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If you're a tea lover or a wholesaler who relies on the distinct flavour of Ceylon black tea, you may have noticed a tightening in supply or an increase in prices over the past year. This isn’t a coincidence—it’s part of a larger global issue stemming from serious challenges in Sri Lanka, the home of Ceylon tea. At The Herbal Connection, we want to keep our customers informed about the reasons behind this shortage, how it affects the Australian market, and what we’re doing to help you continue accessing high-quality teas.

What’s Behind the Ceylon Tea Shortage?

Over the past few years, several factors have converged to drastically reduce Sri Lanka’s tea output:

1. Extreme Weather: Unpredictable weather, including droughts and sudden heavy rains, has disrupted harvests and reduced crop quality and volume.

2. Economic Turmoil: A major economic collapse in Sri Lanka made it difficult for farmers to access essential inputs like fertilisers and fuel. A 2021 ban on chemical fertilisers severely reduced yields, and while it was reversed, the industry is still recovering.

3. Labour Shortages and Rising Costs: Increased wages and an ageing workforce have added strain to tea producers, many of whom are already struggling with profitability.

4. Old Tea Bushes and Low Replanting Rates: A lack of investment in new crops means many estates are working with old, less productive tea plants.

What is the Sri Lanka Tea Board Doing?

Sri Lanka’s Tea Board has implemented several reforms:

• Reintroducing fertilisers and agrochemicals

• Offering subsidies and low-interest loans to tea farmers

• Supporting logistics and energy access for tea production

Despite these measures, Sri Lanka does not hold large reserves of tea for emergency release—meaning the shortage stems directly from low production, not stockpiling.

Impact on the Australian Market

Australia imports a significant amount of its tea from Sri Lanka—especially black teas used in everyday blends. As a result, we’ve seen:

• Higher Prices: Ceylon tea has become more expensive due to global demand and supply constraints.

• Blend Adjustments: Many suppliers (including us) have had to adjust blends to maintain availability while preserving flavour.

• Longer Lead Times: Shipping delays from Sri Lanka have caused minor disruptions in supply schedules.

When Will Things Improve?

The good news is that production has begun to rebound slightly in 2025. If weather conditions stabilise and recent reforms take hold, production could gradually return to previous levels over the next few years. Experts remain cautiously optimistic, but a full recovery will take time.

What We’re Doing at The Herbal Connection

We’re committed to ensuring you still have access to top-quality teas. Here’s how we’re responding:

• Proactively managing our inventory and blend formulations

• Working closely with our global partners to secure reliable supply

• Keeping our customers informed and supported through these market shifts

We believe in transparency and shared success. Thank you for your continued trust as we navigate these global challenges together.

Need Assistance or Have Questions? Our team is always here to help you explore alternatives or secure your usual blends in bulk. Reach out today to learn more.