Low grown prices dip as US sanctions on Iran affect Colombo Tea Market
Link By Steve A. Morrell US sanctions against Iran and the depreciation of the Turkish Lira contributed to a debilitating effect at the Colombo Tea auctions. In addition, drought conditions in Uva and uncertain weather conditions in the Western hills combined to register low crops on estates. The smallholder sector as well reported low crop. As a result of depleted crops, particularly in Uva, the Cost of Production (COP) on some Uva estates were high. Brokers said the COP on these estates exceeded their net sales averages contributing to alarming conditions all round affecting tea. Explaining the influence of Turkey and Iran, they said both countries were major buyers of low growns. Depreciation of the Turkish Lira affected Ankara’s buying as much as US sanctions against Iran continued their debilitating effects on the Colombo auctions. John Keells weekly Tea Market Report said comparative prices revealed physical conditions of the tea market.