📈 Sri Lanka June Tea Output Rises 4%, But 1H Crop Pressured by Weather & Fertiliser Costs

Based on preliminary data from the Sri Lanka Tea Board, national tea production rebounded in June 2026, although cumulative first-half (1H) output remains constrained by external and climate shocks. • June 2026 Production: Totalled 22.5 MnKg, up 4% YoY compared to 21.7 MnKg in June 2025. • June Elevation Breakdown: Driven entirely by High Grown (up 18% to 5 MnKg) and Medium Grown (up 7% to 4.2 MnKg). Conversely, Low Grown output fell to 13.3 MnKg, marking its lowest June level in four years. • 1H Cumulative Performance: Reached 131.8 MnKg, heavily weighed down by the lingering impacts of Cyclone Ditwah, extreme weather, and soaring fertiliser prices. • 1H Elevation Breakdown: High Grown rose marginally to 30.8 MnKg (vs. 30.4 MnKg). However, Medium Grown fell 5% to 24.3 MnKg, and Low Grown declined 4% to 76.6 MnKg, reversing previous gains. • Smallholder & Economic Pressure: Rising fertiliser prices due to the Gulf conflict have discouraged adequate fertiliser application by smallholders, directly threatening livelihoods and employment in this vital export sector. • Outlook & Policy Demand: With El Niño conditions expected to threaten crop yields in Q4 2026, the industry is urgently calling for targeted fertiliser subsidies for smallholders to sustain production and satisfy global demand for Ceylon tea.