By: Staff Writer
Colombo (LNW): The tea industry is bracing for a revival with improvement in crop but downward pressure on prices as well as exports.
Tea production which sank to lowest in 26 years last year, has picked up from April 2023 onwards with application of fertiliser kicking in.
However, on the flip side with improved supply there is pressure on the prices. Additionally, the recession in the western world has dampened buying power of major Middle Eastern tea markets which also faces slack demand during summer.
Tea exports in volume gained in November 2023 though in value terms they were lower whilst the overall performance in the first 11 months of this year was negative according to Forbes and Walker Tea Brokers.
It said tea exports for November 2023 totalled 21.46 M/Kgs, showing an increase of 2.18 M/Kgs vis-à-vis 19.28 M/Kgs of November 2022. All categories have seen an improvement against the corresponding month of 2022.
The FOB value in November 2023 was recorded at Rs. 1,725.77, a decline of Rs. 266.28 YoY compared to Rs. 1,992.05 of November 2022.
Furthermore, barring Instant Tea, negative variances were recorded in all categories both in LKR and USD terms.
Forbes Tea Brokers said January-November 2023 cumulative exports totalled 221.16 M/Kgs, showing a decrease of 9.73 M/Kgs vis-à-vis 230.89 M/Kgs of January-November 2022.
Tea Bags and Green Tea categories have recorded a marginal growth, whilst the remaining product categories recorded a decrease against the same period of 2022.
The FOB value for the period stood at Rs. 1,772.41, an increase of Rs. 160.69 vis-à-vis Rs. 1,611.72 of January-November 2022.
All categories showed gains in USD terms as well when compared to the corresponding period of 2022.
Iraq has been ranked at No. 1 amongst major importers of Ceylon Tea with a total of 30.53 M/Kgs, a decline of 25% YoY against 41.05 M/Kgs in 2022.
Türkiye has emerged in 2nd place with 28.24 M/Kgs and growing by 108% YoY surpassing Russia (3rd Position) and the UAE (4th Position) whose exports have declined by 10% and 19 % YoY respectively.
China has moved up to No. 5 with a marginal increase of 8% against the same period in 2022. Other notable importer countries are Libya, Azerbaijan, Chile, Syria and Saudi Arabia. Iran has dropped from 5th to 12th position with a 56% decline in imports for the period under review.
