RPCs mark 30 years of privatisation of plantations
Tea plantations
It has been 30 years since the privatisation of the estates in Sri Lanka and today they are struggling to ensure that prices remain competitive enough as costs soar and low productivity compared to other tea producing countries.
The Regional Plantation Companies (RPCs) at the time of privatisation were heavily subsidized by the government incurring a cost of Rs.5 billion per year that resulted in an operational loss of Rs.1.5 billion per year, Planters Association Spokesman and Hayleys Plantations Managing Director Dr. Roshan Rajadurai said at a seminar on Tuesday organised to mark 30 years of privatisation of the estates in Sri Lanka.
He noted that back in the 1980s the wages were ok but now the price that they receive is inadequate to match the rising labour cost of wages.
Dr. Rajadurai said that with a dwindling workforce the plantations are facing a problem of maintaining competitiveness due to the workers not plucking the norm or the amount that they should be plucking that could range between 18 kg and 22 kg.
It was highlighted that the plucking average for green leaf per day per worker in Sri Lanka at 18 kg is significantly lower compared to other competing markets like Kenya at 60 kg plucking average; South India at 50 kg and Assam 36 kg.
According to the data provided it was stated that under RPC management from 1993 to 2021 the average labour wage for 29 year was Rs.372 per day and the average auction prices for this period Rs.295 per kg.
Cost of production on the estates can be segregated to 70 per cent for wages and benefits; 14 per cent for material like firewood, fuel, fertiliser, chemicals, packing materials and other physical goods; 9 per cent for staff and management salaries and benefits and prerequisites; 4 per cent for services like medical, welfare, insurances, electricity, legal and taxes; and 3 per cent for other miscellaneous expenses.
The estate sector comprises 4.5 per cent of the national population with the median household income at Rs.24, 087.
Prior to privatisation the plantations were in debt to the tune of Rs.4 billion by the 1990s and that was covered by equity.
According to 2019 data the total investments by RPCs totalled Rs.81 billion and the cost paid by the RPCs to the government and other stakeholders amounted to Rs.43 billion.
Dr. Rajadurai also dismissed allegations that the plantations are not carrying out replanting insisting that the 1992-20018 total replanted extent was 24,942 hectares and tea smallholders’ extent was 38,268 hectares. As pre the Tea Research Institute the cost of replanting investment takes 35 years to recover.
He explained that RPC plantation workers get fully secure, guaranteed, life time family employment with mandatory minimum 300 days’ work per year from 18 year to 60 years.
Workers are completely free agents and there is no compulsion of any sort for them to report for work although they reside in the estates and enjoy all the benefits and facilities.
At present there are 61 hospitals, 323 dispensaries, 1474 child development centres caring for 250,000 families with a total population of one million in 453 estates in 13 districts.
Plantation Human Development Trust (PHDT) Director General Lal Perera delivering a presentation on the impact of the privatisation of the plantations stated that this is a tripartite organisation, a first of its kind, with representation from the employer, employee and the government.
Through this organisation a number of welfare schemes have been established to improve the livelihoods and living standards of the estate sector workers. Like shifting out of the line rooms to single houses today, expanding their rooms within the houses, sanitation, health and educational facilities.
Today there are about 48,000 houses for the workers that has since 2015 been on the rise compared to line rooms that have been decreasing in numbers.
The RPCs have been involved in engaging the non-governmental organisations (NGOs) and the PHDT to improve the healthcare facilities of the workers.
Interestingly live births on the estates have been on the decline over the years as stated in the statistics, simultaneously the infant mortality has also decreased, maternal deaths have been inconsistent over the years; low birth weight and still births have also reduced.
In addition the plantations have been provided with a water testing laboratory and water tanks to ensure clean drinking water.
Moreover, PHDT has been establishing Super Coop City supermarket stores for convenience and have also been providing nutri-bars that had stopped due to lack of resources.
Estates also have community kitchens, field rest rooms, early child development centres; an improvement in the literacy rates when compared with the rest of the rural population statistics in the country.
The education of the estate sector needs to improve as most do not pursue tertiary level education and there is a need to focus on their knowledge in computer literacy as well. According to the data provided by PHDT by 2020 3.4 per cent of the estate sector would own a computer.
Mr. Perera highlighted that in this context they hope to in future ensure shelter for all; safe drinking water; develop computer literacy; provide for 10,000 cataract operations; establish about 100 supermarkets in 2022/23; address hidden hunger; early child development for all children, 100 per cent institutional deliveries; and eliminate malnutrition on the estates.
The RPCs have been given the estates on a lease of 53 years and they have another 23 years more to go. They struggle with wages, inadequate fertiliser and ban on glyphosate; the way forward needs to be worked on. And despite global challenges like the sanctions on its key markets like Iran and now Russia, the plantation sector has been resilient enough to ensure that they will somehow sell their produce and not even a pandemic has pushed them out of work; in fact they continue to preserve the name that is branded Ceylon Tea.
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