Iran to double tea imports from SL  

Iranian tea importers had offered to double the quantity of tea they buy from Sri Lanka under the Iranian tea-for-oil barter mechanism from its current USD five million to US 10 million during the winter months – December to March -Niraj de Mel, President of the Sri Lanka Tea Board (SLTB) told journalists on Saturday (10).

De Mel added that the Iranian New Year, celebrated in the third week of March, and Ramadan, would also lead to an increase in the demand for tea. Since the commencement of the tea-for-oil barter mechanism in August 2023, Iran has bought tea worth USD 25 million from Sri Lanka, and Sri Lanka intends to pay off 240 million dollars in 48 months, Mel said, adding that the barter mechanism had been a boon to Sri Lanka, given its current foreign exchange crisis.

Tea exports to Iran amounted to about USD 125 million dollars per year before dropping to around USD 70 million in 2022, he said.The internal demand for tea in Iran was about 100,000 metric tons annually, he said.