors, agree India would stage dramatic recovery early next year. And their Global standing would not be affected..
Conversely Sri Lanka has a long way to go and may yet be last of the big players to recover. If at all.
Both India and Kenya are recovering fast.
Tea Board releases said approximately 40 million kilos are in deficit.
Tea has had an year of disaster although they were at the bottom line comparatively, they did not need be at that level, because Regional Plantation Companies (RPCC), had the benefit of the Asian Development Bank (ADB) Loan facility these past approximately three years amounting to some 3.1 Billion Rupees.
Influx of these funds have apparently had no positive effect on the industry, because when ever we contacted the Planters' Association they have been on record indicating negative returns.
The Loan period would end this year. The ADB, said at the last assessment conference that this would be the last loan facility to the tea industry.
It should also be recorded that effective 1979, the Tea Industry has had influx of Loan funds and donor funds from the World bank, The ADB and Governments of Netherlands and Norway. Under various projects. What these projects were and funds expended would be informed in our ensuing articles.
The tea market remained good last week too. Both Low growns, and Westerns maintained good sales averages.
Eastern Brokers said 6.6 million Kilos were sold last week, and demand described 'Good'. They said the Broken Orange Pekoe, BOP Grade sold at increased prices gaining substantially about Rs. 10. to Rs. 15 per kilo. :Low growns did better at selling averages of approximately Rs. 20. per kilo. .
This week 6.7 million kilos will be on offer. Predictions are the market will remain strong.
Meanwhile rival trade Unions have threatened trade Union action demanding basic wages of Rs, 405. per worker per day. We did not seek comment from the Planters' Association how they would cope with this new demand, and its impact on the industry.
