• Notes raw leaf price reduction across 11 Districts 
• Seeks attendance allowance for smallholder workers

The National Tea Planters’ Association (NTPA) casts doubts on the Government’s target of producing 400 million kg of tea in 2026, warning the sector is being crippled by a steep decline in raw leaf prices across all 11 tea-growing Districts.

Speaking to The Daily Morning yesterday (2), the Association’s President, Saman Geeganage said that data reported by the Tea Board for January 2026 confirms a severe price reduction in all 11 tea cultivating Districts. He pointed out that while the Government aims for a 400 million kg output this year, the fact that smallholders contribute the majority of the crop makes that goal unattainable under the current conditions. "The smallholder tea plantation owners are repeatedly requesting the Government to address their issues, yet, no satisfactory answer has been received so far," he said.

He explained that the price of a kg of raw tea leaves has fallen to Rs. 50, and in some Districts has dropped as low as Rs. 30. "Since the price of a 50 kg bag of fertiliser has risen to Rs. 10,000, and the cost of pesticides and equipment has also increased, it now costs around Rs. 140 to produce a single kg of tea leaves. As a result, the planters are facing a grave issue," he said.

Geeganage further noted that while the Government has decided to pay a monthly allowance of Rs. 200 to workers on regional plantation estates, this benefit has however not been extended to those working on smallholder plots. He said that this disparity has left smallholder tea planters in a difficult position. He concluded by urging the Government to reduce the existing tax structure, provide fertiliser at a fair price, and introduce the necessary equipment and technology to support the farmers.

According to sector data, 16 per cent of Sri Lanka’s arable land is dedicated to tea cultivation. Smallholders operate on 60% of this land and contribute to over 70% of the nation’s total tea output. However, persistent issues including lower leaf prices, outdated technology, inadequate infrastructure, and weighing related irregularities, remain unaddressed for years.