Bright future for the cup that cheers

by P. Krishnaswamy

Refuting negative views expressed in the recent days by some opposition politicians over the future of the tea industry, prominent persons who are directly involved in the industry told the Sunday Observer that the industry has a very good future with more people drinking the ‘cup that cheers'. With the price in the world market reaching the highest in the past four decades, productivity improving and the Government focusing on all aspects of protecting and promoting the industry, our tea industry with the world's longest history of export production is sustainable and would continue to contribute substantially to the national economy in spite of the many challenges faced in the recent years, they said. A different model to tie-up production with labour cost should be given serious thought to, they said.

Chairperson of the Sri Lanka Tea Board (SLTB) Dr. Janaki Kuruppu, Chairperson of the Ceylon Tea Marketing (Pvt) Ltd and member of the Board of Directors of the SLTB Jayantha Keragala, Chairperson of the Planters’ Association of Sri Lanka (PA) Roshan Rajadurai and General Manager of the Tea Small Holdings Development Authority Kamal Obeysekera expressed optimism that the future of the industry is bright and hailed the Government's concerted efforts towards protecting and promoting the industry. They also said that with the tea small holders contributing to nearly 71 percent of the total export production, the system would be a good model for the sustainability of the industry and for bringing down the cost of production.

Excerpts of their views:

Dr. Janaki Kuruppu: The tea industry of Sri Lanka faces many challenges but the future of the industry looks bright. Any industry, for that matter, faces challenges and they have to be overcome. With more and more people in the world drinking tea also for its other health benefits and the Sri Lankan tea continuing to retain its popularity as the best tea, the future looks good. Sri Lankan tea has been branded and there is an ongoing global promotional campaign. Tea is the No.3 foreign exchange earner. We do not have to import raw materials or anything of tat kind. It is our soil and it is our product. Replanting is being done under the Government's subsidy scheme and other assistance.

The tea small holders are contributing to 71 percent of the total national output and this should be a good model for the future of the industry. It is a good model for any agricultural products because the people will benefit directly while contributing to the national economy. The Business Forum of the CHOGM is a benchmark event for discussions on tea promotion globally. We have already established a the Tea Producers’ Forum with six countries as members.

Jayantha Keragala: The tea industry is doing well. It withstood the test of time for one-and- a-half centuries and should do so in the future as well. In recent tea auctions in the world market it fetched the highest price in the last forty years.

Luscious tea bushes

Under the concerted efforts of Plantation Industries Minister Mahinda Samarasinghe, replanting is happening to a satisfactory level. The tea small holder system is a different model which would benefit the industry and all stakeholders in the long run. Replanting in the case of the small holders may be difficult and the government has to consider enhancing the subsidy and other assistance to them. The subsidy to the Regional Plantation Companies (RPSs) is also not enough because they have to wait for 14 - 15 years for the ‘return on investment'. Some two companies have already introduced the small ‘out-grower system’ . It is a workable system because the plantation workers want to change their vocation. Their younger generation do no like to be labourers on the estates and, consequently, there would be an acute labour shortage. The out-grower system is altogether a different concept which should be followed by other tea producing countries. The present contribution towards the global promotional campaign is Rs.3.50 per kg of tea and the accumulated amount is Rs.3.2 Billion so far.

Roshan Rajadurai: The potential for the industry locally and internationally is very encouraging. The overall picture is positive. The industry is supporting at least seven percent of the total labour force of the country. Many small townships have sprouted around the plantation areas and over 400,000 people are indirectly dependent on the industry. The industry has continued to play a significant role towards the national economy. I believe the Export Development Board and the Ministry of Plantation Industries would take advantage of the Business Forum of the CHOGM for discussions on promotional activities. The Sri Lankan tea continues to retain its popularity as the best tea in the world. The Government and all relevant institutions are taking measures to consolidate and develop the industry. In addition to good wages, the labour force is also being extended all ethical support including housing, education , health and other welfare facilities. The Government is also looking at every possible aspect of ensuring the long-term sustainability of the industry.

Kamal Obeysekera: The tea small holder sector is contributing to over 71 percent of the national production and we are certain that there is high room for improvement. The world scenario is very good and we are confident that the Government will do everything necessary to further improve the quality of our tea and promoting sales globally. The Government increased the subsidy on replanting several folds in the past three years. It is now Rs.350,000 per hectare. For ‘in-filling’ the payment is Rs.25/- per bush. The tea small holder system and the out-grower system are good for the long-term sustainability of the industry because there are no overheads and the cost of production will be much less.