Midst dip in crop, tough markets tea exports struggle in Feb.

Saturday, 9 April 2011 00:51 - - {{hitsCtrl.values.hits}}

The country’s tea sector had struggled in terms of exports in February with it managing to achieve only a marginal increase in shipments over the corresponding month of last year.

Tea exports for the month of February 2011 totalled 25.3 m/kgs showing a marginal gain of 0.2 m/kgs vis-a-vis 25.1 m/kgs of 2010.

In value terms too total exports of Rs.13.1 billion showed a gain of Rs.0.6 billion as against Rs.12.51 billion recorded during the corresponding month of 2010. Tea in bags, tea in packets and green tea are categories which have shown a growth in volume year on year (YoY).

Cumulative exports too up to end February totalling 49.7 m/kgs show a gain of 3.6 m/kgs vis-a-vis 46.1 m/kgs of 2010. Here again, the total revenue of Rs.26.1 bn show a growth of Rs.3.2 bn or 13.9% YoY when compared to Rs.22.9 bn realised during the corresponding period of 2010. Tea in bags, green tea and tea in packets have shown a growth YoY.

Main importers of Sri Lankan tea CIS has emerged as the No.1 importer followed by UAE and Iran. It is also noteworthy that CIS and Iran have shown a significant growth in imports YoY. UAE, however, show a slight decline in imports. Other noteworthy importers were Syria, Turkey and Iraq.

In January tea exports amounted to 24.3 m/kgs, up 3.3 m/kgs vis-a-vis 21.0 of 2010. The total revenue realised for January 2011 of Rs.12.9 bn was up 25% over January 2010.

The struggle in exports could be partly due to poor crop in addition to tough market conditions globally.

Tea crop in February amounted to 21.6 m/kgs vis-a-vis 23.5 m/kgs of 2010 showing a decline of 1.8 m/kgs, whilst the first two months’ crop was 42.6 m/kgs, down by 9.34 m/kgs vis-a-vis 51.9 m/kgs of 2010.

Last year tea exports amounted to a record 314.2 million kilos, up by 8.4% from 289.6 million kilos shipped in 2009. Value wise, 2010 overall exports saw an increase of 14.1% or Rs. 19.2 billion to Rs. 155.3 billion, the highest ever, beating the previous record of Rs. 137.5 billion established in 2008.