ECONOMYNEXT – Sri Lanka’s low priced medium grown tea prices fell in September fourth week sale to 1,358.97 rupees a kilogram, from 1,40.6.80 rupees per kilogram in the previous week, Ceylon Tea Brokers data showed.

In the last week of September, medium grown averaged at 3.74 dollars a kilogram down from 3.88 a week earlier.

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.

At the September 30 sale auction, the Low Grown leafy/Tippy variety had seen a drop in demand selling only 2.0 million kilograms.

The Ceylon Tea Brokers auction statement shows that tea prices across all elevations have fallen between 100 to 200 rupees.

Low Grown attract the highest prices for Ceylon Tea.

In the September 4th week auction, the Low Grown Tea sale average was 1,774.30 rupees, up from 1,754.66 rupees in the previous week.

In dollar terms, it had moved up to 4.89 dollars per kilogram, from 4.84 dollars in the previous week.

BOP1’s all better types declined. Poorer sorts were marginally dearer.

OP1’s Select best were lower whilst below best varieties were maintained. Poorer sorts were
firm to dearer.

OP’s well-made varieties were barely steady, whilst below best maintained. Others and bottom were fully firm to dearer.

OPA’s select best together with best OPAs irregularly lower whilst below best and poorer types fully firm to dearer.

FBOP/FBOP1’s Select best and best had a sharp decline whilst others held firm.

BOP’s All types were lower to last.

BOPF’s All round lower market. FBOPF/FBOPF1’s Select best and best had a sharp decline, whilst others held firm

High Grown

The High Grown auction average was 1,523.41, up from 1,519.95 rupees.

In BOP, Best Westerns were firm. Below best were firm to Rs.50/- per kg lower. Plainer types too followed a similar trend.

Nuwara-Eliya’s remained firm. Uda Pussellawa’s were irregular. Uva’s maintained.

In BOPF, Best Westerns sold around last. Below best Plainer teas maintained. Hardly any offerings
from Nuwara Eliya’s. Uda Pussellawa’s firm to marginally easier. Uva’s maintained.

The elevation has experienced heavy rains in the past week.

Medium Grown

The Medium Grown auction average for the week was 1,358.97 rupees down from 1,406.80 rupees a week before.

This week, BOPF’s Cleaner types maintained whilst all others declined..

In BOP1, Select best, best and the below best declined by Rs.100/- per kg whilst the Plainer teas lower by Rs.50/- per kg.

While OP1’s in general, lower by Rs.100/- per kg.

In the PEKOE/PEKOE1 PEK category in general, appreciated by Rs. 50/- per kg while PEK1’s Select best and best increased by Rs. 100/- per kg whilst all others gained by Rs. 50/-
per kg.

OP/OPA in general, is easier by Rs.50/- per kg

In the FBOP category, Select best and best declined by Rs. 50/- per kg whilst all others were firm.

PEKOE/PEKOE1’s Select best, best and the below best shed by Rs.100/- per kg whilst the Plainer teas dropped by Rs.50/- per kg.

FBOP/FBOPF1’s Select best lower by Rs.150/- per kg whilst all others eased by Rs.100/- per kg.

CTC

High-grown BP1s had hardly any offerings while PF1’s irregular.

Mid-grown BP1s had been maintained.

Low-grown BPIs and PF1 were firm.
(Colombo/Oct09/2022)