Sri Lanka fetches highest FOB prices for black tea

Sri Lanka recorded increased earnings in 2020 due to the high prices paid for Ceylon Tea at the Colombo Tea Auctions and the nation’s strong marketing sector adding value to exports despite a local and global lockdown, Asia Siyaka Brokers stated.

FOB value of tea per kg shipped in 2020 was US$4.67 compared with $4.61 in 2019 and by June 2021 the average FOB value of tea per kg had risen to $4.75. The Indian FOB value was US$3.21 and Kenya recorded a figure of $2.17 in 2020.

By June 2021 Sri Lanka had exported 137 million kg of tea compared with 124 million kg during the period 1H 2020. This resulted in earnings recorded at $651 million from these shipments compared with $571 a year ago.

Asia Siyaka notes that should the country’s favourable weather conditions continue and agricultural inputs are available as and when needed the country could easily more than double its 1H earnings and move towards the national target of $1.5 billion for the year.