John Keells Tea Market Report:
Ceylon Tea logos help industry
On April 4, the Government and the Sri Lanka Tea Board launched the
Ozone friendly Ceylon Tea Logo and Ceylon Tea name as well as
agro-climatic regional names and logos as certification marks under
geographical indicators in order to add value to Premium Ceylon Tea,
The use of new logos to market tea will also prevent overseas packers
misusing the name by packing other origin teas as "Ceylon Tea".
It will also provide consumers authentic tea and will further
strengthen and consolidate the position of Ceylon Tea in the
The new logos under the geographical indicators comprises of specific
Agro-climatic regions where tea is grown in Sri Lanka; Nuwara Eliya,
Dimbula, Uva, Udapussellawa, Kandy, Ruhunu and Sabaragamuwa.
Sri Lanka is the only country in the world to be recognized as an
Ozone friendly tea manufacturer and is targeting an export market of US
$ 20 billion tea by 2020.
On the Global front production in major black tea producing
countries, have been unpredictable due to erratic weather conditions.
Although East Africa has had a little more rain recently, overall crop
situation continues to cause concern as the rains have once again eased.
If the weather conditions do not improve Kenya in particular will be
in danger of a poor second quarter as well, after experiencing a
miserable first quarter where production dipped to 85.1 mkgs compared to
111.7 mkgs. in 2010, a negative variance of 26.5 mkgs.
India on the other hand has managed to recoup the loses with a good
performance in March particularly from the Assam Valley where crops have
doubled compared to 2010.
South Indian performance continues to be somewhat disappointing with
a to-date deficit of 5.2 mkgs in the first quarter.
The good showing from Assam Valley has enabled all India crop to
register a marginal increase of 0.4 mkgs in the first quarter when
compared with 2010.
Sri Lankan crop on the other hand has had a very satisfactory
performance in the month of March from all elevations, thereby
registering a 3.0 mkgs increase in the first quarter.
With April crop too, likely to exceed the corresponding period of
2010 we could expect to see a satisfactory second quarter.
With the high intakes we have seen of late, the worry would centre on
product quality which has taken somewhat of a beating Western Teas.
Select Best BOPs were barely steady, other good invoices declined Rs
10 to Rs 15, Below Best sorts eased by a similar margin and more,
plainer varieties shed Rs 15 to Rs 20 on average. Select Best BOPFs
eased Rs 10 to Rs 15, other good invoices were irregular following
quality, Below Best sorts eased Rs 10 to Rs 15, plainer varieties
declined Rs 15 to Rs.20 and more. Medium BOPs eased Rs.15 Rs.20 on
average. BOPFs shed Rs 10 to Rs 15 and more.
Nuwara Eliya Teas
BOPs shed Rs 20 to Rs 30 on average, whilst the BOPFs eased Rs 15 to
Rs 20 and more at times.
BOPs declined Rs 10 to Rs 15, whilst the BOPFs were Rs 15 to Rs 20
easier. Uda Pussellawa BOPs declined Rs 10 to Rs 15 and more, whilst the
BOPFs shed Rs 20 on average.
Select Best Low Grown PF1s declined Rs 15 to Rs 20, others were Rs 10
to Rs 15 easier with a large volume remaining unsold. BP1s were Rs 20 to
Rs 25 lower.
High and Medium PF1s shed Rs.15 to Rs.20 on average. BP1s eased Rs 10
to Rs 15 and more at times.
Fair demand. Select Best OP1s appreciated Rs 5 to Rs 10, Best types
were fully firm, Below Best and poor sorts eased Rs 5 to Rs 10. Select
Best BOP1s gained Rs 5 to Rs 10, Best types were irregularly lower by a
similar margin, Below Best and poor sorts were firm to Rs 5 to Rs 10
lower at times. Select Best OPs declined Rs 20 to Rs 40, Best types too
were lower by Rs 10 to Rs 15, Below Best and poor sorts shed Rs 5 to Rs
10. Select Best OPAs maintained last levels, however the balance eased
Rs 10 on average. Select Best Pekoes appreciated Rs 20 to Rs 40, the
balance were firm to Rs 5 to Rs 10 lower following quality. Select Best
Pekoe1s shed Rs 10 to Rs 20, Best and Below Best types were steady,
flaky types tended lower by Rs 5 to Rs 10.
