Continuing fuel, electricity shortage major threat for tea
07 Apr 2022
Continuing fuel, electricity shortage major threat for tea
07 Apr 2022
Tea Traders’ Assoc. says unable to process harvest due to lack of diesel
The Colombo Tea Traders’ Association stated that the current situation of the shortage of fuel and electricity is a major threat which subsequently results in the disruption of daily activities in the plantation sector. The association stressed that the transport of green leaf from the fields of the tea smallholders and plantations to the factories are virtually bordering a collapse. It further 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 a serious impact on the tea smallholders who contribute over 70% of the national production annually, and rely on the manufacturers to process their green leaf.” 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. Accordingly, 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, the association stressed.
