Sri Lanka expressed optimism about securing European Union(EU) protection for Ceylon tea within the next 12-18 months.
Chairman of the Tea Board, Niraj De Mel, emphasised the need to prioritise quality over volume, advocating for a return to basics to improve prices.
“Though acknowledging the benefits of f digitization, he cautioned that it wouldn’t resolve all issues in the digital market,” he said at an Advocata Institute organized event aimed at addressing key challenges and fostering inclusive and progressive decision-making within the tea industry. The importance of the strong implementation of regulations to address industry challenges effectively like the Tea Control Act of 1957, were underscored.
He further stressed on the collective responsibility of all stakeholders in achieving premiumisation by adhering to established rules: “We should be the Glenfiddich of Tea and not the VAT 69.” Dasarath Dassanayake expressed concern over the drastic changes witnessed in the tea industry, noting the abundance of labour, high yield from tea bushes and well-supported infrastructure in the past. Refuse tea rates increasing from less than 3% to 15%-25% is another significant issue.
Dilhan Fernando began with acknowledging the challenges involved in premiumising tea domestically and globally. “The auction market is a democratic, relevant market place. The market place is a good way of ascertaining the true value of tea”.
The Ceylon tea industry faces significant challenges which threaten its competitiveness and sustainability in the global market. High labour costs, labour shortages, and inefficiencies in land management are hindering productivity and profitability, while issues pertaining to quality control
and the lack of a premiumisation strategy pose further obstacles to unlocking the true potential of Ceylon tea. Sudaraka Ariyarathna, a Research Consultant of Advocata Institute shed light on the discrepancy between recommended replanting rate and the actual rate, mentioning that “while the recommended replanting rate stands at 2.5%, our research indicates a significantly lower actual rate,” highlighting the impact on Sri Lanka’s tea production yields compared to other black tea producingnations.
Dr. Romesh Bandaranaike, the Former Director of the Plantation Management Monitoring Division at the State Ministry of Company Estate Reform, who joined the discussion from overseas online, expressed the importance of prioritising employee well-being in companies.
