Ceylon Tea

Since the initiation of commercial tea cultivation in Sri Lanka by Scottish planter James Taylor, eventually this fine tea became one of the most favorite teas among tea lovers all over the globe. As ECONOMYNEXT had reported, Sri Lankan tea export revenues in rupee rose 11 percent to 21.7 billion rupees, partly helped by currency depreciation while tea exports volumes fell 2.07 percent from a year ago to 23.16 million kilograms in February 2021

The average FOB (free on board) price increased to 940.09 rupees in February 2021 from 827.38 last year, data from Ceylon Tea Brokers, a Colombo based brokerage showed.

Bulk tea exports increased 1.49 percent to 9.85 million kilograms, tea in packets dropped 7.68 percent to 10.57 million kilos, tea in bags increased 5.3 percent to 2.05 million kilos.

Instant tea grew 42 percent to 324,000 kilograms. In the first two months of 2021 tea exports were down 3.85 kilograms to 43.98 million kilogram. Revenues rose 8.9 percent to 41.01 billion rupees.

Turkey retained its place as the top buyer of Ceylon Tea, taking 6.5 million kilograms in the first two months of 2021. Russia too 5.0 million kilos, down from 5.54 million. Iraq bought 4.1 million kilograms from 6.9 million kilograms. China became the fourth largest buyer in the first two months taking 3.0 million kilos, up from 1.3 million last year, beating Iran which is usually in the top 5. Over the past three years, China has emerged as a top buyer of Ceylon Tea. (Colombo/Mar28/2021)

From Jan – Feb 2021

Tea exports of 2021, indicate Rs 41 billion, as compared to the beginning of last year of revenue of Rs 38 billion. The FOB price of tea had increased from Rs. 832 to Rs 932. According to a Tea Board official from the period of January to February tea auction value has increased from Rs 595 to Rs 645.

Future

Sri Lanka tea is targeting to export 295 – 300 mn kgs of tea this year, and more than 100 countries are importing Lankan tea. Sri Lanka Tea Board is processing to promote and artisanal teas, Ceylon green tea and organic teas to very specific markets segments.

Further, Sri Lanka Tea Board is having plans to approach African and North American markets and regain the lost markets also. The high standard of ‘Ceylon Tea’ quality, wellness factor associated with premium black teas offered by Sri Lankan exporters.

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References

1. Main Source: https://economynext.com/sri-lanka-tea-exports-down-2-pct-in-feb-2021-china-buys-more-80188/
2. More Information: https://www.msn.com/en-xl/asia/srilanka/tea-export-income-increases-to-rs-41-bn/ar-BB1eYo6S

Even though Tea has got a history of more than 5000 years, Ceylon Tea coming from the resplendent island nation Sri Lanka has got a short history of 153 years. Since the initiation of commercial tea cultivation in Sri Lanka by Scottish planter James Taylor, eventually this fine tea became one of the most favorite teas among tea lovers all over the globe. While marketing Ceylon Tea worldwide, Sri Lanka Tea Board also regulates the quality of Pure Ceylon Tea. Below is the review done by this reputed semi-government body for the year 2020.

Hope above review will be helpful for Sri Lankan tea lovers. Tea is serious business in Sri Lanka. Ten percent of country’s population is involved directly or indirectly in the tea industry. Formerly a British colony known as Ceylon, this small Indian Ocean island is famed for producing the finest black tea in the world, grown and produced according to uncompromising, traditional methods and standards. Since the 1880s, Ceylon tea has been the country’s principal and most famous export; for generations, it formed the backbone of the Sri Lankan economy, and plays a major part, even today, in the country’s fortunes.

Ceylon Tea is healthy, refreshing, stimulating (alkaloids) and relaxing (L-theanine). So it’s high time for a humble sip of Pure Ceylon Tea. It’s a true enhancement in a cup !

Click here………… to learn more about Ceylon Tea.

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References

1. Main Source: http://www.srilankateaboard.lk/

It’s true that Ceylon Tea hasn’t got a long history as Chinese tea. Tea was first grown commercially in Sri Lanka (Ceylon) by the Scottish planter James Taylor in 1867. Eventually Ceylon Tea became one of the finest tasting teas in the world thanks to her overall, well balanced tasting profile with ideal strength, body, aroma and flavour. During this short history, Asia’s Sweetheart (Sri Lanka) had the honour of having highly skilled plantation workers, specially tea pluckers. With no doubt They are the unsung heroes who really contributed for the betterment of “Pure Ceylon Tea”. 

According to the GAZETTE EXTRAORDINARY OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA released on 05.03.2021, Sri Lankan plantation worker salaries increased as below,

The minimum rate of daily wage for time work
i. Minimum daily wage Labour – Rs. 900.00 (Roughly USD 4.73)
ii. Budgetary Relief Allowance – Rs. 100.00 (Roughly USD 0.50)

So all together it’s around USD 5.23 per day. This decision should be valid with effect from 05th March 2021.

EARLIER EARNINGS OF CEYLON TEA PLANTATION WORKERS

Earlier, tea plantation workers must be paid a minimum of LKR 680.00 (USD 3.57) a day, subject to satisfactory attendance during the month. In addition, they are paid EPF at 12% of basic salary of Rs. 545.00 and 3% for ETF, making the total wages Rs. 761.75 (USD 4.00). Sri Lankan tea plantation workers generally work only for about 6 hours from 0730 h to 1330 h including 30 min for a tea break. They have to stop tea plucking early so that the day’s collection could be handed over after weighing to the lorry which arrives around 1400 h. A tea plucker works for a maximum of 22 days a month since it takes about a week for a new shoot to develop to be plucked again.

