What is the desTEAnation of Ceylon Tea?

By Hemal de Silva

This tea nation, commonly known as the Sri Lankan Tea Plantation Industry (TPI), is, as reported, non-viable and expected to be in a worse situation in the future. The TPI is the foundation of the SL tea industry. With a cracked and crumbling foundation, for how long can it really stand straight?

This indicates the destination of ‘Ceylon Tea’ with a distinct flavour with no implementable solution to take it back to a vibrant and a prosperous agricultural industry, judging by the comments made by the experts except for a glimmer of hope very briefly stated during the discussions.

To quote: “The industry is beginning to lose its shine with stagnant value addition, decreasing market share, and low investment in research and development and marketing promotion.” The cup of ‘Ceylon Tea’ is certainly not ‘weak,’ it is the producer who is struggling and undecided on steps to take to get out of this crisis.

Fortunately Sri Lanka produces ‘Ceylon Tea’ and to quote: “The Colombo auction still gets the highest tea prices in the world.” Do not deceive yourself that this will last.

Demand is decreasing while the production is increasing, especially from countries where tea can be produced successfully and at a low cost. For example, the World Bank is said to be pouring funds to develop 18,000 ha under tea and five modern factories in Rwanda for the benefit of smallholder growers.

It is absolutely essential to face facts, take stock of the situation, not the options as there aren’t many options, and decide on the best course of action available to make the TPI a stronger base to produce the ‘Ceylon Tea’ at a low cost of production (cop). There is only one way this can be done and that is by increasing the yield or the productivity of the land. If the yield is increased the cop will decrease. It is as simple as that. But, easier said than done!

The TRI has or is continuing its research on the right lines and it will definitely assist in taking the TPI to the best destination. Cultivars with high yield potential, mechanisation, improved methods of cultivation to reduce environmental pollution, increase productivity of the worker and harvest better quality raw material and reducing post-harvest losses, diversifying uneconomical tea and reducing power and fuel consumption are some of them.

It is a very important fact and one that tends to be ignored is that the TPI is based on 222,000 ha of agricultural land. A good part of it, very likely 33.3%, is uneconomical. SL produces 300 to 326 m. MT of ‘Ceylon Tea’ annually. A very important question to ask is: What is the annual production required to supply the demand for ‘Ceylon Tea’?

Taking this demand as 350 m. MT, the entire 222,000 ha of land is far in excess for producing this volume if the yields are increased. As the yields increase, the extent of land required gets reduced. This is for the future unless the TPI is allowed to slowly and surely crumble and collapse. One advantage of this collapse will be the opportunity for the creation of the concept ‘tea hub’. Whether it will be more beneficial to the country and Sri Lankans is to be seen.

The glimmer of hope introduced at the discussion was, to quote: “Do we grow tea or are there other options?” Cader questioned. “Do we do essences, extracts of tea and go into other choices or do we grow less tea and get higher returns? Or do we find some way of driving consolidation while maintaining their livelihood of the smallholders? Could we be small and big at the same time?”

Take into account that the TPI is based on an extent of 222,000 ha of agricultural land and there are close to a million employees dependent on this industry which has never been environmentally friendly.

The creation of a ‘tea hub’ may increase the inflow of foreign exchange and what else or is that enough? The TPI can be converted to a viable and a vibrant agricultural industry on a smaller extent of land giving higher yields produced at a lower cop to supply the ‘good Ceylon Tea’ to the consumer who demands it.

The extent of land in excess and not needed to produce the supply required can and should be diversified with the much-needed evergreen and perennial tree crops at a time when climate change is causing great difficulties and worse yet to come.

Specific tree crops suitable in regions traditionally growing tea can produce vegetable fats in demand from global industries. The most important advantage will be the possibility of increasing exports and reducing imports with the same 222,000 ha of land, to help our economy as well as our environment.

This is the glimmer of hope or the blessing in disguise available to us as a result of the present crisis in the TPI. The blessing has to be identified, understood and with added faith, will one day in the future take this tea nation to a more beneficial destination for all stakeholders.



(The writer can be reached via [email protected].)