Tea export revenue dips to Rs.230.17 bn in 2020 | Daily News

Tea export revenue dips to Rs.230.17 bn in 2020

Tea Export Earnings
Tea Export Earnings

The Total Tea export revenue dipped in 2020 to Rs.230.17 billion (US$ 1.24 billion) compared with Rs. 240.64 billion (US$ 1.35 billion) recorded in 2019. It’s a decrease in the Rupee terms (-Rs.10.47 billion) and a decrease in Dollar value (-US$ 0.11 billion) compared to the year 2019.

However Teas in Packets and Bulk showed an increase in FOB Value YOY.

Sri Lanka Tea Exports for 2020 amounted to 265.57 MKgs vis-à-vis 292.66 MKgs recorded for the same period last year (-27.09 MKgs ). The FOB average price per kilo for this period stood at Rs. 866.70 (Highest Ever) in contrast to Rs.822.25 (+Rs.44.45) when compared to the year 2019. The FOB value of Tea Bags has dropped in comparison to the same period in 2019 (-Rs.51.42).

Country-wise analysis of exports shows that Turkey emerged as the largest importer of Sri Lanka tea for the period of January – December 2020 followed by Iraq, Russia and Iran. However, tea exports to Turkey and Iraq have dropped by -0.22 Mn/Kg, -5.03 Mn/Kg respectively compared to the year 2019 whilst tea exports to Russia have increased by 0.54 Mn/Kg. The total tea production of Sri Lankan Tea for the year 2020 recorded 278.49 MKgs in comparison to 300.12 MKgs for the same period in 2019 (-21.63 MKgs). High, Medium & Low Growns shows a decline in volume in comparison to 2019. The CTC High and Medium Grown shows an increase whilst CTC Low Grown shows a decline in volume when compared to the year 2019. Production has decreased by -21.63 MKgs (Lowest since 1997) and when compared to the same period in 2019. Exports have decreased by -27.09 MKgs when compared to the same period in 2019.

According to Ceylon Tea Brokers, the year 2021 could be looked on a more positive note. “The world economy is poised for a modest rebound this year. In the year 2020 the World Economic growth being one of the slowest due to the pandemic, the growth in 2021 could be stronger if the pandemic de-escalates, a decline in the downturn in major economies, reduced financial disruptions would pave way for a healthier year.”

“Global output is expected to expand 4.0% in 2021 and is projected to moderate to 3.8% in 2022, considered down by the pandemic’s lasting damage to potential growth.”