This week’s tea auction prices largely unaffected by Russia-Ukraine crisis

• However tea brokers express anxiety over short-term future of Ceylon tea in both markets

Prices at the Ceylon Tea auction remained largely unchanged this week although an impact was expected due to the ongoing conflict between Russia and Ukraine.

However, reports from tea brokers stated that a degree of uncertainty and volatility in the future would no doubt be a concern for the Sri Lankan tea sector considering the Ceylon Tea’s presence in both of the markets. 

“Undoubtedly trading conditions are likely to be strained and additional war risk surcharges would further escalate the high logistics rates, which have already adversely impacted tea prices,” said Forbes and Walker Tea Brokers in their latest tea auction report.

The Colombo Tea Auction this week saw a sharp decline in the offering. A total of 4.9 MnKgs came under the hammer, a significant dip from the 6 MnKgs that were offered the previous week.

Ex-Estate offerings comprised 0.81 MnKgs, down from 0.98 MnKgs the previous week. 

Overall quality of teas from the Western planting districts showed a decline with fewer seasonal teas on offer. Consequently, prices for the better Westerns’ declined by Rs.20-30 per kg and more with the exception of ta few available seasonal teas which continued to sell in keeping with quality.   

High and Medium Grown CTC teas continued to witness a bearish sentiment. The Low Growns, which have been selling at premium levels for a period of time, declined fairly sharply by Rs. 30-60 per kg. 
Low Growns comprised 1.9 MnKgs in the Leafy/Semi Leafy and Tippy catalogues. 

In the Leafy and Semi Leafy catalogues, Select Best BOP1/OP1’s together with clean Below Best varieties maintained, whilst the others were barely steady. 

In the Tippy catalogues, select Best FBOP/ FF1’s were firm to marginally easier, whilst the Best together with cleaner Below Best sold around last levels. Balance declined following quality. 

In the Premium catalogues, Very Tippy teas continued to attract good demand. Best together with cleaner Below Best were firm, while the balance was irregular following quality.