Tuesday, January 24, 2017

A total revival of tea, coconut and rubber underway

Supply and demand is the decisive factor for tea, rubber and coconut markets.Two years back tea was priced Rs 300 per kilogram.Now it has marked a stable price of Rs 500 and this is a positive gesture for tea smallholders, Plantation Industries Minister Navin Dissanayake said.

The Minister said a total revamping is being done as regards planting and selling of the three major crops tea, coconut and rubber and in 2017 new export markets will be developed for these crops. Drought relief and fertilizer concessions will be given to three sectors.

“China, Syria and Middle East are potential new markets for Ceylon tea. Russian market has to be secured again. Our global campaign will commence in April”, he said.

“Around 20 mn kilos of refused tea enter the marketplace.Currently these come to auctions as an off-grade commodity via RPCs (regional plantation companies). We intend to change policy to pave way for private sector to openly enter the selling process. It will be regularized by the ministry and the private sector must obtain ISO 3720 standards to make sure the quality of their tea is never comprised.   It will create a win-win situation”, Dissanayake said.

“Rubber will be cultivated afresh in a 7000 hectare area this year. Rubber price has consolidated and fresh tapping will be commenced in March. For replanting Rs 175,000 is given now. It will be increased to Rs 325,000. An investment of US$ 65 million by IFAD will be used for replanting especially in areas such as Moneragala.

The tyre factory commissioned in Horana is a good investment that will add value to the economy and secure a new market for small rubber estate owners.

As regards coconut, currently there is a scarcity for nuts. The total current demand for local consumption and exports is 3500 million nuts.Yet the current supply is 3000 million nuts.

Hence we intend to plant 500 million coconut seedlings in 2017.Treasury has granted Rs 750,000 million for replanting.We have targeted to do plantations in North and East to increase the volume of nuts. This year we will emphasize on developing the Northern coconut triangle”,the Minister said. 

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