History of Ceylon Tea

Sri Lankan tea exporters are working out modalities to independently import fertiliser from tea importing countries. Exporters are looking at ways and means of importing fertiliser from some of the countries that import tea from Sri Lanka, Sri Lanka Tea Board (SLTB) Chairman Niraj De Mel said.

He explained that if this works out it could be advantageous to tea smallhowlders in particular.

Exporters are said to be using their contacts in the tea importing countries to purchase fertiliser which is being manufactured in those said countries, it was noted.

Mr. De Mel also pointed out that the smallholders need to purchase the fertiliser and give back to the country what they have by getting back to working on the estates.

Fertiliser importers stated that currently the government has allowed them to carry out imports without any quota imposed.

With no subsidy scheme in place for the plantations, the SLTB has facilitated a low interest loan scheme through which 15,000 metric tonnes of fertiliser allocated is being distributed.

This loan scheme allows growers to pay back within a 3-month period and it is already attracting even the RPCs and the balance is to be allocated to benefit smallholders, Mr. De Mel said.

The tea factories are also using this scheme to purchase fertiliser in a bid to provide it to the tea smallholder growers.

The smallholders will benefit from the Indian Credit Line as well, Mr. De Mel said.

Plantations Association Spokesman Dr. Roshan Rajadurai said that fertiliser is now available at a price at more than Rs.600,000. “It’s not practical,” he said.

As a result they cannot carry out the traditional purchasing where fertiliser would be liberally broadcast on the fields. Fertiliser costs are currently at around Rs.250 per kilo of tea from a previous price of Rs.35 per kilo that adds to the total cost of production in addition to the fuel and firewood and transport costs that are on the rise as well, he explained.

The market rate for fertiliser will be determined following a discussion among importers and the Fertiliser Secretariat, it was stated.

The imports are likely to be carried out during the third or fourth week of this month, some importers said adding that they would be purchasing only for the non-paddy sector.

The Rs.15-20 billion in payments still need to be paid by the government to the fertiliser importers, it was pointed out.

In this respect, the importers and the government are in negotiation with them to agree to provide cash payments in part and partly through T-Bills and T-Bonds.