THE GOLDEN VALLEY OF CEYLON TEA

THE GOLDEN VALLEY OF CEYLON TEA

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Saturday, 27th September 2014

Lakshman I.Keerthisinghe LLB, LLM.MPhil, Attorney-at-Law

Not often is it that men have heart when their one great industry is withered, to rear up in a few years another as rich to take its place, and the tea fields of Ceylon are as true a monument to courage as is the lion at Waterloo

- Sir Arthur Conan Doyle, creator of Sherlock Holmes

Tea plantation was firstly introduced to Sri Lanka by James Taylor in year 1867. The Tea Country is the most scenic part of Sri Lanka with breathtaking views of mountain ranges and ravines, of winding roads and waterfalls. It is home to one of the most significant landmarks in the country, Adam’s Peak, the second highest peak at 7360 feet but second to none in its cultural importance.

The sacred mountain holds significance to Buddhists, Muslims and Christians alike. Almost daily, hundreds of devotees make the six hour trek to the peak, climbing thousands of steps to welcome the dawn – one of the most spectacular sights in Sri Lanka.

In central Sri Lanka, just four hours from Colombo by car is the Castlereagh Lake, which lies amidst the Bogawantalawa Valley, known as the Golden Valley of Tea and home to old Ceylon, replete with rolling green hills, plantation bungalows, high tea and exquisite service. Here in solitude, at an elevation of 4,000 feet above sea level is located Ceylon Tea Trails, four classic colonial bungalows built for British tea estate managers in the days of the Raj.

These historic houses have been restored with the co-operation of Bogawantalawa Tea Estates, to offer guests the unique experience of life on a working tea estate. Bungalow sizes range from standard rooms, luxury rooms and suites in all bungalows. Life in all its variety is played out in the living rooms. Pale tones and natural wood create equilibrium in the midst of a hectic life.

Each bungalow has many sitting areas, old wooden desks to write postcards with real stamps and not just email. Silk cushions, regency stripped footstools, huge spaces warmed by roaring log fires. Mulled wine or the finest spirits, a drink that thrills the heart could be obtained. Old books, old prints, antique maps, rooms filled with flowers in vibrant colours with wide verandahs which herald a time for relaxing on cushioned cane chairs, waited on hand and foot by the discreet butler. Long expanses of slate to spend long afternoons with a gimlet, white wine and cucumber sandwiches or fresh roasted cashew nuts.

z_p07-The-Golden02.jpgOne is able to watch the lake and study the garden bees, while reading Somerset Maugham. One may unwind in the beautiful gardens, visit a factory for a gentle education in the art of Ceylon Tea or spend an adventure-filled day biking, trekking and white-water rafting. It is indeed an unforgettable holiday that will rejuvenate the spirit in the heart of a magical world of Ceylon tea.

Breathtaking views of mountain ranges and ravines

The Tea Country is the most scenic part of Sri Lanka with breathtaking views of mountain ranges and ravines, of winding roads and waterfalls.

It is home to one of the most significant landmarks in the country. Each of the four bungalows is different. Summerville, with an air of a country cottage, Castlereagh with an eclectic style of its own, the high colonial Tientsin; one of the first planter’s bungalows to be built in Ceylon and the more modern Norwood; abounding with 60s character.

Summerville and Castlereagh are situated opposite each other on the shores of the Castlereagh lake, Norwood is at the other end of the valley about 15 minutes away by car and Tientsin is about 30 minutes away in the next valley.

Traditional English afternoon tea is an intrinsic part of plantation life, a much-appreciated ritual served on the bungalow lawns by immaculately sarong clad “appus.” High Tea comes replete with a traditional tea service, dainty cucumber sandwiches, scones, fresh cream and strawberry jam. Sweeping lawns and swimming pools: English gardens filled with roses, dew-filled agapanthus and spring crocus.

Tea on the lawn, with Dundee cake, scones, strawberries and cream or lunch alfresco by the pool, a 180-degree view of the viridian lake and mountains behind, a summerhouse to meditate in or watch the forest wagtail flit from tree to tree. A range of pampering in-room spa treatments by expert therapists trained at the Spa Academy. Tennis, swimming, croquet and indoor board games all come together for a leisurely lifestyle. (Outbound Holidays)

Research activities of plantation crops

As quoted at the outset of this piece Conan Doyle refers to the heroics of the early Ceylon planters and the disasters they overcame to mould the present tea industry. In 1865 the coffee plantations were devastated by blight. The plucky planters fought back and planted tea. The reversal was dramatic as the extract relates. From utter despair and penury to endless green acres. Over 200,000 hectares of rolling tea carpeted hills make Sri Lanka the world’s largest exporter. Nimble pluckers still handpick “two leaves and a bud”. Tea from Sri Lanka is still known by the country’s former name as Ceylon Tea, a name synonymous with the finest tea.

