Tea exports to hit $1.5 b

Ramani Kangaraarachchi

The Tea Exporters’ Association targets to reach USD 1.5 billion in tea exports by 2009 having achieved USD1.025 billion in 2007. Chairman of the association Jayantha Keragala said at a press conference held at the Golf Club Colombo last week.

He said that Sri Lanka has exported 294.2 Million kgs to reach that target and 305.Million kgs will be required to achieve the target expected for 2009.

Chairman HVA Group Rohan Fernando said that tea is a golden industry and the goal of tea exporters is to achieve 100 per cent export of value added products in the future.

Sri Lanka exported 39 per cent value added tea last year and it is expected to increase by another three per cent making 42 per cent.

The tea yield is also expected to increase next year from the current 1,600.o Kg to 1,8000.o Kg next year. value of the industry and its challenges were discussed at length at the conference.

Meanwhile, Sri Lanka Tea Board ordered the highest price to be paid to tea producers last week. According to the latest tea board report Matara, Poshakotuwa tea factory paid Rs. 70 for tender tea leaves. Dellawa factory in Galle paid Rs.64.80. This was the highest recorded price for tea producers in the history.

The tea production for the month of June totaled 27.3 million kgs versus 26.0 million kgs during the corresponding period last year, an increase of 4.92%.

High-growns increased marginally by 0.3 million kgs (5.6%), Low growns increased by 2.6 million kgs (21%) whilst the Mediums recorded a decline of 1.7 million kgs (26%).

Production during the first half of 2008 has recorded 171.3 million kgs as against 143.6 million kgs during the corresponding period last year, an increase of 27.7 million kgs (19.28%).

The largest contribution has been from the low-grown sector which totaled 98.2 million kgs as against 80.4 million kgs during the corresponding period last year, an increase of 17.8 million kgs (22%), followed by the High grown sector recording an increase of 5.7