ECONOMYNEXT – Sri Lanka tea prices showed a marginal appreciation amid a dip in Indian production due to the Coronavirus pandemic, along with Chinese and some winter buying from Russia, brokers said.
Indian tea production is expected to come down by 20 percent as the country may be in lockdown for a while, traders said, which is what gave way to the high prices we experience at the moment.
Chinese buyers are fairly strong at the moment, which helps keeping the market buoyed, traders said.
Sri Lanka sold 5.3 million kilograms of tea, selling 0.6 million kilograms in Ex-Estate teas (teas sold while in the factory itself to retain quality) while selling 2.5 million kilograms in Low Grown (Leafy/Tippy) teas.
Sri Lanka sold 5.5 million kilograms of tea in the auction held in the previous week.
Market overview
The seasonal winter buying which would have boosted the market during these days in a normal context is not that strong this year due to breaks in tradition and unprecedented pandemic situations affecting the whole world, throwing it off course.
Discussions are also underway for an oil for tea deal with Iran, traders said.
Traders said that volume-wise we are facing a rough 15 percent shortfall when compared with last year’s crop.
Indian tea production is expected to come down by 20 percent as the country may be in lockdown for a while, traders said, which is what gave way to the high prices we experience at the moment.
Chinese buyers are fairly strong at the moment, which helps keeping the market buoyed, traders said.
Sri Lanka sold 5.3 million kilograms of tea, selling 0.6 million kilograms in Ex-Estate teas (teas sold while in the factory itself to retain quality) while selling 2.5 million kilograms in Low Grown (Leafy/Tippy) teas.
Sri Lanka sold 5.5 million kilograms of tea in the auction held in the previous week.
Market overview
The seasonal winter buying which would have boosted the market during these days in a normal context is not that strong this year due to breaks in tradition and unprecedented pandemic situations affecting the whole world, throwing it off course.
Discussions are also underway for an oil for tea deal with Iran, traders said.
Traders said that volume-wise we are facing a rough 15 percent shortfall when compared with last year’s crop.
