Russian asbestos bugs Ceylon Tea
Ceylon Tea has been slapped with a temporary ban by Russia, Sri Lanka’s biggest tea buyer, in a tit-for-tat reprisal over the planned ban in Sri Lanka of the import of Russian chrysotile or asbestos roofing material. While the asbestos ban is effective from 2024, import restrictions come into place from 2018.
While brokers and exporters were scrambling after news broke out of the tea ban, reported on Thursday night in a Reuters news agency dispatch from Moscow, Sri Lankan authorities in Russia and in Colombo were wiring up for talks with the former Soviet bloc to get the ban lifted.
Plantations Minister Navin Dissanayake and Industry and Commerce Minister Rishad Bathiudeen are expected to travel next week to Russia to meet the relevant authorities there to iron out matters. Meanwhile, in a bid to overcome the asbestos issue, Science, Technology and Research Minister Susil Premajayantha will visit Russia on December 21.
Russia despite its reduction in importing Ceylon teas is still the largest buyer of the product from Sri Lanka. Russian authorities, according to the Reuters report, imposed the ban after an insect, known as the Khapra beetle, was discovered “in the packaging of one consignment of tea from Sri Lanka”.
Sri Lankan Ambassador in Russia Saman Weerasinghe has been in touch with the relevant authorities in Russia over the past 24 hours. Minister Dissanayake told the Business Times that the Sri Lankan ambassador is visiting the plant and quarantine department to obtain a full briefing on what had transpired. He noted however, that Sri Lanka would not want their diplomatic relations to be affected due to this issue and the government is in control of the situation.
Sri Lanka Tea Board Chairman Dr. Rohan Pethiyagoda said that “while there are rare occasions in which foreign matter finds its way in tea – we will work with the authorities to find out how we can do additional checks and processing so they have an assurance that Ceylon Tea is world famous.”
Dr. Pethiyagoda explained that the Russian authorities have stated that they have found a grain beetle called “Trogoderma granarium” in the tea packaging.
Local authorities and industry experts say the talks on the intended ban on chrysotile imports by Sri Lanka most likely had tested Russia’s patience following appeals made by them to refrain from the asbestos ban. Russian diplomats have backed calls by the local roofing industry to stop the ban saying there is no clear evidence that such roofing sheets are hazardous to health.
Russia is currently the highest importer of Ceylon Tea, in the first 10 months of this year, buying 29.5 million kg of tea valued at US$23 million. This is about 12 per cent of the direct earnings made by the country from this market alone and also amounts to 12 per cent of total shipments of tea made so far. Sri Lanka shipped to Russia 48 million kg of Ceylon Tea in 2011 and since then volumes fell to 36 million kg in 2015.
The tea suspension, according to industry analysts, could have a disproportionate impact on the price determination in other markets as the buying impact in one market causes other markets to move as well. Moreover, it was noted that the high value black tea high grown grades commonly shipped to Russia could potentially weaken.
The asbestos ban came when the Cabinet decided in September 2016 to control the import and use of non-eco-friendly asbestos in Sri Lanka.