Drought-hit tea plantations have witnessed a significant drop in production between-50-80 per cent as smallholders and factories note a decline in teas made available. In fact a new trend has been started in that the auctions are now allowing for smaller quantities to be accumulated. Planters Association spokesman Dr. Roshan Rajadurai noted that while this [...]

Business Times

Drought hit Ceylon Tea, stocks drop by 50-80%

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Drought-hit tea plantations have witnessed a significant drop in production between-50-80 per cent as smallholders and factories note a decline in teas made available. In fact a new trend has been started in that the auctions are now allowing for smaller quantities to be accumulated.

Planters Association spokesman Dr. Roshan Rajadurai noted that while this week’s auction quantities is a reflection of the drought impact recently, however, they believe that with the rains coming back the conditions will improve and production will increase.

He noted that today the concern is the affordability of the fertiliser in the market due to the high prices. Dr. Rajadurai explained that compared to the past the fertiliser is used at a lower level although it is today available. And despite the availability of a number of sellers the prices remain high and smallholders and RPCs both are impacted by the increased costs.

Galle Kalutara Tea Smallholders Association President Ushan Samarasinghe told the Business time that a reduction in output was evident ranging between 50-80 per cent depending on the different areas.

He noted that in areas like Balangoda a drop of 70-80 per cent was noted while other areas observed a drop of 50 per cent in production. Meanwhile the auctions are also feeling the impact of the drop in output as smaller quantities of teas than normal have been permitted and only about 5 million kg per auction have been on offer.

In other tea producing countries like in South India similar dry weather has been observed while North India is experiencing similar showers. Kenya however is facing a unique situation in that though it may be losing some production due to the weather, it has some unsold stocks since they had placed a price limit on these quantities.

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