Sri Lanka’s tea production for September shows gain of 2.3 million kilos from August
Sri Lanka’s tea sector has recorded a 2.3 million kilo growth in its tea production for the month of September 2019. The total tea production for this September has stood at 21.7 million kilos, which is a gain of 2.3 million kilos when compared to the 19.4 million kilos posted in the same month last year, Forbes and Walker Tea Brokers has reported on Friday (18).
Low Growns have shown a year-on-year growth, whilst Mediums have remained static. Meanwhile, High Growns have shown a marginal decline compared to September 2018, the tea broker has said in its latest report.
The report has further noted that January-September 2019 cumulative production of 232.7 M/kg shows a growth of 9.7 M/kg vis-à-vis 223 M/kg of January-September 2018. All elevations have shown a growth when compared to the corresponding period of 2018, with Low Growns showing the biggest gain, followed by Mediums and High Growns.
According to local media reports, CTC production for September 2019 totalled 1.8 M/kg, showing a gain of 0.15 M/kg vis-à-vis 1.6 M/kg of September 2018. Low Growns and High Growns have shown a YOY growth, whilst Mediums have shown a marginal decrease. On a cumulative basis, January-September 2019 CTC production of 17.2 M/kg remained static when compared to the corresponding period of 2018. On a cumulative basis, however, only Mediums have shown a marginal gain, while Low Growns and High Growns show a decline compared to the corresponding period of 2018.
Last week, a total of six million kilos had gone under the hammer.
Media reports quoting tea brokers have stated that it was encouraging to witness the improved demand for the brighter Nuwara Eliyas which shows some promise for these teas that have been neglected for a period of time.
OSL take:
Sri Lanka’s tea industry has been engaged in a slow yet steady growth path during the past few years. The government of Sri Lanka has introduced many incentives to develop the country’s tea industry. Local tea exports have been benefited by the many trade agreements as well as the trade concessions enjoyed by the country. Foreign businesses/investors could therefore explore business opportunities in Sri Lanka’s tea industry.
| Article Code : | VBS/AT/22102019/Z_1 |