Tea exports tumble in February

Sri Lanka is one of the world's biggest tea exporters and the commodity is its largest foreign exchange-earner.

Tea exports fell 29.2% to US$131,3 million in February, down from the same month a year earlier, the Tea Board said.

In volume terms, exports fell 26% to 38,67 million kilos (85,07 million pounds) in February from a year earlier.

"We sold less tea in the international market because a severe drought hit our crop in January and February," Tea Board chief Lalith Hettiarachchi said.

Production of Sri Lankan tea, popularly known as "Pure Ceylon Tea", fell 51% in February to 12,5 million kilos (27,5 million pounds) from the same month in 2008.

"Production for the month of February was the lowest we have seen in 17 years," said Dinal Fernando, vice president of the privately-run Asia Siyaka Commodity Brokers.

Fernando forecast 2009 production slowing to just over 300 million kilos (660 million pounds) from a record 318,47 million kilos in 2008.

Russia and former Soviet republics are the biggest buyers of Sri Lankan teas.

Sri Lanka's chief rivals in the tea export market are Kenya and India.

Its export earnings hit a record $1,23 billion in 2008, up from $1,02 billion in 2007.

The Tea Board declined to give a forecast for 2009 exports.

Source: Sapa-AFP

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