The government in line with its national policies, implemented through the Ministry of Plantation Industries mainly undertakes the activities such as formulation, implementation and handling of policies, programs and projects related to the subjects of tea and rubber of the statutory bodies coming under the preview of the Ministry, the functions related to the development and researches of the tea and rubber industries and the issuance of licenses and control of the fragmentation of tea, rubber and coconut estates.

Since the promotion and research activities of the plantation crops which were not specifically assigned to any other Ministry are also coming under the scope of this Ministry, the activities related to the expansion of oil palm cultivation have also been carried out. Sri Lanka Tea Board, Tea Research Institute of Sri Lanka, Tea Small Holdings Development Authority, Tea Shakthi Fund, Kalubowitiyana Tea Factory Ltd., Thurusaviya Fund, National Institute of Plantation Management and Tea, Rubber and Coconut Estates (Control of Fragmentation) Board are functioning under the purview of this Ministry in order to carry out the above activities.

In addition, the Smallholder Plantations Entrepreneurship Development Programme (SPEnDP) funded by the International Fund for Agricultural Development (IFAD) is implemented by the Ministry of Plantation Industries under the contribution of Government of Sri Lanka.

Foreign exchange earnings

At present, tea and rubber production belonging to the agricultural sector contribute about 1.4 per cent relatively to the Gross Domestic Product (GDP) of Sri Lanka. The foreign exchange earnings from tea and rubber based industries amounted to Rs. 305,612 million (US$ 2,395 million) in the year 2012 and the No. of employment opportunities generated in this sector is approximately 1.5 million.

In addition to the foreign exchange earnings and generation of employment opportunities, the contribution of the tea and rubber sectors towards the Sri Lankan economy is further significant in respect of the fields such as business promotion, rural and socio-economic development, poverty reduction and environmental conservation as indicated in the Ministry of Plantation Industries – Progress Report 2013.

The following principal activities were carried out for development in the plantation sector in comply with the Policy framework of the Government of Sri Lanka formulated in year 2010 which included enhancing the productivity of cultivated lands in the plantation sector, increasing the annual rate of tea and rubber replanting, promoting the new planting in non-traditional areas, implementing research and development programs and promotion, value addition for goods and services and promoting brand names and protection and conservation of the ecosystem through the sustainable use of the lands.

In line with the Mahinda Chintana policies, the strategic development objectives identified by the Ministry of Plantation Industries for the period from 2013 – 2016 are the increase of foreign exchange earnings, retaining the cost of production at a low level, enhancement of the profitability of the tea small holders and the Plantation Companies, uplifting the living standard of the Plantation Community, supply of high quality products to the consumers and sustainable development through the environment conservation.

Six performance indicators have been identified with the purpose of achieving medium term development objectives of the Ministry which are the amount of foreign exchange earnings from tea and rubber, productivity (Increase in the yield per a land unit), replanting rate of tea and rubber lands, extent under new planting, quantity and value of value added products and the low production cost as against the selling price as indicated in the Ministry of Plantation Industries – Progress Report 2013.

The Medium Term Development Plans of the Ministry indicates that up to 2016 it envisages enhancement of the foreign exchange earnings up to US$ 2,550 million and US$ 2,090 million from tea exports and rubber exports respectively, increase of the tea production and natural rubber production up to 355 mn kg and 190 mn kg respectively, supply of 50 per cent of the total tea production.

The program for mechanization of tea plucking in the tea small holding sector was implemented. Necessary steps were taken to develop nurseries and establish new nurseries at District level to meet the requirement of high quality tea plants in each District itself.

Action was taken to make new fertilizer recommendations for improvement of the productivity on the findings of the adoptive researches conducted in 26 locations of the country, having considered the views and proposals of the tea small growers.

Promotion campaigns were conducted to establish “Ceylon Tea” brand name globally and locally. A Memorandum of Understanding was signed by the Tea Small Holding Development Authority and the Bank of Ceylon to implement a special credit scheme enabling the tea small holders to obtain a loan up to Rs. 0.5 million by cash.

The tea plantation of Sri Lanka has expanded to 123 Divisional Secretaries’ Divisions of 14 Districts in Up - Country, Mid- Country and Low-Country in Sri Lanka and the total extent of cultivated lands reported at present is approximately 203,020 hectares. To ensure the future of the tea industry and promote Ceylon Tea to be the main partner in the global beverage market through strengthening the tea small holding sector and the corporate sector for sustainable development. The tea production in year 2012 was 328.4 mn kg. It is projected that the said quantity will be 335.2 mn kg in the year 2013. Accordingly, a considerable increase of 2 per cent is expected in the tea production of the year 2013 as against the tea production of the year 2012. The total tea production up to August 2013 was 223.5 mn kg showing 4 per cent increase compared to the production of 215.1 mn kg recorded during the corresponding period of the year 2012.

