By: Staff Writer
October 18, Colombo (LNW): High-grown output hits a 34-year low as industry faces mounting supply pressures
Sri Lanka’s tea industry is confronting a renewed production challenge after output fell sharply in September, with excessive rainfall and unfavourable growing conditions pushing high-grown tea production to its lowest level in 34 years. The decline raises concerns over supply stability, plantation incomes and the country’s ability to sustain export performance in a globally competitive tea market.
According to Asia Siyaka Commodities PLC, citing preliminary data from the Sri Lanka Tea Board, national tea production dropped by nearly 9% year-on-year to 20.2 million kilogrammes (MnKg) in September, compared with 22.1 MnKg in the same month of 2025.
The most severe deterioration occurred in the high-grown sector, where production fell to 3.49 MnKg. This was the lowest September output since 1992, when production stood at approximately 3.5 MnKg.
The comparison is particularly striking because the two production crises arose from opposite weather conditions. The 1992 decline was attributed to a severe El Niño-related drought, whereas the current setback has been driven by excessive rainfall and poor growing conditions.
The mid-grown sector also suffered a substantial contraction. Output declined by 25% to 3.09 MnKg in September from 4.1 MnKg a year earlier, marking its lowest level since 2023. Low-grown tea, which accounts for the largest share of national production, provided some relief, increasing by 4.8% to 13.6 MnKg.
However, the improvement in low-grown output was insufficient to offset losses elsewhere.
Cumulative production for January to September reached 192.6 MnKg, down 3% from 199 MnKg during the corresponding period of 2025. All three growing elevations recorded lower cumulative output. Combined high-grown and mid-grown production declined by approximately four million kilogrammes, while low-grown production fell by around two million kilogrammes.
These figures point to a broader vulnerability within the tea economy: production remains heavily exposed to weather conditions, while the financial consequences extend beyond plantation owners to factory operators, smallholders, workers, transporters and exporters.
A sustained reduction in green-leaf availability could leave factories operating below capacity, increase competition for raw materials and place pressure on processing costs. Where exporters face firm delivery commitments, reduced supplies could complicate procurement and affect their ability to fulfil orders consistently.
The impact on export earnings, however, cannot be established from production figures alone. Export volumes, average auction prices, exchange rates, product composition and demand in major destination markets will determine whether lower output translates into reduced foreign-exchange receipts.
The distinction is important because stronger prices could partly offset lower volumes, while weaker demand or rising costs could magnify the damage.
The industry also faces the challenge of protecting plantation productivity without undermining long-term investment. Better drainage, soil conservation, weather monitoring, climate-resilient cultivation and improved agronomic practices could help reduce exposure to extreme rainfall and drought.
For policymakers, the latest figures underline the need to treat climate resilience as an economic priority rather than merely an agricultural concern. Tea remains a strategically important export industry, supporting rural employment and foreign-exchange generation.
The September setback does not by itself establish a long-term production crisis. Nevertheless, the 34-year low in high-grown output and the cumulative decline provide a warning that Sri Lanka’s tea competitiveness depends not only on international prices but also on reliable production, resilient plantations and effective support for growers.
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