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Tea smallholders in dire straits over declining prices

Tea smallholders in dire straits over declining prices

08 Aug 2023 | BY Sahan Tennekoon

The owners of small-scale tea estates have said that they face numerous problems due to the serious drop in the price of tea leaves.

According to the owners of these tea estates, the price of a kilo of green tea leaves, which had risen up to Rs. 350-400 in the past, has now dropped to Rs. 160-165.

Speaking to the media yesterday (7), National Federation of Small-Scale Tea Estate Owners National Organiser Lal Premanath said that the price of a kilo of green tea leaves in the low-country is currently priced at Rs. 160-165, while the price of a kilo of tea in the upcountry has dropped to Rs. 100-110, which has caused estate owners to face a serious crisis.

He said that the main reason for the price drop is the decline in the price of tea in the country due to the deterioration of the condition of tea. In addition, he said that the rise and fall in the value of the US dollar has also affected the price fluctuation. He said that with the introduction of the concept of organic fertiliser, the condition of tea was affected by the lack of proper fertiliser for tea as well as the high price of fertiliser and the lack of sufficient fertiliser. He also said that due to the lack of sufficient fertiliser, planters could not add fertiliser to the tea plants properly and that the growth of the tea plant was therefore stunted and that it in turn affected the quality of the tea.

Premanath also stated that the smuggling of low-quality tea imported from Malaysia and re-exporting it as Ceylon Tea has caused problems in the world tea market concerning the quality of Sri Lankan tea. He mentioned that if the Government does not intervene properly in this regard, it may cause serious damage to Sri Lanka’s reputation as well as lead to the decline of Sri Lanka’s position in the international market.

Speaking further, he mentioned that the tea industry makes a significant contribution to the local economy as a major export crop and that if it collapses, it will have a negative impact on the economy as a whole.

Several attempts made by The Daily Morning to contact Minister of Plantation Industries Dr. Ramesh Pathirana and State Minister of Plantation Industries Lohan Ratwatte proved futile.



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