Jan-July tea exports hit a record in rupee terms

Thursday, 24 August 2017 00:00 - - {{hitsCtrl.values.hits}}

The country’s tea exports during the first seven months of this year have hit an all-time high of Rs. 132.4 billion, reflecting a 26% growth whilst in US dollar terms the increase was 20% to $ 871 million from a year earlier.

Asia Siyaka Commodities said January to July 2017 rupee value was the highest ever and was well above the previous record of Rs. 123.2 billion achieved in 2014. In dollar terms the highest for the first seven-month period was $ 954 million achieved in 2014.

Exports volume for the period January-July 2017 was 165.3 Mnkg, down 4% on the 2016 figure of 172.1 Mnkg, lower in comparison to 187 Mnkg in 2014.

In July Sri Lanka exported 26.6 Mnkg, up 4% on the 2016 quantity of 25.7 Mnkg. “Monthly exports volumes have increased steadily since May’s 24.3 Mnkg and June’s 25.8 Mnkg,” Asia Siyaka added.

In 2015 exports during July amounted to 28.7 Mnkg and 29.8 Mnkg the year before. The country got off to a slow start this year with Q1 lower than the base year 2016. Low exported quantities were due to tea production declining following adverse weather.

Asia Siyaka also said low production from Q4 2016 and the first two months of 2017 restricted auction availability and therefore led to a decline in export volumes. In Q1 this year Sri Lanka shipped 68 Mnkg compared with 74 Mnkg the previous year.

A review of the different segments that make up tea exports show bulk tea at 43% of the total of 165 Mnkg compared with 44% the year before. Exports of tea packets however have grown marginally to 47% from 46% and tea bags held steady at 8%. Total value added exports are at 57%. This arrived by reducing the bulk tea export figure from the total.

Russia/CIS tops the destinations with an absorption of 31.1 9 Mnkg, similar to the previous year’s quantity of 31.59 Mnkg. Turkey follows having grown as a transit point and quantities have increased 32% from 15.1 Mnkg to 19.9 Mnkg this year. Exports to Iraq had declined to 18.5 Mnkg from 21.1 Mnkg. Direct exports to Iran have dropped sharply by 23% from 20.1 Mnkg to 15.6 Mnkg. The UAE has seen less Ceylon Tea with a figure of 9.3 Mnkg against 12.2 Mnkg. Shipments to Libya have increased 40% YoY 2016 with a figure of 7.5 Mnkg against 5.3 Mnkg. China continues to grow from 4.1 Mnkg to 5.3 Mnkg this year. Japan has increased 8% from 4.4 Mnkg to 4.7 Mnkg. Chile too has increased its imports with quantities of 4.4 Mnkg against 3.5 Mnkg during January-July a year ago. Shipments to Syria have dropped sharply from 7 Mnkg to 3.9 Mnkg. Germany has declined 22% to 3.2 Mnkg from 4.2 Mnkg the year before. Jordan remains at 2 Mnkg.