Sri Lanka Customs data of export figures, released yesterday and analyzed by Siyaka Research confirms a fairly similar quantity of tea exported during the month YoY.
The analysis indicates a lower quantity of 1.5 mn kg of 45.7 mn kg compared to 47.2 mn kg of last year. In value terms the FOB of Rs. 37.6 bn of this year is lower by Rs. 2.3 bn compared to last year’s Rs. 39.9 bn.
Iraq and Turkey continue to be our number one and two importers with Russia a close third. China’s imports were lower by about 400,000 kgs. The lower quantities imported by Libya, Syria and the UAE is of a concern, we do hope would improve as the year goes by.
With Coronavirus (Covid-19) causing havoc around the world and in Sri Lanka the Ceylon Tea Industry of Sri Lanka, in a matter of six days converted its marketing system from a 150 years old tradition of outcry Bidding and purchasing Tea, to a digital platform, due to the inability to meet as required in the outcry auction system.
The Sri Lankan Tea Industry proved that “When the going gets tough, the tough gets going”, is not a figure of speech. The resilience and the willingness to bounce back and overcome adversary have been proven again.
The support by the government and the willingness to implement suggestions and way forward is to be acknowledged. We do trust that mutual respect created will be amplified and will enable us to move this industry to greater heights.
At this week’s Colombo Tea Auction, 4.58 Mnkg of tea were on offer and 1.60 Mn kg were Low Grown Main Grades and 1.85 Mnkg were High and Mid Grown Main Grades.
Improved demand was a feature of this week’s Ex-Estate auction.
Meanwhile the South Indian tea industry is expecting an output decline in the first six months of 2020 due to the Covid-19 impact.
Most of the tea estates concentrated in Tamil Nadu and Kerala are not operating since the lockdown from March 24.
Some of the estates in Nilgiri and Coimbatore districts are carrying on partial operations by special order from the district administration.
Meanwhile Anthony Muriithi interim Director General, Agriculture and Food Authority in Kenya said the coronavirus pandemic currently sweeping through the world has not affected Kanyan tea exports.
“Even though it was the month when countries in Asia and Europe started reporting cases of Covid-19, the country was still able to ship tea to 48 export destinations compared to 47 destinations for the same period last year,” said Muriithi.
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