Tea production improves in June but challenges remain

## Tea production expands in June despite ongoing sector vulnerabilities

National tea production recorded a 4% year-on-year expansion in June, though overall output for the first half of 2026 faced constraints from severe weather, the residual impact of Cyclone Ditwah, and elevated fertiliser costs.

Preliminary statistics released by the Sri Lanka Tea Board showed that June production reached 22.5 million kilograms, up from the 21.7 million kilograms documented in the same month of 2025.

An analysis by Asia Siyaka Research indicated that the growth stemmed entirely from enhanced yields in the High and Medium Grown elevations, whereas Low Grown volumes prolonged a downward trend.

High Grown output surged 18% to 5 million kilograms from 4.2 million kilograms the previous year, and Medium Grown yields ticked up 7% to 4.2 million kilograms against 3.9 million kilograms in June 2025. Conversely, Low Grown production plummeted to 13.3 million kilograms, marking a four-year low for the month of June.

The industry struggles remained visible in the cumulative figures, with total tea production for the initial six months of the year settling at 131.8 million kilograms despite the positive June turnaround.

Extended adverse weather patterns alongside disruptions triggered by Cyclone Ditwah last November severely dented harvest yields throughout the first half of the year, according to the research firm.

The firm further pointed out that a steep spike in fertiliser prices driven by the Gulf conflict deterred numerous smallholders from applying sufficient crop nutrients during the first two quarters, which dragged down output.

Regional Plantation Companies, which predominantly manage the High Grown sector, yielded 30.8 million kilograms in the first half of 2026, showing a minor rise from the 30.4 million kilograms recorded in the matching timeframe last year.

Medium Grown volumes contracted 5% to 24.3 million kilograms from 25.4 million kilograms, while Low Growns shrank 4% to 76.6 million kilograms from 79.8 million kilograms, eroding the production progress achieved in 2025.

Industry stakeholders cautioned that prospects for the tea sector stay volatile as fertiliser expenses climb further amid fresh conflict in the Gulf zone.

Swift policy measures remain vital for Sri Lanka to satisfy the expanding international demand for Ceylon Tea, the stakeholders emphasised.

Introducing a focused fertiliser subsidy for the smallholder segment would assist in stabilising production and boosting yields, the sector representatives added.

The authorities were urged to deploy this assistance swiftly, given that forecasted El Niño conditions for the final quarter of 2026 could trigger additional strain on tea yields and jeopardize total output for the rest of the year.