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| Sunday, 11 January 2004 |
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Lanka leading tea exporter for 2003? by Elmo Leonard Sri Lanka is likely to emerge the clear world leader for tea exports in 2003 with an export quantity in excess of 300 million kilograms, Colombo Tea Brokers Association Chairman, Anil Cooke said, following analysis of export figures available to date. Customs tea export figures for the past year are officially put out end-January. In second place would be Sri Lanka's rival for the position, Kenya, which, in recent years, has not experienced optimum wet weather conditions, according to international tea reports. India would be in a distant third position, with most of its tea crop being domestically consumed. International tea statistics would be released in February. Sri Lanka also holds the record for global tea exports (293.7 million kilos), set in 2001, and if the 300 million kilogram export mark is achieved, that would be a record, Cooke said. Sri Lanka's tea crop for 2003 is expected to fall short of the record 310 million kilograms, set in 2002. The reasons for the shortfall last year is the floods experienced in May, which spoilt some low grown tea plantations. The Sri Lanka Tea Board is yet to release crop statistics. The large quantity exported in 2003 is due to a carry-forward of tea stocks from the 2002 crop, when late-2002, exports to the Middle East were hampered due to threats of an invasion of Iraq. Sri Lanka's current trade position is favourable due to a wide range of nations bidding at the Colombo Auctions, brokers said. The year 2004 has dawned favourably for Sri Lanka's tea industry, with the commencement of the Western quality tea season, consequent to dry weather prevailing in the island's Western and Nuwara Eliya plantations. Consequent to the dry weather, the first seasonal quality teas from these plantations are expected to reach the Colombo Tea Auctions early February, effecting high prices to continue through March or beyond, as long as dry weather prevails. What the tea trade fears most for this year would be the worker wage negotiations, scheduled for June. Some of the leading plantation companies have said that they would no longer want to manage the plantations contracted by them, if politically motivated wage demands continue as in past years. Historically, wage demands go hand in hand with go-slow tactics of workers and threats of strike if their demands are not met. This problem could be magnified if an election is held this year, when politicians could demand larger wage increases, leading personalities in the tea trade said. Others pointed out that most up-country plantation companies were running at a loss, up to a few months ago, due to their cost of production exceeding prices they obtained at the Colombo Tea Auctions. The success of Sri Lanka's tea exports to Iraq during the year would play a big role in this year's profits. The crucial time would be in the second quarter, when high volumes of tea reach the auctions due to wet weather. Iraq purchases a cross-section of Ceylon tea and bought over 10 million kilograms before the country was invaded and much higher quantities before trade sanctions were imposed. The first shipments of Ceylon Tea reached Iraq in December, following the setting up of its new administration. The tea trade also eagerly awaits the commencement of the tea certification system in the first quarter of this year through the newly set-up tea apex body, the Tea Association of Sri Lanka. Iran is also important for Sri Lanka's tea exports and has just allowed tea imports to the country. The question is whether that ruling would stand, in spite of opposition from Iran's tea growers. Libya, another Middle Eastern country, which is now in a peaceful trade situation, following its pronouncement of opposition to terrorist activity, could be expected to purchase more tea this year. Russia and other CIS countries, who in recent years purchased the highest quantities of tea from Sri Lanka, is expected to continue its leading role and play a crucial part in this year's tea exports. |
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