Tea export earning for the period of January-April reached Rs. 45.6 billion, or US$ 399 million in dollar terms, which is not that high when compared to US$ 410 million earnings in 2008. In 2008, FOB value in dollar terms was US$ 3.91 per kilo, this year it is US$ 4.39, therefore the rupee earnings this year is an all-time-high.
All indicators point to an exceptional year in foreign exchange earnings from tea and this trend is expected to continue well in to the future.
Information at hand from The Asia Siyaka Tea Brokers Weekly Tea market report pointedly suggested although crop was not as high as expected, tea earnings were rising. However 2010 to date, the ‘all time high’ tag was real and singularly outstanding.
Monthly exported quantity to date was however not quite that encouraging whereas April 2008 was exceptional with Sri Lanka shipping 105 million kilos which was a record. Sales destinations were that of Russia, or CIS countries, which continued to be highest buyers of Ceylon tea increasing their absorption by 21 percent. UAE too recorded higher import quantities, up some 5 percent. But there was no evidence on exports to new markets.
Meanwhile our export markets remain just about the same. Apart from Jordon, Chile, Japan, and Germany, most other destinations are based in the Middle East. Hong Kong has been tried, but apart from media hype about some sort of competition, there was nothing tangible emanating from that source. Not, that is, considering their draconian business and trade ethics, recorded in our Sunday edition about two weeks ago.
End April 2010, exports stood at 91.5 million kilos; of this quantity, bulk exports continued to dominate product quantities. Value additions although talked of ever so often, has not had significant impact on end user influences. Other exported forms were tea in packets at 25.5 million kilos, Tea bags, 5.4 million kilos, Instant tea 509, 000 kilos approximately, and green tea about 1.3 million kilos. There was also 2.6 million in re-exported tea, included in the export figure.
The Tea Board in their recent communication said low-growns continued to dominate production, 61.4 million kilos were produced at this elevation, where as high growns produced 24.2 million kilos, and mid growns 16.6 million kilos.
The market last week staged ‘come back’, returns. All elevations had good price resurgence. Eastern Brokers Tea report said westerns, Nuwara Eliyas, low growns, all recorded positive gains. Off grades, Dusts, and CTCs, too gained about Rs. 10 per kilo.
At this weeks sale, after quite a while, 8.2 million kilos will be on offer. Brokers said the market remains strong.
Source :The Island
Image: Jehad Nga for The New York Times
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