President resolves tea crisis

Malinga H. Gunaratne

The biggest players in the tea industry were summoned to the Cabinet Room at Temple Trees at 5 p.m. on Friday. President Rajapaksa was seeking an immediate solution to the grave crisis in the tea sector. The President entered the Cabinet room very smartly attired but with determination written all over his face at 5.30 p.m.

He started the meeting off by saying, "I am still studying the tea industry, I have no knowledge like those of you here, but tell me, in a crisis like this why are you still importing cheap tea from other countries to Sri Lanka. Our teas are the best in the world why do you want to dilute this by blending it with cheap tea." The President appeared to have realised a fundamental flaw in our tea trade.

The Tea Board stated that they had imported 14 million kgs this year. It would indeed be interesting to see what these teas are and if similar teas are available in Sri Lanka. This will tell the story.

The tea industry which is thriving on the contribution made by the smallholder is being governed by organisations which seldom provide an opportunity for the smallholder to make his opinion known. The President clearly recognised this inequity and is now moving at the highest level to give the smallholder his place in the sun.

Chula Naotunna, a tea factory owner who was present by special invitation then provided an illustrative graph which clearly indicated that the prices started declining in August. The unsold teas started piling up in August culminating in the all time low prices in the last sale in October coupled together with almost 60 per cent of the teas unsold at the same sale.

The President immediately realised the flaw in the system. "If the prices started declining and the unsold teas started piling up in August why did you do nothing about it till now," was his exasperated query.

The factory owners who appeared to be hard pressed for cash, advanced an argument for a package of relief. "The tea prices were high till July everyone of you were making big rewards. Don't you think it is a little unfair for you to come to the Government for assistance when things start going wrong," the President queried. I will still help you in the best way I could, and that can only be done by ensuring that all the teas are sold at the Colombo Auctions.

By this the President had grasped the situation clearly and addressed the key issue. He then instructed the Governor of the Central Bank to make a package available to the exporters to come into the auction and make vigourous purchases. He further expressed his wish to speak to one of the biggest exporters whom he knew very well.

The exporters arrived and the President had a very cordial discussion with him. The exporter stated that he was already buying 50 per cent of the sale quantity. The President made a request of him to step up the quantity to 60 per cent.

Speaking to me on the telephone he said, "I think they will come in and support the auction." He further told me that he will be speaking to the President Ahamedinajad of Iran who is his good friend and making a request of him to take a larger quantity of our tea. "At my request President Ahamedinajad gave us six months credit on purchases of oil. I obtained a further extension from him on a mere telephone call.

I will request him to take our tea, we can offset the oil purchases on an exchange of tea," he said. Thus he demonstrated the wisdom of the country's and his own international stature by obtaining a friendly nation to come to our aid at a time of need.

The President was also keen to speak to all exporters to iron out the difficulties they may have due to the current crisis to activate the tea market. "I could have done all this if the authorities briefed me on the problem.

I am fighting on all fronts to safeguard the sovereignty of our nation, this problem is not too big for me, I could have settled it by a phone call to the Middle Eastern countries with whom we have very strong ties of friendship. We have to monitor this more effectively, was his view. I am also speaking to two principal Russian buyers who will participate actively," he went on.

Thus a crisis that almost brought the tea industry to a standstill was averted. Far reaching changes are being contemplated to avert such a crisis in the future.

The Middle East has oil. We have tea. That is our most precious possession.