Sri Lanka tea crop recovers as global production falls

COLOMBO (EconomyNext) –Sri Lanka’s tea production has recovered this year and the island is the only major producer whose output is higher than last year with crops in other origins being lower, brokers said.

Global black tea production up to April this year has fallen by 11 per cent to almost 304 million kilos from the same period of 2014 with most of the shortfall coming from Kenya.

Kenya’s tea production has fallen by 30.51 million kilos to 81.57 million kilos up to March 2015 from a year ago.

Indian production is also lower this year by almost 11 million kilos, with the biggest drop seen in north India where output fell by 9.63 million kilos to 33.25 million kg up to March 2015 and South Indian crops down by 1.17 million kg to 47.38 million kg.

Sri Lanka is the only major producer with a higher output in 2015. Tea production up to April 2015 was up by 8.35 million kilos to reach 110.77 million kilos from the same period in 2014.

However, the global slump in commodity prices means returns to producers are lower with Colombo auction prices still below even 2013 levels, brokers said.

Production in Malawi, the other big East Africa producer, was down by 3.4 million kilos to 24.80 million kilos up to April 2015 from a year ago.


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