Industry officials feel the tea cess should be directed towards brand and technology development. Pic by J. Weerasekera

By Dilshani Samaraweera
The Tea Exporters Association said more money from the tea cess should go into international brand building for Ceylon Tea, and technology upgrades in local tea factories. Currently Rs 4 cess is charged on every kilo of tea exported from Sri Lanka. The Association that represents around 87 percent of total tea exports from Sri Lanka, says not enough of the money is reinvested in future growth oriented areas.

"The cess is coming back to the industry, but our concern is on how it is allocated. The cess money should be put back into the industry in areas that would promote future growth," the Chairman of the Tea Exporters Association, Jayantha Keragala, told journalists on Wednesday. "We feel the cess is not coming back into the right channels for industry development. It should be invested in technology development and brand development. But only about Rs 30 million is provided to the Tea Board for promotional activity.

This is a pittance. It is not enough to do anything," said the head of Heladiv Tea, Rohan Fernando. The tea exporters say marketing and branding efforts so far, is one of the main reasons for the comparatively higher prices paid by consumers around the world for Sri Lankan tea. However, the exporters are calling for more efforts into brand building, to make maximum use of natural advantages that Sri Lankan teas enjoy. "Sri Lanka has the widest variety of grades. We now have 34 grades that can cater to tastes from one end of the world to the other. This is a great advantage that we have over other countries," said the head of Mlesna Teas, Anselm Perera.

Meanwhile, tea is also gaining global recognition as a 'healthy' beverage. The exporters say these factors can be combined to increase Sri Lanka's share of the global tea market. The exporters say that as the single most consumed beverage in the world, tea has large scope and opportunities for growth in international markets.

"So if the authorities can provide the necessary support to the tea exporters, the industry can be do very much more," said Mr Fernando. Sri Lankan tea is sold in over 145 countries. Tea exports brought US $ 1.2 billion in 2007 and are expected to bring in US$ 1.8 billion this year. The exporters say about 35% of total tea exports are in value added or finished form at the moment.