Sri Lanka’s tea exports improve marginally in June

By Chandeepa Wettasinghe
Sri Lanka’s tea export market showed slight recovery in June compared to a year ago, with bulk tea exports driving both volumes and revenue.

A market report by Forbes & Walker Tea Brokers showed that total exports for June increased to 28.5 million kg, compared to 27.7 million kg year-on-year (YoY). 
Export revenue for the month increased to Rs.17.71 billion from Rs.16.33 billion YoY.
Bulk tea export volumes increased to 12.83 million kg from 12.18 million kg YoY, while derived revenue increased to Rs.6.83 billion from Rs.6.28 billion YoY.

Tea packet export volumes fell to 12.87 million kg from 13 million kg YoY, while revenue increased to Rs. 7.42 billion from Rs. 7.10 billion YoY.

Export volumes of tea bags decreased to 2.06 million kg from 2.09 million kg, while revenue increased to Rs.2.40 billion from Rs.2.26 billion YoY.

However, for the 6 months from January-June 2016, exports recorded a decline, with volumes of 146.46 million kg compared to 151.55 million kg YoY, while revenue declined to Rs.89.32 billion from Rs.90.78 billion YoY.  Bulk tea recorded a marginal decline, while tea packets suffered heavily. Tea bag exports saw a healthy growth.

Iraq was the largest importer of Ceylon tea—mostly packeted tea--during the 6 month period with volumes of 18.48 million kg growing from 14.65 million kg YoY. 
Russia took up the second place importing 18 million kg of tea—mainly bulk—compared to 17.12 million kg YoY.

Despite recent bilateral disagreements with Iran over non-payment for past crude oil deliveries, the Middle Eastern country became the 3rd largest importer for the 6 months following the lifting of international sanctions this January, with imports of 16.66 million kg from 12.21 million kg YoY.
One of the world’s largest tea blending hubs, Turkey, which was the largest importer of Ceylon Tea for January-June 2015 with 18.57 million kg in imports, dropped to the 4th place this year with volumes of just 
11.94 million kg.