Tea industry slams govt interference in promotion fund
All stakeholders of the tea industry express their opposition to the
intention, as reported in the media, of the Ministry of Finance trying
to appropriate the funds collected from the Industry and accumulated by
the Sri Lanka Tea Board for global tea promotion, according to a
statement by the main organisations in the industry. They include the
Colombo Tea Traders' Association, the Tea Exporters' Association, Sri
Lanka Tea Factory Owners' Association, the Planters' Association of
Ceylon, Sri Lanka Federation of Tea Smallholding Development Societies
and the Colombo Brokers' Association.

Pic: Yenul Dilsara |
The statement said: "In October 2010, a Tea Promotion and Marketing
Levy was introduced by the Sri Lanka Tea Board, whereby Rs.3.50 was
charged on every kilogram of tea exported from Sri Lanka, to be used
exclusively for the worldwide promotion of Ceylon Tea.
"On the guarantee provided by the Gazette of the Democratic Socialist
Republic of Sri Lanka - Extraordinary No 1677/14 dated Wednesday,
October 27, 2010, restricting the use of these funds for Tea Promotion,
Exporters readily co-operated in this initiative.
"At the outset, the Sri Lanka Tea Board clearly affirmed that, whilst
the funds collected by the imposition of this levy would be administered
by the Tea Board, the application of the funds would be regulated by
representatives of the Industry. Accordingly, a Promotion and Marketing
Committee was established, with wide industry representation.
"Since then, despite the successive changes in the Government and
Ministers, the autonomy of the Fund, which now stands at Rs.6 billion,
was consistently respected and the members of the Promotion and
Marketing Committee remain unchanged.
Due to various reasons there were some delays to implement promotion
and marketing plan, but it is now ready to be implemented.
"The objective in setting up this fund was to conduct promotional
activities to retain markets against strong competition from other
origins, regain markets lost to competition and penetrate new markets.
Subverting these initiatives would spell disaster for the Tea
Industry, which contributes significantly to the country's economy.
It would also diminish the vitality of the potent brand Ceylon Tea,
which had been developed through the concerted efforts of the Tea
Promotion Bureau and its successor the Sri Lanka Tea Board and the
industry at-large, over several decades.
"Unquestionably, the ownership of these funds, contributed by the
industry for a very specific purpose declared at the inception, belongs
to the Industry.
An analogy could be drawn to the Sri Lanka Tea Board's role of
administering these funds on behalf of the Industry, as a Bank
administers the funds of its account holders.
"Notwithstanding the protests of the Industry, if the Government
intends proceeding with this act, the Industry will demand the immediate
suspension of the Tea Promotion and Marketing Levy, as it will serve no
further purpose.
"The tea industry is in an extremely precarious position currently,
on account of the decline in world commodity prices and volatile
circumstances in many of its key export markets. This will only serve to
exacerbate this crisis further. It will also surely imperil the
livelihood of the over two million persons directly and indirectly
employed by the tea industry, as well as their families/dependents.
"We, therefore, appeal to the Government to reconsider this unfair
action in deference to the pledge made to the Tea Industry that the
Global Tea Promotion Fund will be utilized exclusively for enhancing
market opportunities for Ceylon Tea worldwide, under the stewardship of
the Promotion and Marketing Committee of the Sri Lanka Tea Board." |