Tea exports show mixed trends in August 2023

Saturday, 23 September 2023 00:41 - - {{hitsCtrl.values.hits}}

August exports up by 0.33 m kilos to 23.33 m kilos
Decline in all categories except for instant tea and green tea against August 2022
August FOB negative variances in all main categories in dollar terms
First eight months bulk and packeted tea show negative variances, other categories record increase
Jan. to Aug. FOB value up by Rs. 330.70 to Rs. 1,801.24 YoY

Sri Lanka’s tea exports in August saw both incremental growth and some declines compared to the previous years. The export volumes increased marginally, whilst value dipped, industry sources said.

Forbes & Walker Research said tea exports in August 2023 reached a total of 23.33 million kilograms, marking a steady increase of 0.33 million kilograms compared to August 2022.

Interestingly, instant tea and green tea stood as exceptions, demonstrating growth, while all other categories experienced declines in comparison to the corresponding month in 2022.

The Free on Board (FOB) value for August 2023 was recorded at Rs. 1,648.85, reflecting a noteworthy decrease of Rs. 302.97 compared to August 2022’s Rs. 1,951.82. This decrease is apparent across all main categories when denominated in US dollars, a trend that is highlighted in the accompanying table.

The cumulative exports for the period spanning January to August 2023 totalled 158.32 million kilograms. This figure represents a decline of 12.74 million kilograms in contrast to the 171.06 million kilograms recorded in the same period of 2022. The categories of tea in bulk and packeted tea continued to exhibit negative variances, while the remaining product categories experienced marginal increases.

During the first eight months, the FOB value stood at Rs. 1,801.24, showcasing an encouraging increase of Rs. 330.70 when compared to the Rs. 1,470.54 recorded in the corresponding period of 2022.

Iraq secured the top position in August 2023, importing a total of 14.73 million kilograms of tea. Türkiye followed closely in second place with 13.33 million kilograms. Russia claimed the third position, displaying an impressive growth rate of over 14% compared to the previous year. The U.A.E (7.49 million kilograms) and China (5.77 million kilograms) secured the fourth and fifth spots, respectively. Noteworthy importers also included Azerbaijan, Libya, Saudi Arabia, Syria, and Germany.