Middle East instability threatens over half of Sri Lanka’s tea exports: Planters’ Association

By Mangala Pavithrani

Colombo, March 5 (Daily Mirror) - The ongoing military instability in the Middle East could place more than half of Sri Lanka’s tea exports at risk, Chairman of the National Tea Planters Association Saman Geeganage has warned.

Addressing a media briefing, Geeganage said that 52% of Sri Lanka’s ready-made tea production in 2023 and 2024 had been exported to countries in the Middle East and North Africa (MENA) region.

He noted that a significant portion of this trade had been carried out through barter arrangements as well as direct purchases, but these export activities have now come to a standstill due to the prevailing conflicts in the region.

Geeganage also said the “fuel for tea” agreement with Iran, one of Sri Lanka’s leading tea buyers, has been temporarily suspended. He said the suspension of the arrangement, which helped maintain competitive prices for Ceylon tea in the international market, has dealt a major blow to the industry.

“Of the 256 million kilograms of finished tea produced annually in the country, 65% is supplied by small-scale tea farmers. The livelihoods of these small-scale growers are now under severe threat due to the disruption of export routes,” he said.

Geeganage urged the government to take immediate steps to safeguard the tea industry from the current crisis.

He suggested that urgent measures should include identifying and penetrating new international markets beyond the Middle East, providing necessary state support to expedite export processes, and introducing an emergency programme to prevent the collapse of the local tea production sector.