Sri Lanka’s tea exports in value in the first seven months of this year have hit an all-time high on lower volume, industry sources said.
The country earned the highest ever Rs. 206 billion between January and July 2022 up by a massive 37% from the corresponding period of last year.
Whilst depreciation of the rupee played a significant part, Asia Siyaka Commodities said that the dollar average FOB per kilo in July was a high $ 5.16 per kg, In the first seven months it was $ 4.69 per kilo, marginally down from $ 4.71 per kilo a year ago.
Higher value is being fetched on low crop. Customs data analysed by Siyaka Research also confirmed tea exports of 22.7 million kg in July, down 2.7 million kg from last year. Asia Siyaka said the 2022 July figure was the lowest on record in recent history going back to 1999. 23 years ago, the country shipped 22.8 million kg with total exports for that year reaching 269 million kg.
Volume of tea exports in the first seven months of 2022 amounted to 148 million kg, down by 9% from a year earlier. “The cumulative total too is lowest on record in relation to increased tea production which led to Sri Lanka’s exports rising to 300 million kg for the first time in 2004,” Asia Siyaka recalled.
Iraq continues as the prime destination for Ceylon Tea exports, with absorption of 27.9 million kg, up by a sharp 35% from a year ago. The average FOB per kilo however is a low $ 3.31, compared with the national total of $ 4.69.
The UAE followed with 12.7 million kg up 5% with a FOB of $ 4.77 per kilo. Asia Siyaka said Russia’s poor performance continues with quantities dropping to 12.3 million kg from 15.8 million kg a year ago and a low FOB of $ 4.38 per kg.
Exports to Turkey were down by 58% to 8.2 million kg whilst purchases by Iran remained steady at 7.5 million kg and followed by Azerbaijan 7.3 million kg up from 6.9 million kg. Libya’s imports have increased by 8% to 6.9 million kg in the first seven month. China’s purchases were down by 22% to 6.5 million kg.
Germany has increased purchases by 21% to 4.4 million kg and imports by Saudi Arabia were up by 7% to 3.7 million kg. Shipments to Syria were down to 4.8 million kg from 3.5 million kg. Japan makes up the top fifteen destinations with imports of 3 million kg, but down by 13%. Japan FOB per kilo is a high $ 5.54 but less than last year’s January-July figure of $ 5.66 per kilo.
Sri Lanka’s tea crop in July plunged to a 21-year low of 19.8 million kg. Citing Sri Lanka Tea Board preliminary data, Asia Siyaka said July 2022 crop also reflects a 25% drop from a year ago. The lowest crop on record for July was in 2001 at 19.5 million kg.
Crop for the first seven months was 153 million kg, down by 18.6% from the corresponding period of last year. “This loss of 35 million kg has come primarily from the Low country which has declined 20 million kg to 92.4 million kg for the period January – July 2022 compared with 112.7 million kg last year,” Asia Siyaka said.
It added that the high grown crop was down 16% to 35.5 million kg from 42.4 million kg last year and Mediums dropped 23% to 25 million kg from 32.9 million kg by end July 2021.
