Sudden change in weather will have an immediate impact on crop harvests: JKH report

May 24, 2018

Intense rainfall the country is experiencing will have an immediate impact on crop harvests.

This is unfortunate as this is a period when the highest tea-crop yields are recorded in most plantation districts, John Keells tea market report stated yesterday.

"The quick succession from scorching weather to flooding which we have seen frequently is recent years is believed to be induced by Global warming. Weather patterns in Sri Lanka have seen drastic changes. Whilst there has been a reduction in rainfall, there has been more intense wet and dry spells. Such intense rainfall we are experiencing will have an immediate impact on crop harvests,"the report noted.

Torrential rains and thunder storms that are being experienced at the time of writing this report, has caused extensive damage to agricultural crops and property. Galle, Ratnapura and the Central Hills in particular are continuing to face the full brunt of the cyclonic storm, inundating most of the low lying areas in the districts. It is also reported that there has been widespread landslides disrupting the movement of traffic. Hundreds of families too have been displaced due to the heavy rainfall. There have been work stoppage in some of the Plantations and worker out-turn too has been low. Workers on Estates who have been worst hit will be apprehensive of reporting back to work until such time the weather conditions clear which would mean that worker out turns are likely to take a further dip".

"This is unfortunate as it is a period when the highest yields are recorded in most plantation districts. Sri Lanka harvested a crop of 27.9Mkgs during the month of April 2018 recording a deficit on its previous year’s crop of 32.8Mkgs, a decrease of 14.9%. The main contributor for the 27.9Mkgs was from the Low Grown planting districts with 61.6% followed by the High Growns at 23.3% and the Medium Growns at 15.1%".

The January – April 2018 crop is 102,245,166 Kgs when compared to the 99,495,564 Kgs achieved in same period 2017- an increase of 2.76%.".

"The Sri Lanka Tea Exports for the Month of April 2018 was recorded at 20.8Mkgs which is a marginal increase of 3.8% when compared to the same period of the previous year. The FOB value to end March was Rs.44.53 above the FOB value of 2017. As a result the value of the Tea Exports for the first four months of the year has exceeded by Rs.4.96 Billion over the previous year. Iraq has emerged as the leading importer of Sri Lanka Tea. The other Major importers of Sri Lanka Tea are Turkey, Russia, Iran and U.A.E".

"Today’s 1.49Mkgsof Ex-Estate teas met with lower demand. A few select best Western High Grown BOPs sold well although lower to last week, whilst others along with the below best types declined.

The plainer types which were initially easier, further declined towards the close. Best BOPFs were barely steady, whilst others along with the below best and plainer types declined. A number of Nuwara Eliya BOP/BOPF invoices remained unsold for want of bids. Uva BOP/BOPFs too tended lowerto last week".

"Low Grown CTC PF1s declined whilst the High and Medium types too were easier. There was reasonable demand at lower levels for the 3.2 Mkgs of Low Growns Teas that were on offer. In the Leafy segment, Select best OP1 and BOP1s maintained last levels, balance declined following quality. OP/OPAs shed by a considerable margin. Well-made Pekoe1s were firm. Pekoes declined several rupees. In the Small leaf segment, Select Best BOPs were firm, others declined a few rupees. Select Best BOP.SPs were firm, others declined a few rupees, BOPF/BOPF.SPs followed a similar trend. Select best FBOPs were firm, balance met with irregular demand".

"Select best FBOPF1s met with fair demand, others were substantially lower following quality. Select best Premium Flowery Teas were firm, best and below best types were marginally lower to last. There was fair demand from Russia, Turkey and the C.I.S. countries, whilst Iran was selective. Iraq and Libya showed less interest", the JKH tea report stated.

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