Tea exports in May drop by 17%

Sri Lankan tea exports in May of this year had been down by a sharp 17 per cent at 19.7 million kg compared to 23.7 million kg last year during the same month, Asia Siyaka Tea report stated.

The cumulative total has reached 101.7 million kg but trails the previous year’s quantity of 109.9 million kg by 8 per cent with a loss of 8 million kg.

The approximate value of tea exported for the first four months from January – May is US$460.9 million sharply lower than 2021 earnings of $526.6 million.

The approximate FOB value per kg to end May this year has declined to $4.53 compared with $4.79 last year. The tea shipped in value added form for the first five months period remains steady at 57 per cent; of which tea in packets was 46 per cent, tea bags 9 per cent, instant tea and other value added tea 3 per cent.

Key markets in North Africa and Middle East such as Iraq, Iran, UAE and Saudi Arabia continue to take up volume, but Turkey and Libya have declined. Markets such as China, Hong Kong, Taiwan and Japan absorbed less volume during the period.

The report noted that they are hopeful that reopening of key cities in China after the recent COVID-19 lockdown will boost shipments during Q2 this year.