2011 tea exports a record in dollar terms too

Sri Lanka’s tea exports in 2011 reached an all time in US Dollar terms as well, according to Ceylon Tea Brokers Plc.

“Based on the weighted average rupee value for US$ 1 in 2011 and 2010 as obtained from the website of the Central Bank of Sri Lanka, equivalent US$ export earnings in 2011 amounted to approximately US$ 1.49 billion as against 1.44 billion in 2010,” the broking firm said yesterday.

“Although the volume of total exports of 2011 including re-exports with imported tea has recorded a decline compared with 2010, export earnings both in rupee terms and dollar equivalent in 2011 are both all time high,” Ceylon Tea Brokers added.

It said total quantity of tea exported for 2011 excluding re-exports with imported tea amounted to 303.16 m/kg, a slight decline of 2.59 m/kg (-0.85%) when compared with the year 2010. However, with the increase in FOB price per kg from Rs. 494.59 to Rs. KR 500.64, total export value for the period showed a marginal increase of Rs. 0.55 billion (+0.37%) as against the same period last year.

Category wise analysis is not possible for tea in bulk and tea in packets due to the classification differences between 2010 and 2011. Despite the decline in volume of tea bags exported the total earnings have increased due to a fairly sharp increase in the FOB price per kg from Rs. 792.91 to Rs. 912.47. Similarly FOB values of instant tea and green tea have recorded increases in 2011 when compared to the previous year.

Total quantity of tea exported for the year 2011 including re-exports with imported tea amounted to 322.56 m/kg as against 324.36 m/kg in 2010. Nevertheless, with the increase in FOB price per kg from Rs. 501.88 to Rs. 511.08 total export earnings in 2011 amounted to Rs. 164.85 billion, an increase of Rs. 2.06 billion (+1.27%) as against the same period last year.

Country wise analysis of exports shows that the CIS countries (including Russia) continue as the largest export destination from Sri Lanka. Iran, Syria, Iraq and UAE follow in that order in 2011. Significantly UAE with exports of 32 m/kg in 2010 has dropped to 22.53 m/kg in 2011.

On the other hand Iraq has recorded an almost 10 m/kg increase in 2011 as against 2010. However, cumulative tea exports to Libya, Jordon and Kuwait declined by (-34.38%), (-58.67%), and (-22.28%) respectively.