Global tea promotion to get state “fast-tracking” push
In the wake of recent turmoil in key tea exporting markets globally, the Government is currently looking at fast-tracking the much-awaited global promotional campaign having shortlisted two advertising agencies.
The tea promotion fund established in 2012 following an initiative by Plantation Minister Mahinda Samarasinghe has accumulated about Rs.4 billion, Plantation Industries Ministry Secretary Dr. Damitha De Zoysa said in an interview with the Business Times.She noted that currently about Rs.600 million was spent through the funds accumulated for promotional activities on the cricket tournament with the “Ceylon Tea” branding, which was deemed “very effective.” Commenting on the time frame taken to establish the global promotional campaign, it was explained that the bureaucratic procedure would take time as they were compelled to follow certain procurement guidelines.
In this regard, a Technical Evaluation Committee (TEC) was established comprising representatives from the public and private sectors and candidates for the advertising campaign were shortlisted.
In addition the Cabinet Appointed Negotiating Committee (CANC) was set up headed by Plantation Industries former Secretary Ms. Sudharma Karunaratne working on the recommendation made by the TEC.
While some candidates had been selected, others who were rejected had appealed resulting in a further delay in the process, it was pointed out.
The selected candidates were those establishments that had international links with advertising agencies whose offices were based in Colombo and who would have carried out similar campaigns in the required target markets with accounts of over Rs.300 million, Dr. De Zoysa explained.
On Friday the Procurement Appeal Board was studying the representations made by the rejected candidates and would be submitting their reports in this regard.
Meanwhile Minister Samarasinghe was to meet the industry and relevant authorities on Thursday to discuss the issues pertaining to the global campaign.
However the meeting was postponed for Monday (tomorrow) morning.
This crucial meeting with the private sector and the Sri Lanka Tea Board authorities would attempt to work out criteria that would ensure the industry gets back their money’s worth. The fund is made up of taxes on tea per kg sold at the auction.In the meantime, the industry was skeptical of the global campaign as they believe the campaign has taken far too long to get activated since the tender yet to be awarded was held back due to bureaucratic formalities and approvals.
The industry pointed out their intention was to have a “unified global campaign” to take Ceylon Tea to the international market. However, they remained perturbed claiming that some of the money had already been spent on activities like the establishment of tea shops and various relief programmes and cricket sponsorships.
In the meantime, the industry has been hit by the recent United States (US) and European Union (EU) imposed sanctions on Sri Lanka’s largest tea buyer, Russia.
It was pointed out that currently the industry was “managing the crisis” but without the proper channels to obtain adequate information they were left in a quandary.
Dr. De Zoysa commenting on the current situation in Russia stated they were awaiting the report from the minister pertaining to his visit and discussions with the relevant authorities there held about a month back.
Russia has been placed with certain monetary sanctions as well on its banking and monetary system by the US and that is expected to have a negative impact on all trade.
In addition, with the depreciation of the Russian ruble the industry would be faced with increased issues.
Moreover, it was pointed out that with Russia also banning imports from the EU those Sri Lanka tea exporters packaging its teas from this bloc would be adversely impacted.
Sri Lanka’s tea exports had in the recent past also faced a number of other issues in trying to get teas across to the war-hit Iraq and other troubled nations in the Middle Eastern bloc that were currently facing a crisis due to political turmoil in the region.
| Tea Board in Rs.30 mln ad campaign in ME
The Sri Lanka Tea Board (SLTB) would launch its Middle East special advertising campaign investing Rs.30 million during the last quarter of this year. The special advertising campaign is to kick off at the Dubai and Sharjah International Airports in October, SLTB Director Promotions Hasitha De Alwis told the Business Times. He noted that with Dubai considered a hub point to capture traffic going to the region they would commence the Middle Eastern campaign from that market. In the meantime, Mr. De Alwis is assuming office as the SLTB’s Middle East, Gulf and North Africa Promotions Director operating from Dubai. This is a region into which Sri Lanka exports at least 55 per cent of its teas. |