Sri Lanka tea prices to stay strong.
Sri Lanka’s tea prices are likely to stay strong on good demand from consuming countries and possible shortages caused by disruption of production at key origins like India.
Officials said India’s tea industry is reportedly worried about crop loss due to heavy showers in June and a pest attack. Director General of the Sri Lanka Tea Board H.D. Hemaratne said if Indian tea production drops it could be a reason for increased demand at the Colombo auctions.
Going by previous experience, if India diverts tea from exports for local consumption the vacuum has usually been filled not by Kenya but Sri Lanka. He said any drop in the crop in India, a big exporter, would affect global supply of tea. Tea Exporters Association Chairman Jayantha Keragala said Sri Lankan tea prices were attractive right now. At the moment the country was enjoying very good prices for good teas and the ‘below best’ and ‘bottom’ teas as well.”
One reason for high prices is demand ahead of Ramazan in August. Buying for the winter will start from there onwards. He said good Sri Lankan teas still enjoy high prices and are expected to continue to do so.
