Tea exports expand in 1H despite softer prices

• Cumulative exports for January to June 2025 reached 126.80 mn kgs
• Iraq retains position as the largest Ceylon Tea buyer

Sri Lanka’s tea exports rose in volume terms during the first half of 2025, though export earnings were pressured by lower average prices, data from Forbes & Walker Research showed.

Cumulative exports for January to June 2025 reached 126.80 million kilograms, up 7.69 million kilograms from the same period a year earlier. The increase was driven by growth across all product categories except bulk tea.

June exports alone totalled 23.27 million kilograms, marking a year-on-year gain of 2.31 million kilograms. However, earnings per kilogram dipped, with the average free-on-board (FOB) value in June falling to Rs. 1,714.08 from Rs. 1,765.01 a year earlier, a decline of Rs. 50.93. In dollar terms, the FOB value slipped by US$ 0.09 compared to June 2024.

For the six-month period, the average FOB value stood at Rs. 1,745.10, down Rs. 25.95 from Rs. 1,771.05 recorded in the first half of 2024. While most categories showed gains in U.S. dollar terms, FOB values in Sri Lankan rupees declined across all categories except Instant Tea. Conversely, Tea Packets posted a drop in US$ earnings.

Iraq retained its position as the largest buyer of Ceylon Tea, importing 18.71 million kilograms in the first half, a 28 percent increase from a year ago. Libya surged into second place with purchases of 11.47 million kilograms, a 280 percent rise year-on-year, overtaking Russia, which saw a 14 percent drop to 11.20 million kilograms.

The United Arab Emirates and Türkiye followed, recording declines of 26 percent and 8 percent respectively, while Iran saw a modest increase of 2 percent to 6.42 million kilograms. Chile ranked seventh with 5.51 million kilograms, ahead of China, Saudi Arabia, and Azerbaijan.