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Sri Lankan low grown tea prices on the decline

Aug 15, 2008 (LBO) - Prices of Sri Lankan low grown teas, which make up more than half the crop, fell for the third week running at this week's Colombo auctions, brokers said. However, high grown teas produced by the listed plantations companies, stayed firm as erratic weather created fears of tight supply.
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The brokers said the crop intakes for all planting districts fell.

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Low grown teas were usually much sought after by Russia and Middle Eastern countries.

But brokers said there was a slowdown with the Muslim fasting period approaching and congestion in Gulf ports.

"Low growns continued to weaken for the third consecutive week, while the high and mid grown small leaf varieties held firm," Forbes and Walker Tea Brokers said.

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A selection of teas from the Uva planting district, which showed some improvement in seasonal quality, appreciated "substantially", while the others continued to sell around last week's levels.

"Most Low Grown varieties in both leafy catalogues and small leaf catalogues were discounted substantially," brokers Asia Siyaka Commodities said in a market report.

"Teas in the best category were firm on last week's levels, wh

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