Ceylon Tea expects to expand its market for European Union (EU) countries, therefore Sri Lanka is to apply for a Geographical Indication (GI) certificate this September, The Daily Morning Business learns. 

“In September, we (Sri Lanka) will submit a GI application to the EU asking for GI for Ceylon Tea. Once we obtain a GI for Ceylon Tea in the EU, imports of Ceylon Tea will be given a grace time to adjust,” Sri Lanka Tea Board (SLTB) Chairman Niraj De Mel told the Daily Morning.

He also noted that  it will be one major qualification the Ceylon Tea earns to broaden the EU market as currently it is a smaller market.

“We were working on Geographical Indication (GI) since about the year 2000 with many different initiatives and there are lot of requirements of this that you have take into account, the complexities which we do our marketing, as a result of that it was very difficult to comply with every condition that is required in order to be eligible to get the GI,”He added.

He further said that if Sri Lanka can comply with those requirements such as GI, then the importers in European sales will be also influenced to concentrate on buying Ceylon Tea which they can use.

In 2021, the SLTB approached CIRAD, an organization in France that has aided a few other products in the global market by obtaining GI where they have commenced the GI status gaining process with Europe.

“So, we thought to start with Europe since it is a smaller market for Ceylon Tea. That’s the thinking and the foundation which we thought we go along this French party who has promised us and there is some assistance coming to us as well on this initiative,” De Mel Said.

“And we thought we will go with them and their help to try to submit our application for GI status for European Union (EU) countries,”

He also added, The GI qualification for Ceylon Tea will allow them to be listed on the EN preferred list and put an end to the conflict with other fraudulent tea packers who utilize the Ceylon Tea name without any remorse.

“The benefits that can be received are preferential treatments, we become a preferred nation for Ceylon Tea and the other thing is we are actually faced with a lot of infringements,” De Mel Said

“Some fraudulent packers are indicating in their packs Ceylon Tea but hardly or not an ounce of Ceylon Tea in those packs. So, Ceylon tea name has been a selling proposition, they get cheaper teas from other origins and they call it as Ceylon Tea,”

“We can’t fight a case since we have no basis to fight a case. Now with GI we can do it,”

After receiving the GI status from the EU. They will replicate the same scenario in their major markets such as the Middle East and Russia.

Ceylon Tea, one of the major export incomes earning commodity is also seeing a less demand in the market. According to the CBSL report 2023, the export tea price is 2,040.25 rupees in 2023 quarterly which is 12.3% when compared to last year quarter which is 962.27 rupees.

While 18.6 million kg of tea exported in 2023 quarterly which is 12.3% when compared to last year which is 21.1 last year quarterly.