Tea prices ease in March, extending year-on-year decline

Sri Lanka’s national tea sale average fell in March, extending a broader softening in prices both month-on-month (MoM) and year-on-year (YoY), reflecting continued pressure on auction realisations across the elevations.

The average price for March 2026 stood at Rs.1,144.23 per kilogramme (US $ 3.63), down Rs.7.88 and US $ 0.09 from February’s Rs.1,152.11 (US $ 3.72), according to the data compiled by Forbes & Walker Research.

Compared with March 2025, the decline was more pronounced, with the prices slipping Rs.39.53 and US $ 0.36, from Rs.1,183.76 (US $ 3.99), underscoring the weaker global pricing conditions and demand-side adjustments.

On a cumulative basis, the national sale average for the first three months of 2026 stood at Rs.1,153.25 (US $ 3.70), down Rs.26.07 and US $ 0.28, from Rs.1,179.32 (US $ 3.98) recorded in the corresponding period last year.

At an elevation level, the price movements remained uneven.

The High Grown teas recorded a marginal MoM decline of Rs.8.31 and US $ 0.10, though the rupee-denominated prices were slightly higher year-on-year by Rs.5.72, even as the dollar returns fell by US $ 0.21.

The Medium Grown teas showed a modest improvement on a monthly basis, rising Rs.5.72, but remained significantly below the year-ago levels, with a drop of Rs.69.21 and US $ 0.43.

The Low Grown teas, which typically anchor Sri Lanka’s export volumes, saw the sharpest pressure, declining Rs.13.95 MoM and posting a steeper YoY fall of Rs.55.02 and US $ 0.42.