7 hours Ago By Sahan Weerasooriya
Analysts see budget-conscious international buying amid global economic pressuresThis week’s Sri Lanka tea auction recorded the highest volume since February, with total offerings reaching 6.45 million kilograms (M/Kgs). However, the market displayed a mixed performance, with high-quality Broken Orange Pekoe (BOP) varieties facing price declines while lower-end teas saw appreciation.
Select Western BOP/BOPF teas, typically among the most sought-after, dropped by over Rs. 100 per kg, while others in the category saw smaller declines. Nuwara Eliya BOPs, known for their delicate flavor were mostly unsold, and when sold, fetched up to Rs.
200 per kg less than previous levels. Uva BOPs also declined by up to Rs. 50 per kg, reflecting weaker demand for premium liquoring teas.
In contrast, teas at the lower end of the market fared better. Below Best BOPs remained steady, while BOPFs in the same category fell by Rs. 50 per kg or more, influenced by inconsistent quality.
Meanwhile, Low Grown PF1s (CTC grade) saw a firmer trend, with some appreciation in value.The Leafy and Semi-Leafy sector saw Select Best BOP1s maintain stable prices, while OP1s (Orange Pekoe) were irregular—well-made varieties eased, but others appreciated. In the Tippy segment, high-priced FBOPs dipped, but Best and Below Best grades held firm, with the lowest-end teas gaining value.
Despite price corrections, all categories met fair demand, with Low Growns dominating at 2.6 M/Kgs. The Premium catalogue showed selective firmness for very tippy teas, while others eased or declined.
Analysts suggest that the dip in high-quality teas may reflect subdued demand from key export markets, while the resilience of lower-grade teas indicates steady domestic and budget-conscious international buying.“With global economic pressures persisting, auction trends may continue fluctuating in the coming weeks,” they said.– Reported using data from Forbes & Walker Tea BrokersBy Sanath Nanayakkare.
