Financial Times

No damage to tea but leaf supply could be delayed
The killer tsunamis that ravaged the coast on December 26 have not damaged the Ceylon tea industry but the supply of leaves to southern low grown tea factories could be disrupted temporarily as many workers have been affected.

Industry officials also said there could be temporary delays in transporting leaves and made tea as the main coastal road connecting the southern coastal areas was washed away while alternative roads inland were now jammed with traffic. Government officials said the roads were being cleared rapidly.

"No damage has been reported from Low Grown tea factories, nor has there been significant loss to smallholder plots, which are more inland on the coastal plain," brokers Asia Siyaka Commodities said. But they said a large stock of tea in local dealers' warehouses intended for domestic sale along the southern and eastern coastal areas might have been damaged.

Many workers employed in low grown tea factories in the south were from coastal areas where entire villages were destroyed by the wall of water. Survivors on the coast would have their way of life disrupted, having lost their relations, homes and belongings, and many have moved to help others affected by the disaster, Asia Siyaka Commodities said. "We anticipate a slowing down of leaf supply temporarily from growing districts such as Galle and Matara."

Crop intakes from the low country had increased with rains setting in after the dry spell, the brokers said. Asia Siyaka Commodities said the one-day tea auction on December 29 was concluded successfully with active bidding for all teas.

Colombo has a further two weeks of catalogued teas awaiting sale of 6.3 million kg and 5.93 million kg while another one-week's stock for inclusion in catalogues scheduled for the third week of January is already in Colombo.

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