Sri Lanka to Earn Record $1.4bn on Tea Exports

05th August 2010, www.news.lk

Sri Lanka is expected to earn a record 1.4 billion dollars from its tea exports this year.Tea, Sri Lanka's biggest cash crop, earned 71.3 billion rupees (635 million dollars) in the first six months of 2010 compared with 58.2 billion rupees in the corresponding period a Colombo datelined Agence France Presse reported quoting Sri Lanka Tea Board sources.

According to Central Bank in 2009 Colombo Tea Auctions (CTA) registered the highest ever prices in the centuries long industry in the country. The average export price increased by 9.3 percent to Rs 470 per kg. Though the production had decreased due to bad weather to 289.8 million kg last year from 318.7 million kg in 2008 a bumper crop is expected this year due to favourable weather conditions that prevailed from the second quarter of the year.

The government is also implementing a fertilizer subsidy scheme of Rs 1000 per 50 kg along with replanting subsidy of Rs 200,000 per hectares for tea small holders.Sri Lanka tea known in the overseas markets as "Ceylon tea," has earned 1.3 billion dollars in export sales in 2009, despite drought hitting production and shipments suffering from the effects of the global crash in 2008. There appears to be a consistent increase in the prices.

Tea shipments from January to June rose to 143.3 million from 134.5 million kilogrammes in the same period of 2009. Russia and former Soviet republics are the largest markets for Sri Lankan tea,accounting for nearly a fifth of total exports, followed by the Middle East and North African buyers.