Middle East Tensions Trigger Surge in Demand for Sri Lankan Tea

COLOMBO (News 1st) - The Sri Lanka Tea Board has reported a significant rise in demand for Ceylon Tea from Middle Eastern nations.

Chairman Raj Obeyesekere says that the ongoing regional conflicts have prompted citizens to stockpile food supplies, leading to increased demand. 

While the local tea auction saw a slight dip during the initial week of the conflict, the Chairman noted that both prices and demand have since stabilized.

At last week’s auction, the average selling price for a kilogram of tea stood at Rs. 1,153. 

Currently, the unsold volume at auctions remains between 8% and 10%, consistent with standard market trends.

Chairman Obeyesekere highlighted that exports to several countries, including Kuwait, Saudi Arabia, and Iran, have been disrupted due to the closure of the Strait of Hormuz and related regional hostilities. 

However, the Tea Board has successfully initiated exports to other Middle Eastern nations, such as Turkey and Iraq, via alternative shipping routes.

As a result, the adverse impact of the Middle Eastern crisis on the local tea market is gradually diminishing.

The Chairman further detailed a special program to distribute fertilizer, with plans to provide farmers with a three-month supply. 

Additionally, a special circular has been issued to ensure the continuous supply of fuel required for tea factories to maintain production.