Sri Lanka’s Ceylon tea prices have fallen over two weeks on Iran troubles, though High Growns recovered some losses this week on the second day, brokers said.

Iran is a key buyer of Ceylon tea, with foods allowed through sanctions, but there are disruptions when the Riyal collapses, making imports difficult.

In Sri Lanka prices in local currency were also supported by rupee depreciation, dealers said.

Sri Lanka’s most expensive teas, low growns, popular in the Middel East, continued to decline.

“Tippy teas in general, were substantially lower and mostly unsellable due to lack of suitable bids,” Forbes and Walker said in a market report

“A few high-priced FF1’s were firm following special inquiry, whilst the balance in general declined.”

High Growns recovered some losses on the second day.

“A few selected invoices gained by Rs.20-40/- per kg, whilst others were irregular and easier by a similar margin,” Ceylon Tea Brokers said in a report.

“A few selected teas in the Below Best category held firm whilst the others were irregular.”

There was demand for high growns from countries like Russia and Dubai, brokers said.

Source- ECONOMYNEXT