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Bitter Tea Shock For Sri Lanka

By Cassandra Mascarenhas

Angry tea exporters last week hit out at the Government and the Tea Board’s inactive and lackluster prone attitude, which they claimed led to Sri Lanka losing out to Kenya as the world’s top tea exporter.

In a massive jolt to the country’s tea industry, the Tea Board of Kenya announced that it had overtaken Sri Lanka as the world’s leading tea exporter after exporting 342 million kilogrammes to 47 world markets, accounting for 22% of the world tea exports last year.

Reacting to this shocking development, Expo Tea’s Marketing Manager for the Middle East, Bishri Ghazali emphasised that the Kenyan Government was very proactive and supported the industry greatly, where as the Sri Lankan government on the other hand had many shortcomings.

“The Tea Board does not make use of many abandoned lands that could be used for cultivation and even proper fertilizers are not provided and the corruption in institutes makes things difficult,” he noted.

He also added that production costs in Sri Lanka was among the highest in the world.

In contrast to Kenya’s 342 million kilogrammes of exported tea, Sri Lanka had reportedly sold around 280 million kilogrammes, representing a shortfall of 29 million.

In a statement, Kenya’s Tea Board said, “We did dislodge Sri Lanka as the leading tea exporter last year and hope we will continue maintaining the same position”.

Hatim Akbarally, Director of leading tea exporter, Akbar Tea, said, “Actually I believe Sri Lanka has not been the world’s top tea exporter for a couple of years now. We are actually around the third or fourth in the world behind Kenya, India and even China.”

He maintained that this situation was due to low production levels in the country over the past couple of years – making it impossible for Lankan exporters to compete.

Director/General Manager of Amazon Exporters, Suranga Herath noted that the present situation was not only due to the fault of the private sector but was partly also the fault of successive governments who have shown only very short-term interest in the Sri Lankan tea export market.

“They talk of long-term plans but no action is taken on their part,” he added.

Meanwhile, chairman of Imperial Teas, Jayantha Karunaratne pointed out that Kenya enjoyed a higher production capacity than Sri Lanka and even its market was more competitive than ours.

He also blamed the unfavourable weather conditions and global recession experienced last year as reasons for the downfall.

50 Comments for “Bitter Tea Shock For Sri Lanka”

  1. N.C.Wijeratne

    Our long term plans are to get the VIPs sons into Politics- Get Geetha Kumarasinghe to contest Elections-soem VIPs to travel abroad with their in laws and hhouse maids forever- change the elction laws-rig voting-court marshall various opponents until Govt. finishes a five year term-Hold all party confernces which never bring any tangent results-criticise milibands and Browns-and -encourage goat or bears to run the affairs of the country when we have 112 ministers-abduct media personnel when they criticise Govt.-
    SO WHERE IS THE TIME TO LOOK AFTER THE WORLD TEA TRADE AND OUR EXPORTS_
    After so many years of TEA Promotion done by Sri Lanka would you believe that there is not a single Brand that carries the Sri Lanka Logo in Canada promoted as Sri Lanka TEA-There are various brands that may originate from Sri Lanka but there is no active promotional effort in Canada by the SL Govt. sources.It is estimated that 3 out of 10 people drink TEA in Canada.
    Likewise there are so many countries in the world where Kenyan brands have establsihed their name. Even the private sector in Sri lanka which is doing something in some measure to promote our Teas abroad are not recieving any form of assitance from the Govt. Depts/Agencies.

    • Pukka Sahib

      During Sirima time Then government aquired all profit making tea estates t the government. Kobbekaduwa heded that massive disasterous movement and this was the very begining of the downturn of sri lanka’s tea export business. Hundreds of our growers had to give up their business. Some foreigners in tea estates left the country and some moved to Kenya and started the business in that country. Look what were the outcome today. We dont look beyond our boundary. SL is only interested in finding opportunity to political supporters and family benifit. Who said Country before me? No tell Family before me. Today’s this selfish attitude of governing tge country will bring us disaster sooner than later. Stupid GL says we still have not lost GSP+ and have few more months to enjoy. We are being governed by such kind of fools. This is like if a docter tells a patient withor properly treating him, “hay man you are not dead yet, you re going to live few more months before you are actually dead”

  2. Roshan

    How much work Mahinda and his family can do?
    Mahinda have to learn to delegate his work to other ministers.

