War spikes Ceylon Tea production costs
Ceylon Tea is facing tough times as prices for the product is dropping amidst a 10-15 per cent cost escalation.
Cost of production of world renowned Ceylon Tea has increased to around Rs.1400 per kilo of tea, Hayleys Plantations Managing Director Dr. Roshan Rajadurai told the Sunday Times Business.
Traders are said to purchasing stocks as prices this week were down by Rs.50-60 whereas costs of fertiliser and fuel have gone up by 50 per cent and 40 per cent respectively.
It’s going to be challenging in future as cost of transport, electricity, firewood and fertiliser surges ahead, he said. The tea industry has seen worse times and so far though the situation is not normal but it has still not reached a critical stage, Dr. Rajadurai said.
The Government has given priority to the tea industry, he said adding that however, this was on a limited scale.
It was pointed out that the costs are a concern as collecting the leaf from the field and bringing it to the factories and then to the auction in Colombo requires adequate fuel obtained at high prices.
Meanwhile, the government has stated now after six months that wage increase proposed by the state will be debited monthly to workers’ bank accounts directly from the Treasury. When this new wage increase was proposed the government agreed to initially send the full payment required to be made to the workers to the respective companies that would then distribute it accordingly.
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