By:Staff WriterColombo (LNW): Sri Lanka’s tea prices went up despite the low volumes at the auction on March 02 followed by rupee appreciation, brokers said.
All elevations record marginal gains YoY, both in rupee and dollar terms.Despite the declining volumes, tea prices are on the rise year-on-year where national sales average both in rupee and dollar terms, Forbes and Walker Tea Brokers said.
Forbes and Walker Tea Brokers said in March as well as in the first quarter of 2023 all elevations have recorded significant gains compared to the corresponding period of 2022.
However, the national Tea Sales Average (TSA) for March recorded a decline of Rs. 175.20 to Rs. 1,263 ($ 3.82) compared to the February 2023 average of Rs. 1,438.20.
Sri Lanka’s tea crop in February marginally increased by 3.04% to 18 million kilos mainly Medium and Low Grown – slightly recovering from the fall last year due to fertilizer shortages and low rain.
Tea production for January 2023 was 19.14 million kilograms, down from 22.8 million kilograms in 2022.
Forbes said in comparison to the March 2022 average of Rs. 848.08 ($ 3.35), the TSA shows a significant increase of Rs. 414.92 YoY, whilst gaining 0.47 in dollar terms as well. In dollar terms, the March 2022 average of $ 3.82 is an increase of $ 0.47 when compared to the March 2023 average of $ 3.35.
Forbes, giving a breakdown of elevation averages for March said, the High Grown average of Rs. 1,303.85 ($ 3.94) reflected a decline of Rs. 98.70 month-on-month vis-à-vis Rs.1402.55 ($ 0.08) of February 2023.
However, when compared to the March 2022 average of Rs. 761.39 ($ 3.01), the rise was a significant Rs.542.46 YoY, whilst in dollar terms it was $ 0.93.
The Medium Grown average for a calendar month totalling Rs. 1,127.89 ($ 3.41) for March 2023 was a decline of Rs. 129.38 month-on-month vis-à-vis Rs. 1,257.27 ($ 3.46) of March 2022. But when compared to March 2022 average of Rs. 737.88 ($ 2.91), it is also a significant increase of Rs. 390.01 YoY, whilst in dollar terms it was $ 0.50.
Low Grown too recorded a decline month-on-month of Rs. 1,282.79 ($ 3.88) in March 2023 was a decline of Rs. 207.20 month-on-month vis-à-vis Rs. 1,489.99 ($ 4.10)) of February 2023.
Nevertheless, when compared to the March 2022 average of Rs. 914.02 month-on-month is an increase of Rs. 368.77 YoY with a gain of $ 0.27 in dollar terms.
Forbes also said all elevations recorded significant gains during the period of January-March 2023 when compared to the corresponding period of 2022, both in rupee and dollar terms.
ea is an industry in which Sri Lanka has established a global reputation – Ceylon tea, as it is known worldwide, is considered to be amongst the best black tea in the world. This is mostly a result of Sri Lanka’s climatic and geographic conditions, which yield a quality of tea that is exceptional.