Tea Board to intervene in auction for few more weeks
The Sri Lanka Tea Board will continue to intervene in the tea auction
at least for a few more weeks, to ensure that confidence remains high
among buyers, the Plantation Industries Ministry said yesterday.
Ministry sources said Minister D.M. Jayarathne had briefed the
Cabinet regarding moves to keep buyer enthusiasm at high levels with
several new initiatives on the way to sustain momentum with regard to
The Tea Board intervened at the auction on October 24 by purchasing
tea up to 917,995 Kgs at Rs. 231.8 million mainly from the low grown tea
catalogs. The Ministry noted that this had a salutary effect on the
prices and had made a positive impact on the enthusiasm of buyers
bidding at the auction.
Thus although authorities had made plans to purchase tea through
brokers while identifying relevant lots and prices, the necessity to
intervene in the Auction held last Tuesday had not arisen as biddings
and prices remained reasonably high than expected , the sources said.
The Board decision not to introduce teas, withdrawn at last week’s
Auction too had a positive impact on raising prices and buyer
enthusiasm, they added.
As a result, the total volume on offer at Tuesdays auction had
dropped down to about 5.5 million Kgs.
The competition at the auction next week is expected to be higher as
Russian buyers come into play a more active role.
According to sources, Russian buyers are reluctant to buy between
November 15 and December 15 as most Russian Ports would be closed due to
Thus as the Russians rush to have buffer stocks in preparation for
winter, the competition is expected to grow during next week fetching
better prices for Sri Lankan tea, the sources said.