ECONOMYNEXT- Sri Lankan tea prices are continuing a steady decline this year compared with last year, a senior industry official said.
“These days the market is dropping because of the lack of quality and the volume of tea is high and the demand is less,” said Waruna De Silva, chief executive Ceylon Tea Brokers.
“The lack of quality results from our tea bushes being old and insufficient replanting taking place along with certain weather conditions.”
The cumulative Colombo auction average for January-May 2019 is down 41.64 rupees or almost seven percent to 574.90 rupees a kilo, from 616.54 rupees fetched in January-May 2018.
The auction average prices were lower for all three elevations when compared to last year, market reports showed.
According to the latest auction report, high grown, mid grown and CTC tea prices were all declining and barely steady.
High grown Best Westerns declined by 30 rupees per kilo while mid grown BOP and BOPF prices were lower by 20 rupees and 20-30 rupees respectively. CTC (Crush, tear, curl) tea declined all around.