Tea industry says fuel shortages, power cuts hampering daily operations

• Says likelihood of some factories closing down due to current situation is real
• Points out transportation issues triggered by diesel shortages would make it difficult to conduct weekly tea auction in Colombo

Sri Lanka’s tea industry yesterday said it is in a state of disturbance, as the prolonged shortage of fuel and electricity in the country is disrupting the daily activities in the plantation sector.

From the point of transporting the leaves from the plantations to processing in factories, the sector is faced with challenges from all fronts.

The Colombo Tea Traders’ Association (CTTA) yesterday pointed out that it is becoming increasingly difficult to deliver the premium Ceylon Tea to the market, as hardships continue to mount.

“The transport of green leaf from the fields of the tea smallholders and plantations to the factories are virtually bordering a collapse. The manufacturers are unable to process the harvest on time due to lack of diesel for the generators,” said the CTTA in a statement to the media yesterday.

“The likelihood of some factories closing down due to the current situation is real,” it added.

The increasing challenges would have left the tea smallholders seriously impacted, the CTTA cautioned.
The tea smallholders contribute over 70 percent of the national production annually and rely on the manufacturers to process their green leaf.

Tea auctions are held weekly on consignments of tea delivered to Colombo but the transporters from various planting districts are unable to do so, due to the acute shortage of diesel.

The CTTA asserted that the transportation issue would make it difficult to conduct the weekly tea auction in Colombo, which in turn negatively impacts the entire value chain of the industry.

Similarly, buyers/exporters are affected by the lack of fuel and electricity, unable to process and meet delivery schedules of the importers. This again would have an irreversible impact on the industry, where the importers will look to replace Ceylon Tea, with teas from other origins, the CTTA said.

The association pointed out that if the crisis is not resolved at the earliest, it would have a drastic effect not only on the national economy but also on the two million people whose livelihood is supported by the tea industry.