Tea bag exports recover in June; overall shipments down

Wednesday, 22 July 2020 00:24 - - {{hitsCtrl.values.hits}}

Total tea exports in volume down 2% to 23.6 m kg in June
First half volume down 14% to 124 m kg
Export value down 13% to Rs. 106 b

Exports of tea bags have recovered in June, though overall shipments a year earlier and during the first half were down.

Asia Siyaka Commodities, quoting Customs data, said Sri Lanka exported 2.19 million kg of tea bags in June. Exports of tea in this value-added form declined to 0.94 million kg during the shutdown period in April and picked up to 1.55 million kg in May. The June quantity of 2.19 million kg is also higher than the previous year’s monthly figure of 1.89 million kg.

Asia Siyaka said total exports in June were 23.6 million kg, marginally lower than 24.1 million kg shipped a year earlier, but above the May figure of 22.6 million kg.

Total exports in the first half of 2020 were 124 million kg, trailing the previous year’s quantity of 145 million kg. “This year’s exports were impacted negatively by poor Q1 tea production with the cumulative YoY shortfall to June reaching 29.8 million kg,” Asia Siyaka said.

Earnings from tea exports were Rs. 106 billion down 13% from the first half of last year. This converts to an approximate $ 571 million compared with $ 686 million in 2019 and 1H figure of $ 728 million in 2018.

Asia Siyaka said Iraq is the main destination, with absorption of 16.2 million kg down from 19.6 million kg a year ago. Turkey follows at 15.7 million kg against 18.1 million kg last year. Exports to Russia picked up in June to reach 14.4 million kg; marginally lower than 14.9 million kg the year before. Iran quantities declined 14% from 10.3 to 8.9 million kg; followed by Azerbaijan down to 5.3 million kg this year.

China imported 5 million kg by 1H 2020 down 16% from 6 million kg during the same period the year before. Chile rose sharply to 4.6 million kg from 2.5 million kg a year ago and is followed by Syria 3.5 million kg. Saudi Arabia a high value market has increased imports of Ceylon Tea to 3.4 million kg from 3.1 million kg in 2019. UAE bought 3.3 million kg, Libya 3.2 million kg and Germany 3 million kg are the other major importing markets.