SALE NO: 06 – 06TH/ 07TH FEBRUARY 2018
Sri Lanka achieved the highest-ever annual revenue of Rs.233 billion for its tea exports for 2017.
This is a substantial increase of Rs.48 billion, up 26% from Rs.184 billion achieved in 2016. The previous rupee record was Rs.212 billion in 2014 for an export quantity of 327 Mkgs, while 288 Mkgs were exported in 2017. This also makes the dollar value of exports in 2017, at US$ 1.53 billion, the highest since the value of US$ 1.63 billion in 2014. That year, the country exported the highest-ever volume of 327 Mkgs 12% more than in 2017.
Despite some setbacks, The Sri Lankan tea industry has fared better in 2017, with a total crop increase of 5 % from 292 Mkgs in 2016 to 307 Mkgs in 2017. The total volume exported to China, which is a growing market, was 9.9 Mkgs in 2017, vis-a-vis 7.6 Mkgs in 2016 and is expected to grow in the same manner as the last three or four years. The category which has dominated exports has been the Low-Growns, which contributed over 60% of exports.
Prospects for 2018 also seem to be good with production tipped to be high, barring inclement weather.
The Sri Lankan National average stood at Rs.640.05 per kg for the month of January 2018.This is higher (7.3%) when compared to Rs.596.26 achieved during the same month in 2017. The biggest gains have been from the Low Grown (+9.2%) followed by Medium Grown (+4.4%) and High Grown (+3%).
0.92 Mkgs of Ex Estate teas met with lower demand. Select best Western High Grown BOPs gained selectively following special inquiry, whilst the others together with the below best and plainer varieties were irregularly easier. Select best Western High Grown BOPFs declined, whilst a handful of selected invoices gained. The below best and plainer varieties were easier. Nuwara Eliya BOPs were firm to a little easier at times. The BOPFs were firm on last levels with a few invoices gaining substantially following special inquiry. Uva/Uda Pussellawa BOPs were firm on last levels, whilst the BOPFs were tending easier. High and Medium CTC BP1s were barely steady, whilst the Low Grown types were tending lower. High and Medium PF1s were firm to a little dearer at times, whist the Low Grown PF1s were mostly firm on last levels.
There was fair demand at lower levels for the 3.1 Mkgs of Low Growns that were on offer. In the Leafy segment, best OP1s maintained last levels, whilst the others declined a few rupees. BOP1s were lower to last. Pekoe1s maintained last levels, whilst the bold Pekoes shed following quality. OP/OPAs declined several rupees. In the Small leaf segment, Select best BOPs maintained last levels, whilst the balance met with lower demand. BOP.SP, BOPF.SP and BOPFs were firm on last. Select best FBOPs gained a few rupees, best and below best types met with irregular demand. There was lower demand for the FBOPF varieties. Select best Tippy varieties declined by a considerable margin, best and below best types met with irregular demand.
There was fair support from Russia, Turkey and the C.I.S. countries, whilst Iran was selective. Iraq and Libya lent good support.