Ceylon Tea exports record healthy first quarter growth

Sri Lankan tea exports in the first quarter indicated a “healthy” growth of 12 per cent compared to the same period last year. 2021 was one of the lowest in 12 years when they recorded 16.3 million kg.

But Broker Asia Siyaka notes that the cumulative tea exports quantity for the period January – April 2022 was 81.9 million kg, down from 86.2 million kg the year before. The country earned Rs.88.6 billion compared with Rs.81.2 billion during the period January - April 2021. This converts to an approximate US$367 million which is 12 per cent or $50 million lower than last year’s earnings of US$417 million. The approximate FOB value per kilo is $4.48 compared with US$4.84 a year ago.

Meanwhile, export destinations indicate Iraq at the top of the list with a figure of 15.3 million, recording a sharp 66 per cent increase YOY 2021. Russia is a distant second and quantities have declined from 8.2 million kg to 7.3 million kg this year. UAE follows with quantities up at a healthily 30 per cent from 5.5 million kg to 7.2 million kg this year. Turkey disappointed as quantities crashed from 11 million kg to 4.5 million kg. Iran records an increase of 41 per cent from 3.1 million kg to 4.4 million kg, while Azerbaijan has improved 9 per cent to 4.4 million kg. China is another market of concern as quantities continue to slide.

The 2022 April figure was 3.7 million kg compared with 5.2 YoY. The broker’s report said they are optimistic that volumes will improve when the pandemic situation improves in the country. Libya followed with a figure of 3.4 million kg down from 4.1 million kg the year before. Germany and Chile round-off the top 10 with imports of 2.4 million kg each.

Exports to Japan by end April in 2022 improved to 1.48 million kg compared with 2.06 million kg last year. This is still a 28% shortfall YoY 2021 but the gap is relatively lower than at the end of Q1 when quantities were a low 872,232 Kgs. Shipments in the month of April had improved in comparison resulting in the narrowing of the gap.