Tea auction average slips Rs. 31 in June as Sri Lanka’s tea market recorded weaker prices across all elevations compared with the previous month, although year-to-date averages remained marginally stronger in rupee terms than the corresponding period of 2025.
Tea auction average slips Rs. 31 in June as all elevations record weaker prices
According to data compiled by Forbes & Walker Research, the national tea sale average for June 2026 declined to Rs. 1,153.49 per kilogram, down Rs. 31.07 from Rs. 1,184.56 recorded in May. In US dollar terms, the average also eased to US$ 3.45 per kilogram, compared with US$ 3.65 in the previous month.
Despite the monthly decline, Sri Lanka tea prices remained above year-ago levels in local currency. The June average was Rs. 50.22 higher than the Rs. 1,103.27 per kilogram recorded in June 2025. However, the average fell by US$ 0.23 in dollar terms compared with the same month last year, highlighting the impact of exchange rate movements.
The weaker performance in June was evident across all three tea-growing elevations, with each category recording lower averages than in May.
High Grown teas experienced the sharpest monthly decline, falling Rs. 64.64 to Rs. 1,049.25 per kilogram. Medium Grown teas also recorded a notable decrease, dropping Rs. 53.74 to Rs. 956.56 per kilogram.
Low Grown teas, which continued to command the highest prices among the three categories, proved comparatively resilient. Their average eased by Rs. 12.61 to Rs. 1,259.41 per kilogram, remaining well above both High Grown and Medium Grown tea prices.
On a year-on-year basis, High Grown and Low Grown teas posted gains in rupee terms. High Grown teas increased by Rs. 52.40 per kilogram, while Low Grown teas rose by Rs. 72.02 per kilogram compared with June 2025. Medium Grown teas, however, continued to trade below last year’s levels, reflecting comparatively weaker demand and pricing conditions.
Data from the Sri Lanka tea auction also showed mixed trends for the first half of the year. During the January-June 2026 period, the national tea sale average reached Rs. 1,162.09 per kilogram, slightly higher than the Rs. 1,158.54 recorded during the corresponding six months of 2025.
While the year-to-date performance remained positive in rupee terms, the picture was less favourable when measured in US dollars. The cumulative average declined to US$ 3.66 per kilogram from US$ 3.89 recorded during the same period last year.
Tea Board statistics further indicated that only High Grown teas recorded a positive year-to-date variance in rupee terms. Both Medium Grown and Low Grown teas remained below their respective averages achieved during the first half of 2025.
In addition, all three elevations reported negative year-on-year variances in US dollar terms for both June and the cumulative six-month period, underlining the effect of currency fluctuations on export value despite relatively stable local currency prices.
The latest figures suggest that although Sri Lanka tea prices softened during June following stronger levels seen in May, the industry has largely maintained its pricing performance in rupee terms over the first half of 2026. Market participants will continue to monitor upcoming Sri Lanka tea auction results and global demand trends to assess whether prices stabilise in the coming months as exporters navigate changing international market conditions.