Sri Lanka’s Tea export value increases by 14% to US$ 650 million in first half of year
Sri Lanka’s tea export earnings in the first half of the year have reportedly increased by 14% to US$ 650 million on the back of a 10% rise in quantity shipped, to 137 million kilos, in comparison to the corresponding period of last year.
Asia Siyaka Commodities PLC Research has reportedly stated that the 2021 first half quantity was boosted by a strong June (26.9 million kilos), which is at a five-year high. It has further noted that the January-June quantity of 136.9 million kilos, though well above last year, is much lower than the 2019 1H figure of 145 million kilos and 137.5 million kilos the year before.
According to local media reports, Asia Siyaka has said the last occasion Sri Lanka reached an annual export quantity in excess of 300 million kilos was in 2015 when annual tea exports had reached 306.9 million kilos. The midway quantity in 2015 was however 151 million kilos, which is 15 million kilos more than this year’s quantity for January-June.
It has said rupee earnings rose sharply by 20% to Rs. 127 billion. This has converted to approximately US$ 650 million – 13.8% more than January-June earnings of US$ 571 million last year. In the three years prior to that, 1H earnings were US$ 686 million, US$ 728.9 million and US$ 728.4 million, according to the Daily FT.
Shipments to Turkey have reportedly topped the destination list at 17 million kilos, up 8% from a year earlier. Iraq followed at 16 million kilos showing little change. Russia continues to decline to 13.3 million kilos against 14.4 million.
Export through the UAE has more than doubled from 3.3 to 10.2 million kilos this year.
Asia Siyaka has pointed out that China continues to rise and recorded a 47% gain from last year’s high figure of 5 million kilos, to 7.4 million kilos this year and Azerbaijan (6.1 million kilos), Libya (5.6 million kilos) and Syria (4.1 million kilos) have all increased YoY 2020. Japan has also showed a welcome increase to 3.1 million kilos from 2.9 million kilos last year.
OSL take:
Sri Lanka’s tea exports have witnessed a growth momentum despite challenges posed by the global Covid 19 pandemic. Sri Lankan authorities are working tirelessly for Ceylon Tea to regain it’s top slot in the global tea market. Given the growing trend in Sri Lanka’s tea exports, the government of Sri Lanka is focused on developing and uplifting the country’s tea industry. Incentives and relief have been offered to local tea companies. Also, the many trade agreements as well as trade concessions enjoyed by the country have given a boost to Sri Lanka’s tea industry. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka’s tea industry.
| Article Code : | VBS/AT/20210719/Z_5 |