Sri Lankan Tea Board’s focus on improving production has started yielding results, witnessing a considerable improvement in output.
Tea production output in April was up by 1.5 million kg and the Board is expecting to do better in the coming months, says Niraj De Mel, Chairman, Sri Lanka Tea Board.
“We are looking at a production of 265 million kg by the end of the current year compared to 251.5 million kg during last year. The projected figure for the whole year would be in the range between 265-270 million kg,” he told businessline over the phone from Colombo.
He attributed the reason for improved production to the right nourishment of tea bushes with proper fertiliser application coupled with conducive weather which enabled good growth.
It may be recalled that the Sri Lankan government’s attempt to go fully organic in the tea sector had backfired and the island nation has changed its policy with replanting activities, fertiliser, and other promotional efforts to hold on to its position in the global market. Sri Lanka was the third largest supplier of tea to the world.
Reports from South Indian tea auction centres also indicated that the rebound in Lankan tea output has led to declining procurement of overseas buyers from South India and facilitated them to source Ceylon tea.
De Mel went on to add that the current global factors are not conducive for the exports to grow as overseas markets are witnessing a slack demand.
The purchasing power of consumers in the recession-hit Western countries had impacted the business of Ceylon tea in a big way. Coupled with this is the ongoing summer season in the West and more importantly, the Middle East and Russia where tea consumption will be lower, forcing buyers to reduce imports.
The depreciation of the currency against the dollar last year by around 76 per cent has also helped to increase exports. The trend now is reversing, he said. “We are pinning hopes on the start of the winter by middle July which will push up exports.”