SL anticipates $ 1.3 b revenue from tea exports

TAGS: | UPDATETIME: 2024-01-29

Amidst 50% fertliser price drop and Value Added Tax (VAT), Sri Lanka anticipates approximate of $ 1.3 billion revenue from Ceylon tea exports in 2024, The Daily Morning Business learnt.

Speaking to The Daily Morning Business, Sri Lanka Tea Board Chair Niraj de Mel said: “It would touch around $ 1. 2 to $ 1.3 billion.”

The Daily Morning Business inquired what would be the hindrances to tackle in achieving the tea export expectation for this year (2024) which de Mel responded saying that “obviously the drop in production. We have to have a larger production for us to export more tea. More tea you export, the more revenue you get.”

He further added that during the first 10 months of 2023, Tea Board could achieve over $ 800 million in revenue which is a $ 110 million a month average in terms of foreign exchange earnings.

“We also exported 11.6 million kg (in 2023) figures behind 2022 during those first 10 months. However, production wise, we are 4 million kg ahead in 2023 of the same 10 months compared to 2022.”

However, Hayleys Group Managing Director and Planters’ Association (PA) of Ceylon Spokesperson Dr. Roshan Rajadurai recently told The Daily Morning Business that VAT has, in fact, cost of production as tea production inputs such as fuel, machinery, energy, chemicals and materials have increased.

At the same time, there are opportunities for Ceylon Tea in the global market, such as India anticipates to increase its domestic tea consumption which eventually results in India leaving the traditional Western and Russian countries from tea exporting. Sri Lanka can reap from such market situations, PA spokesperson further explained.

Moreover, the Sri Lanka Tea Board Chair said that the application for Geographical Indication (GI) certification for Ceylon Tea within European Union (EU) countries could be submitted by February, “hopefully”.

Source: The Morning