By: Staff Writer
March 20, Colombo (LNW): Sri Lanka’s tea industry experienced a dip in exports during February 2025, despite showing positive growth in some of its key international markets. The total quantity of tea shipped out in February amounted to 20.40 million kilograms, marking a decline of 1.91 million kilograms compared to 22.31 million kilograms in February 2024. According to Forbes & Walker, this downturn was seen across most categories, except for packeted tea, which continued to perform well.
The Free on Board (FOB) value for February 2025 was recorded at Rs. 1,737.25 per kilogram, reflecting a decrease of Rs. 51.91 per kilogram when compared to Rs. 1,789.43 per kilogram in the same month last year. However, in US Dollar terms, there was a slight increase of $0.13 per kilogram, indicating some resilience in the global market.
For the first two months of 2025, cumulative tea exports stood at 39.77 million kilograms, a drop of 1.30 million kilograms from 41.07 million kilograms in the same period in 2024. While tea packets, tea bags, and instant tea categories reported growth, the bulk tea and green tea sectors experienced a decline. The overall FOB value for January-February 2025 was Rs. 1,730.34 per kilogram, showing a decrease of Rs. 40.58 per kilogram from Rs. 1,770.92 per kilogram in the first two months of 2024. Despite this fall in Rupee terms, all categories, except instant tea, experienced gains when measured in US Dollar terms.
Iraq emerged as the leading importer of Ceylon Tea, importing 5.96 million kilograms in the first two months of 2025, reflecting a 13% increase year-on-year (YoY) from 5.30 million kilograms in 2024. Russia, the second-largest importer, saw a 10% YoY decline, bringing in 4.08 million kilograms compared to 4.52 million kilograms in 2024. Libya, in third place, recorded a remarkable 653% increase in imports, reaching 3.63 million kilograms from just 0.48 million kilograms in the previous year.
Other major importers such as the UAE and Turkey experienced notable declines, with the UAE seeing a 44% YoY decrease to 2.78 million kilograms, and Turkey a 34% drop to 1.96 million kilograms. On a more positive note, Chile’s imports increased by 26%, reaching 1.84 million kilograms. Saudi Arabia and China each imported 1.59 million kilograms, while Azerbaijan followed closely with 1.50 million kilograms. Iran, however, saw a sharp 55% decline, importing only 1.29 million kilograms compared to 2.9 million kilograms in 2024.
These mixed results highlight the volatility of Sri Lanka’s tea export market, where some regions have seen growth, while others have faced setbacks, signaling the need for continued market adaptation and strategic approaches.
