Some premium tea varieties remaining unsold in November

By Steve A. Morrell

Tea brokers reports for November 2024 indicated that while the quantity of tea sold indicated that demand was not at its peak, some premium district produce remained unsold.

Our information was that BOPF grade tea from Nuwara Eliya remained unsold. Brokers added rather than sell at lower prices such teas were withdrawn. Last week too the same reason was attributed to teas from Nuwara Eliya being unsold.

The main reason given for this phenomenon by the trade was not that the produce was substandard but that prices offered were not commensurate with the quality on offer. We did not receive any positive responses to the effect that this drawback would be rectified any time soon. However, there was a consensus that with the onset of the Western quality season improvements could be expected.

Rainy weather prevailing in most areas of the Western hills affected the quality of tea, but the general view among tea producers was that weather conditions would improve, thereby conducing to the production of quality teas.

Demand from Turkey Russia and CIS countries did not alter; demand was also observed from Libya and Iraq.

Industry sources reported that low growns met with fair demand, particularly the leafy segment. They reported that such demand would continue over the next few weeks.

However, a few members of the Tea Factory Owners Association, were not exuberant over the prices realized. They preferred no to be quoted, but said that prices could have been at better averages. This was the view of smallholders who supplied green leaf to the bought leaf segment.

Smallholders said that they were paid about SLR 150 per kilo of green leaf. Previously they were paid about SLR 250 per kilo for the bought leaf factory segment.

We also place on record that smallholders are responsible for about 75 percent of tea production.

Our position on these matters is that the problems affecting the tea sector should be collectively addressed by the relevant professional bodies; not least the Ministry of Plantation Industries.