Tea exporters to target 1000 MT exports to China

Sri Lanka participated at the Beijing China Tea Expo held from October 12 -15 at the China World Exhibition Center, promoting Ceylon Tea at a very high profile and the biggest tea show in China. The centre stage was captured by Sri Lanka and Ambassador Karunatilaka Amunugama was interviewed by the organisers. He explained in detail the fine quality of Sri Lanka Black Tea and the potentiality it has for securing a bigger share in the Chinese market.

More than 1000 varieties of Tea brands and over 500 producers/companies attended the Fair. A flair for black tea is rapidly gaining ground amongst the Chinese people, which will create a host of opportunities for the Sri Lanka tea industry to capture the ever growing Chinese market. Sri Lanka is slowly but steadily building a reputation in China as exporter of the world's finest black teas.

Tea Industry in Sri Lanka has performed exceptionally well in the Chinese market and achieved a remarkable growth of more than 65 per cent in comparison with export figures for 2007. This outstanding growth continued in 2008 due to the strong and unswerving effort by tea exporters who were guided and led by the Sri Lankan Embassy in China and the tea promotion unit of the Tea Board.

Commonly known as red tea (hong cha), black tea accounts for 1-2 per cent of China's huge RMB 80 billion tea market. However innovative marketing strategies adopted by Sri Lanka such as different flavours and modern packaging are winning new consumers from the younger generation.

The results clearly indicate that though black tea consumption is a new experience, it is gaining a wider popularity in China. The volume of exports which stood at 172 MT in 2003 has merited in a gradual increase recording its highest in 2007 with 967 MT. Sri Lanka has exported so far this 765 MT and it is expected to exceed a record of 1000 MT mark for the first time ever by December.

As a result of representations made by the Sri Lankan Embassy in Beijing, adjustments were made to the tariff regulations in the year 2007 by the Chinese Customs with regard to Ceylon Tea giving the industry the much needed boost in its growth.

Sri Lanka tea exporters enjoy a preferential tariff rate of 7.5 per cent under APTA as against the general tariff of 15 per cent to China.

The Embassy together with the Sri Lanka Tea Board led promotional campaigns at several high profile trade fairs held in main cities such as Beijing, Shanghai, Tianjin, Jilin, Macau SAR, Shaanxi, Guangzhou and Kunming covering a wide area of the Chinese territory affording excellent opportunities for the growth of Ceylon Tea in the rapidly developing hospitality and retail markets in China.

Anura Banda, Imperial Tea, Alexi Gunasekera, Commercial Counsellor, Sanath Udugama Gemi Teas, Sri Lanka Ambassador, Karunathilaka Amunugama, Vice Minister- Commerce Jayantha Ratwatte, BPL, Prasad Arunachalam, Easwaran Brothers, participated at the Sri Lanka Tea Exp.