Plantation Industries Minister Navin Dissanayake said he would like to leave the ministry one day as someone who had stood for the industry, cleansed it from all nefarious activities and developed it to be a leading foreign exchange earner.
The minister said he was able to save the Cess funds from being snatched away from the plantations industry by the former finance minister as that would have been a grave loss to the industry in carrying out the global promotional campaign.
“I prevented the funds being taken away from the industry and now we could focus on the promotional campaign. People like to talk when the industry is down and not when it is doling well. That is the nature of people. Many said that the tea industry will be stagnant and will not grow. We have proved the contrary with the achievements made in 2017. I am confident the industry could surpass the US$ 1.53 billion export revenue mark notched in 2017 this year”, the minister said.
The tea industry considers 2017 as a better year compared to the previous two which had declines in yield and prices. The crop increased from 292 million kgs in 2016 to 307 million kgs last year recording a growth of five percent while the cumulative Colombo Tea Auction price average increased from US$ 3.19 in 2016 to US$ 4.07 per kg last year .
However, industry experts are of the view that the growth recorded in yield and prices are marginal compared to the previous averages.
“Tea production crossed the 330 million kg mark in the past and this is not a significant increase in crop yield. We have a long way to go with a focus on exporting good quality and clean tea to new markets,” a tea exporter said.
Tea export earnings have been fluctuating from US$ 1.27 billion in 2016 to US$ 1.63 billion in 2014.
According to Sri Lanka Tea Board (SLTB) officials the growth last year despite being marginal was note worthy as it was achieved amidst many challenges such as the drought and the absence of an alternative weed killer.
The ban on the use of Glyphosate has been having a negative impact on the plantations which has recorded a low yield and a high cost of production due to the ban on the use of the weedicide.
“Various views have been expressed on this but the fact remains that sooner than later we need to find a viable solution to the issue to boost crop yield,” SLTB Chairman Dr. Rohan Pethiyagoda said.
He said when we use chemicals on tea plantations the importing countries need to be informed of it as there are accepted residue levels for countries. Glyphosate falls within the accepted residue level.
Going forward the minister said the plantation ministry will be looking at rolling out the global tea promotional campaign within the next three months in 12 countries with the fund currently amounting to around Rs. 6 billion.
“We have no intention of holding back funds. We will use the entire amount on the campaign which will last for two years,’ the minister said.
Many an eyebrow was raised in the past as to why the funds were not used for the promotion of tea.
Responding to the query the SLTB chief said the money not spent does not mean that it was wasted.
Regarding the current status on the proposal to blend tea the minister said that he was aware of the arguments for and against blending. However, we will take decisions for the well being of the industry guaranteeing that prices do not fall. I do not want to take bad decisions. It must be consensual.
When queried about the impact of the temporary tea ban by Russia on Ceylon Tea to the rest of the world the SLTB chief said as far as Ceylon Tea is concerned the impact from the ban is minimal even in Russia.
“I have spoken to buyers in Russia and the indication is that the impact is vert trivial,” Dr. Pethiyagoda said.