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State Minister Kanaka Herath speaks of his work to take these industries forward
Sri Lanka is an island nation globally known for its ‘Ceylon Tea’. Despite winning a reputation throughout the world, the tea and rubber sectors in the country face numerous issues from time to time due to political, economic and agricultural reasons.
The Daily News spoke to State Minister of Company Estate Reforms, Tea and Rubber Estates Related Crops Cultivation and Factories Modernization and Tea and Rubber Export Promotion Kanaka Herath to discuss the current situation in the tea and rubber sectors in Sri Lanka.
Q: What are the major changes made by your Ministry for the development of the tea and rubber sectors?
A: The main task of this State Ministry is to increase tea and rubber production and thereby earn more foreign exchange. Compared to the past six years, the tea and rubber production has increased this year. Among the major positive moves made by me as the State Minister, increasing the monthly subsidy for small tea estate owners was outstanding. For re-plantations we have increased the monthly subsidy to Rs. 650,000 from Rs. 500,000, while for new plantations it has been increased to Rs. 500,000 from Rs. 400,000.
We have also doubled the number of tea saplings planted in order to increase tea production while protecting its quantity and quality. For that, 25 million tea plants were grown in the nurseries with the financial support of Rs. 500 million allocated by the Sri Lanka Tea Board this year. Nearly 600 new nurseries were also registered to achieve that target.
In addition, a project has been launched to grow tea as an undergrowth crop in the coconut plantations especially in the Gampaha and Kegalle districts. Tea will also be planted in suitable plots of land belonging to the religious places in selected areas with the direction of the Tea Small Holdings Development Authority. The Finance Ministry, based on our request made last year has allocated Rs. 600 million to set up sprinkle systems in tea estates. Tea cultivators who need such a system will be granted Rs. 100,000 each for this purpose.
The monthly subsidy for rubber cultivation is also expected to be increased next year. The rubber cultivations which were abandoned due to the low market prices have now been resumed as the price has increased. In order to increase rubber cultivation, we have started to cultivate rubber in lands belonging to the Forest Conservation Department located in the Dry Zone such as in Ampara and Moneragala. Cultivating rubber in the Dry Zone is a successful move.
Q: What steps have you taken to develop the tea and rubber companies and factories?
A: Finance Minister Basil Rajapaksa has given us a target of US$ 1.4 billion for tea-related exports and US$ 1 billion for rubber-related exports this year. Both are achievable. Accordingly, with the financial grants received from the Government, four tea factories will be renovated. They are expected to be powered with solar power as the energy source. The tea factories will also be facilitated with low interest rate loans to develop their businesses. Further, as a solution to the labour shortage, we will train youth with new technology to work in tea factories. This will be a positive move to address the labour shortage and also the unemployment of youth.
Q: How have the tea and rubber cultivations faced the fertilizer issue?
A: Moving to organic fertilizer from chemical fertilizer is a good initiative by the present Government. But cultivations such as tea cannot suddenly shift to organic fertilizer. These are cultivations which are familiar with chemical fertilizer for decades. Therefore, we have taken steps to provide the farmers with a certain amount of chemical fertilizer in order to protect the cultivations. However, in line with the Government’s policy, we have begun a programme to produce organic fertilizer at eight main district offices. Apart from producing organic fertilizer, these offices will function as centres to train farmers to produce organic fertilizer on their own.
Q: There was a controversy over blending Ceylon Tea with imported tea. Can you comment?
A: There is a misconception about this move. It was also misquoted by media. Sri Lanka has banned re-export of imported tea mixed with Ceylon Tea. But a gazette notification issued in 1981 has permitted importation of a certain amount of several tea categories, which cannot be produced within the country, with the purpose of re-exporting. The controversial circular issued by the Tea Commissioner was based on that regulation and is not something new. The Tea Commissioner had only made an addition to the already existing regulations to protect the tea exporters and cultivators.
Q: How would you utilize the abandoned tea estates?
A: In 1979, when the Tea Small Holdings Development Authority was established, 75 percent of tea estates belonged to estate companies and there were only 25 percent of tea smallholders. But today the numbers have changed the other way around. Most of the abandoned estates are owned by the estate companies. We are of the opinion that the abandoned estates should be given to young entrepreneurs to resume cultivation. For that we are required to discuss with the estate companies. Such discussions are going on now. Despite the Ministry of Finance being the golden shareholder, these estate companies are more powerful. Therefore, suitable steps will be taken in the future to address this issue.
Q: How would you encourage the future generation for this sector?
A: In Sri Lanka, there are five research institutions under the Ministry of Agriculture and my State Ministry. Apart from that, the National Institute of Plantations Management (NIPM) trains nearly 4,000 students a year. It is a higher education centre which grants diplomas. Currently we need an institution to produce degree holders in Plantation Management. Therefore, we will establish a Plantation Management University which will grant degrees in plantation management related streams. It will be a joint venture with the NIPM. This target is expected to be achieved next year.
Source: http://www.dailynews.lk/2021/10/29/features/263145/charting-future-our-tea-and-rubber
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