Ceylon Tea exports drop by 9% in 1H 2022

Sri Lankan customs data analyzed by Asia Siyaka Research confirms that 125.2 million kg was shipped during the period January – June this year compared with 136.9 million kg during the same period in 2021 indicating a loss of 11.6 million kg compared to the same period last year.

Sri Lanka shipped 23.5 million kg in the month of June which is the highest quantity in any month this year; but was 13 per cent lower than last year’s June quantity of 26.9 million kg.

Following a sharp depreciation of the Rupee, earnings for 1H rose to Rs. 164.2 billion; 28 per cent more than the figure of Rs. 127 billion achieved in 2021.

This converts to an approximate US$577 million against $650 the year before. Based on a quantity of 125 million kg the approximate FOB value per kg is $ 4.61 in 2022 compared with $ 4.75 in 2021.

Exports of tea in value added form that is total exports less bulk shipments was 57 per cent of the total. Tea Packets accounted for 46 per cent of all shipments up from 45 per cent a year ago. Tea Bags 9 per cent and Instant Tea 1 per cent have maintained their contribution, though quantities are down 12 per cent and 17 per cent respectively YoY.

In the first half 2022, Iraq continues to lead as the number one destination for Sri Lanka’s tea exports with quantities rising sharply by 46 per cent to 23.5 million kg against 16.1 million kg the year before. The UAE is second at 10.7 million kg with a nominal increase of 4 per cent and is followed by Russia 10.1 million kg against 13.3 million kg the year before. Turkey follows with 7 million kg sharply down from 17 million kg shipped during January - June 2021. (SD)