Tea industry overview (Jan - June, 2025)

The Sri Lankan tea industry saw an increase in Production and Exports but recorded a drop in the National Average price for the period from January to June 2025 compared to the same period in 2024. 

Iraq, Libya and Russia continued with strong demand for Sri Lankan tea and were the top 03 importers for the period January to June 2025. 

Macro-economic factors continued in fundamentally challenging the tea industry framework, with variations in supply and demand, currencies, and the political climate in importing countries.

For the period from January to June 2025, total production reached 135.74 Mn/Kgs, reflecting an increase of 8.30 Mn/Kgs compared to 127.44 Mn/Kgs recorded in the same period in 2024. All three elevations recorded an increase in production when compared to the corresponding period in 2024. In CTC’s Medium Grown teas recorded an increase whilst High Grown and Low Grown varieties experienced declines. 

The Sri Lankan tea industry experienced growth for the period January to June 2025, with total production increasing by 8.30 Mn/Kgs compared to the same period in 2024. Export volumes also rose during this period, recording an increase of 7.70 Mn/Kgs.

The National Average tea price for January–June 2025 declined to Rs.1,158.54 (USD 3.89) per kg, compared to Rs.1,265.67 (USD 4.12) per kg during the same period in 2024. This shows a decrease of -Rs. 107.13 in rupee terms and -USD 0.23 in dollar value. 

Price variations across elevations showed Low Grown teas averaging Rs.1,228.85 (USD 4.13), Medium Growns at Rs.1,029.89 (USD 3.46), and High Growns at Rs. 1,078.13 (USD 3.62). All three elevations recorded a drop in rupee value and dollar value. 

Low Growns with the largest market share of 58.63 percent of production, recorded a drop of-Rs.130.20. Meanwhile, the High Grown and Medium Grown categories also saw decreases, falling by -Rs.75.10 and -Rs.68.72, respectively.

Sri Lanka Tea Exports for the period January – June 2025 amounted to 126.81 Mn/Kgs vis-à-vis 119.11 Mn/Kgs recorded for the same period last year (+7.70 Mn/Kgs). The FOB average price per kilo for this period stood at Rs. 1,745.10 (USD 5.86) in contrast to Rs. 1,771.05 (USD 5.77), which recorded a decrease in the Rupee term (-Rs. 25.95) and an increase in Dollar value (+USD 0.09) when compared to the corresponding period in 2024. The FOB value of Tea Bags has dropped in comparison to the same period in 2024. 

The total revenue realized for the period January – June 2025 from tea exports was Rs. 221.29 billion (USD 743.12 million) compared with Rs. 210.95 billion (USD 687.02 million) recorded for the period January to June 2024. It’s an increase in Rupee terms (+Rs.10.34 billion) and in Dollar value (+USD 56.10 million) compared to the same period in 2024. Teas in Packets and bulk showed a decrease in FOB Value.

Iraq maintained its position as the leading importer of Sri Lankan tea for the period January to June 2025, with Libya and Russia following as second and third largest markets respectively. 

Exports to Iraq increased by +4.04 Mn/Kgs and Libya saw a significant increase of +8.45Mn/Kgs. However, shipments to Russia declined by - 1.84Mn/Kgs. Exports to U.A.E and Turkey dropped by -3.09 Mn/Kgs and -0.73 Mn/kgs respectively. Exports to Iran increased by +0.13 Mn/Kgs. Chile rose by +1.30 Mn/Kgs, but China recorded a decline of -0.75 Mn/Kgs.

(Source: Ceylon Tea Brokers)