Tea prices continued to weaken further with the total Auction average declining to Rs. 536.69 from Rs. 610.28 during the corresponding period in 2017 (11%).
Exports totaled Rs. 58.7 billion compared to Rs. 63 billion in 2017, a negative of Rs. 4.3 billion (7%).
Sri Lankan tea production in 2019, consequent to the Government’s decision to lift the ban on the use of glyphosate (weedicide) is likely to give much relief to the producers and in particular, to the large-scale plantations which would be able to carry-out the required agricultural practices to achieve the full potential of the plantations. Further the Government’s decision last month – to allow a more liberal policy on fertiliser – should contribute favourably. Needless to say, subject to extreme weather conditions not being a reality.
However, ageing tea bushes and low productivity levels would be a downside.
Similarly, India with its aged plantations is unlikely to show any significant improvement in its output.
Add new comment