Tea exports between January-May 2021 amount to over Rs. 103bn

Exceeds periodic performance by Rs. 18. 36bn

By Steve A. Morrell

Tea Brokers weekly Tea Market Reports, particularly, John Keels Holdings, (JKH,) market Review, Forbes and Walker ( F & W) Tea market report, and Asia Siyaka(AS) Brokers weekly tea update, reported tea exports from January to May 2021 exceeded Rs. 103. 07 billion. This exports result exceeded 2020 performance by Rs. 18. 36 Billion. From January to May 2020 exports were Rs 84.7 Billion. It is a clear indication that Ceylon Tea registered increased demand over the same period comparing both seasons.

One of the reasons attributed for the increase in Ceylon Tea exports was the lower production to some extent in the Indian Tea industry because of bad weather as well as the coronavirus pandemic that swept through India disrupting many commercial activities. The factual position was that the pandemic situation exacerbated dearth in production pushing supply and demand position to critical levels, Thus results of the pandemic in India generated increased demand for Ceylon Tea.

Cumulative exports recorded production levels at 134.72 million kilos to date, as reported by AS Brokers; comparatively 2020 the quantity recorded was 109. 5 million kilos.

It should also be of interest that 75 percent of the production was output by the tea smallholders. Sources from this sector said such results were also of importance as uncertainty in the fertiliser supply chain served as an impediment to production. Regional Plantation Companies were not exempt from the catastrophe facing the industry, as confirmed by sources who declined to be quoted.

Reports said Turkey was the leading buyer last week at Colombo tea auction. Turkey was followed by Iraq, Russia, and the UAE. Iran moved down to 8th position from 4th. Other notable importers of Ceylon tea were China, Azerbaijan, Libya, and Syria. Meanwhile Chile, and Saudi Arabia imports declined. However, exports to China increased substantially, contributing some 52 percent YoY.

Low growns production during the week was recorded at 3.1 million kilos.

Flowery grades were sold at prices ranging from Rs. 2,200 to Rs, 2,400 per kilo. Prices from the western hills, particularly BOPF grade, appreciated as the sale progressed. High and mid grown CTCs were Rs. 20 to 30 per kilo – less than expected.

According to the Tea Report, production in 2017 was 307.71 million kilos. In 2020, the production was 278.4 million kilos. Reports at hand did not indicate reasons for drop since that year.