Monday, July 26, 2010

Tea output may hit record high

 Sri Lanka's tea production in the first half jumped 26.2 percent from a year ago, suggesting the island nation's No. 1 agricultural export may hit a record, the state-run tea board said on Friday.

 Tea output in the first half was 166.88 million kg against 132.25 million in the same period last year. In June, output rose 18.4 percent to 29.50 million kg from 24.91 million, the board data showed.

"If the same trend is followed in the rest of the year, definitely we will achieve the record high production, subject to no labour unrest and no adverse weather conditions," H.D. Hemarathne, director-general of the Sri Lanka Tea Board, told Reuters.

Favourable weather conditions, better fertiliser application, and good agricultural practices have helped boost production amid better export prices, he said. Output hit a record high of 318.7 million kg in 2008, but fell 9 percent to 289.8 million kg last year on adverse weather conditions and lack of fertiliser, along with a labour strike. The board had earlier expected full-year production to be between 300 million and 315 million kg with export revenues of around $1.3 billion.

Sri Lanka's annual earnings from tea exports fell 6.8 percent to $1.2 billion in 2009. The export revenue during Jan-April has risen 32.9 percent to $399.3 million from a year ago, the Central Bank's latest data showed.

Tea is one of the $42-billion economy's main foreign currency earners, along with remittances, textile and garment exports and tourism.

source - www.dailymirror.lk

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