Saturday 4 June 2016

Sri Lanka tea crops reduced by floods, landslides

ECONOMYNEXT – Although volumes at Colombo’s tea auction have been high so far, heavy rains that caused floods and landslides in Sri Lanka recently have reduced crops that will arrive at the sale in future, brokers said.

“Crop harvests have reduced in most planting districts during that past week,” brokers John Keells Ltd. said in a report.

Several earth slips in the mountainous regions where tea is grown and floods in the low lying areas continue to cause complications in daily operations of the industry, the brokers said.

“The country suffered from unprecedented drought from January to April and faced the highest temperatures for decades,” the report said.

“The arrival of the monsoonal rains in May brought relief but in a couple of weeks the relief was replaced by floods, causing much inconvenience and damage to plantation crops and tea exporters.”

Prices fell at this week’s Colombo auction and are expected to fluctuate in the next few weeks, following quality, John Keells said.

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