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Sri Lanka remains the largest revenue owner of tea in the world, second only to China, said Ganesh Deivanayagam who was re-elected for his second tenure as the Chairman of the Tea Exporters Association (TEA) at their 24th Annual General Meeting (AGM) in Colombo.
“Sri Lanka specializes in unique tea blends, helping it excel in the marketplace. The average FOB price for Sri Lankan tea is US Dollars 5.10 per kg, compared to India’s $3.58 and Kenya’s $2.60. Sri Lanka has achieved this feat through relentless pursuit, breaking global barriers, innovating, and taking risks.”
He also emphasized that Sri Lanka’s tea blending, packaging, flavouring and value addition are significantly ahead of its competitors.
Over what has been a challenging few years, both domestically and externally, including difficulties in importing raw materials and a high-tax environment, Sri Lanka has sustained its tea export revenues and continues to lead, as a direct result of positive action, stakeholder symbiosis and prudent decision-making.
“This now gives us a stable platform on which to continue to build our resilient industry.”
Sri Lanka tea industry must focus on producing more healthy tea products to the world market as it could fetch high prices, said FAO Resident Representative Vimalendra Sharan who was the chief guest at the AGM.
“Ceylon Tea is niche, it’s not mass market, and that’s where Sri Lanka can capitalize, and add value not just to the product but to the lives of producers. Also, consumers are changing their views, and the trend towards healthy options, and ethical and sustainable production, especially in more sophisticated markets, where Ceylon Tea is prized, is growing. “Focusing on these areas, along with digital enablement and marketing is crucial for survival in the future.”
Sri Lanka should look after the welfare of tea smallholder farmers and other tea workers at the end of the tea value chain as globally, smallholder farmers produce more tea than the large plantation companies. Meanwhile Chairman of the Sri Lanka Tea Board Niraj De Mel said their target is to touch at least 265 million kilos of tea production this year.
“Sri Lanka produces 3.9% of the global tea supply, with China and India being the other major producers,” De Mel said.
The statistics for January to July 2023 indicate promising growth in tea production, with a total of 155.82 million Kg, an increase of 2.59 million Kg compared to the same period in 2022. The application of fertilizer after a lapse of about two years has been a key factor in this increase.
In terms of exports, despite facing global challenges, Sri Lanka’s tea exports showed resilience and tea export revenue for the first half of 2023 reached USD 635.5 million, an impressive 10% increase.
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