Ceylon Tea impacted by tariffs
View(s):Sri Lanka exports high priced teas to the US and this is likely to be impacted by the tariffs imposed recently just as the country saw a significant hike in export volumes, industry sources said.
Last year Sri Lanka exported 6.4 million kg of Ceylon tea to the US out of which 2.2 million was in bulk (35 per cent), 2.2 million kg in tea packets (35 per cent), 1.1 million kg in tea bags (16.4 per cent) and 0.84 million kg of green tea and other tea in other packaging (13.12 per cent).
Sri Lanka’s shipments to the US saw a significant increase by 22 per cent last year compared to 2023. This was a result of Sri Lanka breaking into the market with increased volumes of ready to drink tea, which comprises the largest volume of tea consumed in the US.
According to Sri Lanka Customs data, this trade volume amounted to Rs.13.5 billion (US$45 million) which makes an approximately FOB value of $7 per kg compared with $5.83 per kg which was the national average in 2024.
The US market like some other markets are a niche category and Sri Lanka has been a dominant supplier of its high and mid grown categories of Ceylon tea with a clear distinct taste profile.
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