Dec 21, 2017

Sri Lanka tea risks losing Russia’s market Featured

Sri Lanka tea is in danger of losing its market in Russia if the suspension of its tea exports to that country remains in force for six months, say tea market sources.

Already, Kenya is taking advantage of the Sri Lanka tea suspension and trying to gain that market share.

Russia suspended Sri Lanka tea imports last Monday following the finding of a Khapra beetle from a tea consignment shipped from the island.

Sri Lanka has had a 23 per cent share in Russia’s demand for tea, and imported 25 million kg in the past nine months to earn a Rs. 19 billion income.

Price of tea leaves to decrease?

Meanwhile, the Russian suspension is also likely to result in a decrease in the price of tea leaves to Rs. 30 or Rs. 40.

The present price is Rs. 100 per kilo, according to national organizer of tea smallholdings national conference Lal Premanath.

He said the president has informed them that a strong decision would be taken against the importer of the errant consignment to Russia.