Ceylon Tea February crop crashes to 13-year low

Sri Lanka’s production in February crashed to a 13-year low down 19.4 per cent at 18.16 million kg compared to last year’s figure of 22.5 million kg, Asia Siyaka Brokers reported.

This is the lowest quantity for the month since 12.8 million kg was recorded in 2009. In that year production crashed following the financial crisis of 2008, the report stated.

Crop loss for the first two months of 2022 was 10 per cent. This year’s quantity of 40.98 million kg is sharply down on last year’s figure of 45.7 million kg in January/February.

The Colombo Tea auction saw 5.35 million kg of tea on offer this week with 2.17 million kg Low Grown Main Grades while 2 million kg were High and Mid Grown Main Grades.

The Low Growns met with good demand. In the Leafy grade catalogues OP1s appreciated in value while Ops met with good demand and sold at dearer rates. Select best OPA held firm; below best and others gained in value. In the Semi Leafy catalogues BOP1s sold at dearer rates, while well-made shotty Pekoe’s held firm; below best and others were substantially dearer.

There was good general demand in the Ex-Estate catalogues. Best Western BOPs were irregularly dearer following special interest. A range of teas moved up Rs.10 to Rs.20 per kg. Select BOPFs were sharply dearer. Below best and bottom moved up Rs.20 to Rs.30. Few of the brighter Nuwara Eliya BOP/BOPFs moved up on a special inquiry; others were irregularly lower. A few Uva/Udapussellawa BOPs moved up by Rs.10 to Rs.20. BOPFs gained Rs.20 to Rs.30. Select best BOPFs moved up Rs.20 to Rs.30, others were dearer at Rs.10 to Rs.20.