Colombo, Sri Lanka – 23 September 2026 – The Sri Lankan tea market concluded its weekly auction for the sales of 22nd and 23rd September 2026 with a notably smaller offering volume, the lowest witnessed since April 2024. Despite the reduced quantity, overall market sentiment remained largely fair, showcasing resilience amidst fluctuating regional performances and significant shifts in export patterns, according to the latest report from Forbes & Walker Tea Brokers (Pvt) Ltd.
The weekly tea market report, identified as Sale No. 37, provides a comprehensive overview of auction dynamics, regional tea performance, national export statistics, and global market insights. The total offering at this week’s sale amounted to 4.83 million kilograms, comprising 10,269 lots.
Auction Performance and Market Overview
The total auction offering of 4.83 M/Kgs represents a significant dip, marking the lowest quantity on offer since Sale No. 16 of 22/24 April 2024. Despite this, the overall market sentiment was described as “Fair general.”
- Ex-Estate: 0.61 M/Kgs – Fair demand
- High & Medium: 0.48 M/Kgs – Fair demand
- Leafy: 0.69 M/Kgs – Fair demand
- Semi-Leafy: 0.66 M/Kgs – Fair demand
- Tippy/Small Leaf: 0.81 M/Kgs – Fair demand
- Premium Flowery: 0.04 M/Kgs – Good demand
- Off Grade: 1.08 M/Kgs – Fair demand
- Dust: 0.45 M/Kgs – Good demand
Ex-Estate offerings saw a slight reduction to 0.6 M/Kgs. While better teas continued to sell well, some high prices from the previous week were not maintained. Better Westerns continued to command a premium, though Nuwara Eliya and Uda Pussellawa teas showed sluggish and poor sales respectively, impacted by quality. Uva’s better BOPs appreciated by up to Rs. 50 per kg, while BOPFs declined similarly. High & Mid Grown CTC teas experienced an improved market outlook with a Rs. 20-40 per kg appreciation, particularly for better teas. Low Growns maintained good sales, though Select Best categories saw a Rs. 20 per kg decline. Demand for liquoring teas was notably driven by shippers to Japan, China, the Middle East, and CIS markets, with Western markets showing less support due to limited availability of better teas.
National Tea Exports: August 2026 Analysis
Sri Lanka’s tea exports for August 2026 recorded 22.82 M/Kgs, marking a 0.88 M/Kgs decrease year-on-year. Cumulative exports from January to August 2026 totalled 166.32 M/Kgs, down by 8.23 M/Kgs compared to the same period in 2025.
Despite the volumetric decline, the Free On Board (F.O.B.) value for August 2026 showed a positive variance, recorded at Rs. 1,910.27 (USD 5.74), an increase of Rs. 104.92 per kg over August 2025. Cumulatively, the FOB value increased by Rs. 81.47 in LKR terms for January-August 2026, though it registered a negative variance in USD terms.
Leading Importers of Ceylon Tea: August 2026
A significant highlight was Türkiye claiming the top spot among major importers of Ceylon Tea in August 2026, importing 30.42 M/Kgs, a remarkable 143% increase year-on-year. This pushed Iraq, which saw a 37% decline, to second place with 16.42 M/Kgs. Russia followed at third with 15.39 M/Kgs, showing a marginal increase. Other key importers included Azerbaijan, China, Libya, Jordan, Syria, Saudi Arabia, and Chile.
Crop and Weather Report (15 – 21 September 2026)
The report indicated an increase in crop intake across all regions. Western and Nuwara Eliya regions experienced rain, with more expected. Uva and Uda Pussellawa also reported rain throughout the week, with showers anticipated in Uva. The Low Grown region received rain, and similar conditions are forecast for the coming week.
Global Tea Market Insights
The report also provided a snapshot of international tea markets:
- Mombasa Auction: Good general demand, with strong support from Pakistan and Egyptian Packers. Kenya’s government has also directed factories to reject low-quality leaf, aiming to improve tea value in international markets.
- Bangladesh Auction: Met with good demand, though at easier rates, primarily driven by blenders.
- Coonoor Auction: Good improved demand for CTC leaf, with prices fluctuating. High-grown Orthodox teas sold irregularly lower.
- Kolkata Auction: CTC teas maintained quality, while Orthodox teas saw good demand for well-made whole leaf and brokens.
- Cochin Auction: Export demand remained supportive, particularly from CIS and Middle East buyers for quality Orthodox teas.
- Siliguri, Malawi, Guwahati Auctions: Varied demand and price movements were reported across these markets, reflecting regional nuances in supply and buyer interest.
The Forbes & Walker Tea Market Report for the sale of 22nd and 23rd September 2026 underscores a dynamic period for Sri Lanka’s tea industry, characterized by lower auction volumes but robust FOB values, significant shifts in key export markets, and ongoing efforts to enhance quality both domestically and globally.
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