    • Roshan..Wake up..Mahinda does not have to delegate.
      The truth is that there in NOTHING in it for Mahinda or the Rajapakses to benefits in the form of COMMISSION or KICK BACKS om tea exports..So why would they care or bother.
      Look at some program where there is expenditure and an avenue to make money and every Rajapakse and their dog will be queueing up to get involved.
      This is the way the Hora, Para Rajapakses work ..
      Themselves and their pockets first, to Hell with the country..
      This is just one of those to be indentified and exposed.
      The CURSE goes on.

    • It is not a case of Mahinda or Rajapakses. Look if the tea comes down some may blame him. In the same context Stock Exchange has shot up to an unprecedented level but I hardly see any favourable comment made by SL readers. And it keeps growing day after day. As of today it is four times greater than compared with the time MR came into power, 2005.

      Is it really to do with MR? Not completely! Why? It is also to do with the stake holders involved with that trade. In the tea trade there is a huge gap between each of the value creaters in the process. In that way one can run a businee only until the industry collapses. Therefore it must be integrated efficiently. That is not happening there at the moment. The whole process, starting from labourer in the estate to the end user in the UK, for instance, must be aligned. That is why we need creative mediaters out of other interest to look from a broad angle.

      MR is the grand mediator he, therefore can’t be blame for other’s irresponsible mistakes actually.

      Thank you

  3. kumara soysa

    The tea traders must go in delegation and talk to MR and advise him about the dangers the national tea trade faces. Likewise, with the reduction is the duty of palm oil last week, coconut prices are again colapsing. This is utterly chaotic and unless this cavalier attitude is changed, we will see the total collapse of these two vital industries. I nhope someone cares.

    • No neaad for delegation and talks with MR..Nothing will happen.
      If tea traders put a good hat collection and offer to the Rajapakse Rogues, may be we might get them to get interested and attract them like sharks to some prey or food..Nothing else will work with these Rogue Rajapakses and his ministers and corrupt tribe..Just nothing.

      • SAMAN

        Sam,
        What are you trying to imply?
        Please undustand do not try to link every thing to politics.
        Sorry for your openion.

    • sandman

      That delegation will dissapear no sooner they step out of Temple Trees!!!!!!!!!!!! Advise the King, no way jose……………

    • Teardrop

      Be carefull the delegation might be arrested and put behind bars for tring to go against the govt.

  4. Gundappa

    What a come down from the time tea estates were being managed by agency houses.Maybe they had their shortcomings, and I think they did.But the estates did not suffer.Having visited over a 100 tea estates during my stint with a firm of Chartered Accountants, in the late 60′s, and passing through tea growing districts on my visits to SL, I see the neglect.

    Short term, very short term policies of successive governments has resulted in this predicament.

    All these governments want done is appease the people, by slicing out good acreages of tea growing land and giving it out to henchmen.

    Mark my words, time will not be far off, when SL will be importing tea from abroad

    • Gundappa…Now you have hit the nail on the head.
      The President and his rogues must be smacking their filthy lips to see how they may be able to acquire or sell some of these tea estates/land for their benefit..Who cares about SL tea and its exports.
      Rajapakse regime and more disaster and corruption that is in store…more to come with the filthy, cursed, paraiah Rajapakses and their henchmen ruining our country.
      Hope they are cursed sooner rather than later.

  5. desmond

    is the UNP involved in this, or it is due the interference of the west.
    Tea exporters give your sincere views without beating the bush

    • sandman

      You mean to say that the UNP and the west are to blame for this situation? wake up from your wet dream mr.desmond

      • Pukka Sahib

        To exporters have to pay monthly kappam to Raja regim through Mervin silva goons. Can the country servive with it’s forex lifeline in this manner??

