September Tea crop (Supposedly) a record

Auctions automation has come up again. Brokers and producers comment
‘Don’t mess with the system’
By Steve A. Morrell

The Sri Lanka Tea Board in their latest release said that crop intakes for September this year have been highest on record.

All well and good, but at what cost, is the question. We have spoken to 2 Brokers, Director Ceylon Tea Brokers (Pvt) Limited, Russell Tennekoon, and Deputy Chairman Asia Siyaka Commodities (Pvt ) Ltd., Anil Cooke who conceded that although they did not dispute the Tea Board report, they had their reservations on quality of produce sent down to the auctions. Also in question was the phenomenal upsurge in low grown production which were mostly small holder units.

We reported about 2 months back that there were approximately 380,000 small holders managing a collective area of 400,000 hectares more or less, of legitimate tea land. (Irrespective of land tracts encroached into the Sinharaja Forest, which has now been denuded, of just about 15 per cent of this eco system, and producing unaccounted crop for the tea area officially declared).

Both Brokers said that herein was the crunch, in that quality of leaf was much to be desired. Drop in leaf standards is camouflaged by the most expensive machine installed in factories called colour separators.

Russell Tennekoon said these machines cost as much as 15 million, and quite apart from artificial treatment of leaf, the problem of refuse tea percentages increasing was now causing anxiety. This was more prevalent in low grown production, they said. Refuse tae production was presently at about 15 per cent, which is substantial.

They said that previously refuse tea percentage was not more than 2 or 3 per cent. Phenomenal increase would need critical enquiry and a clearer picture should then emerge.

The tea board reported that September production was 28.02 million Kilos, which recorded highest for the Month.

However the same report also indicated drop of 2.83 million kilos for the recorded period.

The Tea Board controversy over suspended Director general H.D.Hemaratne, has now been relegated to the confines of limbo. We learn there was no charge sheet issued and his suspension with full pay continues.

Automation of auctions has come up again. In this instance too we consulted at least two from buyer locations who said ‘Don’t mess the system’. The auction system as run presently has not caused major dislocation an as it is now conducted should be continued, they said.

Total crop sold this week was 6.4 million kilos. Prices have not been quite that exciting. Decline in prices were recorded in all three elevations.

Although Kenyan tea production has not improved and continues to lag behind, Ceylon tea has not scored quite significantly to merit honourable mention.

-The Island-