Tea shipments slip in February as rupee FOB gains offset decline

The tea exports declined marginally in February 2026, although the stronger rupee-denominated prices helped lift the earnings, according to the data compiled by Forbes & Walker Research.

Total exports for the month fell to 19.92 million kilogrammes (M/Kgs), down 0.48 M/Kgs, from 20.40 M/Kgs a year earlier. The drop was driven by the weaker shipments of bulk tea, tea bags and green tea, which offset the gains in tea packets and instant tea.  Despite the volume dip, the average free-on-board (FOB) value rose to Rs.1,785.76 per kilogramme in February, up Rs.48.24 year-on-year (YoY). However, in dollar terms, the overall earnings declined, with only the tea bag segment posting a marginal increase compared to February 2025, reflecting the currency and pricing pressures in the export markets.

For the first two months of 2026, the export performance remained resilient. The cumulative shipments reached 40.63 M/Kgs, up 0.86 M/Kgs from the corresponding period last year, with all product segments recording volume growth.

The FOB value for the January-February period climbed to Rs.1,804.08 per kilogramme, an increase of Rs.73.75 YoY, equivalent to US $ 5.83. Most segments recorded gains in rupee terms, although instant tea lagged. In dollar terms, only tea bags and green tea showed improvements, while bulk tea, packets and instant tea posted declines.

On the demand side, Iraq remained the top buyer of Ceylon Tea in February, importing 6.53 M/Kgs, up 9 percent from a year earlier. Turkey climbed to the second place, with a sharp 124 percent increase in imports to 4.40 M/Kgs, overtaking Russia, which slipped to third with a 9 percent decline.

Among the other key markets, the United Arab Emirates and Azerbaijan imported 2.19 M/Kgs each, with the latter posting a strong growth. Saudi Arabia, Chile and China followed, while Libya and the United States rounded out the top 10 importers for the month.