Tea prices soar in Sri Lanka

Sri Lanka is famous for its tea garden machinery, and Iraq is the main export market for Ceylon tea, with an export volume of 41 million kilograms, accounting for 18% of the total export volume. Due to the obvious decline in supply due to the shortage of production, coupled with the sharp depreciation of the Sri Lankan rupee against the US dollar, tea auction prices have risen sharply, from US$3.1 per kilogram in early 2022 to an average of US$3.8 per kilogram at the end of November.

As of November 2022, Sri Lanka has exported a total of 231 million kilograms of tea. Compared with the export of 262 million kilograms in the same period last year, it fell by 12%. Of the total production in 2022, the smallholder segment will account for 175 million kg (75%), while the production area plantation company segment will account for 75.8 million kg (33%). Production fell in both segments, with plantation companies in production areas experiencing the largest drop of 20%. There is a 16% shortfall in the production of tea plucker on small farms.