11-month tea exports value top $ 1.3 b mark; Nov. volume down YoY

Sri Lanka’s tea exports value during the first 11 months of this year has crossed the $ 1.3 billion mark, whilst quantity-wise, November has seen a 6% drop year-on-year (YoY) to 20 million kilograms.

The November figure is also slightly lower from October exports, which stood at 20.7 million, industry sources said. 

Asia Siyaka Commodities PLC, quoting provisional Customs data, noted that Sri Lanka exported 223 million kilos during the first 11 months, nominally ahead of last year’s figure of 221 million kilos. 

“The country earned around $ 1.3 billion ($ 1,304 million) on a volume of 223 million kilos. This converts to a high FOB value per kilo of $ 5.84 compared with $ 5.43 the year before. In Sri Lankan Rupees, the value of exports amounted to Rs. 395 billion compared with Rs. 391 billion the year before,” it said, adding that this figure could have been much higher if the Sri Lankan Rupee had not strengthened against the dollar over the past five months. 

They opined that the Rupee appreciation has had a negative impact on the auction prices as well and reduced returns to tea producers across the board. 

Separately, Forbes and Walker Research said tea exports for the month of November 2024 totalled 20.07 million, showing a negative variance of 1.38 million kilos compared to 21.46 million of November 2023. 

“All categories show negative variances except for Tea Packets, which registered a marginal gain in comparison with the corresponding month of the previous year. FOB value in November 2024 was at Rs. 1,718.88, a decline of Rs. 6.89 YoY compared to Rs. 1,725.77 of November 2023,” it added.

It also noted that the Tea in Bulk, Tea Bags, and Green Tea categories have shown positive variances against the same period of the previous year, although Tea Packets and Instant Tea categories have recorded negative variances during the first 11 months.

Asia Siyaka Research said a review of the different segments that make up tea exports show value added shipments accounting for 55% of the total compared with 57% the year before.

“This has come primarily from tea exports in Packets (92%) which declined to 41% of the national total against 45% (98 million kilos) in 2023,” it added. 

They also said this 7% loss has shifted to the Bulk Tea category, which now accounts for 45% of all exports this year. Shipments of Tea Bags, an important component of the value-added segment, have increased 10% YoY to 23 million kilos. Instant Tea and Green Tea exports have remained steady.

Forbes and Walker Research also said the FOB value from January-November 2024 stood at Rs. 1,769.93, a decrease of Rs. 2.48 (increase of $ 0.45) vis-à-vis Rs. 1,772.41 of January-November 2023.

It also added that all categories except for Tea in Bulk and Tea Packets showed negative variances in LKR terms in FOB value, whilst gains were recorded in US dollar terms in all categories when compared to the corresponding period in 2023.

Of the Major destinations for Sri Lanka tea exports, Asia Siyaka Research said Iraq maintained its top slot with a volume of 30 million kilos, similar to the year before, whilst Russia followed with a 12% gain to 22.8 million kilos. The UAE is ranked third with quantities increasing 20% from 16.3 million kilos to 19.6 million kilos. 

It added that Turkey continues to slide down the order with quantities declining a sharp 42% from 28.2 million kilos to 16.3 million kilos this year. China follows with a quantity of 10.6 million kilos down 6% on last year. 

Following Sri Lanka’s trade deal with Iran tea exports to this destination have risen sharply to 9.5 million kilos from 5.2 million kilos a year ago. Azerbaijan has absorbed a similar quantity with a 12% YoY gain. Shipments to Libya have dropped to 8.5 million kilos from 9.9 million kilos during the period January-November 2023. Saudi Arabia’s high value market has shown a very positive trend and grew 27% from 6.4 to 8.1 million kilos. Chile follows with 7.8 million kilos and Syria 7 million kilos. The US has sharply increased its volumes by 23% from 4.9 million kilos to 6 million kilos this year.