Prices of Sri Lanka teas were lower at the latest auction as dry weather affected crops in many parts of the island, affecting quality, brokers said. The estimated gross sales average from the auction on Tuesday and Wednesday was 190.00 rupees ($1.91) per kg, slightly lower than last week's average of 190.04 rupees per kg, Forbes and Walker Tea Brokers said in a statement. Prices of high grown teas, like Broken Orange Pekoes (Bops) from the high altitude Nuwara Ely region, lost 2.00 to 5.00 rupees.

Brokers said that the prevailing dry weather in many parts of the Indian Ocean island could affect productions in the coming weeks.

"The impact the dry weather is having on the crop is already quite evident in the low grown teas.

Quality is declining," said Dylan Polonnowita, a Director at Forbes and Walker.

There was good demand from Japan and the United Kingdom for Sri Lankan teas at the latest auction.

A total of 6.4 million kgs of tea were on offer this week and 6.1 million kgs are expected to be on offer at the next auction.

Copyright Reuters, 2005