Click here……. to learn more about other benefits enjoyed by Sri Lankan plantation workers.

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References

1. Sri Lanka Government Gazette: https://www.gazette.lk/

Ceylon Tea coming from the resplendent island nation, Sri Lanka is recognized for her well balanced tasting profile by tea connoisseurs all over the globe. Sri Lanka Tea Board is the government body which is responsible for international promotion of Pure Ceylon Tea and regulating the quality of tea exports. By the mean time, As Sri Lanka Tea Board had reported, Finance Minister Hon Mahinda Rajapaksa has appointed Mr. Jayampathi Molligoda to the Board of Bank of Ceylon (BOC). Mr. Molligoda is also the Chairman of Sri Lanka Tea Board.

Mr. Molligoda’s Career Record

• 1982-1984: Senior Accountant at Ceylon Plywoods.
• 1984-1990: Chief Accountant at the Janatha Estates Development Board
• 1991/1992: Senior Finance Manager at Associated Newspapers of Ceylon Ltd. during the period
• 2004-2015: Chairman of the Independent Audit Committee of Finlay Teas, Colombo.
• 1992-2019: Appointed as The Director – Finance, Bogawantalawa Tea Estates PLC (BTE). He served as Executive Deputy Chairman/CEO at Bogawantalawa Tea Estates PLC (BTE) till 10 December 2019

Mr. Molligoda is also a freelance writer who has contributed to national newspapers and professional journals, covering subjects such as the plantation industry, private sector business development, economic development, poverty alleviation, and legal and constitutional affairs. 

Mr. Molligoda is a Council member of the Institute of Chartered Accountants of Sri Lanka.

Education

The Chairman is a past pupil of Ananda College, Colombo. He obtained his MBA from the Postgraduate Institute of Management in 1998 and has also successfully completed an Executive Strategy program at Victoria University Melbourne, Australia. 

Experience

Mr. Molligoda has got over four decades of executive experience in the fields of finance management, strategic planning, human resource development, plantation management, and the international marketing of tea. He was conferred the Professional Excellence Award at the CMA National Management Accounting Conference held in June 2014.

Click here…….to learn more about Ceylon Tea.

Click here…….to learn more about Bank of Ceylon.

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References

1. Main Source: http://www.srilankateaboard.lk/index.php/component/k2/item/229-tea-chief-molligoda-appointed-to-boc-board
2. More Information: http://www.ft.lk/front-page/Tea-Chief-Molligoda-appointed-to-BOC-Board/44-713555

Ceylon Tea coming from the resplendent island nation Sri Lanka is considered as one of the finest tasting teas in the world. Tea plays a vital role in Sri Lankan economy. Ten percent of Sri Lankan population is dealing directly or indirectly with tea industry. COVID 19 pandemic hit a lot to Sri Lankan economy by reducing revenue from expatriates, apparel and tourism. By the way, as Steve A. Morrell reported to The Island, Asia Siyaka Tea Brokers said in their weekly market report that Rs. 19.2 billion (US$ 108 million) earned from tea exports in January 2021 was a healthy indicator, which reflected a six per cent increase over Rs. 18 billion (US$ 101 million) earned in the corresponding period in 2020.

The Sri Lanka Tea Board mentioned production in January 2021 was 23 million kg, a year-on-year rise in comparison to 21. 9 million kilos in the same period 2020.

Planters in Maskeliya area belongs to Dimbulla tea growing region attributed the enhanced crop to continuous growing weather conditions through January, leading to a crop upsurge resulting in positive results for the industry.

When it comes to the low elevation grown sector (Ruhuna & Sabaragamuwa), comprising mainly tea smallholders, year-on-year, gain was 14. 9 million kilos, which contributed to the positive results. Western (Dimbulla) and mid grown (Kandy and some areas in Uva) results, although positive, were not as high as low growns.

Turkey was the No 1 Ceylon Tea importer during mentioned period at 3.8 million kilos. Russia, Iraq and China, the report said, increased their imports at about 80 percent of the total market.

In addition, Exports were also recorded to select European markets and to the US. Such exports were described as minimal, but significant because of the possibility of increasing market conditions to these countries was a further indicator which Ceylon Tea was a positive brand.

Tea market sources said buyers in Germany, who considered Ceylon Tea as a recognized brand, laid more emphasis on Darjeelings and teas from Kenya, which were now in the preferred category.

Sri Lanka should ramp up its marketing campaign, the source suggested.

Pakistan and Egypt which were two of Sri Lanka’s major buyers has now switched to Kenya. Ceylon Tea to Pakistan was barely two percent.

The tea smallholder sector in Sri Lanka continues to contribute around 75 percent of the production to the industry. There are around 400,000 smallholders who continue to contribute a major slice to the industry.

This is some relief to Sri Lankan economy in a situation when the country’s revenue has been affected a lot by COVID 19 pandemic.

Click here……..to learn more about Ceylon Tea.

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References

1. Main Source: https://island.lk/tea-export-earnings-up-by-6-in-jan-21-over-same-period-last-year/