Areca nuts market in Sri Lanka

Earlier Report Observations

Between 2018 and 2023, Sri Lanka's areca nut market volume showed considerable volatility, starting at 51 276 t in 2018 and reaching 58 024 t in 2023 after a peak of 71 882 t in 2021. The sharp 42% increase in 2021 was driven by the introduction of new high-yield areca nut varieties by the Department of Agriculture, which boosted potential yield to up to 1 000 nuts per tree, alongside government initiatives to promote cultivation as an export crop on uncultivable paddy lands.

Market volume then fell by 31% to 49 592 t in 2022, coinciding with trade policy disruptions. The re-issuance of import licenses led to a dramatic price drop from Rs. 1 400 to Rs. 600 per kilo, discouraging local production and contributing to significant farmer losses. Smuggling and export volume distortions further pressured the market. In 2023, volume recovered to 58 024 t as the government implemented an import ban to protect coconut cultivation from pests and discussed allowing re-exports with 35% value addition to curb illegal trade and support local producers.

Production areca nuts in Sri Lanka

In kind, 2017-2020, t

Sri Lanka was one of the world's top producers of areca nuts from 2017 to 2020, ranking 6th globally by production volume during this period.

Top producers of areca nuts, 2017-2020

World map of production of areca nuts, 2017-2020

In 2020, Sri Lanka produced 63 986 tons of areca nuts, marking a 19.3% increase compared to 2019. Over the 2017-2020 period, production grew by 38.1%, with an average annual growth rate of 11.4%. The largest decline occurred in 2019, when production fell by 1.9%.

Annual dynamics of production in Sri Lanka in kind, 2017-2020, t

In value, 2017-2020, M $ US

In 2020, the output of areca nuts in Sri Lanka was valued at 231.1 million US dollars, a 23.4% rise from the previous year. From 2017 to 2020, production value increased by 41.5%, with an average annual growth rate of 12.3%. The largest decline was in 2019, at 11.1%, while the largest increase was in 2018, at 28.9%.

Annual dynamics of production in Sri Lanka in value, 2017-2020, M $ US

Exports areca nuts from Sri Lanka

Exports in kind, t

The export market displayed volatility during the observed period. Exports reached their lowest point in 2019 at 6 134 tons, then peaked in 2020 at 13 711 tons, representing a 2.2-fold increase. In 2020, exports surged by 123.5% compared to 2019. The largest decline was recorded in 2019, at 43.3%.

Annual dynamics of product's exports from Sri Lanka in kind, 2017-2020, t

From 2017 to 2020, India remained the primary and nearly exclusive destination for Sri Lanka's areca nut exports in kind, accounting for 98.4% of the total.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Sri Lanka in kind, 2017-2020

Exports in value, K $ US

The market showed signs of volatility over the observed period. The lowest value was recorded in 2019, while the highest occurred in 2020, with a peak-to-trough ratio of 2.3 times. In 2020, cross-border shipments of areca nuts from Sri Lanka reached 49 530 thousand US dollars, up 131.3% year-over-year. The minimum value was 21 411 thousand US dollars in 2019, and the largest decline was 48.6% in 2019.

Annual dynamics of product's exports from Sri Lanka in value, 2017-2020, K $ US

From 2017 to 2020, Sri Lanka's areca nut exports in value terms were heavily oriented towards India, which accounted for 99.3% of the total.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Sri Lanka in value, 2017-2020

Imports areca nuts to Sri Lanka

Imports in kind, t

The data reveals irregular changes, indicating a volatile market environment. Imports fell to their lowest point in 2019 at 36 tons, after hitting a maximum in 2018 at 7 401 tons, resulting in a 206-fold amplitude. In 2020, deliveries of areca nuts to Sri Lanka reached 135 tons, showing an abrupt rise of 275.0% year-over-year. The largest decline was 99.5% in 2019, while the largest increase was 2,954.0% in 2018.

Annual dynamics of product's imports to Sri Lanka in kind, 2017-2020, t

From 2017 to 2020, Indonesia and Singapore were the dominant suppliers of areca nuts to Sri Lanka in kind, together accounting for 84.7% of total imports, with other partners playing a less significant role.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Sri Lanka in kind, 2017-2020

Imports in value, K $ US

Volatility characterized the market behavior during these years. Imports dropped to their lowest point in 2019 at 56 thousand US dollars, following a peak in 2018 at 11 080 thousand US dollars, with a 198-fold amplitude. In 2020, foreign supplies of areca nuts to Sri Lanka reached 491 thousand US dollars, corresponding to a 775.9% improvement compared to 2019. The largest decline was 99.5% in 2019, and the largest increase was 2,210.0% in 2018.

Annual dynamics of product's imports to Sri Lanka in value, 2017-2020, K $ US

From 2017 to 2020, Indonesia and Singapore together accounted for 80.1% of Sri Lanka's total imports of areca nuts in value terms, with other countries forming a diversified but less significant portion.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Sri Lanka in value, 2017-2020