Can you give us some background information, historical background, main Activities and the structure of the Sri-lanka Tea Board?
Before the Tea Board came in to action this was called Tea Propaganda Board, which was run by the private sector, they traveled in the country by giving lectures and serving free tea at various functions and meetings. But in 1976 Tea Propaganda was voted out by the parliament at that time Plantation Industry Minister Dr. Colvin R. De Silva decided to convert the Tea Propaganda to the now known as Sri-Lanka Tea Board with the powers to the tea industry. It has been here since.
The purpose of the Tea Board is to represent various sectors that are appointed by the Minister in charge of the plantation Industry. They are Plantation Sector; Export Sector, Broking Firms, big Plantation company trade sector, Private Factory Owners Association, and the Export Development Board, though they are from another ministry. 12 members, each represented by their respective boards and two by the Private factory Owner Association altogether make up the Board. The meetings are held once a month hence, if an urgent matter arises then the sub-committees will hold meetings in between themselves to resolve the issue.
At the meeting we go through the days agenda, the main functions of the Tea Board is the
overall control of the tea industry, of which 75% is connected to the export section; we do not handle that much of the plantation sector's activities. We have our own regulations for exports, we control the export division, a0nd our main task is to keep the quality of exported tea high. We are very strict in this as there are some factories that try to send low quality tea out of the country.
We have a tea export branch that handles all the necessary tests and measures the quality of the tea. They examine each sample that leaves the country. These officials would walk into the stores and draw random samples from the consignments that are ready to be exported as well as before they enter in to the auctions sales, the tea is been tasted by the tasting department. If it is below the minimum ISO 3720 standard, which is 16.5% crude fiber, 1% sand, those standards as well as the appearance of the tea is important. One of the other factors is the chemical contaminations will be analyzed by the government analysis. Each blind sample that has been sent is number coded, if any samples that has been sent are contaminated they would be destroyed under the supervision of my officers, though this is a rare occurrence. Analyzing does not stop here; at the point of export we also take random samples from the packed tea.
We reanalyze for the purpose of finding out about the originality of the tea. If the tea examined does not pass, if the test fails, we do not allowed the particular consignment to be exported. This has happened about 4-5 times, the owners of the consignments excuse is that the poor countries such as Yemen could only afford low prized tea, yet that does not mean low quality tea, the fact remains that if it distributed amongst others it will hold our label. Tea Board would not let any consignments to be exported without it having been passed by export branch test and the tasting department. In some rare occurrence lager consignments such as two full containers has been brought back at the owners expense, as the samples that had been already sent would differ to the consignments sent later. The poor quality could have been in the middle of the containers out of reach from the officials. The rejected consignments would be destroyed under the supervision of my officials to prevent from the human consumption.
I have been in this field for over seven years, though I am thinking of retiring as I think I have done my duty for the country, the only thing that has been holding me back is the three projects that I have started. One of them is the new building that I have started for our HQ, but my main project is the Tea Museum in Kandy. The whole tea world does not have a Tea Museum. We are the first to have begun such a project. I had this in my mind for over twenty years; I could not get the idea off the ground because of some obstacles, after I came in to this position I have formed a new board to go ahead with this project and we are hoping to open it in mid October.
It is in the Hantane estate tea factory. A commercial company has refurbished it as it was in a very bad condition. Even our Prime Minister was very impressed with the whole idea of the new project.
India was the first country to grow tea and Sri-lanka followed afterwards, yet we do not have anything to show for the future generation about how it all started. The building is four storied; it is a typical Tea factory. Starting with the ground floor: This has machinery falling back to very first stages of the plantation era and we are hoping to get some of the machinery to get into working condition for the benefit of the tourists. In the first floor we have put up some pictures of old estates, furthermore on the same floor we will be having a separate section for the James Taylor museum. In 1830 this Scotsmen introduce tea to Sri- lanka in the Kandy district. We move it from its present location as it was badly neglected because it is out of the way of tourist and no one goes to visit it. On the second floor we have withering taps where the leaf is withered naturally by fresh air but this is also an ancient method. These are all for the benefit of the visitors. The third floor will be full of teashops for the exporters. Finally, the fourth floor would be a restaurant run by a hotel in Kandy.
So far only China and Japan have opened up tea museums yet they do not have any relevance to the tea industry. Japan opened up the museum last year, it is more of a modern building with models of machines and China is more focused on green tea as they do not produce a lot of black tea. Our Museum has actual machines that have been used in the tea industry. Along with this project a two-storied building with 64 beds is being constructed for injured soldiers, which at the moment is located in a place call Ranavirusevena. This place is getting over crowded, for this reason I have involved the wealthy people in Sri -lanka to fund this project. After completing this project I am thinking of stepping down from the industry as I have done something worthwhile for the country.
