Ceylon Tea hits stagnant lows
The tea industry is reeling from the after effects of a lack of fertiliser and glyphosate and an unsustainable wage model resulting in a stagnant position today, and this is causing a shift of exporter operations to other more viable markets over a period of time.
On the one hand tea producers believe the industry is likely to come to a standstill while on the other hand exporters are feeling the pinch of the low volumes and a stagnant product.
Due to the rise in costs sooner or later things will come to a standstill, PA spokesman Dr. Roshan Rajadurai told the Business Times.
He explained that they can’t afford to make basic purchases and the need to change in term of wages model as well needs to happen now else the industry will be “unprofitable and unviable”.
Noting with concern that the industry is already into its second cropping season, he explained that things will likely become worse.
Workers should be self-managed and the agricultural inputs like fertiliser and glyphosate made available, he said. Glyphosate has not been available since the last one and a half years and the fertiliser is in the market but at a price.
As producers fight hard to produce sufficient quantities that continue to decline, exporters are looking elsewhere.
Colombo Tea Traders Association Chairman Jayantha Karunaratne said the tea industry is “somewhat stagnant” and though they don’t expect it to come to a standstill there is no growth in the industry.
In terms of value addition and other reasons exporters are shifting their operations and international brand owners are picking destinations like Dubai, Russia and Europe for packaging overseas, he explained.
Over a period of time exporters have been moving out to other markets and there are numerous factors affecting the industry.
The crop shortfall this year has contributed significantly to the crisis as the industry is operating on low volumes but attempts are made to ensure they can increase the volumes.
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