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Nationalisation of the plantations in Sri Lanka did not come as a surprise. It was a topic that was freely discussed, and made public at least two decades before it was finally enforced. Its applicability in the then existing social frame-work, was questionable. With the threat of nationalisation, productive expenditure on plantations took a nose dive, which ultimately led to a steep decline in tea production.
The global tea production in the period 1965 to 1977 improved by 51%, while the output of tea in Sri Lanka declined by 9%. In 1978, tea production in the country was running about 5% below 1977 levels, and this trend was only arrested in the early 1980’s.
The efficiency of the private sector, which for a long time had been unravelled, was then beginning to be recognized, and this sector of the economy was fast producing results, when compared with the disappointing performance of the state sector. The general neglect of the company owned plantations continued, and no proper records concerning land utilization were maintained. In this situation, no proper assessment could have been made about the performance of the public and the private sectors.
After the land reform laws of 1972 and 1975 were implemented, vast structural changes took place leading to the alienation of large extents of land for projects unconnected with the tea industry. Due to lack of reliable information, the general performance of the tea industry as a whole was understated, and the extant of land under tea was always a disputed subject. This situation continued up to recent times.
Up to 1986, the extent of tea coverage was maintained by the Tea Commissioners Division of the Sri Lanka Tea Board. They were based on the submissions made by tea producers, who had registered themselves with the department. This was no doubt a very tedious operation, and the accuracy of the final assessment depended on the correctness of the individual returns. According to Tea Board statistics, the extant under tea in 1960 was 185,000 hectares. A 20% increase was recorded for the following year, and the tea coverage was increased to 240,000 hectares.
Extensive changes took place in the agricultural sector during this period. Original tea tracks round Kandy, which came under the classification of medium grown teas, became the nucleus for a series of development programs that resulted in a large extent of land coming off tea. It was once again in the Central Province that large areas were identified for diversification under the National Agricultural Diversification and Settlement Authority. The Mahaweli Scheme too took a heavy toll of the tea lands in the area. Without an accurate update of the situation, the tea coverage in this area continued to be overstated, and the yields understated. These changes mostly affected the medium grown sector.
To arrive at a more realistic figure, an aerial mapping system was pursued in 1886,with foreign collaboration, and a more reliable land use map covering the entire country was completed in 1988. According to this survey, the total area under tea had shrunk to 201,630 hectares, from 240,000 hectares earlier, reflecting a shortfall of 16%. As anticipated, the highest shortfall was in respect of the medium grown sector.
The Kandy areas suffered a loss of 48,395 hectares in tea. This investigation, in a way was helpful to identify in a more comprehensive manner, the total extant under tea, but it could not determine the identity of the extents held under private and public sectors. This classification was found necessary, as a clear division was building up between these two sectors, with the small holders making a strong impact.
A further tea land survey was carried out in 1994 to ascertain more accurately the tea coverage held by the private and the state sector. This project was undertaken by the Tea Commissioners division of the Sri Lanka Tea Board. At its conclusion, a further decrease in the extent of the tea was discovered. According to the latest findings, the total extant of tea had declined further to 187,309 hectares.
With this new set of figures, Sri Lanka’s performance in tea was launched to a higher status. According to this set of figures, high grown varieties now cover an extent of 51,442 hectares, having lost 30% of the extent as recorded in 1965. It was during this year that the highest crop of 91 kilograms was harvested from these areas, with a tea cover of 87,345 hectares. Mid grown areas had sustained the biggest loss, and only attributed 56,155 hectares to this sector, having enjoyed a tea cover of 99,359 in 1968. The largest crop from mid grown areas of 80 million kilograms was harvested in 1968.
Expansion of the low grown sector projects a different picture, and is acclaimed today as the only sector that has recorded an uninterrupted growth rate, both in respect of the tea cover and production levels. The tea cover under low grown category in 1960 was only 48,113 hectares. The current figures indicate that this area has expanded to 79,711 hectares. Correspondingly, production has increased from 48 million kilograms in 1960 to 166 kilograms in 2000. Today the low grown sector contributes more than 54% of Sri Lanka’s total production.
The performance of the tea industry in general has now to be recast on the updated figures. The current position shows up the industry in better light than ever before. The national yield has now increased to 1,630 kilograms of made tea per hectare from 1,045 kilograms in 1993. Similarly, yields from high grown, mid grown, and low grown areas have automatically enhanced to 1,600 kilograms 1000 kilograms, and 2000 kilograms respectively. from 979 kilograms, 552 kilograms, and 1803 kilograms using 1992 registration.
The tea land survey conducted by the Sri Lanka Tea Board on the tea small holder sector provides valuable information regarding the steady expansion of private sector in recent times. On these findings it becomes obvious that the future of the industry to a great extent will depend on the performance of the small tea cultivator that form the core of the private sector.
Sri Lanka’s total tea coverage according to the latest findings is 188,967 hectares, of which 56% is under public management, and the balance 44% under the management of the small holder. After many years of uncertainty, the latest figures have brought into sharp focus the effects of the structural changes that had taken place in the country which in turn have taken a heavy toll on the performance of this great industry. Since the findings of the aerial mapping system that was concluded in 1886, about 9% of the total extent in tea had withered away. The public sector records a loss of 25%, whereas the smallholder sector has recorded a growth rate of 23%.
In the smallholder sector, 82,916 hectares are cultivated by 206,652 tea growers, as against 106,047 hectares in the public sector with 404 management units. The status of cultivation of both sectors seems well balanced.
A study of the distribution of smallholdings, in relation to the extent of land cultivated by each small holder is equally motivating. The largest concentration of smallholdings is found in the Galle (56,547), and Matara (44,051) districts in the Southern Province. About 43% of the small holders are concentrated in these two districts. About 20% (49,161) of the small cultivators are found in the Ratnapura district in the Sabaragamuwa Province. In the public sector, the Central Province with 205 holdings controls 57% of the total extent of tea in that category, with a high intensification of 42% in the Nuwara Eliya district. The Uva Province with 76 holdings controls 23% of the extant under public management.
At the lower end according to size, there are 172,522 holdings that are less than one acre, and 23,636 holdings between one acre and two acres. The largest concentration of small holdings operates within this group. At the uppermost end only 169 holdings of over fifty acres have been registered. In most cases, particularly among those belonging to the first group, tea is grown as a subsistence crop, and occupies only a portion of the individual holding. This system, in a way, helps to bring about an ecological balance and helps to protect the environment. In this group 196,158 small cultivators are responsible for the maintenance of 94%of the total extent of tea under tea in that category.
The expansion of the small holder sector has followed a definite pattern, and had only penetrated the higher elevations of high and medium classification of today, with caution. This was considered the domain of the British pioneer planters, and left for their use. The growth of the small holder sector has been mostly centered round low elevation areas. Today there are 159,644 units involving the cultivation of 56,644 hectares, and the bulk of it is concentrated in the Southern Province, with the districts of Galle and Matara acting as the foundation for its expansion. The concentration of the public sector in these regions is limited.
The future of the small holder sector could be further ascertained by the manner in which they have managed their properties. According to the survey conducted in 1994, about 68% of all the small holdings were considered to have been in a very satisfactory condition, with over 75% resorting to regular fertilizer applications based on recommended methods. This is most vital in tea cultivation, as it not only increases the production of green leaf, but also improve its quality, ultimately resulting in the production of a better quality tea. From a long term point of view the small holder is well geared to face the future with confidence as about 70% of the shall holder tea base is planted with high yielding varieties.
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