The tea industry has begun the year with mixed results which saw modest growth in export volumes, with value fluctuations.
The country’s tea exports in January 2025 totalled 19.37 million kilos, reflecting a modest increase of 0.61 million kilos compared to 18.76 million kilos in January 2024.
The tea packets, tea bags and instant tea categories registered notable gains, while bulk tea and green tea segments witnessed a decline.
The free on board (FOB) value for January stood at Rs. 1,722.78 per kilo, marking a Rs. 26.14 year-on-year (YoY) decrease from Rs. 1,748.92 in January 2024.
However, in US dollar terms, tea exports saw a YoY increase of $ 0.38, indicating a relative stability in international markets, despite fluctuations in local currency value.
All tea categories in US dollar terms saw a marginal increase, while in rupee terms except for instant tea; all other segments saw a decline.
Iraq emerged as the largest importer of Ceylon Tea, with imports totalling 3.02 million kilos, reflecting a 21% YoY increase from 2.50 million kilos in January 2024. Russia retained its position as the second-largest importer, though its imports declined by 11% YoY, falling to 1.77 million kilos from 1.98 million kilos in 2024. Libya saw a remarkable surge, climbing to third place with 1.68 million kilos, representing an impressive 406% YoY growth.
Other notable importers of Ceylon Tea for the month of January 2025 include; UAE with 1.27 million kilos (36% decrease YoY), Türkiye 1.08 million kilos (37% decrease YoY), Chile 0.78 million kilos (24% increase YoY), Saudi Arabia 0.89 million kilos and China’s 0.80 million kilos (5% increase YoY).
In 2024, Sri Lanka exported a total of 245.7 million kilos worth $ 1.4 billion narrowly ahead of 2023’s low figure of 241.9 million kilos. One significant positive aspect was that the value of exports reached an all-time high of Rs. 437 billion which converts to an approximate USD value of $ 1.435 billion.
Industry analysts expect the tea market in 2025 to see modest growth in production, with significant opportunities in key markets like India and China. Factors such as climate change, input costs, mechanisation and wages, Government policies and use of fertiliser, etc., affecting tea production in Sri Lanka would enable the industry to project with cautious optimism an annual 280 million kilos for the year 2025.