Sri Lanka expects record annual production
Sri Lanka, one of the world's biggest black tea exporters, is on track for a record tea crop in 2010 after a solid growth in the first half of the year. Tea production in the first six months increased by 27.8% to reach 166.9 million kilograms, according to the Sri Lanka Tea Board. This is attributed to favorable weather conditions, better fertilizer use and lack of labor unrest. The Tea Board predicts annual output to exceed 320 million kilos if conditions continue to improve. Sri Lanka is recovering from a steep decline in 2009 that saw production fall by almost 10% due to droughts. Tea prices in Colombo, the world's largest tea auction, recorded an average of $3.37 per kilo due to supply shortages in India.