In a unique global landmark in black tea exports, Sri Lanka’s prices for the six months period January- June 2019 and for the same corresponding period 2020 have been the highest among the tea producing countries in the world. “This means that Sri Lankan black tea for the period January- June 2019 fetched US $ 4.61 per kilo and US$ 4.67 per kilo for the same corresponding period a year later in 2020, Asia Siyaka Commodities PLC Managing Director/ CEO Anil Cooke told Daily News Business yesterday.
For Sri Lanka, is the highest rate per kilo price for Black Tea vis a vis which is US $ 3.11 per kilo and US $ 3.12 for India for the period 2019 and 2020 respectively. As for Kenya, and the three previous years it ranged from 2.96 to 2.91. Kenya FOB value per kilogram of tea exported in 2020 was USD 2.17 compared with 2.33 the year before. Kenya produced a record quantity of 569 million kgs in 2020 and flooded the Mombasa auction with below average product that caused the market. Comparison of value added exports by major Black Tea exporting countries of the world has Sri Lanka in the NO. 1 plot with a massive 55% of all exports in value added form.
India follows at a very distant second with exports of value added tea totaling around 10% of all shipments. By June 2021, Sri Lanka had exported 137 million kgs of tea compared with 124 million kgs during the corresponding period 2020.
The country has earned US $ 651 million from these shipments compared with USD 571 million a year ago. If weather conditions hold true and agricultural inputs are available as and when needed the country could easily more than double the 1H earnings and move towards the national target of $ 1.5 billion for the year.
In 2020 the country exported a low quantity of 266 million kgs and earned $ 1.24 billion. This sharp drop in export quantity resulted from a drought in the first quarter and reduced application of fertilizer in Q4 2019 and during the period under review.
The earnings recorded in 2020 were made possible by the high prices paid for Ceylon Tea at the Colombo Tea Auctions and the nation’s strong marketing sector adding value to exports under very difficult conditions in the midst of a local and global lock down product that caused the market to collapse, Cooke said.
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