Asia Siyaka Tea Brokers said in their weekly market report that Rs. 19.2 billion earned from tea exports in January 2021 was a healthy indicator, which reflected a six per cent increase over the corresponding month in 2020.
In January 2020, tea export earnings were Rs. 18 billion (US$ 101 million).
The Sri Lanka Tea Board said production in January 2021 was 23 million kilos, a year-on-year increase in comparison to 21. 9 million kilos in January 2020.
Planters in Maskeliya attributed the enhanced production to continuous growing weather conditions through January, leading to a crop upsurge resulting in positive results for the industry.
The Asia Siyaka Tea Brokers report further said in the low grown sector, comprising mainly tea smallholders, year-on-year, gain was 14. 9 million kilos, which contributed to the positive results. Western and mid grown results, although positive, were not as high as low growns.
Turkey was the biggest importer of Ceylon Tea at 3.8 million kilos. Russia, Iraq and China, the report said, increased their buying at about 80 percent of the total market.
In addition, shipments were also recorded to select European markets and to the US. Such exports were described as minimal, but significant because of the possibility of increasing market conditions to these countries was a further indicator that Ceylon Tea was a positive brand.
Tea market sources said buyers in Germany, who considered Ceylon Tea as a recognized brand, laid more emphasis on Darjeelings and teas from Kenya, which were now in the preferred category.
Sri Lanka should ramp up its marketing campaign, the source suggested.
Pakistan which was one of Sri Lanka’s major buyers has now switched to Kenya. Ceylon Tea to Pakistan was barely two percent.
The tea smallholder sector in Sri Lanka continues to contribute around 75 percent of the production to the industry. There are around 400,000 smallholders who continue to contribute a major slice to the industry.
The tea garden marks, which scored top prices were New Withanakanda and Geekiynakanda. From the low growns. good results were also recorded from Somerset and Venture.