Tea auction prices via SMS

Rasika SOMARATHNA

Tea auction prices are to be relayed to tea smallholders via an SMS message in the future to ensure better transparency in related transactions.

Plantations Industries Minister Mahinda Samarasinghe opening a new tea factory in Hiniduma, said his ministry will soon introduce the method and several other initiatives to help tea smallholders who account for 76% of the national tea output.

The minister pointed out that according to the present price formula, 68 per cent of the auction price had to be given to the tea small holders while factory owners retain 32 per cent.

However, the minister noted that most tea small holders were not aware of the existing auction prices and added that the above move will help to maintain transparency and better understanding between the two parties when it came to financial transactions.

The minister also assured the growers that the government had no plans to import tea from abroad as reported by certain media recently. He said these reports were misleading and had no truth to them.

He assured the tea small holders that the government's intentions were always to help and not harm them. He also told them that the government in future would look at all possibilities to get a better price for their produce.

Speaking on plans to further develop the industry, he said presently tea exports fetch around Rs.,1.5 billion annually in foreign revenue and that the government intends to increase this further to reach Rs.3 - 4 billion in the future.