Tea production in full swing, expects good time

Hiran H.Senewiratne

TEA: The Sri Lanka Tea Board (SLTB) projected tea production to reach between 310 to 315 million kgs at the end of the year due to favourable conditions for the industry.

Last year the total production was 307 million kg due to the disorder in the sector, sources said.

Last year labour unrest, lesser fertilizer application and severe drought conditions negatively impacted the local tea industry. Its ripple effects also prevailed until the first three months of this year, Director General SLTB, H.D Hemaratne said.

He said that this year the tea industry is functioning quite smoothly and the international market prices are also good especially for low grown tea. Most Regional Plantation Companies have not experienced labour unrest this year and favourable weather conditions resulted in on increase on the annual tea output, he said.

Further, tea smallholders who contribute more than 60 percent to the total national production have started fertilizing their tea lands due to Government’s strong patronage for the industry, he said.

Hemaratne said at present approximately 221,000 acres are under the tea plantation. Unfortunately re-plantating is not happening at the required pace.

Therefore since the replanting of tea is not happening in full swing in the tea growing areas, the Government has launched many programmes like the replanting subsidy scheme and factory modernisation programmes. Under these circumstances the tea industry will come to the normal level, he said.

Further, the Colombo tea auction’s transactions are happening in rupee terms, therefore it does not makes much of difference on the depreciation of the rupee as against the dollar Hemaratne said.

Manager-Tea, Asia Siyake Commodities Sohan Samaranayake said this year the tea industry would have a good time as tea fetches high prices especially for low grown tea.

He said there are good prices especially for low grown tea which is Rs 285.55 per kilogram and during the corresponding year it fetched Rs 191.87 per kilogram.

Since the winter season is round the corner they expect Russia and CIS countries to increase their purchases this year.