ECONOMYNEXT – Sri Lanka’s tea production remains low, with most plantation companies continuing to suffer losses although crops have recovered in other origins, brokers said.
“Most black tea-producing countries have recorded substantial gains,” brokers John Keells Ltd. said in a note on the current global crop situation.
“A surplus of just over 100 million kilos over last year’s to-date crop has been recorded,” they said.
“However, crop harvest from the Sri Lankan perspective is yet to show any significant improvement and continue well below last year’s levels.”
Plantations in all elevations are reportedly incurring heavy financial losses due to the exorbitant cost of production amid low prices.
Sri Lankan tea production up to June 2016 was 153 million kilos, 19 million kilos lower than the same period in 2015.
But production in Kenya and India, other big exporters, had recovered, with North India at 230 million kilos, up 42 million kilos from the year before, and Kenya at 249 million kilos, 74 million kilos more than last year.
(COLOMBO, August 18, 2016)