Ceylon Tea slow to reach markets
As the tea industry braces for its second e-tea auction scheduled for April 16 exporters are concerned that their teas are slow to reach markets.
Under the circumstances, where the entire world is facing a crisis with lockdowns and border closures, the tea industry seems to find that getting the teas bought at the auction across to buyers will become slow. “Suddenly there are lockdowns – but on a daily basis we are pulling through,” Ceylon Tea Traders Association (CTTA) Chairman Jayantha Karunaratne told the Business Times.
He noted that generally tea has gone through problems in the past but the industry has been resilient and given the current situation with the coronavirus “you can’t plan anything so we keep reviewing this on a daily basis”.
A bigger auction is planned next week in three days on four platforms that would mean four separate auctions carried out simultaneously, he noted.
The industry is receiving support from the government, he noted adding that while things are moving in markets like Russia and Japan, sanctions even during the coronavirus is still on in Iran that is causing problems for the sale of Ceylon Tea, he explained.
As exporters, he noted that they are working according to the guidelines issued by the Health Ministry and with a skeletal staff as a result some of the costs have also increased like providing transport and meals to staff. However, the industry believes they should be able to improve within the next few months.
Asia Siyaka chief Anil Cooke noted that the first ever e tea auction was a success with prices. There was said to be “unbelievably strong buyer response with prices significantly higher well above the rate of depreciation of the dollar”.
Inspite of the fact that the hotels, restaurants and eateries have closed up around the world, the retail sales continue to remain very high as tea forms part of the essential food basket in some countries and as a result the overseas buyers have exhausted stocks, Mr. Cooke explained.