Sri Lanka’s Ceylon Tea exports have remained resilient despite about 85% of shipping routes being disrupted; with freight rates rising, and shipments forced to travel around the Cape of Good Hope, Tea Exporters Association (TEA) Chairperson for 2026/2027 Huzefa Akbarally said recently, according to a press release.
Addressing the TEA’s 27 Annual General Meeting (AGM) held in Colombo, Akbarally said: “This has been a challenging year for the tea industry, with the current global conflicts and geopolitical tensions, Cyclone Ditwah, abolishment of SVAT, reduction in tea production, and issues related to quality. In total, about 85% of Ceylon Tea shipping routes have been disrupted, many having to go around the Cape of Good Hope. Freight rates have increased, in many cases, by a few-fold. Even with the challenges that we are facing, it is remarkable that Ceylon Tea exports have been resilient. And hopefully, peace will return and potentially we will be able to ship another 100 million kilos.”
He added: “The industry could realistically reach 350 million kilos by 2030 with government support,” and highlighted block infilling as a low-cost way to raise smallholder productivity and incomes, also renewing calls to restore the Tea Board brand promotion scheme, the value-added export incentive, and imports of spices used in value-added tea, according to the press release.
Referring to production, he said: “We have the expertise. We have tea exporting companies that have production capacity. We have factories that have production capacity for more leaves. All we need is additional green leaves to drive us forward. Each smallholder family can potentially get about Rs 94,000 per month. That is about a fourfold increase in their income.”
Source: The Morning
