Business

Colombo Tea Auction Sees 4 Million Kilograms Sold Amid Irregular Market Trends

This week’s Colombo Tea Auction concluded as a one-day restricted sale, with a total volume of 4.0 million kilograms due to intervening holidays. An overall irregular market trend was observed.

Ex-Estate offerings declined to 0.6 million kilograms from the previous week’s 0.7 million kilograms, reflecting a decrease in quality and availability of higher-grade teas. Best Western BOP/BOPFs weakened by up to Rs.50 per kilogram on average. Teas in the Below Best and Plainer categories started cautiously, with prices lower by Rs.20-30 per kilogram, although some gradual price recovery was noted as the sale progressed. Nuwara Eliya BOP/BOPFs saw reduced activity, attributed to quality issues, while Uda Pussellawa teas at the lower end experienced slight appreciation amid mixed results for Uvas.

High and Medium Grown CTC teas were irregular, remaining stable at previous levels, whereas Low Grown types showed buoyancy. Selective interest from shippers to the UK and South Africa was noted, while those to Japan and the CIS remained strong.

Low Growns totaled 1.8 million kilograms, with fair demand across Leafy, Semi-Leafy, and Tippy categories. Well-made BOP1s in the Leafy and Semi-Leafy catalogues remained firm, while OP1s were steady. Select Best OPs declined, with the rest selling around last levels. General firmness was noted for OPAs and Select Best PEK/PEK1s, while the balance held steady.

In the Premium catalogue, Very Tippy teas attracted good demand and saw price increases. Best and clean leaf Below Best varieties also appreciated, while the remaining lots were stable compared to last week.