Ceylon Tea exports in May dip 5.3% Year-on-Year

Tea exports for the month of May 2024 totalled 19.45 million kilograms, which is a contraction of 5.3 percent Year-on-Year (YoY).

All categories except for Bulk Tea and Tea Bags have shown negative variances in comparison with the corresponding month of the previous year, Forbes and Walker Tea Brokers said.

FOB value in May 2024 was recorded at Rs. 1,772.24, a marginal increase of Rs. 16.66 YoY compared to Rs. 1,755.58 of May 2023. All categories have witnessed positive variances except for Tea Bags in LKR and USD terms.

Meanwhile, January-May 2024 cumulative exports totalled 98.15 million kilograms, recording an increase of 7.35 million kilograms vis-à-vis 90.80 million kilograms of January-May 2023. All categories except for Bulk Tea and Tea Bags have recorded negative variances against the same period of the previous year.

FOB value for the period stood at Rs. 1,772.33, a decrease of Rs.169.48 vis-à-vis Rs. 1,941.81 of January-May 2023. 

All categories showed negative variances in LKR terms except for Green tea, whilst marginal gains were recorded in USD terms (excluding Tea Bags and Instant Tea)when compared to the corresponding period in 2023 (Refer table). 

In terms of markets, Iraq ranks as the largest importer of Ceylon Tea with a total of 12.2 million kilograms, an increase of 18 percent YoY in January-May 2024 against the previous year’s 10.42 million kilograms.

Russia secured 2nd place with 10.67 million kilograms, a 5 percent  increase YoY, followed by the U.A.E with 10.34 million kilograms (67 percent increase YoY). 

Other notable importer countries are Türkiye (7.04 million kilograms), Iran (4.98 million kilograms) and China (4.46 million kilograms).