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Sri Lanka's tea production improved further in July from a good out-turn in June to increase the cumulative production to 181.8 million kg from January, compared to 178.1 million kg last year. This increase of 3.66 million kg which is a 2.05% improvement compared to last year augurs well for Sri Lanka as a leading producer and more so, as the largest global supplier of black tea.

Whilst we are likely to reach the magical figure of 300 million kg of made tea by the end of this year, it will also help further strengthen our dominant position as the biggest player in the global supply of black tea. This excellent performance of ours comes in the wake of almost all the other large producer nations having to grapple with adverse growing conditions and as a result, an acute shortfall in crop globally can be expected in the second half of this year. Whilst Sri Lanka has posted 3.66 million kg in excess of last year, other large producers such as India, China, Kenya, Indonesia and Malawi have all reported lower output this year. The Assam region which accounts for approximately 60% of the total Indian production is faced with one of the worst floods in history, and the recovery process will be painstakingly slow.

China too is experiencing similar conditions and a far worse situation is anticipated in the coming months. The African producers on the other hand have had less rain, affecting their crop. In July, for the first time this year, Low Country production in a month improved compared to last year. This trend is likely to continue up to the year's end and may well cover the deficit of 3.18 million kg (3.1%) hitherto posted by this sector towards the national figures. High and Medium Grown sectors have been the main contributors thus far for our healthy performance, each sector recording higher production levels of 6.23 million kg (13.4%) and 0.61 million kg (0.1%) over last year respectively.

High Grown production grew 49.4% in July to 6.1 million kg whilst Mid Grown contribution improved 3.9% to 3.7 million kg and Low Grown output bettered last year by 8.6% to 12.6 million kg. Hence for the month, our national figures reflect a healthy growth of 16.4% to make a total of 22.6 million kg

Last year's oversupply of tea in the global market is fast depleting and with a shortfall this year up to now, Colombo Auction prices are likely to improve steadily in the coming months. (Source: John Keells Ltd)

16% increase in black tea production in July

The Sri Lanka Tea Board said that the total reported production of black tea in Sri Lanka during July 2002, amounted to 22,646,928 kg as against 19,456,267 kg. produced during the corresponding month in 2001. This shows an increase of 3,190,661 kg or 16%. The black tea production from January to July 2002 amounted to 181,858,816 kg. as against 178,196,067 kg.

produced in 2001, showing an increase of 3,662,749 kg or 2%. This trend shows that the total production in 2002 will exceed 300 million kilograms.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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