Sri Lanka tea exports in May 2016 down 23-pct
ECONOMYNEXT – Sri Lanka’s tea export volumes in May 2016 fell by almost a quarter from a year ago with the unit value of exports in the first five months of the year slumping to the lowest in six years, brokers said.
Customs data analyzed by Asia Siyaka Commodities shows exports in May 2016 fell 23% to 21.2 million kilos from the year before, the lowest since 2004.
Shipments for the five months ending May have declined 5% to 117.8 million kilos from the same period in 2015, they said in a report.
The value of exports for January – May 2016 was Rs.71.6 billion, down 4% on the same period last year.
“The approximate US dollar value of exports for the period is $496 million compared with $560 million in 2015, $650 million in 2014 and $587 million in 2013,” the brokers said.
“This represents a sharp loss of earnings to the country not just from the lower quantity exported but from the approximate FOB (Free on Board) value per kilo.”
This year’s January – May FOB value was $4.21 per kilo, the lowest in six years.
Comparative FOB tea export values were $4.53 in 2015, $5.14 in 2014, $4.92 in 2013, $4.38 in 2012 and $4.77 in 2011.
Asia Siyaka Commodities said its review of the different segments that make up exports shows the share of value added tea exports or ‘all exports other than bulk tea’ have sunk to 56%, the lowest since January – May 2010.
(COLOMBO, June 24, 2016)