Tea industry to take stock of challenges

Sri Lanka’s tea industry has been called on to address the intensifying challenges faced today through genuine dialogue among all stakeholders in the sector.

Planters Association (PA) Chairman Senaka Alawattegama addressing its recent 169th AGM stated that the systemic challenges facing the industry have continued to intensity and so it's imperative that all stakeholders engage in genuine dialogue and collaborate towards reform and realignment for a sustainable future.

He pointed out with concern the rising tide of misinformation targeting the tea industry as a result of the worsening impacts of the economic and cost of living crisis.

However, he pointed out that the industry continuously supports its employees and their rights.

In a bid to achieve the full commercial potential of the industry, Mr. Alawattegama noted that this could be carried out through a fundamental re-evaluation and modernisation of the foundational policy, legal and operational frameworks that underpin the industry.

The PA also wanted the government to re-evaluate the recent decision to impose VAT on plantation companies for all produce excluding green leaf and latex rubber.

The Chairman also called on the authorities to guarantee long term ROI when the leases on their agreements are extended following the evaluations of the audits carried out on the plantation companies.

The shift to revenue-sharing model was once again mooted at the AGM for a transition from the archaic daily attendance-based model to a dynamic system.

He noted with cautious optimism the "tentative progress" emerging in this direction that is said to be the only viable solution to the largest threat to the industry.

In the rubber sector, he noted they expect total production for this year to reach 60 million kg and noted the need for urgent action to address critical threats to the industry like the spot leaf disease; reforms as stated in the Rubber Master Plan; and research into biological and mechanical methods to enhance productivity.

Mr. Alawattegama noted the need for a resumption of oil palm cultivation as the country continues to import the product spending US$300 million that could be substituted by local production if the ban on growing the crop is reversed.

Indonesian Ambassador Dewi Gustina Tobinga addressing the AGM as the chief guest on the occasion called on Sri Lanka to resume oil palm cultivation and said that they could provide the necessary expertise required.