Loan scheme for tea producers
Lalin FERNANDOPULLE
The Government this week approved a concessionary loan scheme
exceeding rupees two billion for tea producers based on the working
capital requirement of last October, Chairman Sri Lank Tea Board, Lalith
Hettiarachchi said.
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Tea
varieties
**Black tea The most popular
variety, offers a hearty flavor and deep reddish color that
results from an extensive fermentation process that includes
exposing crushed tea leaves to the air for a set amount of
time until they are fully oxidized and dried.
**Green tea Makes up about
10% of world-tea production and is a milder brew with a
mild, appealing taste and understandably green appearance.
There is no oxidation during processing. Rather, the leaves
are simply withered and then roasted or dried.
**White tea The rarest type
of tea, come from young tea leaves that are picked before
the buds have fully opened. The tea features a delicate,
soft taste and light coloration. With a minimalist approach
to processing, white tea leaves are simply steamed and
dried, which keeps them closer to their natural state.
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 He
said over 400 applications have been received of which around 300 have
been recommended by an expert panel comprising a representative from the
Private Tea Factory Owners Association, Planters Association and the
Director General of the Tea Board. “Recommendations for loans will be
based on an eligibility criteria and borrowers will have to fulfil
certain requirements. Loans could be obtained from all commercial
banks”, he said.
Hettiarachchi said the rescue package for the tea industry is a
timely intervention to support tea manufacturers and smallholders who
are the most affected due to the present crisis.
The tea export earnings last year exceeded US$ 1.2 billion despite a
challenging year due to the global economic downturn. Export earnings
this year is expected to reach US$ one billion but would fall short of
last years earnings. “Tea export earnings grew last year due to the rise
in world oil prices. The sharp decline in oil prices this year has a
negative impact on the demand for tea”, SLTB, Chairman said.
Tea prices during the first three months are low. Production levels
dropped to due to low application of fertiliser and the unusual dry
weather which would cause the closure of many factories. “The average
tea prices at the auctions during the first two months were low but yet
satisfactory given the global market scenario. Low production helped to
sustain demand”, Hettiarachchi said.
Tea prices averaged around Rs. 310 per kilo while demand for low
grown teas had a steady growth. Tea exports to Russia were on a downward
trend since last October. Devalued Russian currency has been a
disadvantage for Sri Lankan tea exports.
Industry stakeholders have been lobbying for a reasonable devaluation
of the rupee to be competitive in the world market but there has not
been a favourable response and export orders continue to dwindle. |
