By: Staff Writer
November 21, Colombo (LNW): Sri Lanka’s tea exports reached 20.79 million kilogrammes in October 2024, a 14 percent increase from 18.21 million kilogrammes in the same month last year, with all product categories showing growth, the industry data showed.
The FOB value per kilogramme for October rose by Rs.86.54 year-on-year (YoY) to Rs.1,791.78, compared to Rs.1,705.23 in October 2023.
The cumulative tea exports for January-October 2024 totalled 203.15 million kilogrammes, up 3.45 million kilogrammes, from 199.70 million kilogrammes during the same period in 2023. While most categories recorded gains, tea packets showed a decline.
Sri Lanka’s tea exports saw a 14% increase in volume for October year-on-year (YoY), reaching 20.7 million kilograms (Mnkg).
This growth brings total exports for the first 10 months to 203.1 Mnkg, up by 3.4 Mnkg YoY.
While the strengthening Sri Lankan Rupee has influenced earnings, they still rose slightly to Rs. 360.5 billion from Rs. 354.9 billion last year, translating to approximately $1.186 billion, compared to $1.087 billion by October 2023.
This increase in dollar earnings is attributed to both higher export volumes and a stronger FOB per kilo of $5.84, compared to $5.45 the previous year.
However, exports in Value-Added forms, which exclude Bulk Tea, have fallen to a 16-year low. This decline is mainly due to an 8% drop in Tea in Packets exports, although Bulk Tea exports rose by 9%.
On a positive note, Tea Bag exports grew by 11% YoY, reaching 21.1 Mnkg, and the high-value Instant Tea segment saw a 22% increase, reaching 2.3 Mnkg.
Looking at major export destinations, Iraq remains the largest importer with 27.1 Mnkg, though this is a 4% decrease from last year.
Russia’s imports increased by 8%, totaling 20.6 Mnkg, while the UAE, a key transshipment hub, saw a rise from 14.7 Mnkg to 18.7 Mnkg.
Turkey’s imports significantly dropped by 42%, from 25.5 Mnkg to 14.7 Mnkg. Other markets like China (9.6 Mnkg) and Azerbaijan (up 15%) also showed steady performance, while Iran’s exports surged by 83% to 8.7 Mnkg.
The high-value Saudi market increased by 32% to 7.4 Mnkg, matching the volume to Libya, which fell by 10%. Chile saw a rise of 11%, reaching 7 Mnkg.
Other notable markets include Syria (6.4 Mnkg), Germany (5.6 Mnkg), the USA (5.4 Mnkg), Japan (4.3 Mnkg), and Jordan (3.9 Mnkg).
