Tea industry overview: January-September 2025

By Ceylon Tea Brokers PLC 

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 September 2025 compared to the same period in 2024.

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

Macroeconomic 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 September 2025, total production reached 199.09 million kilogrammes (Mn/Kgs), reflecting an increase of 2.87 Mn/Kgs, compared to 196.22 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 High and Medium Grown teas recorded an increase whilst Low Grown varieties experienced a decline.

The Sri Lankan tea industry experienced growth for the period January to September 2025, with total production increasing by 2.87 Mn/Kgs compared to the same period in 2024. Export volumes also rose during this period, recording an increase of 15.97 Mn/Kgs.

The national average tea price for January-September 2025 declined to Rs.1,160.56 (US $ 3.88) per kg, compared to Rs.1,245.66 (US $ 4.08) per kg during the same period in 2024. This shows a decrease of -Rs.85.10 in rupee terms and -US $ 0.20 in dollar value. 

The price variations across elevations showed the Low Grown teas averaging Rs.1,230.94 (US $ 4.12), Medium Growns at Rs.1,022.69 (US $ 3.42) and High Growns at Rs.1,083.91 (US $ 3.62). All three elevations recorded a drop in rupee value and dollar value.

The Low Growns with the largest market share of 59.84 percent of production, recorded a drop of -Rs.100.85. Meanwhile, the High Grown and Medium Grown categories also saw decreases, falling by -Rs.65.34 and -Rs.58.39, respectively.

Sri Lanka tea exports for the period January-September 2025 amounted to 198.33 Mn/Kgs vis-à-vis 182.36 Mn/Kgs recorded for the same period last year (+15.97 Mn/Kgs). The FOB average price per kilo for this period stood at Rs.1,754.46 (US $ 5.87) in contrast to Rs.1,773.06 (US $ 5.81), which recorded a decrease in the rupee term (-Rs.18.60) and an increase in dollar value (+US $ 0.06) when compared to the corresponding period in 2024. The FOB value of tea bags has increased in comparison to the same period in 2024.

The total revenue realised for the period January-September 2025 from tea exports was Rs.347.96 billion (US $ 1.16 billion), compared with Rs.323.33 billion (US $ 1.06 billion) recorded for the period January to September 2024. It’s an increase in rupee terms (+Rs.24.63 billion) and in dollar value (+US $ 104.52 million) compared to the same period in 2024. The 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 September 2025, with Russia and Libya following as second and third largest markets, respectively. Exports to Iraq increased by +5.91 Mn/Kgs and Libya saw a significant increase of +9.68 Mn/Kgs. 

However, shipments to Russia declined by -1.75 Mn/Kgs. Exports to Turkey rose by +1.85 Mn/Kg. However, the UAE dropped by -3.22 Mn/Kgs. Exports to Iran increased by +0.90 Mn/Kgs. Chile rose by +2.31 Mn/Kgs but China recorded a decline of -0.92 Mn/Kgs.