Better prospects for Sri Lankan tea in overseas markets: Minister Navin
Plantation Industries Minister Navin Dissanayaka said a comprehensive new strategy has been introduced to save Sri Lanka’s tea trade and in particular the much famed ‘Ceylon Tea’ from bad publicity, adulteration, glyphosate use and salaries of tea estate workers.
However, Minister Dissanayaka in a passive tone said these are salient features in a participatory democracy and hence he would not whim or blame any one but take action to minimize damage.
Addressing the media at the Sri Lanka Tea board (SLTB) auditorium, he said the drought during the first few months of the year, the ban on the application of the weedicide Glyphosate until end of the year, the work stoppages by the tea pluckers in the high grown areas due to the difficulty of reaching a compromise in the collective agreement as well as the excessive rains in the second half of the year, had contributed to decline the tea production last year.
“The mixing of tea with sugar and so called refused tea has affected the ‘Ceylon Tea’ brand to some extent and I will not hesitate to take strict possible action against those who do this,” Minister Dissanayaka vowed.
Tea exports from Sri Lanka came down proportionately from 288 m. kgs. in 2017 to 282 m. kgs. (2% drop) in 2018. With a boost in the crop during the year 2019, it is expected that exports would reach around 300 m. kilos by end of this year. The total earnings during the year 2018 has been registered at US$ 1.43 billion as against US$ 1.53 billion in 2017.With a better year expected for the tea industry, a revenue exceeding US$ 1.60 billion is targeted for the New Year. More focus would be emphasized on re-planting, new planting and infilling for better yields.the fertilizer subsidy would also continue to help the tea growers, Minister Dissanayaka noted.
Iraq emerged as the no. one buyer of Ceylon Tea during the year 2018 with 38.5 m. kgs. followed by Turkey, Russia and Iran.the war situation in Iraq has been controlled to a great extent which is facilitating a better environment for business. It is expected that Iraq would play a major role in the tea purchases from Sri Lanka during the New Year as well. Due to US consumers were looking for cheaper teas which did not augur well for Sri Lanka. turkey played a major role as a hub location with a fair volume of re-exports to neighbouring countries.
The continuing economic sanctions against Iran by the UN and the tougher sanctions imposed by USA after November 2018 made it even more difficult for Ceylon Tea to reach Iranian territory. thus, exports from Sri Lanka to Iran declined by almost 4 m. kgs. and reached 24 m. kgs. by end of 2018. Iran and Sri Lanka are discussing other options available for business due to the non-availability of a banking conduit. Barter trade has been identified as a possible way out which is effectively adopted by India for business with Iran. With Glyphosate ban lifted, the performance of Ceylon Tea is expected to improve in Japan.
Chairman, SLTB, Lucilli Nanayakkara said the Ceylon Tea Global Campaign which faced delays due to several reasons is now taking shape for the launch during the New Year.the launch in China is scheduled for May and Russia in September under phase I.the other target destinations within the first stage are Germany & Ukraine in October and Japan in November.the launches for the rest of the countries namely USA, Saudi Arabia, Turkey, Australia, UAE, Iran and Chile are programmed for 2020. The main objective of the promotional campaign is to enhance the awareness of Ceylon Tea and emphasize the linkage with Lion Logo trade mark and the origin of Sri Lanka.
A budgetary allocation of SL Rs. 4.5 billion has been ear-marked for the implementation of the Sri Lanka Tea Board would implement green leaf enhancement programme which would improve the productivity and quality. In addition the project for improving Good manufacturing practices in tea factories would be continued in 2019 to bring all the tea factories at higher level of food processing standards. This would result in high confidence of tea consumers, better international marketing, Mr. Nanayakkara stressed. pics by Kushan Pathiraja.