Monday, December 18, 2017

Plantations - Blessing in disguise

Ok a lot of the players are in 2 minds as to what they should be doing with plantations stocks, after the news that the Russians are restricting the purchase of Agri Products including tea.

Thank God for Tea. It is a natural beverage, as such the Ceylon Tea can't be replaced just because you buy teas produced in India, Kenya, Vietnam or China, or even Russia, as they too produce tea. Just think if Russians are making tea why on earth they love Ceylon Tea. We as Sri Lankans have not tasted teas from Kenya or India as we consume our own and won't allow those teas coming to the shelves of our Stores at any rate. So we do not know the difference, but if you have had the luxury of tasting those teas you will know the value of Ceylon Tea, it is a Gift that has come to Sri Lanka.

Key players in the game of Tea are aware of what's going on, and they won't be disturbed. But they surely will keep a closer look at HOW THE HIGHER AUTHORITIES are handling the issue. IT IS TOTALLY UPTO THESE BIG WIGS TO HANDLE IT PRUDENTLY. The time duration of resolving will be based on the negotiations. It can be within days, weeks or perhaps months to come to a settlement.

Russians take the bulk of their teas in to the their lands before the 15th of November to sell before Christmas. Thereafter the Traders go on Christmas Holidays, and will be back only after the 15th of January. So the timing by the Russian Authorities have been safe, for their consumers as well as for our Shippers since the Bomb shell fell only during the holiday period. As far as Tea auctions here are concerned, there wont be a sale in the last week of the year ie. next week. That too is not exciting and panicking the Shippers.

Hopefully the Team that has been given the responsibility of resolving would finish it before the Shippers get excited in the Month of January.

During this period the Prices of Plantations will fluctuate, but once all is done and life gets back to normal, the Prices will shoot in stocks and Auctions as well.

That is why this is a blessing in disguise. Capitalize on it, as the time is short. 


No comments:

Loss and Gain of the ASI in 2021 vs the Loss in 2022

  This ASI chart shows the All time high in 2021 of 9025.82 on the 29th 0f Jan'21 and the fall to the yearly low of 6852.64 on the 19th ...