A number of issues have plagued Sri Lanka’s tea exporting markets this year, contributing to a drop in overall export volumes.
Immediate Past President of the Colombo Tea Traders Association (CTTA), Jayantha Karunaratne, told the Business Times that the markets are facing serious challenges.
He went on to say that because Russia is under sanctions, making payments is difficult. Because the Russian Ruble is not a convertible currency, Russia is now opting to trade in Chinese Yuan, he said.
Iran, one of Sri Lanka’s main markets, is still dealing with internal issues, as a result of which government funds allocated for limited quantities of tea imports have been halted after being given to one buyer.
Mr. Karunaratne, on the other hand, stated that they continue to trade with Iran and are “shipping small volumes.” Certain Low Grown teas (Iran type) are being picked up at a different price range because they are no longer selling due to a drop in demand.
Other markets, such as Turkey, are dealing with depreciation of the Turkish Lira, which has resulted in a drop in volumes.
Mr. Karunaratne stated that West Asia, which is expected to pick up, is still not active, and that post-Ramadan volumes are low even in this market.