Ceylon tea stocks: Orders held up
View(s):Ceylon Tea prices are likely to go in for a correction as the export numbers surged in the recent past and exporters are facing concerns of their stocks not moving as countries continue to be in lockdown.
With most of the hotels, restaurants and cafes in other countries still remaining closed or partially opened there are growing concerns that this sector is not buying tea stocks as in the past, Tea Exporters Association (TEA) President Jayantha Karunaratne said on Monday.
He noted that while all in the industry have some volume of exports to this sector including airlines the sales have slowed as most are still not functioning.
“If you are supplying to the health sector that is moving as usual,” he explained, adding that in fact some of the regular orders are on hold.
Sri Lanka faced a dual scenario with the drought in the first part of the year and reduced production that led to a spike in prices and now exports are down by about 23 per cent, it was noted.
Once the tea bagging section was a 24-hour operation but today they work only during the day time, local staff particularly those from outside of Colombo are concerned about travelling to work, he said.
“We depend on our suppliers,” he noted in terms of obtaining the packaging material that adds value to the exports. Currently there is a backlog on packaging as well. (SD)