Colombo, Oct 10 - Bad weather forced Sri Lankan tea production down 1.8 percent to 25.08 million kg in August from a year earlier, the Sri Lanka Tea Board said on Friday.
"It's not a serious drop but weather conditions affected
tea output, especially the low-grown area," said board Chairman
Lalith Hettiarachchi, adding that production had also been hit
by growers' worries about the effectiveness of some fertiliser. Output in the period from January to August rose 14.1percent to 222.94 million kg from 195.36 million a yearearlier, boosted by better farming techniques and favorableweather.
High global tea prices also spurred producers to increaseoutput, as the industry recovered from a labour dispute thathad crimped production early last year.
Output fell 2 percent to 304.6 million kg last year from310.8 million in 2006, with officials citing inadequatefertiliser use due to high prices, unfavorable weather and thefallout of a strike.
Sri Lanka's earnings from tea exports have risen 43.8percent to $883.7 million in the first eight months of 2008from a year earlier, thanks to higher productivity, prices anddemand.
The tea industry, which recorded export earnings of morethan $1 billion for the first time in 2007, is expected to earnup to $1.4 billion this year.
Sri Lanka exported 309.8 million kg of tea last year,including re-exports of 15.6 million kg in imports that teacompanies had purchased from overseas to meet client orders.
Bulk tea accounted for nearly 60 percent of exports.
Sri Lanka's record 2005 harvest of 317.2 million kg made itthe world's fourth-biggest producer behind China, India andKenya and second only to Kenya in exports that year.
Tea is one of Sri Lanka's main foreign currency revenueearners, along with remittances, textile and garment exportsand tourism.
Sri Lanka's tea output (kg):
AUGUST JAN-AUG
2008 2007 2008 2007 High Gr
5,612,237 5,531,222 57,684,202 48,001,557 Medium Gr
3,490,839 3,941,295 33,626,607 34,631,123 Low Gr
15,973,617 16,072,512 131,628,893 112,732,111 Total
25,076,692 25,545,029 222,939,702 195,364,791