Tea production is expected to be much lower in the first half of this year because of uncertainty of rainfall and the impact of delayed agricultural practices, according to the 2017 tea outlook released by Asia Siyaka Commodities last week.
“Overall, we believe that Sri Lanka tea production in 2017 could be low during H1. In fact, tea production during January-June is projected to be less than the 2016 figure of 154 million kg,” the report said.
In 2015, the national harvest was 172.9 million kg and 173.6 million kg in 2014.
However, the brokerage said that they expect tea production to recover in the second half of 2017 assuming the weather improves.
Asia Siyaka Commodities said that reports by specialists suggest that La Nina climate conditions could continue through Q1 2017 and have projected uncertainty over rain fall patterns. “Failure of the North East Monsoon in Q4 2016 adds further pressure to the already fragile supply situation,” the report said. “Delayed agricultural practices and low application of fertilizer could have an impact on crop intakes in Q2 2017 as well.”