Sri Lanka continues as the world’s largest Orthodox Black Tea Producer but 2022 is a disastrous year

January, 26, 2023

Sri Lanka Tea Production slumped to a 26 Year Low of 251.4 Mnkg. Back in 1995 the country harvested 246 Mnkg from a much smaller production base. This was the highest on record at the time and tea production continued to grow steadily thereafter, with a peak of 340 Mnkg recorded in 2013.

An analysis of elevational production figures shows High Grown 56.3 Mnkg and Mid Grown 40.1 Mnkg the lowest since the severe El-Nino drought in 1992. In that year High Growns dropped to 53.7 Mnkg and Mediums 37.7 Mnkg.

Low fertilizer application since 2021 due to national policy, followed by removal of subsidies and a shortfall in world supply that had fertilizer prices skyrocketing, made it impossible for tea producers to purchase fertilizer. The situation was further aggravated by extremes of weather even after fertilizer was available.

Sri Lanka Tea Production Outlook 2023

If climatic conditions support tea production, we are optimistic that a quantity of 280 -290 Mnkg could be produced in the year 2023. Fertilizer prices have declined significantly when compared with mid-2022 and farmers and estates have earned sufficiently to reinvest.

High Growns are projected to reach 60 – 65 Mnkg with Mid Growns 45 – 50 Mnkg. Low Growns rely on Smallholder production and could yield 170 – 175 Mnkg. The National total for the year therefore would be 275 to 290 Mnkg.