Industry Economy & Market

Tea export volume up 7% YoY in January; average FOB up 5.6%

Shipments increase YoY to 20.71 m/kg in Jan. from 19.37 m/kg

Average FOB climbs to Rs. 1,821.71 ($ 5.88),up Rs. 98.93 and $ 0.06 YoY

All categories record YoY volume gains in January

Iraq retains top spot; Türkiye posts 118% surge into second place, Russia third

Sri Lanka’s tea exports began 2026 on a stronger footing, with January shipments rising 7% year-on-year (YoY) alongside an improvement in average free on board (FOB) values, according to Forbes and Walker Research. January tea export earing amounted to about $ 121.7 million, up 8% from 112.7 million a year ago.

Total exports in January 2026 amounted to 20.71 million kilos, an increase of 1.34 million kilos compared to 19.37 million kilos recorded in January 2025. All categories registered gains over the corresponding month of last year.

The average FOB value for January 2026 stood at Rs. 1,821.71 per kilo, reflecting an increase of 5.6% or Rs. 98.93 YoY from Rs. 1,722.78. In US Dollar terms, the FOB value improved by $ 0.06 to $ 5.88 per kilo, despite a slight decline in dollar returns from bulk and instant tea.

Tea in bulk exports rose to 8.91 million kilos from 8.24 million kilos, while tea packets increased to 8.88 million kilos from 8.49 million kilos. Tea bags recorded 2.20 million kilos, up from 2.10 million kilos. Instant tea exports improved to 0.31 million kilos from 0.19 million kilos, and green tea increased to 0.40 million kilos from 0.33 million kilos.

In value terms, green and instant tea recorded the highest rupee FOBs at Rs. 3,967.47 and Rs. 3,545.76 per kilo respectively while tea bags recorded Rs. 2,759.63.

Iraq retained its position as the leading importer of Ceylon Tea in January 2026, importing 2.95 million kilos, although marginally lower than the 3.02 million kilos recorded a year earlier. Türkiye moved up to second place with 2.36 million kilos, marking a 118% YoY increase from 1.08 million kilos, edging past Russia, which ranked third with 2.02 million kilos, up 17% YoY.

The UAE imported 1.05 million kilos, reflecting a 17% decline YoY, while Azerbaijan increased purchases by 52% to 0.98 million kilos. Saudi Arabia recorded 0.96 million kilos, up 7% YoY.

Chile and Iran each imported 0.95 million kilos to secure seventh and eighth positions respectively. Libya and the United States entered the top ten, ranking ninth and tenth with 0.87 million kilos and 0.69 million kilos respectively.

The January 2026 performance comes against a stronger overall export performance in 2025, with volumes and earnings recording year-on-year (YoY) growth despite mixed results across product segments and pressure on average prices. Total tea export earnings increased by 6% YoY in 1015 to $ 1.51 billion. Cumulative tea exports for January-December 2025 reached 257.44 million kilograms (Mnkg), an increase of 11.65 Mnkg compared to 245.79 Mnkg in 2024. Growth was driven primarily by Packeted Tea, Tea Bags, Instant Tea, and Green Tea, while Bulk Tea recorded a contraction over the year.

Source: Daily FT