Ceylon Tea is Set to Set 3 Records in 2010 : Highest Production, Export Earnings & Net Sale Average

17th December 2010, www.news360.lk, By Prasanna C Rodrigo

A leading Tea Broker says, Sri Lanka’s tea industry is set to achieve 3 records during this year.

According to the CEO of John Keells Tea Broking Arm Sudath Munasinghe, the local tea industry will achieve the highest production levels, the highest export earnings and also the highest “net sale average” during the year 2010.

Munasinghe said, “We expect export earnings to reach US$ 1.5 billion in 2010”.

He also predicts, that the total tea production which up to November stood at 302 million kilograms, will reach a record figure of 324 million kilograms at the end of this year.

The previous high was 318 million kilograms achieved in year 2008.

According to Munasinghe, the “net sale average” for Ceylon tea is also expected to reach a record figure during this year.

He said, as of 7th December, the “Net sale average” of Ceylon tea sold at the Colombo Auction stands at Rs. 369.52 per kilogram.

The previous highest “net sale average” achieved was in 2009 recording a sum of Rs. 362.02 per kilogram.

Reasons for the records

The CEO of the John Keells tea broking arm attributes the excellent global market conditions propelled by the increase demand for tea as one reason for this growth.

He said Ceylon tea has got a better price than the Kenyan tea during 2010.

Apart from that good weather and the fertilizer subsidy for tea small holders too has helped the industries growth in 2010, added Munasinghe.