Sri Lanka tea exports fall sharply in August
ECONOMYNEXT – Sri Lanka’s tea export shipments and earnings fell in August 2015 from a year ago with value-added products again showing a significant fall, brokers said.
Forbes & Walker Tea Brokers said tea exports in August fell by 6.3 million kilos to 21.1 million kilos from the previous year.
"Total revenue too show a fairly substantial decline of 5.8 billion rupees year-on-year with August 2015 realizing only 13.2 billion rupees when compared to 18.8 billion rupees in August 2014."
John Keells Ltd. said total revenue from tea exports in the first eight months of 2015 (January – August) fell by a “substantial” 21.3 billion rupees to 119.9 billion rupees compared to the same period in 2014.
"The export quantities too show a decline of 6.3 million kilos totalling 201.5 million kilos," they said in a report.
The drop in the approximate average unit Free On Board value per kilo of 78.65 rupees, when compared to the same period last year too, has had a “significant negative impact” on export earnings, the brokers said.
Forbes & Walker said that in August 2015 tea bags have shown a "significant decline” in volume while bulk tea and packeted tea volumes too declined but to a lesser extent when compared to August 2014.
On a cumulative basis, up to August 2015 bulk tea exports have grown but packeted tea and tea bags have fallen.
Brokers said Russia has re-emerged as the largest importer of Ceylon for the period January – August 2015 displacing Turkey from the top spot. (Colombo/September 24 2015)