Opportunity Sri Lanka | » Sri Lanka’s tea exports record increase in May
Sri Lanka’s tea exports record increase in May

Sri Lanka’s tea exports record increase in May

Sri Lanka’s tea exports have continued to increase in May by 7% in value terms and by 21.6% in the first five months of the year as against corresponding periods of 2020, according to local media reports.
Forbes and Walker Tea Brokers have reportedly stated that tea exports in May had totalled 23.79 million kilos, which is an increase by 1.13 million kilos from a year earlier.
Bulk tea exports have reported a marginal decrease, whilst tea bags and packeted tea have increased.
In value, exports in May were Rs. 21.8 billion, up by Rs. 1.46 billion from May 2020, which translates to a FOB value of Rs. 916.47 per kilo (US$ 4.69) up by Rs. 18.80 from a year earlier, local media reports stated.
“Whilst the rupee FOB values have increased in 2021 in dollar terms it reflects a lower value,” Forbes has said adding that last year FOB value was US$ 4.83 per kilo.
In the first five months of 2021, exports had totalled 109.99 million kilos up by 9.6 million kilos from the corresponding period of last year. Forbes has further stated that all main categories of exports (bulk tea, tea bags and packeted tea) have increased as compared to the first five months of last year.
In terms of revenue exports during January-May were worth Rs. 103.07 billion up by Rs. 18.36 billion. Total FOB value of Rs. 937.09 (US$ 4.83) had shown a gain of Rs. 93.34 per kilo as against Rs. 843.75 (US$ 4.60) of January-May 2020.
Forbes has further stated that Turkey has retained the number one position as the major importer of Ceylon Tea, followed by Iraq and Russia with the UAE moving up to the fourth position having increased imports significantly (218% YoY).
Iran, which has moved down to eighth position from fourth it occupied in 2020, recorded a fairly substantial decrease (33% YoY) in imports during January-May.
Other notable importers were China, Azerbaijan, Libya and Syria.

OSL take:

Sri Lanka’s tea exports have been recording a steady growth and has continued to maintain the momentum despite the challenges posed by the global Covid 19 pandemic. Sri Lankan authorities have been committed to developing and promoting globally all varieties of locally produced teas in a bid to regain the no.1 slot in the global tea market that was earlier enjoyed by Ceylon Tea. The incentives offered to the local tea industry for development and expansion to produce more value added products have opened up business/investment opportunities in Sri Lanka’s tea industry.

Share this:

Article Code : VBS/AT/20210623/Z_1

    For More Info and Help

    Leave a Comment