Business Times

Are tea imports still on the agenda?

Merril J. Fernando, one of Sri Lanka’s tea industry stalwarts, this week questioned a call for imports of orthodox tea – in some quarters -- saying it a case of exporters putting personal interest before country.
Speaking at a recent industry event, Mr Fernando, Chairman of Dilmah Tea and who has championed the cause of pure Ceylon Tea abroad, said that a worrying issue is that despite Ceylon Tea fetching a high Rs 400 per kg at the auctions, some exporters were selling at lower prices and questioned their modus operandi.

He referred to fresh calls for imports of orthodox tea from these quarters and noted that this was largely to undercut high Ceylon Tea prices. “Some exporters were putting personal interest before country,” he said.

Mr. Fernando challenged those asking for imports to document their support, saying that if imports were ever allowed it would drastically impact the viability of growing tea in Sri Lanka. And, if imports are allowed a million growers would march to Colomo and no one would then admit that they ever wanted to import, he added.

Mr Fernando spoke of a similar call in the early 1980s to switch from the classical Ceylon Tea orthodox manufacture to the CTC process favoured by multinational brands, which he firmly resisted. Doing so would have led to a crash in prices, as there was soon a worldwide glut of CTC tea. It would also have meant the end of Ceylon tea's unique orthodox style, which fetches a premium price. Staunch supporters of CTC tea were then nowhere to be found, Mr. Fernando said.

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