SL tea industry gains momentum with exports up and drop in volume
The tea industry ganis momentum in this year with mixed results in February which saw lower export volumes, but with marginal increase returns, brokers said.
Sri Lanka’s tea exports in February have enjoyed a massive rise in FOB Rupee value from a year ago due to depreciation whilst volume has been lower, according to Forbes and Walker Tea Brokers.
Tea exports in February totalled 18.55 million kilos, down by 2.59 million kilos from a year ago.
Main categories of Bulk Tea and Packeted Tea have shown a decrease, whilst Tea Bags have recorded a marginal increase when compared to the corresponding month of 2022.
The FOB value of Rs. 2,040.25 per kilo in February was a significant increase of Rs. 1,077.98 per kilo compared to Rs. 962.27 per kilo in February 2022The FOB value of $ 5.61 reflects an increase of 82 cents from a year ago.
The country’s tea exports in January2023 fell by 3.26 million kg to 17.56 million kg compared to 20.82 million Kg a year earlier.
However, the earnings in January increased to $ 99.56 million up from $ 91.93 million in the corresponding period last year.
When analysing the main categories of export Forbes and Walkers said bulk tea, packeted tea and tea bags had shown a decrease compared to the corresponding period a year earlier.
January-February 2023 cumulative exports totalled 36.11 million kilos, down by 4.42 million kilos from the corresponding period of last year.
Main categories of Bulk Tea and Packeted Tea have shown a decrease, whilst Tea Bags have recorded a marginal increase when compared to the corresponding period of 2022.
The FOB value of Rs. 2,047.59 per kilo reflects a significant increase of Rs. 1,092.03 as against Rs. 955.56 achieved during January-February 2022.
Forbes said all main categories FOB values show a positive variance in USD terms, when compared to the corresponding period of 2022.
It said Türkiye has emerged as the No. 1 major importer of Ceylon Tea with an increase of 139% YoY in January-February 2023.
Iraq has secured the second position followed by Russia having decreased its imports YoY by 37% and 25% respectively.
UAE has moved down to the 4th position having decreased imports 11% YoY. Azerbaijan has remained as the 5th and shows a decrease of 28% YoY in imports during January-February 2023. Other notable importers are China, Saudi Arabia, Libya, Jordan and Iran.
Imports from destinations such as Libya and Iran have decreased by a significant 51% and 50% respectively YoY, meanwhile exports to Japan (57%), Lebanon (213%) and Belgium (115%) have shown significant gains.