The Colombo Tea Traders’ Association (CTTA) yesterday in a statement expressed serious concerns over the impact of the current shortage of fuel and electricity on the industry. 

“The current situation on the shortage of fuel and electricity is major threat resulting in the disruption of daily activities in the plantation sector. The transport of green leaf from the fields of the tea small holders and plantations to the factories are virtually bordering a collapse,” CTTA said.

“The manufacturers are unable to process the harvest on time due to lack of diesel for the generators. The likelihood of some factories closing down due to the current situation is real. This would have serious impact on the tea small holders who contribute over 70% of the national production annually and rely on the manufacturers to process their green leaf,” it added. 

CTTA said tea auctions are held weekly on consignments of tea delivered to Colombo. The transporters from various planting districts are unable to do so due to acute shortage of diesel. 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. Similarly, buyers/exporters are affected by the lack of fuel and electricity, unable to process and meet delivery schedules of the Importers. 

“This would have an irreversible impact on the industry where the 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,” CTTA added.  

CTTA established in 1894 is the apex private sector body comprising of all Stakeholders namely Growers, Manufacturers, Brokers and Buyers/Exporters. 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% of its annual production and the export earnings are over $ 1.3 billion.

Tea exporters express concern over loss of market share for Ceylon Tea