Govt to ensure stable prices for tea

Chaminda PERERA

Media Minister Lakshman Yapa Abeywardena yesterday said the Government has taken all possible steps to ensure a stable price for tea in the midst of the global financial crises.

Addressing the media at the Media Ministry auditorium, he said President Mahinda Rajapaksa has directly intervened to grant concessions to the industry affected by the global financial crisis.

The fall of tea prices is attributed to certain restrictions on imports particularly tea and other consumer items. Most top tea buying countries have curtailed imports as a measure to retain their ailing foreign exchange reserves.

Plantations Industries Ministry Secretary Indrani Sugathadasa said tea industry which was tipped to be the second largest foreign exchange earner earned over US$ 1.5 billion last year and those engaged in the industry mainly tea small holders received better prices for their leaves for the past two years.

According to Sugathadasa, prices of some tea varieties have dropped by 15 to 50 per cent due to this global crisis since mid October and this situation has mainly affected the low country tea industry.

Tea importers show reluctance to purchase tea due to various regulations imported by tea puchasing countries such as Russia and the UAE and as a result the demand for tea has come down.

President Mahinda Rajapaksa yesterday directed officials to take all possible steps to ensure that the livelihoods of more than 400,000 tea small holders will not be affected by this crisis. She said tea growers have been receiving a better income for the past two years. This situation slightly changed from mid October, she said.

Tea Board Chairman Lalith Hettiarachchi said the tea factories and growers should ensure that high quality leaves are always purchased for production.

This situation could be averted if high quality is guaranteed.

In addition, tea smallholders could utilise this period to redevelop their cultivation.