Prices of Sri Lanka's high grown teas rose at this week's Colombo auctions with brokers saying the market is likely to remain buoyed by a continuing global shortage.
Some teas grown on the estates of regional plantations companies fetched record prices but
many teas from the low grown regions fell, brokers said."Growing conditions in most producer countries are still far from ideal," Forbes & Walker Tea Brokers said.
"Therefore, taking into considering the global shortfall in production as of now, it is unlikely that we would witness any significant correction in prices in the near future."
Tea production in Sri Lanka and the other main export origins, Kenya and Indiam have been reduced sharply by drought.
The global production shortfall has put upward pressure on tea prices, both in auctions at export origins, as well as in consuming countries.
The brokers said fairly strong buying from shippers to the Commonwealth of Inpendent States and the tea bag sector were the main contributory factors for the enhanced prices.
Brokers Asia Siyaka Commodities said 'Better Western BOP' type teas gained 10-20 rupees a kilo on average at this week's sale.
Some high grown teas fetched record prices such as an invoice of the 'BP1' type of Abbotsleigh Estate, owned and managed by Watawala Plantations, which rose to an all-time high of 455 rupees a kilo, from the previous record of 395 rupees.
An invoice of 'Fannings1' off-grade tea from Strathspey Estate, part of the Richard Peiris plantation group, fetched a record high of 440 rupees a kilo.
However, prices of most low grown teas, produced mainly by small farmers in the southern low lands, fell at this week's auction.
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