COLOMBO (XINHUA) – Iranian tea importers have proposed to double the quantity of tea they take from Sri Lanka under the tea-for-oil barter mechanism, from its current USD5 million to around USD10 million during the winter months, local media reported yesterday quoting chairman of the Sri Lanka Tea Board Niraj de Mel.
He said that Iran’s winter season runs from the months of December to March and there is always high demand for tea during that time.
He added that the Iranian New Year, celebrated in the third week of March and Ramadhan will also lead to a high demand for tea.
The chairman said that since the start of the tea-for-oil barter mechanism in August 2023, Iran has bought USD25 million worth of tea from Sri Lanka and Sri Lanka intends to pay off USD240 million in 48 months.
He said the barter mechanism has been a great success and represents a significant development for Sri Lanka amid its current foreign exchange liquidity crisis.
Tea exports to Iran amounted to about USD125 million per year before falling to around USD70 million in 2022, he said.
The internal demand for tea in Iran is about 100,000 metric tonnes annually, he added.
