Tea Board to purchase auction tea until price stabilized
Sri Lanka’s Tea Board will purchase quality tea from the tea auction for the price of 430 rupees per kilogram until the price reaches the limit of 450 rupees.
“We are putting one billion rupees to the tea market,” Rajitha Senaratne, Cabinet Spokesman said.
Sri Lankan tea industry is currently going through a difficult period with tea exports declining for the twelfth consecutive month due to lower demand from Middle East, Iran and Russian markets.
The tea board intervention would artificially raise the prices of tea at the auction. Although the production cost of kilogram of tea is 450 rupees, the auction recorded an average price of 385.51 rupees.