  6. HERO

    LET THE FAMILY EARN THEMSELVES FIRST (ARE THEY STILL POOR???)…THEN THEY”LL THINK ABOUT THE COUNTRY AND THE PEOPLE…GOD BLESS SRI LANKA

  7. Lankexpat

    as long as SL looking for Credit from iran;Lybya,And China,all undemcratic Countries, SL Gov. not Interested in our own recourses, This Leadership has no Vision, Only self interested Shortsighted Policies, Its the SL mentality , live today Tomorrow is another day, unfotunately , The Intellectuals, and intelligent minority has to suffer

  8. Samy

    After Privatisation of Tea Plantations some Indians controlled our Tea industry and they started mixing our good quality Tea with low quality imported Tea.Even our Tea company bosses campained for this. Due to this We lost the Sri Lankan identity and We cannot now advertise as Pure Ceylon (Sri Lankan) Tea.
    Private sector is mainly responsible for this.

  9. Sumane Liyanaarachchi

    Sri Lankan Tea is promoted in Australia as Delma Tea. We can hear name of Sri Lankan tea which is promoted by Delma. Government of Sri Lanka together with the private sector of Sri Lanka must work together to penetrate world market by adopting strategies through networking. Sri Lankan must and should be the leder of exporting tea to the world market.

  10. SAI BABA

    OFFER 15%TO BASIL,HE WILL TALK ONLY IF THERE IS MONEY THE WORLD KNOWS THAT,N YOU SRI LANKANS TOO?

  11. SAI BABA

    IT IS A SHAME BUT FACTS ARE FACTS,I AM SURE GEETHA KUMARASINGHE WILL PLAY A MASTER ROLE IN IMPROVING THE WORLDS OLDEST PROFEESION,HOPEFULLY MAHINDA MADE THE CORRECT CHOICE?

  12. ranjit de mel

    donkey idiots the jvp was always against the tea plantations,specially because tea was introduced by the british colonial masters.they wanted paddy cultivation instead.in 1971 one of their slogans was indian tamils to india,s.l.an tamils to the sea.if the governments followed their advice,today we wont read a article like this and the many comments.ha ha ha———–ha
    ranjit de mel berlin

  13. upul arunajith

    mmm..So we lost our edge on the globale tea market…This is due to the western interference. Mark my word, Cabraal the governor of our Central bank with all his Oratory skills will now make astatement saying that Tea was not a major contrbutor to our GDP or the Foreing exchagne earner and that there is notheing to worry about Kenya taking over the global tea industry. He said a similar thing in connection with Tourism: He said, Tourism contribution to the GDP was negligable.

    Tea as an econimic sector is highly vulnerable. Over the years all what our people were doing was milking a cow dry. Soon we will end up importing tea the same way we are importing Rice. Lets not forget,we were once the Granery of the east!

    Cabraal will have to be contended with the Petro Dollars sent to him by the Village Nanies in the Middle east!

  14. Bella

    N.C. Wijeratne, thanks you sum it all up so good. These yakko’s should be banished. They are only interested in feathering their own nests. Why bother having elections in April we know they will be rigged anyway. No politician cares about tea plantations.

  15. Ranjala Joseph

    Nice job Cassandra. Hope now that your article has made the shortcomings public the Govt would support the tea industry and bringforth remedial actions.

  16. If you ask that erstwhile handyman and servant boy of Rajapakses, “Gel” Wihiluwansa aka “Pachayudaya” he will explain it very nicely saying that this is an international conspiracy hatched by the imperialist powers in Europe and America in cohoot with Kenya to interfere in internal matters and damage the economy of a free, sovereign, independent country as they are getting jealous of this country becoming the super power in the world soon.

  17. Bandula Fernando

    There’s nothing in it for the RAJAPAKSE’S, so why would the so called guardians of the country BOTHER.

  18. Kapila Bandara

    The Editor, Sunday Leader and Online Readers,
    What is shocking about this dubious story is not that Sri Lanka has been surpassed by Kenya’s exports, but the sheer incompetence demonstrated by the writer, who is making a fascile and comical attempt at raising the alarm about nothing, really. This is a comical as Sarah Palin’s Tea Party.

    First, I fail to understand, what the “lackluster prone attitude” is, in the context of the story. Second, the story claims, it is a “massive jolt to the country’s tea industry”. Hah!A reckless comment not supported by any worthwhile data or facts.

