Sri Lankan tea producers are failing to benefit from the appreciation of the US dollar, as the cost of imported materials such as fertiliser continues to climb, the National Tea Planters’ Association (NTPA) Chairperson Saman Geeganage said yesterday (21), speaking to The Daily Morning Business. 

“As import costs have risen, we are paying higher prices for fertiliser, tools, and other essential materials for the industry. Yet, while tea is sold on the global market in dollars, the tea farmer is not seeing any of that profit margin. We simply don’t see the logic in this. We believe there is a mafia at play,” Geeganage said. 

Speaking of previous market conditions, Geeganage said that in July 2022, when the rupee depreciated sharply to around Rs 350-360 per dollar, tea growers received approximately Rs 415-435 for 1 kilogram of tea leaves. Despite similar exchange rates being reported in recent weeks, the price per kilogram has remained stagnant at around Rs 150-180.

As per yesterday (21) the selling rate for a US Dollar (USD) against the Sri Lankan Rupee (LKR) across major commercial banks in Colombo hovered around Rs. 353.50 to Rs 355.75.

Islandwide and regional tea associations have long been raising concerns that the price of tea leaves per kilogram has not been increased to account for soaring fuel and fertiliser prices. Despite years of such complaints, the issue remains unresolved-and these latest grievances have only added to the mounting pressure.

Attempts to reach Sri Lanka Tea Board Chairperson R K Obeyesekara and Deputy Minister of Plantation Pradeep Sundaralingam for comment proved unsuccessful.