Sri Lanka’s tea industry on path to recovery with crop increase in 2017
Sri Lanka’s Minister of Plantation Industries Navin Dissanayake has reportedly said the country’s tea industry has recovered in 2017 with the crop increasing by 5% to 307 million kilos from a year ago.
Export earnings from tea have also increased to Rs. 233 million (US$ 1.5 billion) with production expected to see an increase this year.
The country’s highest tea exports of US$ 1.63 billion were reportedly recorded in 2014.
According to reports, prices at the Colombo tea auctions remained the highest among major exporters, with the national average reaching US$ 4.07 a kilo from US$ 3.19 in 2016, compared with US$ 2.82 a kilo in Mombasa, Kenya, the island’s main competitor, and in India.
“We hope to increase production and prices in 2018, maintaining the purest quality,” Dissanayake has told the media.
“The recovery is good considering the problems we faced,” Dissanayake has further noted, referring to bad weather and difficulties in major markets, especially in the Middle East.
OSL take:
Sri Lanka’s tea industry is poised for further growth in 2018. Reports of the developments in the tea industry are an encouraging sign for foreign investments into the sector. Interested investors could explore opportunities in Sri Lanka’s tea sector as part of its development drive.
| Article Code : | VBS/AT/20180129/Z_1 |