Colombo tea auction

The average price of tea at the Colombo tea auction which was stood at Rs. 382.23 per kg in the first eight months of the year 2012 has increased by 10.9 per cent up to Rs. 424.04 per kg during the corresponding period of the year 2013. Further, the FOB price in the first eight months of the year 2012 including the re-exports, amounted to Rs. 552.59 per kg and it was recorded as Rs. 599.70 per kg in the corresponding period of the year 2012. It is a considerable increase of 8.5 per cent.

Tea cultivation has expanded to the extent of 203,020 hectares of which 120,955 hectares (59 per cent) are contributed by the tea small holding sector. Further, 72,684 hectares (36 per cent) are owned by 20 Regional Plantation Companies and 9,381 hectares (5 per cent) are managed under the government institutions. The average land extent of a tea small holding is approximately 0.33 hectares and in pursuance of the criteria available at present, an extent of four hectares or less is defined as a tea small holding.

The tea small holding sector expanding in 3,692 Grama Niladharis’ divisions of 123 D.S. divisions in 14 tea growing districts of Sri Lanka, represent the majority of the total extent of tea lands and it has expanded immensely in eight Districts such as Ratnapura, Galle, Matara, Kandy, Badulla, Kalutara, Nuwara Eliya and Kegalle. At present, the total extent of tea lands cultivated by the tea small holders including immature and mature tea lands (less than 20 perches) is 118,275 hectares that is 60 per cent of the total tea lands.

The tea small holding sector secures the foremost place in the tea production of Sri Lanka at present and the tea small holders had produced 141,21 mn kg that is 72 per cent of the total tea production of 196.55 mn kg recorded up to July 2013. Majority of them are produced in Ratnapura, Galle and Matara District respectively. Further, tea small holding sector contributes about 95 per cent of the low grown tea production and the annual average replanting extent under the government subsidies is 836 hectares.

The fertilizer subsidy granted to the tea small holders under the National Fertilizer Subsidy Program of the government as well as granting a subsidy of Rs. 350,000 per hectare for encouraging replanting of tea by year 2013 and a subsidy of Rs. 250,000 per hectare for new planting have mainly caused for the encouragement of the tea small holders. Further, research and extension services implemented by the Tea Research Institute and Sri Lanka Tea Board have also caused for the improvement in the productivity of this sector.

The cost of production per kg of green leaf in this sector was Rs. 49.50 in the year 2012 and the value has increased to Rs. 49.71 that is, by 21 cents (0.42 per cent) up to July 2013.As well, the main issues further met by the tea small holding sector are the higher cost for labour, decreasing the quality of green leaf, reducing the yield from senile tea plantations, giving more (Ministry of Plantation Industries – Progress Report 2013). Under restructuring of the large scale estates owned by the government, 23 private plantation companies were established in year 1992 and management of the said large scale estates was entrusted with them.

Subsequently, the estates were leased out to the said companies for a period of 53 years from the year 1995. 72,684 hectares have been cultivated with tea under 20 plantations among the said companies and further 9,381 hectares have been cultivated in the large scale estates under the institutions coming under the government. At present, the contribution of this sector to the total green leaf production is about 28 per cent.

The corporate sector in the field of tea production of Sri Lanka plays a significant role in the manufacturing process of “made tea” and a considerable quantity of green leaf of the tea small holders is purchased by the corporate sector. Therefore, about 40 per cent of the total tea production is produced under the corporate sector.

International market

Although the average cost of production per 1kg of made tea in corporate and private sector tea factories was about Rs. 390 in the year 2012, the average sale price per kg of tea in high grown, medium grown and low grown areas has increased by Rs. 46, Rs. 30 and Rs. 25 respectively as against year 2011. As well, the average sale price of tea per kg in high grown, medium grown and low grown areas in year 2013 has increased by Rs. 19, Rs. 42 and Rs. 54 respectively as against year 2012. Accordingly, it is obvious that the amount of dividends of the producer has increased in year 2012 as against year 2011 and in year 2013 as against year 2012.

Russia is the main destination of our tea in year 2013 as well as year 2012 and it is 29.57 mn kg that is, 14.78 per cent of the total tea export.

The Cess income earned from tea exports for the period from January to August 2012 amounted to Rs. 1,302 million and it was Rs. 1,458 million during the corresponding period of the year 2013 showing 12 per cent growth.

About 44 per cent of the total tea export of Sri Lanka is value added products such as tea packets, tea bags and instant tea. Sri Lanka contributes the largest amount of value added products in the international market and the amounts of India and Kenya are 12 per cent and 9 per cent respectively. During the period from January to August 2013, about Rs. 59.68 billion was earned from the sale of 82.72 mn kg of value added products.

In conclusion, it must be stated that export of Ceylon Tea was one of the major foreign exchange earners for our motherland and with the efforts of the government it would be a major foreign exchange earner resulting in the prosperity of the Sri Lankan nation. 

From : http://www.dailynews.lk/?q=features/golden-valley-ceylon-tea

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