Tea was first grown commercially in Sri Lanka (Ceylon) by the Scottish planter James Taylor in 1867. Eventually Ceylon Tea became one of the finest tasting teas in the world thanks to her overall, well balanced tasting profile with ideal strength, body, aroma and flavour. In a time when the whole world is been affected by COVID 19 Virus, The Colombo Tea Auction, the world’s largest single-origin tea auction and the oldest operational auction, plans to conduct its next auction for the first time on an e-platform, aiming to avoid public gathering, to slow the spread of COVID-19 virus in Sri Lanka (Ceylon): Nishel Fernando Wrote to Daily Mirror.

Colombo Tea Traders Association (CTTA) Chairman Jayantha Karunaratne mentioned “We are trying to change the way of conducting the auction. From the traditional outcry system, we are changing it to an e-platform, without getting people together physically. The platform is being currently developed; we hope it will be ready by this Thursday, so we could finish the auction this week,”

As Mr. Karunaratne mentioned further, the e-platform, which is currently being developed, would enable buyers to bid for teas remotely from their respective offices, although the specifics of the platform are yet to be revealed. 

The Regional Plantation Companies (RPCs) earlier worried that the buyers might not turn up to the tea auction because of COVID-19 fears, leaving much of tea stocks unsold. The Colombo Tea Auction is now likely to be held this Friday. 

The RPCs, with permission granted by the government authorities, have already transported their teas to warehouses for the upcoming auction. 

It’s reported that both RPCs and smallholders are seeing substantially lower tea yield due to prevailing drought in the key tea growing regions of Ceylon, in particular the western region. “The drought is unprecedented this year – that means we will get 30 percent of the usual crop in the coming months,” Hayleys Plantations Managing Director and the Planters’ Association (PA) of Ceylon past President Dr. Roshan Rajadurai mentioned.

Dr. Rajadurai feared the potential scenario leading to unsold teas at the Colombo Tea Auction, which could adversely impact the cash flows of RPCs. “It’s going to be a difficult time. If we are not able to sell tea and receive money, we are not going to be able to sustain,” he said.

However, Asia Siyaka Commodities PLC MD/CEO Anil Cooke  opined that the demand would rebound for Ceylon tea in medium to long term, although there could be some adverse impact in the immediate term.

Even overseas, most of the shelves are cleared of stocks. At some point, importing countries will keep asking for teas. They are already beginning to ask for tea now. Therefore, we are optimistic of the future,” he elaborated. 

Sri Lanka tea exports increased slightly by 3.8 percent year-on-year to 292.6 million kilos in 2019, bringing an export revenue of Rs.240.6 billion, compared to Rs.231.7 billion in 2018. 

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References

1. Article By Nishel Fernando: http://www.dailymirror.lk/print/business__main/Colombo-Tea-Auction-to-be-conducted-on-e-platform-for-first-time/245-185947