Sri Lankan Tea Board looks at 265 million kg production this year

The Sri Lanka Tea Board’s focus on improving production is starting to bear fruit, seeing a significant improvement in production.

Tea production in April increased by 1.5 million kilos and the board expects it to do even better in the coming months, says Neeraj de Mille, Chairman of Sri Lanka Tea.

We look forward to producing 265 million kilograms by the end of this year, compared to 251.5 million kilograms last year. He said the expected figure for the whole year would be between 265 and 270 million kilograms business line By phone from Colombo.

He attributed the reason for the improvement of production to the correct feeding of the tea bushes with the use of appropriate fertilizers, in addition to the favorable weather that allowed for good growth.

It should be noted that the Sri Lankan government’s attempt to become a full member of the tea sector has backfired and the island nation has changed its policy with replanting activities, fertilizers and other promotional efforts to maintain its position in the global market. Sri Lanka was the third largest supplier of tea in the world.

Reports from tea auction centers in South India also indicated that the boom in Sri Lankan tea production had reduced purchases by foreign buyers from South India and made it easier for them to obtain Ceylon tea.

De Mille added that the current global factors are not conducive to export growth as foreign markets are witnessing a slowdown in demand.

The purchasing power of consumers in recession-hit western countries has affected the Ceylon tea business significantly. Coupled with this is the ongoing summer season in the West and more importantly in the Middle East and Russia where tea consumption will be lower, forcing buyers to reduce imports.

The depreciation of the currency against the dollar last year by about 76 percent also helped increase exports. He said the trend is now reversing. “We are pinning hopes on the onset of winter by mid-July, which will push exports up.”