Sri Lanka’s tea exports predicted to generate $ 1.5 billion revenue
The Morning: The Tea Research Institute of Sri Lanka predicts that Sri Lanka’s tea exports are expected to generate a revenue of $ 1.5 billion in the year 2024.
Meanwhile, as part of the first stage of a three-phase program to provide fertilizer at a concessionary rate, 10,000 metric tonnes out of the planned 30,000 metric tonnes of fertiliser has been distributed among tea planters so far.
Recently, Minister of Agriculture and Plantation Industries Mahinda Amaraweera convened a progress review meeting of the St. Coombs Estate in Talawakelle and the Tea Research Institute of Sri Lanka.
Addressing the progress review meeting, Minister of Agriculture and Plantation Industries Mahinda Amaraweera revealed that the already cultivated lands of tea estates are sufficient for the development of Sri Lanka’s tea plantation industry.
It was discussed during the meeting that the ban imposed on the import of agrochemicals in 2021 in promotion of organic agriculture, affected the tea plantations resulting in less amounts of fertilizer used on tea plantations in 2022 and 2023.
This resulted in a decrease in tea production, according to the Minister.
However, the current Government, through the two state fertiliser providers, is taking measures to provide fertilizers at a concessionary price, he added further.
Additionally, the Minister stated that as such, 50 kilograms of three types of tea fertilizers with a market value of Rs. 14,000, are provided at prices ranging from Rs. 5,500 to Rs. 7,500.
According to the Department of Government Information, the Sri Lanka Tea Board has allocated Rs. 1,200 million to provide the concession for tea plantations. The Government Information Department further added that the distribution of fertilizer for tea plantations is being implemented in 3 stages.
Meanwhile, it has also been discussed to provide fertiliser and also plant tea saplings in vacant areas of land with the aim of increasing the tea harvest in the coming year.
Sri Lanka’s tea industry has generated foreign reserves of $ 1 to 1.2 billion during the last two years.
The island nation exports tea to 150 countries worldwide out of which 20 countries purchase stocks of tea on a large scale.
In the meantime, the Tea Research Institute of Sri Lanka has been able to identify 70 species of tea in high demand globally.
OSL take:
Sri Lanka’s tea industry is focused on growth with local authorities earmarking an increase in annual revenue drawn by the sector. Once a leading brand in the global market – Ceylon Tea – is once again in a battle for supremacy in the foreign markets. The increase in prices fetched by tea produced in Sri Lanka have further increased chances for local tea producers to expand markets for their products in the global market. The many trade agreements and trade concessions enjoyed by Sri Lanka with other countries have also helped boost tea exports. Local authorities are also engaged in promotional campaigns in foreign markets to promote key export commodities like tea while also encouraging local tea producers to also focus more on exporting value added products as well as diversify the existing export product portfolios. The Sri Lankan government has also prepared incentive schemes to encourage local businesses engaged in the tea industry to explore further expansion and upgrading of operations while also trying to attract more foreign investments to Sri Lanka’s tea industry. With the country’s tea industry showing signs of further growth and an increase in business potential, foreign businesses/investors could explore the expanding opportunities in Sri Lanka’s tea industry.