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ECONOMYNEXT – Sri Lanka’s tea have been sold at the highest price ever across all elevations in September 2022 selling at an average of 1,599.49 rupees per kilogram compared to 557.38 rupees in the same period the previous year, as the currency collapsed steeply following mistargeted interest rates while the global tea prices shot up.
September prices surpassed the previous record price reported in August 2022 of 1,508.21 (USD 4.18).
In dollar terms, the average sale price for Sri Lankan tea had been 4.41 dollars per kilogram
Elevation-wise, the low-priced High Growns had been sold at an average of 1,448.14 rupees against 557.38 rupees
(an increase of 890.76)compared to last year, Ceylon Tea brokers’ data showed.
Medium Growns recorded 1,336.96 rupees from 550.93 rupees (up 427.62 rupees) in 2021.
The most demanded Low Growns achieved 1,706.02 rupees in September 2022, up from 621.17 rupees (up. 1084.85) in the previous year.
“All three elevations recorded an increase during the period of January – September 2022 when compared to the corresponding period of 2021 in the Rupee & Dollar value,” Ceylon Tea Brokers, the main auction house said in it’s report.
In Sri Lanka Mercantilists and soft-peggers usually claim that inflation comes from imported prices. However, prices of all traded goods, whether imported or exported go up when the central bank prints money to depreciate the currency.
Global prices also go up in dollar terms (commodity booms) when the US Federal Reserve prints money. At the moment commodity prices are booming due to the so-called ‘Powell Bubble’ the worst since the Greenspan-Bernanke bubble which broke in 2008/2009. (Colombo/Oct09/2022)
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