Colombo, Sri Lanka – 16 September 2026 – The Sri Lankan tea market demonstrated resilience and pockets of improved demand at Sale No. 36, conducted on 15th and 16th September 2026. According to the weekly market report released by Forbes & Walker Tea Brokers (Pvt) Ltd., the auction saw a total offering of 5.24 million kilograms, with an overall sentiment of “Fair general” demand.
Auction Highlights and Market Performance
The latest Forbes & Walker Tea Market Report for the sale period of September 15th and 16th, 2026, revealed an active market with specific categories registering notable gains. Ex-Estate teas, particularly those from the Western and Eastern sectors, experienced improved demand.
- Ex-Estate Performance: Best Western BOPs, showing improved quality, commanded price gains of Rs. 50-100 per kilogram and more, especially for selected invoices. Corresponding BOPFs also saw appreciation for select invoices, gaining up to Rs. 50 per kg. Select improved coloury Uva BOPs also appreciated by Rs. 50 per kg and more.
- Low Grown & High/Mid Grown Teas: Low Growns, alongside Large Leaf teas from the High and Mid Grown regions, continued to perform well. All Low Grown categories met with fair demand, with BOP1s and OP1s generally firm.
- Orthodox/Rotovane Teas: Improved demand was observed for Orthodox/Rotovane teas, closely tied to their quality.
- Overall Offerings: A total of 11,169 lots, amounting to 5,236,036 kilograms, were on offer. The breakdown included 697,626 kg of Ex-Estate, 547,219 kg of High & Medium, and approximately 2.3 million kg from the Low Grown categories (Leafy, Semi-Leafy, Tippy).
National Tea Production Trends
The report also provided an update on Sri Lanka’s national tea production figures, highlighting recent trends:
- August 2026 Production: Recorded at 19.00 million kilograms, a decrease of 0.72 million kilograms compared to August 2025 (19.72 M/Kgs). While Low Growns and Green tea showed improvement, High Growns and Medium Growns experienced a decline.
- Cumulative Production (Jan-Aug 2026): The cumulative quantity stood at 172.21 million kilograms, reflecting a negative variance of 4.77 million kilograms against the 176.98 million kilograms produced in the same period of 2025. High Growns and Green Tea segments gained cumulatively, but Medium Growns and Low Growns showed negative variances.
Global Tea Market Insights
Contextualizing Sri Lanka’s performance, the Forbes & Walker report also touched upon global tea market trends:
- Organic Tea Market Growth: The global organic tea market is projected to reach USD 1.67 billion in 2026 and surge to USD 4.97 billion by 2035, driven by shifting consumer preferences for organic certification, clean-label products, and sustainable agricultural practices.
- India’s Output Decline: India’s July tea output dropped by a tenth to 164 million kilograms, primarily due to excessive rains and floods in major producing states like Assam and West Bengal. However, South India recorded an 18% growth in production.
Crop and Weather Update
For the period 08 – 14 September 2026, the Western and Nuwara Eliya regions experienced sunny weather with sporadic showers. The Uva and Uda Pussellawa regions reported bright mornings and occasional evening showers. The Low Grown region also saw bright weather and sporadic showers. Crop intake decreased in the Western, Nuwara Eliya, Uva, and Uda Pussellawa regions, while the Low Grown Region reported an increase.
The positive reactions in segments of the Sri Lankan tea market, particularly for quality teas, underscore the industry’s ability to navigate global uncertainties. The focus on quality and strategic market engagement remains crucial for Ceylon Tea’s sustained performance on the world stage.
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