Middle East conflict threatens Sri Lankan tea exports
Weekly losses between $10 million and $15 million now face the Sri Lankan tea industry as rising tensions involving Iran stall shipments to critical Middle Eastern markets. The Tea Exporters Association notes that logistical breakdowns and increased war risks severely hinder the ability to supply these destinations.Nearly half of the nation's tea exports go to the Middle East, a trade route valued at approximately $530 million of the $1.5 billion total annual earnings. This sector heavily supports smallholder farmers within the low-grown tea category. Current industry data indicates that 31% of exports head to Dubai, 18% to Saudi Arabia, and 12% to Iran.The Sri Lanka Tea Factory Owners Association (SLTFOA) Chairperson, Lionel Herath, states that the export of high-value tea to Iran remains on hold due to the conflict. He mentions that other regional buyers also paused imports because of maritime disruptions. Herath warns that failure to export within specific timeframes forces a suspension of payments to small-scale landowners.Export Development Board (EDB) Chairperson and Chief Executive, Mangala Wijesinghe, confirms that exporters raised urgent concerns regarding these challenges. He notes that the Plantation Ministry and the Tea Exporters Association recently held discussions to find viable solutions. Meanwhile, reports show that weekly auction offerings dropped to 5.5 million kilograms amidst the crisis.
