Government allocates Rs.10b for plantation sector modernisation

BY HIRAN H. Senewiratne

THE Government will implement a major ten year plantation sector development plan, which would begin from early next year, Plantation Industry Ministry sources said.

The Government has allocated Rs. 10 billion from the recent budget for the plantation sector out of that they will establish a revolving fund for the betterment of the sector.

Therefore the tea industry is likely to get more than one-third of its allotment, Director General Sri Lanka Tea Board (SLTB) H. D. Hemaratne told the Daily News.

He said that SLTB is also in the process of devising a strategic plan to modernise tea factories in the country to meet the HACCP food security standards to penetrate into lucrative European markets.

The EU countries have imposed a deadline for all food manufacturing countries to modernised their factories with HACCP certification before the end of year 2006, Hemaratne said.

More than 618 tea factories are in operation in the country out of which 580 factories have been selected for modernisation with immediate affect with HACCP certification.

The SLTB will provide a soft loan up to 50 per cent for all factories while the balance should be borne by factory owners, the cost of modernisation of factory along with HACCP certification will be around Rs. 5 million, the Director General said.

The SLTB has drafted a major development and promotional plan in the coming year to increase to the market share in traditional and non-traditional markets by concentrating on quality enhancement, productivity and production of the industry, he said.

They will be mainly promoted in Latin America, European Union, Far East, Australia and African countries. The SLTB will mainly concentrate on non-existing markets and not traditional markets of Sri Lankan tea, he said.

SLTB also intends to set up a Tea Centre in Pakistan early next year, which was at one time the largest tea buyer in early 80s. The purpose of this move is to regain that market as soon as possible, he said.

The SLTB will also focuse on niche markets including Russia, Japan and Libyan markets. They will also launch a major export drive in China to promote orthodox tea or black tea although the China is one of the main buyers of green tea.