|
|
 |
 |
 |
| Monday, 16 February 2004 |
 |
|
 |
Business | |
| News Business Features Editorial Security Politics World Letters Sports Obituaries
|
Tea market reinvigorates; brokers comments justified by Steve A. Morrell The Tea market reinvigorated last week and justified Brokers comments previously that prices would bounce back. Well made Westerns were in demand as well as select Nuwara Eliyas. But disappointment that the Western quality season did not last long, particularly the high elevation Teas, did have its adverse influence, but not to cause panic in the trade, said Sriyan Senadhira, and Sudath Munasinghe Directors JKH (Tea) Ltd. Although weather conditions remained dry in the Nuwara Eliya District, with cold nights and low temperatures, the expected wide hygrometer differences were not experienced which negated any hope of quality manufacture. The Western slopes and high elevation estates switched to bright thick liquoring teas which was good thinking, they said. Brisk buying was seen at last week's auction. Six million kilos on offer were, sold in 9211 lots. Intense competition was witnessed from UK, USA, Japan, and The Continent with strong support from Russia and CIS Countries. However, the depressing phenomenon was the absence of Pakistan. Identified garden marks which maintained factory standards coupled with a good percentage of leaf fines were rewarded. Somerset on the Western slopes of the great Western Range was the pick that fetched Rs. 275 for a BOP. This week too Lover's Leap on the outskirts of the urban border of Nuwara Eliya did well to record Rs. 355 for a BOP line. Vellai Oya in the upper reaches of the Hatton hills with Kenilworth at the Ginigathena pass, both gardens selling under the mid grown catalogue, sold at Rs. 210 & Rs. 232, which were elevation best. All in all the trade was pleased, as were the planters, said Senadhira and Munasinghe. The trade performance to date overall has shown an improved environment of sustained good management notwithstanding improved market conditions. The macro picture indicates overall prices which have peaked at 161.29 to date 2004, compared to the corresponding period in 2003 which was 151.63; an appreciation of Rs. 10 which was good they said. Commenting on market trends Bryan Baptist, Director Bartleet & Co Ltd., told the Daily News, that the absence of Pakistan was causing concern in trading circles. More so that Kenya is now the major exporter to Pakistan commanding exports of 67 million kilos annually. Sri Lanka which had the lead slot has now slipped to seventh position which has gravely affected the market. The SAARC conference was expected to yield salutary results for zero trade traffis between Sri Lanka and Pakistan but this did not materialise, Baptist said. The alarming aspect was that other African Countries Tanzania, Burundi, Uganda and Malawi collectively exported 16.4 million kilos to that destination, whereas Sri Lanka languished with a minimal 3 million kilos. Baptist said that if this trend is not arrested in the short-term it would have adverse repercussions is and the long-term effects would be devastating. This aspect of the Tea Trade should be an urgent consideration of the Government, he said. Of recent origin which caused concern to the Trade was that Kenya had also eroded Ceylon Tea exports to Egypt. Egypt was a major importer of Ceylon Tea. Kenya has displaced Sri Lanka from their position of preferred trade partner and if immediate action is not taken towards positive promotion in these countries and also the US, consequences would not project a pleasant picture. Value addition should be considered positively, he said. 'At present implications on trade projections for bulk exports too should be of primary importance,' he said. Ceylon Tea is doubtless the best produced in the world, and if this projection is to be sustained consistent marketing and collective action should be the order of the day. |
|
News | Business | Features
| Editorial | Security
Produced by Lake House |
