UPWARD TREND: Tea volumes traded at the Colombo Auction have once again returned to their former, pre-industrial action, levels. This week a quantity of 6.35 Mkg was traded, up from the 6.22 Mkg moved during last week's sale. The proportion of Ex-estate teas were also up from 1.04 Mkg to 1.150 Mkg. This trend is set to continue.
In the Tippy market, Iran, CIS and Dubai were moderately active this week. Well-made select best tea appreciated for all varieties. The Pekoe market was quite strong this week and indicated that it would continue to move up in the coming months. Rabia was particularly active whilst the wirey types met with a strong demand.
The currency has remained steady throughout the week. Week-on-week it has changed from Rs. 110.55 to Rs. 110.76 against the US dollar.
The Sri Lankan High Commissioner in Pakistan said this week that the potential to expand trade between the two countries will be facilitated by the recently inked Free Trade Agreement (FTA).
He claimed that the FTA signed with the Indians had increased the volume of trade to $2 billion. It is worth noting that Pakistan's tea trade is worth an estimated $220 million.
A senior Pakistan Tea board official is reported to have said that Sri Lanka should market their teas aggressively in Pakistan which used to account for 60 per cent of local tea.
Source: The Research Intelligence Unit (2007). Bartleet Produce Marketing.