'Greater focus on key issues vital to boost tea industry'

Tea is a global commodity. As the largest agrarian industry in Sri Lanka providing direct and indirect employment to more than two million people or nearly 10 percent of the population, it has contributed greatly towards rural development and urbanisation of remote hilly areas by optimum use of land and improving of social indicators among communities.

Sri Lanka's tea export earnings were Rs.160 billion in 2012 and Rs.197 billion in 2013 the highest ever. However, negative reports continue to place the industry in crisis.

Planters' Association of Ceylon (PA) Chairman Roshan Rajadurai said, "It is a battle due to global competition, adverse climate and costs, including labour. In an agricultural economy, any industry is dependent on external factors, so it is always challenging, but not a crisis."

Sitting on the laurels of last year's record earnings will not serve the future of the industry. Critical issues of replanting, rising cost of production through systematic wage increases, labour shortages, climate change, role of the smallholder and the outgrower model, diversification, collective stakeholder involvement, training and research and development are all areas where making incremental changes is not enough, the need for significant shifts are vital.

One of the fundamental reasons for low yields has been the senility of tea bushes, some of which are nearly one hundred years old.

"Replanting is very labour and capital intensive - one hectare being replanted costs Rs.3.9 million. It will take 20 years to cover the initial investment," said Rajadurai.

As a solution for inadequate manpower and financial resources, the Budget Proposals 2013 provided a tea replanting subsidy up to Rs. 350,000 per hectare and increased new planting subsidy up to Rs.250,000 per hectare. According to Rajadurai, "Replanting is a national issue. The Government has taken note of this and assured to make long term funding on concessionary rates."

Regional Plantation Companies (RPCs) and Smallholders too are involved in the replanting effort with RPCs having planted one third of the existing vegetation in terms of new clearings. The Ministry of Plantation Industries' Progress Report 2013 stated during January to August alone "Land preparation of 519 hectares under tea replanting has been completed and soil rehabilitation in 582 hectares was undertaken and 457 hectares have been replanted with tea. Tea planting in 261 hectares has been initiated and planting has been completed in 126 hectares."

Tea is a labour intensive industry which brings a high wage cost commanded by a strong labour union. Availability of labour in future will be low due to the difficulty of retaining the next generation of workers due to changing lifestyles. Sri Lanka's Tea Research Institute sources said, "The plantation sector is facing a major shortage of labour, which affects productivity and quality of the end product. In view of this, it has become a matter of utmost importance to mechanise the major field operations in tea cultivation."