Domestic Sugar Production Falls 6.9% as Global Prices Surge

COLOMBO (News 1st); The Central Bank of Sri Lanka (CBSL) has published its Agriculture Data Bulletin for August 2024, providing a comprehensive overview of the country’s agricultural sector. 

The report highlights key statistics and trends that are crucial for understanding the current state and future prospects of agriculture in Sri Lanka .

Paddy production in the 2024 Yala season is estimated to be 1.77 million metric tons which is a 2.6% reduction from the previous Yala season.

Fish production increased by 19.0% in June 2024, largely driven by marine fishing activities. 

Retail fish prices moderated during July 2024 along with improved weather conditions for fishing activities

Domestic sugar production fell by 6.9% during the month while global sugar prices were on an upward trend.

Global sugar prices surged for the second consecutive month in July 2024, driven by lower-than-expected production in Brazil during the first half of the month, which outweighed the downward pressure from improved monsoon rainfall in India and favourable weather conditions in Thailand.

Domestic tea production increased marginally by 0.1% while international tea prices rose due to climate impacts and supply chain disruptions.

Recent global tea prices have been rising due to a combination of factors including reduced production from major tea-producing regions affected by adverse weather conditions, particularly in India, and the impact of geopolitical tensions disrupting supply chains.

Local rubber production contracted by 23.6% and global rubber prices displayed a decline in July 2024 driven by easing supply concerns and uncertainties over demand.

In July 2024, international natural rubber prices experienced a decline, mainly attributed to easing supply concerns in major producing nations coupled with uncertainties over Chinese demand.

Coconut production saw an increase of 6.9%

In July 2024, the market prices of export crops such as Pepper, Cocoa, Cardamom, Ginger, Coffee, Nutmeg, and Turmeric experienced an increase, while prices of Clove and Cinnamon registered a decline (m-o-m basis).

Earnings from exports of spices increased in the month of June 2024 (y-o-y) mainly due to the strong performance in the export of Pepper