TEA calls for urgent support to lift tea smallholder productivity, exports

Thursday, 2 July 2026 04:40 - - {{hitsCtrl.values.hits}}

The Tea Exporters Association (TEA) has urged President Anura Kumara Dissanayake to extend targeted support to tea smallholder farmers to restore productivity and reverse a structural decline in export volumes, warning that output constraints are limiting foreign exchange earnings despite existing processing capacity.

At a meeting with the President on 26 June, TEA Chairman Huzefa Akbarally noted that while exporters are capable of handling around 400 million kg of tea annually, actual export volumes remain constrained due to declining production.

Tea output has fallen from 340 million kg in 2013 to 261 million kg in 2025, while export revenue has remained broadly stagnant at around US$ 1.5 billion annually, largely due to lower volumes.

The TEA highlighted that tea smallholders—numbering over 480,000 and accounting for about 75% of national production—remain the backbone of the industry. However, productivity has declined to around 150 kg of green leaf per acre per month, compared to a potential yield of about 600 kg per acre per month, following successive Government-induced shocks, including the glyphosate ban and broader agrochemical restrictions.

The association stressed the need for urgent infilling programmes to restore plantation density and improve yields, noting that many smallholders operate with fewer than 3,000 plants per acre against an optimal 5,000.

It proposed financial assistance through loans or grants from the Government, international financial institutions and local banks to support replanting efforts. The one-time cost of infilling is estimated at around Rs. 200 per plant.

According to TEA estimates, improved productivity could lift smallholder incomes to over Rs. 450 per plant annually after two years, while also generating more than Rs. 850 per plant in foreign exchange earnings for the country over a 30-year cycle, based on current prices.

The association said the President expressed support for the initiative and underscored the importance of boosting export revenue from tea and other agricultural sectors as part of broader economic recovery efforts. The Government, it added, is committed to extending necessary assistance to enhance production and export performance.

Treasury Secretary Dr. Harshana Suriyapperuma, Export Development Board Chairman and other officials also attended the meeting.