Tea bounces to higher levels

"We support a population not only the country" – Chairman Planters’ Association of Ceylon

By Steve A. Morrell

Forbes and Walker Tea Brokers (Pvt). Ltd., in their weekly tea market report last week have again reported positively on the industry.

Quite apart from this sustained salutary image official direction originating from Government circles seem to assume unjustifiable perceptions that the industry is sub performing. That too at knee jerk reaction when ever the Tea Industry was brought into reckoning and its monetary importance evaluated. Usual consensus in official circles was that tea had not quite achieved its potential.

This was coherently contested by Chairman Planters’ Association of Ceylon, Kavi Seneviratne who said ‘ What ever contrary views are claimed, it had to be conceded that the country would face catastrophic repercussions if there was no tea. If "We have sustained a population, not just yesterday, but over a century. Even if there was official support for other industries, and tea had to make do on its own it was still resilient to withstand the vicissitudes of an extremely volatile market.

He said demands of EU countries that all tea exports must have Hazard Analysis Critical Control Points, (HACCP), certification, meant that each tea factory had to invest at least Rs.10 million to upgrade facilities as demanded by that group of Countries. Additionally withdrawal of VAT benefits, and the imposition of additional tax burdens impacted on the industry.

Pointedly most new industries had government support through incentives and similar salutary fringe attractions. The tea industry had to pay for all this largess. industries over the years have constantly been exposed to all sorts of benefits, not least tax holidays and the like. ‘True, the country’s taxes have to be paid, but not to subsidise some others who may perhaps be less productive, and also to pay for their tax holidays.

The Planters’ Association of Ceylon (PA), established in 1854, is now over 150 years in existence, responsible for opening out the remote hinterland which is now known as the lush green central hills enveloped in undulating manicured tea land. This country does owe much to the few who still brave the elements to produce its sustenance, and not relegate the industry to ‘country cousin’ status.

All in all, in crisis the tea industry is resilient, but needs support, and not constant debilitating snide remarks that does no good to nobody, except perhaps bolster a sagging egos.

In this context, it was also relevant that remarks from Presidential Advisor, and now Governor of the Central Bank, Ajit Nivard Cabraal, at the last Colombo Tea Traders Association Annual general meeting, he down graded the tea industry when he said that house maids now bring in over 2.8 billion Dollars as foreign exchange. He failed to recognise antecedents stemming from the industry which sustained entire provinces, and districts in collective atmosphere of social life integrated with commercial activity. These were cogent remarks of Kavi Seneviratne who said that government sources should recognise this fact.

The Forbes and Walker Sri Lanka Tea Review 2005, traced progress of the tea industry, and within all parameters, it was undoubtedly a prestigious publication, and authoritatively compiled and pieced together progress details in 2005.

Among statistics released over the 10 year period 1996 to 2005, tea production increased approximately 70 per cent. That is, from approximately 258 metric tons, then to 314.7 to end 2005. This was by any standard phenomenal.

However to dent the bubble of euphoria, Kenya, India, and mainland China too have increased production. These countries although examined did bear production figures which had increased. But only just. Nothing very exciting, said the Brokers. (Island)