CTTA urges govt. to work on a sustainable wage model for plantation sector

The Colombo Tea Traders Association (CTTA) this week urged the government to work on a sustainable wage model for the plantation sector through consultation, compromise and arrive at a consensus with the entire value chain.

“We as an Association is not against the wage hike at all. We need to work on a sustainable model through consultation, compromise and arrive at a consensus with the entire value chain,” CTTA Chairman Sanjaya Herath said.

He reiterated that CTTA is not against the wage hike at all, but wage increase should be based on a revenue sharing or productivity-based wage structure.

“We need to look at a revenue sharing or productivity-based wage structure which will benefit all in the value chain. We the CTTA sincerely hope the authorities and the producer fraternity could strike a balance to make our industry sustainable and reach greater heights,” he added.

He pointed out that recent disruption such as short supply of tea and exchange fluctuations have resulted in erratic price fluctuation, posing challenges to Ceylon Tea’s competitiveness.

“The crop from 340 million kilos dropped to 251 m/kgs in 2022 and 256 m/kgs in 2023. We are a blessed country as Ceylon Tea cannot be substituted with any other tea in the world. However, we need to be competitive. We are almost US$ 1 1/2 - 2 expensive than other origins,” he added. 

He stressed that the tea production should at least reach 300 million kilos in order to remain competitive and regain the confidence of buyers.