June tea production slips by 7.9% year on year to 28.8 m kilos

Thursday, 21 July 2011 00:00 - - {{hitsCtrl.values.hits}}

(Reuters): Sri Lanka’s tea production fell in June for a third month due to a base effect as attractive global prices and good weather resulted in high output in the same period last year, the state-run tea board said on Tuesday.

Tea production in June fell 7.9 percent to 28.8 million kilogrammes (kg) against 31.3 million kg in the same month last year. The output in the first six months has edged up 0.6 percent to 170.4 million kg from 169.4 million in the same period last year.

The Tea Board expects full-year tea output to hit a new record high surpassing 2010’s record of 329.4 million kg.

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

Sri Lanka’s earnings from tea exports rose 16.7 percent in the first four months of 2011, the Central Bank’s latest data shows. Earnings gained 16.1 percent to $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.