Sri Lanka tea exports exceed USD 1 billion in August
Asia Siyaka Commodities Plc has determined after analysing Customs information that Sri Lankan exports of tea passed USD 1 billion at the end of August 2017 which was a 20% increase from the same date in 2016.
The data further revealed that from January-August 2017 Sri Lanka’s income from tea exports totalled USD 1.002 billion which amounted to a steep 20% increase from January-August 2016 during which USD 834 million was earned. From January-August 2014 Sri Lanka earned a record high of USD 1.092 billion from tea exports having exported a quantity of 214.6 mnkg.
It must be noted that the quantity of tea exported in 2017 is at a recorded 8-year low amounting to 190.1 mnkg, whereas in 2016 despite prevailing bad weather, the country exported 197.3 mnkg of tea.
Destination-wise the trend is similar with Russia/CIS dominating our exports, absorbing 35.8 mnkg in January-August 2017. Turkey, whilst growing as a transit point, is next best with 23.7 mnkg followed by Iraq at 21.1 mnkg. Iran follows with 17.8 mnkg, the UAE with 10.9 mnkg and Libya with 8.7 mnkg. China increased its purchases and recorded 6.1 mnkg compared to 4.9 mnkg for the same period last year, an increase of 24% YoY 2016. Japan follows with 5.3 mnkg compared to a similar figure of 5.1 mnkg. Syria and Germany come next with 4.6 mnkg and 3.9 mnkg respectively, but their volumes are less than last year. Hong Kong has increased purchases with 3.3 mnkg compared to 3.1 mnkg last year.¹
OSL TAKE:
Surpassing the USD 1 billion export mark in an 8-month period is encouraging. However with reduced export quantities it is a somewhat disappointing performance especially considering that 2016 saw higher export quantities despite being affected by bad weather.
¹ http://www.ft.lk/front-page/Tea-export-earnings-top—1-b-mark-by-August/44-640033
| Article Code : | VBS/AT/26092017/Z_1 |