Ceylon Tea exports has declined further in April due to the Russian economic crisis, according to Forbes & Walker Tea Brokers. Exports for April declined to 22.9 million kilogrammes from 23.3 million kilogrammes year-on-year (yoy), while receipts fell to Rs. 13.5 billion from Rs. 15.2 billion yoy.
Cumulative exports for the first 4 months fell to 96.1 million kilogrammes from 98.5 million kilogrammes yoy, while revenue decreased to Rs. 57.9 billion from Rs. 65.8 billion yoy.
The bulk tea segment volume increased by 300,000 kilogrammes yoy to 9.7 million while revenue decreased by Rs.280 million yoy to Rs. 5.12 billion in April. Tea packet volumes remained stable while values declined by Rs. 700 million yoy to Rs. 6.27 billion and tea bags, which account for the biggest value addition declined by 650,000 kilogrammes and Rs. 640 million yoy to 1.43 million kilogrammes and Rs. 1.57 billion in volumes and revenue respectively.
The pattern was repeated for the January-April time period as well.
Turkey continued to hold its lead as the biggest export market which was gained in January due to a fall in volumes to Russia. Iraq, UAE and Iran continued to perform well, while China, India and South Africa too showed noticeable increases in volumes for the first 4 months yoy.
Performance for May is likely to follow suit, as the auction performance last week showed that the quality of tea had taken a dip.