Sri Lanka’s Tea Export Earnings Up by 6% in Jan. ‘21 Over Same Period Last Year
Ceylon Tea coming from the resplendent island nation Sri Lanka is considered as one of the finest tasting teas in the world. Tea plays a vital role in Sri Lankan economy. Ten percent of Sri Lankan population is dealing directly or indirectly with tea industry. COVID 19 pandemic hit a lot to Sri Lankan economy by reducing revenue from expatriates, apparel and tourism. By the way, as Steve A. Morrell reported to The Island, Asia Siyaka Tea Brokers said in their weekly market report that Rs. 19.2 billion (US$ 108 million) earned from tea exports in January 2021 was a healthy indicator, which reflected a six per cent increase over Rs. 18 billion (US$ 101 million) earned in the corresponding period in 2020.
The Sri Lanka Tea Board mentioned production in January 2021 was 23 million kg, a year-on-year rise in comparison to 21. 9 million kilos in the same period 2020.
Planters in Maskeliya area belongs to Dimbulla tea growing region attributed the enhanced crop to continuous growing weather conditions through January, leading to a crop upsurge resulting in positive results for the industry.
When it comes to the low elevation grown sector (Ruhuna & Sabaragamuwa), comprising mainly tea smallholders, year-on-year, gain was 14. 9 million kilos, which contributed to the positive results. Western (Dimbulla) and mid grown (Kandy and some areas in Uva) results, although positive, were not as high as low growns.
Turkey was the No 1 Ceylon Tea importer during mentioned period at 3.8 million kilos. Russia, Iraq and China, the report said, increased their imports at about 80 percent of the total market.
In addition, Exports were also recorded to select European markets and to the US. Such exports were described as minimal, but significant because of the possibility of increasing market conditions to these countries was a further indicator which Ceylon Tea was a positive brand.
Tea market sources said buyers in Germany, who considered Ceylon Tea as a recognized brand, laid more emphasis on Darjeelings and teas from Kenya, which were now in the preferred category.
Sri Lanka should ramp up its marketing campaign, the source suggested.
Pakistan and Egypt which were two of Sri Lanka’s major buyers has now switched to Kenya. Ceylon Tea to Pakistan was barely two percent.
The tea smallholder sector in Sri Lanka continues to contribute around 75 percent of the production to the industry. There are around 400,000 smallholders who continue to contribute a major slice to the industry.
This is some relief to Sri Lankan economy in a situation when the country’s revenue has been affected a lot by COVID 19 pandemic.
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