Financial Times

Big firms said to be involved in refuse tea racket
The Tea Association of Sri Lanka has called on the authorities to expose those behind a racket to export substandard or 'refuse tea' classified as fertiliser which it said could tarnish the image of Ceylon tea.

Last month, the Customs detected four containers of refuse tea declared as fertiliser to be consigned to Kenya. Exports of such refuse tea are banned as they fall below the standard set by ISO 3720, which governs tea exports, and have to be denatured and used as fertiliser.

The TASL said it was happy to note the initiative taken by the Tea Commissioner in assisting the Sri Lanka Customs to prevent the fraudulent shipment but regretted that over 100 containers carrying similar cargo have already been shipped.

An agent in Gampola has been named as the exporter but industry officials said that it appeared to be a front while big firms in Colombo appeared to be involved, along with corrupt Customs officials. Industry officials claimed that up to 800 containers had been prepared to be shipped to Kenya and from there they were to be sent across the border to Sudan and Somalia.

Kenyan tea producers used to send their own refuse tea to these neighbouring countries and have now started importing such teas given the ready market across the border, officials said. Refuse tea from high grown estates have a thick taste and can actually be drunk but falls below the leaf appearance standard, hence the ban on such exports.

In the case of refuse tea from low grown estates even the liquor falls below acceptable standards and are unfit for human consumption. The only outlets to which refuse tea can be sold are two instant tea factories.

A foreign company making instant tea in India is also said to be in the market for such refuse tea. In India such teas are 'refired' or reconditioned and auctioned. Of the 106 containers already exported, six are believed to have gone to India.

Back to Business