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Sri Lanka Tea Board Chairman Niraj de Mel
By Charumini de Silva
Sri Lanka Tea Board Chairman Niraj de Mel yesterday expressed the belief that the industry will successfully achieve its ambitious export goals by end 2023 despite facing mixed results so far in the year.
With a target of 265-270 million kilo crop and an export income of $ 1.2 billion by year end, his optimism stems from the anticipation of an upswing in performance from August onwards.
“The performance of the industry is set to improve as the tea sold up to July will soon reflect in the market. I can confidently say that we can achieve $ 2.1 billion as we have managed to record over $ 100 m in sales per month,” he told the Daily FT.
Sri Lanka Tea Board Chairman said the expected uptick in exports is bolstered by the industry’s capacity to address a 13 million kilo crop deficit during the final quarter of the year, driven by increasing demand for tea.
Acknowledging the unusual dry spell experienced across the country, de Mel remained hopeful about the prospect of steady rainfall during the upcoming mini-rush period from October to November. This crucial time frame marks another round of crop harvesting for estates, potentially alleviating some of the challenges posed by the dry weather conditions.
De Mel emphasised that the Sri Lanka Tea Board is closely monitoring the impact of the dry spell on green leaf production. “At this juncture, it is little too soon to speculate whether the export targets will need revision,” he added.
As per data analysed by Forbes and Walker Research during the first seven months of 2023, tea exports have declined by 9%, whilst earnings jumped 24% from a year earlier.
A total of 134.99 million kilos of teas were shipped during January-July this year compared with 148.05 million kilos in the corresponding period of 2022, reflecting a 13.06 million kilo drop YoY. However, the cumulative tea production from January to July 2023 reached 155.82 million kilograms, marking a growth of 2.59 million kilograms compared to the 153.23 million kilograms recorded during the same period in 2022.
The earnings from exports rose significantly from Rs. 1.39 billion to Rs. 1.82 billion YoY in the first seven of 2023. All categories showed gains in dollar terms as well when compared to the corresponding period of 2022. This translates to an approximate Free on Board (FOB) value of $ 5.55 per kilogram compared to $ 4.76 per kilogram with the first seven months’ dollar earnings at $ 742.45 million.
Iraq, Türkiye and Russia emerged as the top three importers of Ceylon Tea in July.