    A few more things worth noting:
    * The world’s largest exporter does not mean Kenya is earning more from exports. Perhaps the writer Mascarenhas can’t figure that out. Volume does not equate with value.
    * The export volume cited here represents a reduction in exports. Kenyan tea exports fell to 342 million kilograms in 2009 from 383 milion in 2008. Tea production was 314 million kilos, according to tea Board of Kenya data.
    So what is the shocking story that Mascarenhas is trying to tell us?
    * Tea Development Agency is the single largest tea producer in Kenya (200,000 tonnes a year) and even its output is estimated to have dropped 30pct.
    * Sri Lanka is estimated to have earned more than US$1 billion from tea exports in 2009.
    * In contrast, Kenya’s export earnings: 69 billion Kenyan shillings (US$907 million).
    Facts tell a different story. What is really shocking is the pathetic reporting. Clealry the paper’s editors and reporter show a shocking lack of a basic understanding of the material they are struggling to deal with.

    • sandman

      Heh Heh heh we have another combination of Bandula Gunawardena and the great Nivan Cabraal, here in the form of Kapila Bandara……………………..

  19. NmN

    I feel taht MR took the correct decision only in one thing..that was, to wipe out the LTTE he appoint a true citizen General SF….and for the all other institutions he appoint TERRORISTS (in other mean we call it respective Ministers ) only…thats why srilanka facing these kind of problems and failures even as the one and only country in the world which successfully eliminate the terrorism in history..so those appointed TERRORISTS (ministers) are very busy in filling their pockets through commission and corruption…..are we heading to the worst time than the LTTE period?

  20. FAZIL

    WE MUST BLAME BOTH GOVERNMENT & ALL OPPOSITION PARTIES WHEN WORKERS WANT TO GET THEIR INCREASE IN SALARIES WHEN GOVERNMENT TRY TO CONTROL THE OPPOSITION STEPS IN MAKE USE OF THE SITUATION TO ENCOURAGE WORKERS TO REQUEST FOR MORE INCREASE OR ENCOURAGE THEM TO SABOTAGE & GO FOR STRIKE SIMPLY THE OPPOSITION BECOMES THE PARENTS OF THE WORKERS & UNION. ON THE OTHER HAND GOVERNMENT HAS NO LONG TERM PLANS THEY KNOW TO PATCH UP WHEN THERE IS PROBLEM, THEY DO NOT HAVE ANY PROPER PLAN WITH REGARD TO ECONOMY THEY JUST GO AND APPOINT PEOPLE IN GOVERNMENTAL INSTITUTION JUST SEE THE FATE OF SLPA OVERSTAFFED, PETROLIUM OVERSTAFFED WHO PAYS THE HEFTY BILL ITS THE PEOPLE IN THE NAME OF INFLATION WHEN GOVERNMENT PRINT MONEY TO PAY THEIR SALARIES & THE PROFLIGACY OF THE GOVERNMENT & MINISTERS IS ON THE RISE ALWAYS. WE REALLY HAVE TO RALLY AROUND AND BOUNCE BACK I DO NOT THINK ITS AN HARD TASK IF GOVERNMENT, OPPOSITION AND PEOPLE GIVE THEIR BEST & WORK TOWARDS THAT GOAL.

  21. upul arunajith

    Ha.haa..huuuu….Kapila Bandara did you meet our Central Bank Governor the hotelier turned Central Banker who has this innate ability to concot statistics and paint a rosy picture…

    Kapila, this is not a numbers game. Or may be with your impecable English you are trying to find fault with the writers abilty to report the news properly.

    Facat is Kenya has replaced Sri Lanka as the Worlds largest Tea exporter. The stats are all periphara. Good you are able to take refuge in the number crunching business but don’t forget our economy depends not on number crunching but the mighty dollar these tea exports bring to the country. Our failure to maintain our position as the the number one exporter of tea is a sign of a bigger problem. Lack of sustainable growth orineted policies. The opposition, the JVP, the labour union are all unwanted talk. We got to have a policy thta we will develop our own brand identity and value addition. Japan= Toyata: Germany= Merzerdes Benz. Russia= Caviar, France = WIne

    Our Sri Lankan tea is being sold without any mention of Ceylon. They blend our tea and make a killing out of our commodity. We got to have a brand identity.

    Pointing fingers at the reporter is just Futile Bandara. We lost our market share and we have to work with our hind legs up to regain the market share and MAINTAIN the market leadership.

