Ceylon Tea is expected to fetch high prices this year too exceeding Rs. 370 per kilo at the Colombo auctions, brokers said.
Tea production will also increase to over 320 million kilos despite the recent drop due to bad weather conditions, they added.
Last year, Sri Lanka has posted the highest ever revenue of Rs.155.3 billion in tea exports, up 14.1% from 2009 while production was up 24.6 million kg in the same corresponding period.
This week's auction quantities totalled 7.5 million kg and there was a good demand at irregular rates, Forbes & Walker Tea Brokers said. CIS, Turkey, Iran, Dubai, Saudi Arabia, Kuwait together with Iraq were active in trading at this week’s auction.
. There was improved activity from shippers to CIS together with fair interest from shippers to Japan. UK and the Continent were selective in buying Sri Lankan tea.