Reforestation plan for tea plantations

TEA: With a volume of 6.45 Mkg arriving at the Colombo Auction this week, a continuous pattern of quantities of between six and seven million kilos has been evident since the latter part of May. This weeks Ex-estate quantities totalled 1.07 Mkgs.

Due to the Libyan buyers being inactive during the sale, prices of OP and OPA grades fell from last week’s levels with many of these teas remaining unsold.

However, on the whole Pekoe’s did move up further, irrespective of category. Wirey teas maintained last levels. Well-made best FBOP’s and FF1’s were a little lower at the start before moving up towards the latter part of the sale. Iran was active this week while buyers from Dubai were moderate and the CIS buying very selective.

News has also emerged that the Iranians are asking the local exporters to register for a food hygiene certificate similar to the HACCP and ISO certificates.

Stores where tea blending is currently taking place will need to part with a fee of $6000 in order to register for the new certificate upon which an Iranian official will visit their site and conduct tests and video the premises.

If these evaluations are found to be satisfactory, the certificate will then be issued according to sources inside the industry.

The Plantation Ministry has this week announced plans to launch a program of reforestation that includes small and large tea cultivation.

Whilst this drive will meet the crop cultivation needs of the industry it is also aimed at addressing the peripheral areas like the firewood requirements for tea factories.

Official data indicates that most of the plantation owned tea crop lands are over a hundred years old whilst the majority of small holder lands are over thirty years old.

During a seminar on global warming at BMICH this week, a leading environmental consultant is reported to have said that the tea plantations are at risk of being severely damaged by the anticipated climate change.

He is quoted to have said that plantations in the most vulnerable areas of law and mid country are most likely to be owned by small holders. These plots of less than one acre will be in need of Government intervention if they are to survive the wrath of global warming.

The currency hardly moved this week, selling at Rs. 111.40 against the dollar and buying at Rs. 111.38 in the inter-bank market last Wednesday.

This Wednesday it was still selling at Rs. 111.40 and buying at Rs. 111.30. In the plantation stocks, five were up, eight were down and five remained unchanged, week-on-week.

Source: The Research Intelligence Unit (2007) Bartleet Produce Marketing.