Tea Board chief urges planters not to get blindsided by higher auction prices

• Says stiff competition emerging from India and Kenya
• Reveals those countries already tapping lucrative ME markets
• Says best way to compete is to have a better-quality product 

By Nishel Fernando
Sri Lanka Tea Board (SLTB) Chairman last week urged the country’s tea planters to not to be blindsided by recent surge in auction prices as Ceylon tea industry is coming under severe threat emerging froma well-organised drive from India and Kenya.

“We are happy that (tea) prices are high, but our crop is low, therefore the availability of different teas that suit those countries with a better affording is diminishing. Because it’s small in quantity, Sri Lankan exporters can pay higher prices to buy. So, we are happy with the higher prices, but importers are not happy with higher prices,” SLTB Chairman Niraj De Mel said,

He cautioned the planters that importers could source identical teas US$ 2-3 cheaper to Sri Lanka from India and Kenya. De Mel made these remarks addressing the 168th Annual General Meeting (AGM) of the Planters’ Association (PA) held in Colombo last Friday.
Having identified a market opportunity to compete with Ceylon tea exports in lucrative Middle Eastern countries, De Mel noted that Kenya and India have launched a campaign to capture these vital markets, which could potentiality trigger a crisis in the Ceylon tea industry.

“Kenya and India are very well organised. They are not only knocking doors in Middle-Eastern countries, they are also meeting right people, specially in better economies in the region. They are coming up with packages of various types of tea,” he added.
He stressed that the only solution is to focus on a good leaf that would increase production with a better-quality range which would allow Ceylon tea to regain its former glory.

 “… best try is to go for better leaf. If you get a good leaf, you will have better production with a better-quality range,” he stressed. 
Since 1990’s, he pointed out that Ceylon has been losing some of its strongest varieties while its market share in global trade fell below five percent.
Further, he urged the planters to explore collaborations and partnerships with others in the value chain to increase value-additions, which currently remains slightly below 40 percent.