Bad weather cuts tea crop

Adverse weather conditions have resulted in tea industry reporting the second consecutive month of decline.

The country’s tea production of 21.6 million kilos in February reflects a 1.8 million kilos or 8% decline over the corresponding month last year. The crop in the first two months of 2011 was 42.6 million kilos, down by 9.3 million kilos or 18% over the corresponding period of 2010.

“The dip in production is attributed to the wet weather and the dull and overcast skies that prevailed in December, last year, and January this year, which inhibited growth,” Lanka Commodity Brokers said.

Production in all three elevations has recorded declines. The High and Medium elevations have shown deficits of 2.2 MKGS and 1.9 MKGS respectively, whilst the crop output of Low Growns is 5.1MKGS below last year’s figure.

Floods across Sri Lanka in January and February hit overall agricultural production, with at least a third of the staple rice crop being destroyed and damage to other crops piling up and sending food prices skyrocketing.

According to a Reuters report Tea Board officials have said the rains hit the regular plucking and pruning cycles.

The Sri Lanka Tea Board has forecast 2011’s output to be more than the last year’s record 329.4 million kg.

Sri Lanka’s 2010 full-year tea production rose 13.1 percent to a record 329.4 million kg from 291.1 million in 2009. The 2010 output surpassed the previous peak of 318.7 million kg in 2008.

The Tea Board hopes exports will rise to a record of more than $1.5 billion this year from $1.4 billion in 2010.

Sri Lanka’s annual earnings from tea exports rose 16.1 percent last year, the Central Bank’s latest data shows.