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| Tuesday, 20 May 2003 |
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Torrential rains a threat to tea industry By Channa Kasturisinghe The country's tea industry which has been recovering from one of the worst crises in history due to the war in Iraq is now facing another threat due to torrential rains in three major low grown tea producing districts. Tea production in about 200 factories in Ratnapura, Galle and Matara districts has almost come to a virtual standstill affecting the livelihood of thousands of workers, small holders and tea factory owners. The President of the Private Tea Factory Owners' Association, Sarath Samaraweera told the Daily News yesterday that the low grown tea producers find it difficult to withstand the impact of two severe blows to the industry in terms of the Gulf war and unfavourable weather in a matter of four months. "Ratnapura, Galle and Matara account for about 90 percent of low grown teas which is about 50 percent of Sri Lanka's entire tea production. The heavy rains which prevailed for several days have affected the quality of leaf and floods and earthslips have brought work in several factories to a standstill. The worker turnout reduced drastically and tea is not plucked in most plantations. Whatever has been produced cannot be transported as the roads have become impassable. The interruption to the power supply is also a major problem," Samaraweera said. He said although improved weather conditions would bring back normalcy to the industry the damage to the infrastructure in these major tea producing areas due to floods and earthslips would have negative effects on the long run. According to the Asia Siyaka Weekly Tea Update a relatively small volume of 1.89 MnKg of Low Growns was offered at last week's auction and was met with widespread demand. "Widespread rainfall has been reported from Low Grown planting districts. However, crop intakes have not shown a significant change. Excessive rain had caused flooding in some areas and affected worker turnout. The absence of the morning sun is also expected to hinder growth in the immediate short term. The main cause for sluggish Low Country production however is that factories have been very selective with the quality of leaf, unlike in previous years. Most factories have been crippled by heavy losses over the last five to six months and are reluctant to accept the wet coarse leaf harvested during this period. The existing formula does not offer any protection against the low made tea out put resulting from these coarse teas. Further, manufacturers are vary of price leaves that could prevail during the next two to three months when key markets will be in summer, a comparatively low consumption period," the report said. It also said the issue over Iraq 'Oil for food' remained unresolved causing further difficulties to low grown producers. "Reports indicate that by UN Resolution No. 742, tea was declared a non-essential item. This surprised many in the industry and those in the trade in the Middle East as it is commonly known that tea is part of the basic food basket, of not just in Iraq but in most Middle Eastern and North African countries. A review of Iraqi food imports under the 'Oil for Food' program over the past five to ten years will establish this fact. Sri Lanka is sitting on a 14 million Kg order with buyers undecided on whether they should buy or wait and sellers hoping for some salvation after the market collapse. This uncertainty continues to be a factor that influences the downward slide of the tea for price segment, over the past three weeks," the Asia Siyaka report said. |
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