Tea exports fall in June despite stronger rupee earnings

Tea export volumes declined for a second consecutive month in June, extending the industry’s weak first-half performance, although higher rupee-denominated export prices helped lift average earnings per kilogram amid continued pressure on global markets.

Tea exports totalled 21.25 million kilogrammes in June, down 2.02 million kilogrammes from the same month last year, with all product categories except bulk tea recording lower shipment volumes. The decline brought cumulative exports for the January-June period to 123.10 million kilogrammes, a year-on-year drop of 3.71 million kilogrammes.

Despite lower export volumes, the average free-on-board (FOB) value rose to Rs. 1,871.14 per kilogramme in June from Rs. 1,714.08 a year earlier, reflecting an increase of Rs. 157.06 per kilogramme. However, in U.S. dollar terms, the FOB value slipped to US$ 5.60 per kilogramme from US$ 5.72, highlighting the impact of currency movements.

For the first six months of the year, the average FOB value increased by Rs. 65.18 to Rs. 1,810.28 per kilogramme, while declining to US$ 5.70 per kilogramme from US$ 5.86 during the corresponding period of 2025.

Tea packets recorded the sharpest decline in June, with exports falling by more than 2.17 million kilogrammes year-on-year to 9.66 million kilogrammes. Tea bag exports also eased, while instant tea and green tea shipments recorded marginal declines. Bulk tea was the only category to register growth, increasing by about 307,000 kilogrammes from a year earlier.

During the January-June period, all export segments except instant tea posted lower shipment volumes compared with the same period last year. Instant tea exports rose by more than 427,000 kilogrammes, while tea packets accounted for the largest cumulative decline.

Türkiye remained Sri Lanka’s largest buyer of Ceylon Tea during the first half of 2026, importing 19.71 million kilogrammes, a 149 percent increase from a year earlier. Iraq ranked second despite a 28 percent decline in purchases, followed by Russia, which posted a marginal increase. Azerbaijan climbed to fourth place with a 72 percent increase in imports, while China overtook Libya to rank fifth.