Tea production from April-June 2023 (second quarter) recorded a total of 74.25 Mn Kg, showing a positive variance of 4.28 Mn Kg vis-a-vis 69.97 Mn Kg recorded in the same period of 2022.
Tea export revenue for the second quarter witnessed a marginal decline in comparison with previous year’s figure of Rs.101.29 bilion, against April-June 2023 of Rs.99.70 Bn. This was mainly contributed with the improvement in the LKR against the USD coupled with the decrease in quantity during the respective period.
Total Production for the period stands at 134.42 Mn Kg , an increase of 1.49 M/Kgs vis-à-vis 132.93 M/Kgs of January-June 2022 said Forbes & Walker Tea Brokers (Pvt) Ltd said. Prospects for the 2nd half of 2023 would largely depend on how soon the Sri Lankan Rupee would stabilise. Needless to say, unless remunerative rupee tea prices are achieved, farmer profits would be negated which would result in a lack of inputs and diminishing crops that certainly would be disastrous for an already ailing industry.
On a positive note, higher crude oil prices and easing interest rates would certainly help to some extent, though the underlying important factor would be how soon tea prices would bounce back to realistic levels considering the significant increase in input costs. White Tea market is estimated to grow at 6.4% by 2027 as the demand for premium products in the region is rapidly increasing due to the increasing disposable income of consumers, and awareness for health and wellness among the people.
Another factor that is driving the market is the growing popularity of the Internet and the increasing trend of online shopping.
The global organic tea market was estimated at US$ 905.4 million in 2021 and is expected to hit US$ 2.4 billion by 2031, registering a CAGR of 10.5% from 2022 to 2031. The region that dominated the global organic tea market in 2021 was Asia-Pacific, and this dominance is anticipated to continue throughout the forecast period. Health-related products are becoming more popular among consumers in China, India, Indonesia, and Japan.
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