Sri Lanka’s Low Grown average tea prices are expected to reach a record level in the near future helped by a possible shortfall in the global black tea production and also the present fluctuation in the local currency market, says a tea broker.
John Keells Tea Brokers says the global production of black tea is heading towards a shortfall in the first half of 2012 due to the prevailing dry weather conditions in major tea producing countries.
According to the broker, it is expected that the shortfall in crop in key black tea producing countries will help stabilize prices at remunerative levels.
“We are already witnessing prices of Sri Lanka’s Low Grown teas continuing to rise and are now above last years levels”, added the broker in its weekly tea market report.
The highest low grown average prices have been recorded during September 2009 which stood at Rs. 456.23 per kilogram.
“With the current trend in prices and with the US Dollar to the rupee fluctuating between Rs. 126/- and Rs. 130/-, it is expected that the Low Grown average will reach a record level in the near future” added John Keells Tea Brokers.
Low Grown tea accounts for the bulk of Sri Lanka’s production.
Meanwhile the Broker says, better weather for cropping intakes are still low due to stoppage of work for New Year and workers mostly on estates up country.
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