Ceylon Tea gains slowdown in Q4 2021

Sri Lanka’s tea industry has recorded a production increase of 8 per cent upto November 2021 with total exports increasing by 8 per cent and earnings increased by about 15 per cent.

Provincial tea industry performance data indicates that production has increased by 22 million kg to reach 3.13 million kg by November 2021, Forbes and Walkers report stated.

Tea exports totalled 74.6 million kg marginally behind 2020 with earning recorded at Rs.67.5 billion which is an increase compared to Rs.64.5 billion in 2020. By the end of the third quarter 2021 tea exports totalled 211.6 million kg compared to 198.3 million kg in 2020. Export earnings totalled Rs.195.3 billion compared with Rs.17.05 billion which is an increase of Rs.24.8 billion in earnings.

Expectations are that the annual production for the year 2021 would exceed 300 million kg with the fourth quarter figures yet to come in. October/November production totalled 44 million kg, a decline of 4.7 million kg and the only quarter to show a negative variance in production.

Tea prices in the fourth quarter continued to show an improvement on the third quarter with total auction average recorded at Rs.621.06, a gain of Rs.32.30 from Rs.588.76 in the previous quarter. High Growns Rs.604.41 compared to Rs.553.69, a quarter on quarter gain of Rs.50.72. Mid Growns Rs.550.28 compared to Rs.519.31, a quarter-on-quarter gain of Rs.30.97. Low Growns Rs.645.19 compared to Rs.621.66, a quarter-on-quarter gain of Rs.23.53.

Total auction average of Rs.621.06 during the fourth quarter showed a decline of Rs.22.09 compared to Rs.643.15 recorded during the corresponding period in 2020. All elevations recorded a decline in prices. (Sunimalee)