Tuesday, May 1, 2012


The tea sector:-There are none so blind as those who will not see

April 30, 2012  
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As a sector of indisputable importance to the nation, the tea industry draws periodic comments and now seems such a time. The various assessments and comments are naturally, not wholly acceptable. In fact, my long held view is that the assumed profitability of the industry is spurious. There is the peculiar phenomenon that while most of the estate operations report losses, the industry as a whole is said to be profitable. This is either bad arithmetic or superficial - for how can the whole exceed the sum of the parts? I believe that part of this puzzle derives from the fact that the production and marketing arms display contrasting profitabilities. No plans or projections are valid unless this fundamental feature is recognised and accommodated. Read More...

2011: Lanka $1.491 billion tea exports of $10 billion worldwide

SRI LANKA: Tea rich but nutrient poor

Photo: Contributor/IRIN
Sunday 05 February 2012Children from the estate sector


By Elmo Leonard
Sri Lanka’s 2011 tea exports of $1.491 billion was the highest for a tea producing country while global exports of this commodity was $10 billion, Minister of Plantation Industries Mahinda Samarasinghe said last week. Colombo tea auction prices for 2011 was higher by half a US dollar per kilogram over that in other auction centres the world over, Minister Samarasinghe told delegates at the 20th session of the Food and Agricultural Organization’s (FAO) IGG – Inter Government Group, which met in Colombo, last week.
Colombo hosted the FAO sessions marking 145 years of commercial tea production in Sri Lanka. In attendance were over 100 delegates from 25 nations. Deliberations were intended to cover issues over the next ten years, from current market activity, the progress of selected tea markets, factors affecting supply and demand, analysis of risk management and short to medium term factors.
Also marking the milestone of the 145th year, chairperson, Sri Lanka Tea Board (SLTB) Janaki Kuruppu took over the chairmanship of the FAO-IGG body on tea. Kuruppu will hold the post for the next two years having succeeded Ashok Mangotra, India’s additional secretary to the Ministry of Commerce and Industry.
Minister Samarasinghe called on FAO to hold a producer forum of tea producing countries, to ensure mutual benefit for all.
Minister Samarasinghe drew attention to external factors which affect tea prices. During the past year unrest in the Middle East reduced demand from some of Sri Lanka’s main buyers; the Euro Zone countries saw a weakening currency and Japan was hit by a series of natural disasters. Thus, there is a possibility in the future of external factors affecting global prices. Necessi-tating a win-win outcome, Minister Samarasinghe called for a producer conference, with Sri Lanka willing “without hesitation” to host such a conference on tea during the coming year.
Two million or 20 per cent of Sri Lanka’s workforce is directly and indirectly involved in the island’s tea industry. Around 1.5 to 2 per cent of Sri Lanka’s GDP comes from tea. Yet, there is a need to bring down Sri Lanka’s extremely high cost of producing tea, Samarasinghe said.
The Tea Board head said that while Sri Lanka had a name change from Ceylon, in 1972, the word Ceylon Tea, a branded name, stood firm and continued to grow.