Tea exports rise in April

Friday, 23 May 2025 00:02 - - {{hitsCtrl.values.hits}}

Volume up by 1.82 m/kgs to 18.20 m/kgs
FOB value gains to Rs. 1,760.31, compared to Rs. 1,745.45 a year ago; in USD terms, month registers marginal increase of $ 0.07
Jan.-Apr. exports up by 2.71 m/kgs YoY to 81.41 m/kgs
Iraq emerges as top importer during first four months, while Libya makes second place edging over Russia

Sri Lanka’s tea export performance saw a notable uptick in April 2025, with total exports reaching 18.20 million kilograms, marking an increase of 1.82 million kilograms compared to 16.38 million kilograms recorded in April 2024.

As per Forbes & Walker research analysis, the growth was driven by improved performance across all categories except Tea in Bulk, reflecting a diversified demand for value-added products such as Tea Packets, Tea Bags and Instant Tea.

The Free on Board (FOB) value for April 2025 rose to Rs. 1,760.31, up Rs. 14.86 year-on-year (YoY) compared to Rs. 1,745.45 in April 2024. When measured in US dollar terms, the FOB value also increased by $ 0.07, suggesting stronger performance in foreign markets despite currency fluctuations.

In the cumulative period from January to April 2025, tea exports totalled 81.41 million kilograms, reflecting a positive variance of 2.71 million kilograms over the 78.70 million kilograms recorded during the same period in 2024.

Despite value-added segments such as Tea Packets, Tea Bags and Instant Tea showing growth, Forbes & Walker research noted that categories including Tea in Bulk and Green Tea experienced a decline compared to the previous year.

The average FOB value for the January-April 2025 period was Rs. 1,743.61, showing a decrease of Rs. 28.75 compared to Rs. 1,772.36 during the same period last year. However, in US dollar terms, the export value increased by $ 0.15, indicating more favourable conditions in international markets.

Notably, all categories except Instant Tea recorded negative variances in FOB value in Sri Lankan rupees, but positive gains in US dollar terms, reflecting exchange rate dynamics and improved global demand.

Industry analysts noted that while the growth in export volumes is encouraging, continued focus on value addition and diversification will be essential to sustain long-term competitiveness in global tea markets.

Iraq emerged as the top importer of Ceylon Tea with a total of 11.52 million kilos, an increase of 13% YoY in January-April 2025 against the previous year’s 10.23 million kilos. Libya ranks second with a 353% YoY increase to 7.61 million kilos, while Russia was ranked third place, witnessing a significant decline of 9% YoY with 7.50 million kilos vis-à-vis 8.27 million kilos registered in 2024. Other major importers included the UAE, which saw a significant 35% YoY decline, followed by Türkiye, which registered a 19% YoY decrease to 4.29 million kilos. Chile secured the seventh position with 3.77 million kilos edging over China’s 3.15 million kilos and Saudi Arabia’s 2.89 million kilos, followed by Germany at 2.73 million kilos for January-April 2025.

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