Sale No. 26 offered 6.0 million kilograms of tea, with stronger competition for selected CTC teas but weaker sentiment for a number of liquoring orthodox grades.
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6.0M kg
Total offerings at Colombo Sale No. 26.
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+Rs. 50/kg
Selective gain for better High and Mid Grown CTC PF1 teas.
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2.4M kg
Approximate volume of Low Grown teas offered.
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What happened at the Colombo auction
The Colombo Tea Auction handled approximately 6.0 million kilograms at Sale No. 26 on 7 and 8 July 2026. This was lower than the 6.2 million kilograms offered during the previous week, and about 0.6 million kilograms of the catalogue consisted of reprinted lots.
The market was not moving in one direction. Large Leaf and Semi-Leafy teas continued to sell comparatively well, while several liquoring Orthodox and Rotovane BOP and BOPF grades experienced bearish sentiment. At the same time, selected CTC teas attracted better competition, particularly where quality was maintained.
This split market is more useful to buyers than a single average price. It shows that demand is becoming highly selective. Tea with the right grade, cup profile and buyer destination can strengthen even when another category offered in the same auction is declining.
CTC demand improved for selected teas
CTC BP1 offerings were limited, but better High and Mid Grown PF1 teas saw improved market activity and selective price gains of up to Rs. 50 per kilogram. Corresponding Low Grown CTC varieties met much stronger demand, with price appreciations of approximately Rs. 40 per kilogram.
For buyers of tea bags and strong black-tea blends, this movement matters because PF1-style CTC grades are valued for rapid extraction, colour and cup strength. When buyers compete for the cleaner or stronger invoices, the gap between well-made tea and ordinary tea can widen quickly.
Importers should therefore avoid assuming that a generally weak orthodox market will automatically produce lower quotations for all Sri Lankan tea. CTC and orthodox teas serve different applications and can respond to different buyer groups.
Several orthodox grades faced price pressure
In the Best Western category, many BOP and BOPF invoices declined by approximately Rs. 20 to Rs. 40 per kilogram. In the Below Best category, selected BOP teas with maintained quality sold firm, but other invoices fell by Rs. 50 to Rs. 100 per kilogram and recorded numerous withdrawals.
The result demonstrates how quickly a quality discount can become a commercial problem. When buyers do not see sufficient cup value, teas may require a price reduction or may remain unsold. At the same time, selected clean-leaf Uva teas were firm to Rs. 20 per kilogram dearer, confirming that desirable quality could still attract support.
Low Grown teas totalled about 2.4 million kilograms. Leafy, Semi-Leafy and Premium categories met fair demand, while Small Leaf types saw good demand. Some high-priced lines became easier, but selected PEK, PEK1 and tippy grades held or improved depending on quality and price level.
Buyer activity differed by destination
The report described limited interest from shippers serving the United Kingdom, continental Europe and South Africa. Japan and China purchased selectively, while buyers serving the Commonwealth of Independent States and the Middle East operated fairly strongly around the previous week's price levels.
These destination differences help explain the mixed market. Each buyer group is looking for a different combination of leaf style, liquor, price and end use. A tea suitable for a Middle Eastern blend may not match a European packer's specification, and a Japanese buyer may focus on a much narrower quality profile.
For importers, this means auction commentary should be read together with the grade. Statements such as "the market was weaker" or "demand improved" are incomplete unless the relevant category and buyer destination are identified.
How the main segments performed
| Segment | Sale direction | Commercial meaning |
|---|---|---|
| Better CTC PF1 | Improved activity and selective gains. | Strong cup performance continued to attract buyers. |
| Best Western BOP/BOPF | Mostly lower by Rs. 20–40 per kg. | Orthodox buyers remained price- and quality-sensitive. |
| Below Best BOP | Some declines of Rs. 50–100 and withdrawals. | Inconsistent quality faced a larger discount. |
| Low Grown Small Leaf | Good demand. | Selected smaller-leaf styles remained commercially supported. |
Commercial watchpoints
What to monitor next
Upcoming catalogue data indicated approximately 6.16 million kilograms for Sale No. 27 and about 5.34 million kilograms for Sale No. 28. Buyers should monitor whether lower future offerings strengthen competition for selected grades or whether cautious demand continues to limit prices.
The July auction confirms that the Sri Lankan market is highly segmented. Selected CTC and quality Low Grown teas can improve even while ordinary orthodox grades decline. For international buyers, the practical advantage comes from reading the detail and purchasing the tea that fits the intended product-not simply buying whichever category appears cheapest.
