Tea industry sees good year ahead

High prices, good weather anticipated:

Harshini Perera

The tea industry is optimistic about this year’s tea prices as there will be a strong market for high grown as well as low grown teas. Industrialists are looking forward to attractive prices from the Dimbula quality season during the first quarter of this year, Asia Siyaka Commodities President Anil Cooke told Daily News Business.

The tea industry significantly reached a high last year due to an increase in production of high and low grown teas.

“High grown tea had a high production cost that was close to market prices due to the heavy rains. We expect quality improvement, as there will be a dry cold weather until the first quarter. The low grown will have a strong hold in the world market due to the very cold winter prevailing in seasonal countries,” he said.

Sri Lanka has understood Kenya to be the main competitor for high grown tea. High production by Kenya will have an impact on Sri Lanka tea.

“Sri Lanka production cost for tea is high but Sri Lanka should look into increasing the wages. New investment should direct to replanting of old tea trees to which the Government has already shown interest as a national priority,” Cooke said.

The tea production will increase to 325 million Kgs for 2011.

The Government has allocated Rs one billion for the promotion of Sri Lankan tea in the world market and at present the Promotion and Marketing Committee is working on it to prioritize the markets.

The regional allocation for promotion has been completed and is forwarded for Board approval. The terms of references will be designed following Board approval, Sri Lanka Tea Board Promotion Director Hasitha de Alwis told Daily News Business.

He said the Rs one billion investment on promotion will increase the market share for Sri Lankan products with the lion logo in future.