October tea output falls 15% year-on-year

Monday, 21 November 2011 00:13 - - {{hitsCtrl.values.hits}}

Reuters: Sri Lanka’s tea production fell in October for a seventh straight month due to adverse weather and a high base effect, the State-run Tea Board said on Friday.

Tea production in October recorded 23.69 million kg against 27.88 million kg in the same month last year. The output in the first 10 months has slipped 2.3 per cent to 269.89 million kg from 276.15 million in the same period last year.

“The main reason is the climatic conditions and also last year we recorded the highest production that is also a reason for the steep drop,” Sri Lanka Tea Board Director General H.D. Hemarathna told Reuters.

The Tea Board expects full-year output to end near last year’s record high of 329.4 million kg.

The Tea Board hopes revenue from Sri Lanka’s No. 1 agricultural export crop will rise to a record of more than $ 1.5 billion this year, from $ 1.4 billion last year despite turmoil in the Middle East and North Africa, home to some of the island nation’s major customers.

Sri Lanka’s earnings from tea exports have risen 3.1 per cent to $ 973.1 million in the first eight months of 2011, the Central Bank’s latest data shows. Earnings gained 16.1 per cent to hit $ 1.4 billion last year.

Tea is one of the $ 50 billion economy’s main foreign currency earners, along with remittances, garment exports and tourism.