    • Kapila Bandara

      Someone claims that Sri Lanka lost its market share. Probably in reference to tea, and makes the remarks even more hilarious by adding that we “have to develop our own brand identity and value addition”, whatever that means. What was Sri Lanka’s global market share for tea in the first place? The report did not even mention it, let alone help us understand it, underlining the fact that it is indeed pathetic reporting.

      1) Ceylon tea in itself is a global brand. And smart Sri Lankans with a strategic vision, including Merrill Fernando, and Mlesna, (just to name two) have taken DILMAH global (even available in Japan and Sweden). Dilmah now even sells premium oolong tea to the Chinese!. Top end supermarkets, Department stores, leading cafes, fast food giant McDonald’s and leading global companies such as PriceWaterhouseCoopers (headoffices/regional offices), offer Dilmah in their boardrooms. Of course, some of us have been living in a deep well, like the perennial frogs (simply croaking and not much else to offer), and are blissfully unaware of these developments that have taken place desipte the tamil terrroism and pubic sector failings.

      Another exampe, Sri lanka’s stunning sapphires are now appear on multi-million-dollar high-end jewllery pieces crafted by Chopard, a world leading jewllery and watch brand. “Ceylon sapphire” is a brand at Chopard and elsewhere, just as much as “Burmese Rubies”, and “Chinese Jade” are.
      2) Market share is equated with export volume? Don’t appear to understand basic economics. If this were the case, Sri Lanka will need to export gems by the container load and hope the “market share” will be big, rather than selling a few stones worth millions of dollars. Its the value that matters in the end. I am sure any diamond dealer in Antwerp will help explain this to the ignorant.
      3) The economy depends on the “mighty dollar these tea exports bring”? Still can’t see the wood for the trees? Or is this amnesia? Despite the low volume compared with Kenya’s exports, Sri lanka’s earnings have been bigger than Kenya’s (the data is from Kenya’s own tea board). Be proud, Sri Lanka!
      Besides, the economy does not depend on tea exports, as claimed by some. Forex remittances from Sri Lankans working overseas are a major pillar in the economy! Its bigger than tea, in US dollar terms and helps boost the balance of payment situation.
      4) Only balanced, informed and informative reporting makes for good reading. Not negative whingeing. Let’s hope we get the complete picture. Inability to find the relevant material is no excuse in the digital age. The lesson is: Not everyone is convinced with, or influenced by, sensationalist offal, provided as ”news”.

  22. gamini samarasinghe

    So what.! Let us all be humble, and let Kenya enjoy some good things too.
    They too are a good people with feelings. This is what the Buddha said.
    bye for now.

  23. Junda

    The whole problem is that Nationalisation of Estates in 1975 was not done correctly. Nationalisation was a necassity and if you care to read Hon. Hector Kobbekaduwa’s speech in Parliament you will understand why?

    What I mean when I say it was done in the wrong way is that we took-over the Estates lock stock and barrell and expected the owners to keep mum. The owners took the entire expertise from the tea planters of yore, and established the tea plantation in other parts of the world. You name it. all those tea industries were established by Sri Lankan Tea Planters. They thereafter took away our tea markets too and we are in the sorry state that we are in today.

    The present Companies manage tea estates with a very cvlose look on their profit margins and not what is agriculturally required by the tea plant. The Tea Research personel too give out findings to suit the pockets of these Companies and not exactly what is required by the tea plant.

    What should have been done was to have nationalised the estates and allowed the companies that managed them to continue as managing agents for the government, which is virtually what is done at present.

  24. Udaya Mahindasoma

    Dropped from 1st tea exporter would not be a big blow in Sri Lankas tea production because always Sri Lankan (Ceylon) tea quality is there. No land can beat Ceylon tea. The problem ahead in Sri Lanka tea production is limited land. Kenya can even expand more land for tea production and oppotuniity is there. If Sri Lanka tea production or exports dropped it would be a big blow. Theredore Sunday Leader’s article writer not have much educated on economic matters and the Sunday Leader readers misguided on Sri Lanka tea production.