Select Best BOP/BOP.SPs maintained last levels, Below Best and poorer
sorts Shed Rs 5 to Rs 10.
A few Select Best wiry FBOPs advanced Rs 10 to Rs 20 and at time
more, Best and Below Best types were lower by Rs 5 to Rs 10, poorer
sorts shed Rs 10 to Rs 15. Select Best FBOPF1s maintained last levels,
Best and Below Best types were lower by Rs 10 to Rs 20, poorer types too
declined by a similar margin.
Select Best tippy varieties declined on last levels, Below Best and
Best types shed Rs 20 to Rs 30, poorer types were lower by a similar
Select Best liquoring Fngs1s depreciated by Rs 10 to Rs 15, whilst
Below Best and poorer sorts were lower by Rs 15 to Rs 20. Select Best
and Best BMs sold on firm levels, whilst the poorer sorts were lower by
Rs 5 to Rs 10. All BPs depreciated Rs 20 and more at times. All Low
Grown Fngs were lower by Rs 15 to Rs 20.
Select Best BOP1As along with the Best appreciated Rs 10 to Rs 15,
whilst the Below Best and poorer sorts declined Rs 10 to Rs 20 and more
Select Best Dust1s appreciated Rs 5 to Rs 10, whilst a few Dust1s in
the Best category maintained last levels, Below Best and poorer sorts
shed Rs 15 to Rs 20 and more at times.
Clean secondaries Dusts gained Rs 5 to Rs 10, whilst the Below Best
types were firm, poorer sorts declined Rs 5 to Rs 10. Best Low Grown
Dust/Dust1s appreciated Rs 5 to Rs 10, whilst the balance were
Tea crop maintains average growth
Tea smallholders’ crops recorded an average growth during the first
four months. However, during April the production dropped slightly due
to the New Year holidays. Speaking to Daily News Business Tea
Smallholders Association Chairman, Nevil Ratnayake said the production
capacity of the small-scale tea manufacturers was commendable.
The association expects an average total production of around 320
million kilograms for the year.
To increase the production capacities the Tea Small Holdings
Development Authority (TSHDA) and the Tea Research Institute (TRI) has
introduced new varieties of clones, which could tolerate the droughts
and the plant diseases. These clones are now being distributed among the
Chairman said dolomite, zink and sulphate are being used as
alternative fertilizers to enhance the production and the fertilizer
sprayers are being distributed to the 400 sub-committees under
concessionary prices and instalments.
“With new technology and new methods being introduced we hope that
the small tea growers would be able to achieve the desired targets by
the end of the year,” he said.
C de S
Rubber fetches good prices
The average price of a kilogram of RSS 1, RSS 2, RSS 3 and RSS 4
rubber recorded Rs 560, Rs 555, Rs 540.40 and Rs 530 respectively at the
Colombo rubber auction held last week.
A Rubber Development Department official said the average price of a
kilogram of Latex crepe1, Latex crepe 2 were Rs 618 and Rs 605
Latex crepe 3, Latex crepe 4 recorded Rs 590 and Rs 518 respectively
at the auction yesterday.
According to the Colombo rubber auction held on May 4, Latex crepe 1,
Latex crepe 2, Latex crepe 3 and Latex crepe 4 were Rs 602, Rs 590, Rs
545 and Rs 535 respectively.
The average price of a kilogram of SC.CR 1X(BR) , SC.CR 2X(BR), SC.CR
3X(BR) and flat bark were Rs 505, Rs 482, Rs 464 and Rs 456 respectively
at the auction held yesterday. According to the Colombo rubber auction
held on May 4 2011, SC.CR 1X (BR) ,SC.CR 2X (BR) ,SC.CR 3X (BR) were Rs
525,Rs 481 and Rs 466 respectively.
Prices of rubber vary each week due to the barganing power of buyers.