SL tea industry in a state of disturbance

Ceylon Tea is facing a real threat at home as a result of the ongoing shortage of fuel and electricity that is causing a disruption of daily activities on the plantations that could lead to a closure of some factories. “The transport of green leaf from the fields of the tea smallholders and plantations to the factories is virtually bordering a collapse,” the Colombo Tea Traders Association (CTTA) stated today in a media release.

In this respect, manufacturers are unable to process the harvest on time due to lack of diesel for the generators, it was stated adding that there is a “likelihood of some factories closing down due to the current situation.”

This situation will impact on the tea smallholders who contribute over 70 per cent of the national production annually, and rely on the manufacturers to process their green leaf, the statement also said.

Moreover, transporters are finding it difficult to deliver tea to the auctions due to the acute shortage of diesel, the statement explained.

This will affect the conducting of the weekly tea auctions in Colombo that would have a negative impact on the entire value chain of the industry, the CTTA noted.

Similarly, buyers/exporters are affected by the lack of fuel and electricity, unable to process and meet delivery schedules of the importers, it was pointed out.

This could cause an “irreversible impact” whereby importers will look to replace Ceylon tea with teas from other origins.

“This crisis if not resolved at the earliest, will have a drastic effect not only on the national economy but over two million people whose livelihood is supported by the tea industry,” the CTTA stated.

The industry supports the livelihood of over two million people and is pivotal in sustaining the key areas in the rural economy. Sri Lanka exports over 90 per cent of its annual production and the annual export earnings are over US$1.3 billion. (SD)