CEYLON’S LEGACY

The tea industry faces a crossroads amid intensifying global competition and shifting consumer preferences. On this score, Dr. Roshan Rajadurai believes that Sri Lanka’s position as a leading tea exporter is under significant pressure due to changing global dynamics.
“Global demand is shifting towards tea bags, infusions and herbal blends, which are cheaper and easier to manufacture. This shift challenges Sri Lanka’s reliance on traditional orthodox leafy teas but presents opportunities to highlight the quality and uniqueness of our products,” Rajadurai asserts.
Meanwhile, the global demand for tea is declining while oversupply from highly productive African countries is intensifying competition. These countries benefit from much higher labour productivity, which leads to lower costs.
“For instance, Assam in India produces almost three times our national tea output with harvesters plucking 34 kilogrammes daily while earning the equivalent of around Rs. 800. In contrast, Sri Lankan tea harvesters pluck an average of only 18 kilogrammes a day for a wage of 1,350 rupees,” he points out.
He laments that Sri Lanka’s labour productivity is the lowest in the world, despite our tea fields being superior to other tea producing nations. He notes that “low land productivity, outdated practices and labour migration have added to the strain.” And Rajadurai charges that political interference and inconsistent government policies are adversely impacting progress of the tea industry.
Smallholders, who pick green leaf for Rs. 40-50 per kilogramme without statutory and other traditional benefits, remain more productive than corporate sector plantation workers. However, these smallholders also face challenges.
“A balanced approach to wages, productivity and sharing gains from the tea supply chain is urgently needed,” he urges
“We need informed policy-making based on scientific and rational realities, facts, less barriers and a focus on promoting the unique qualities of Sri Lankan tea”
Despite these challenges, the industry remains uniquely positioned to maintain its global identity. Rajadurai explains: “Ours is the most sustainable and ethically produced tea, with a strong focus on conservation and good agricultural practices. Unlike Kenya’s vast plantations where tea is homogenous, Sri Lanka’s varied elevations, soil and microclimates contribute to distinct flavours and qualities.”
Moreover, tea’s health benefits provide an opportunity to appeal to modern health conscious consumers. Trade fairs and international expos also provide a platform to reintroduce tea to global consumers.
However, the perception of tea in some markets, particularly Europe and the UK, is in need of a transformation. “In these markets, tea is often viewed as a dull uninspiring drink, largely due to how it’s consumed – blended into weak flavourless concoctions,” he says.
To combat this, producers must showcase the richness of looseleaf tea and its versatility. “Trade fairs can help consumers experience authentic Ceylon Tea but profitability challenges hinder progress,” he concedes.
Sri Lankan tea producers often face a stark imbalance in the value chain, as Rajadurai explains: “While producers receive Rs. 1,200 a kilogramme at auctions, the same tea retails for US$ 40-50 overseas. Producers retain less than one percent of the profit, making it almost impossible to reinvest in improvements.”
Another challenge is the burden of certifications and compliance requirements by European and UK markets – without any measurable and quantifiable financial benefits to producers, who spend considerable sums on certifications and allied processes.
Addressing these challenges requires coordinated efforts by the government, industry stakeholders and trade bodies. “We need informed policy-making based on scientific and rational realities, facts, less barriers and a focus on promoting the unique qualities of Sri Lankan tea,” he concludes.