    • Nimal

      Mr. Mahindasoma, incase you didnt know sri lanka pays rs. 400/= i.e $3.50 dollars to a tea plucker to just pluck 15-18kgs a day and kenya just pays half of it for a plucker to pluck 40kgs. Their productivity is 100% higer than us, also India too pays just $1/=. in my view reporter hit the nail very well. Its time our govt & tea board opened their eyes.

      Also Mr. Banadara’s economic theory of getting more revenue than Kenya doesnt make any sense. SL selling prices are very high so obviously the exporters have to sell at a lower margin to survive in the global market. the fact is though we earn a higher revenue GP contributions are very very low which is not at all healthy

  25. Nivantha Kanuwana

    Since Sri lanka has already become second or third in tea exports, now we have to think about improvements without pointing out each other. The necessary steps should be started from RPC level as well as small holdings level.
    RPCs should start replanting and planting in abandoned areas in their plantations.
    RPCs should be a model of all good agriculture practices. timely pruning, close plucking rounds, 5 day plucking rounds, enriching the soil by organic substances like green manure and berrying weeds, proper fertilizing without wasting and on-time application, are some of practices we miss.
    Small holders should link and trained on quality plucking rounds and storage. this helps to produce quality tea.
    If we could come out with most appropriate agriculture practices, simultaneously we have to think about the Human Resource factor. Incentive should be based on performance and continuous evaluations. This has a urgent requirement of professional addressing.
    At the end we have to promote our own tea brand names like Dilmah more. This enables us to tap 30% of the revenue which goes to the brander.
    So our slogan must be, quality, ethical tea with good agricultural practices.

  26. Goardan

    Very soon Sri Lankan economy will grind to a halt under the burden of government debt and mismanagement. Rajapakse regime is busy filling their pockets as there is an old saying in English “Make hay while the sun shines”.credibility of the country is at stake, let alone the Tea Industry, if this preesent regime continues to stay in power.

  27. Dilshan

    China, India, compete helping Colombo’s demographic onslaught of Tamils
    [TamilNet, Thursday, 04 March 2010, 01:30 GMT]

    While Colombo plans allotting lands for ‘retired’ Sinhala army personnel in the so-called ‘resettlement’ schemes of Tamil North and East of the island of Sri Lanka, China and India compete in proving who is the best facilitator of Colombo in its demographic onslaught, Eezham Tamils circles said. China has emerged as Sri Lanka’s biggest single lender in 2009, revealed Colombo sources adding that China’s top aid to the North was spent particularly on creating conducive environment for Colombo’s occupying armed forces there. India is already helping Colombo’s communication strategies disrupting Tamil demographic contiguity. In the meantime, relieving Colombo from Western pressure, Indian envoy in Colombo said Sri Lanka could export more garments to India under Comprehensive Economic Partnership Agreement.

  28. Dilshan

    UN was Biased with Singheelam to kill the Tamileelam people around 55000 within 3 last days.

    God Helped UN administered Haiti to LOSE more than 200,000 people on Earthquake.

    I wonder what sort of Quakes has been planned for China and India. May be TerrorQuake.

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  31. Thank you……

    Very best articles, I happy to read it, Thank you very much….

  32. DHAMMIKA

    THANKS TO THE BRITISH TEA BECAME AN AGRICULTURAL CROP AND A LEADING EXPORTER AND EARNER FOR SRI LANKA BUT WITH PHYSCOS LIKE WEERAWANSA WHO IS ALL OUT TO HIT THE WEST HOW CAN THE GOVERNMRNT SUPPORT AFTER ALL THE GOVERNMENT IS DEAD WHILE ONE FAMILY WANTS TO ROB , STEAL AND CHEAT AND BECOME RICH AND WEALTHY .
    IS THIS THE CHINTHANA STYLE OF MAKING MONEY AND BECOMING RICH ?????????????????

  33. Ravana

    Look at the sum of the collective qualifications of those who have commented in the article. So called leading figures of the tea trade. I doubt if they even have their O Levels….therein lies your problem.

    No modern thinking and no current learning ! This one is not the fault of this Government.

  34. mmm..So we lost our edge on the globale tea market…This is due to the western interference.

  35. [...] the country long held the title of world’s largest net exporter until finally being edged out by Kenya last year. Since 2009, Sri Lanka tea exporters have intensified their focus on the massive Chinese [...]

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