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.
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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. |