In the tea industry, is tea the third largest foreign exchange in Sri-Lanka?
No. I challenge any body that could say that. Tea is the largest net foreign exchange earner in Sri-Lanka. I challenge the Central Bank reports through the papers. They go under gross income in the garment industry. I worked in the garment industry for three years. They import every thing from the material to the button. What we get in Sri-Lanka is CMT (cut, machine, trimming) the cost of this would be $2 per shirt. Since everything is imported that is not the net foreign exchange, tea on the other hand is different. Except for fertilizer we do not import anything else.
Which are the biggest markets and are you approaching any new markets?
The largest market would be Russia and the other CIS countries. Due to financial crisis in 1998 Russia dropped their purchases but they have gone back to their normal purchases. Then again Russians prefer the quality tea. The only other country they would approach will be India. Except in Northern India all other tea is of poor quality. So we still have an edge over them as our tea is of a separate quality. Especially the seasonal Uva tea, In Mallwatte valley, which is in Bandarawella, what they get is dry wind from east coast, it blows over that valley, during July, August, and September. During these three months the tea develops special flavor. In Sri-Lanka through out the year there are seasonal flavors from different parts of the country. There is terrible demand at the auction for these particular teas. The reason for this additional flavor to develop is that there is a chemical known as Methyl Salicilate, formed naturally in every tea bush. During the dry season the tea bush produces more of this particular chemical to counteract the stress it faces. There is a good market for this type of tea in various parts of the world, such as Japan, Germany, United States and the United Kingdom. Mostly it is the affluent countries that sort after this expensive flavored tea. Our low grown tea does not have any special flavor thus it carries a very strong taste. The Middle Eastern countries and Russia are the main market for this brand of tea. | We capture new markets by going on to world trade fares in different parts of the world. Every year we get new buyers. The latest on the list are Korea and China, China produces only green tea but now the youth of the country is demanding more of Ceylon tea. The other countries are Japan, Australia and Singapore. Last year our maximum production was three hundred and five million kilogram out of this we exported two hundred and eighty five million. This year we hope to exceed that target. We also have a good market in the Middle Eastern countries as they have been purchasing tea from us for the last so many years. Saudi Arabia, Oman, Kuwait are the main countries. The only two major buyers that reduced it purchases from Sri-Lanka are Egypt and Pakistan. Egypt has altogether stopped purchasing from us as they have a trade agreement with the West African countries. Both countries are purchasing from Kenya for two different reasons altogether with Egypt as they receive a duty rebate exchange from Kenya. Pakistan has reduced its consumption because they are in need for the smaller particle tea called CTC, Then president Premadasa found this out from the Pakistan Tea Association. He made sure that Pakistan again would repurchase the same amount of tea from Sri-Lanka if we start to produce the CTC tea. After his return from Pakistan, President gave a blanket order to the Tea board for 75 - 80 million rupees to 33 factories to convert the orthodox tea to CTC tea yet only 20 odd factories have done the conversion. Pakistan still has reduced buying from us they also have a duty exchange basis with Kenyan government. They are paying 30% duty to import out tea to Pakistan. The present government in Sri-Lanka is hoping to have discussion with the PTA as the Chairmen have invited us there to negotiate about the duty rebate. I think that is one of the reasons that Pakistan has invited us for discussions.
Due to financial reasons and other factors there are number of factories that have been closed up or abandoned. We have made a good headway in our tea industry, with the help from the Tea Small Holding Development Authority. They give guidance to the small holders. Small holders are the owners of one hector or two hector plantations. These owners did not receive the proper advise on how to maintain their investments. The Tea Small Holding Development Authority fills that gap. By advising them on Planting, fertilizing, replanting filling up vacancies and so forth. They are a fully organized association who has moved up by opening its doors to other areas. The chairman of the Authority has organized on the area wise basis. It is known as small holders co-operative. They are a highly organized body, which has formed in to a union in the whole island of all the tea-growing areas. They have taken over some of the closed up factories. Some of the holders have the unfortunate task of sending their green leaf in lorries for more than 35km of distance to factories; by the time it reaches their destination it is not in the best of condition. This is the reason that some of the closed up factories are opening up to benefit the small tea holders. Small holders are family units who make tea their lifeline. In Sri-lanka out of the entire tea exchange the small holders own a 40% and the companies own the rest. In 1999-2000 the production of this country was the other way around, the companies produced 40% of the crop and the small holders produced the 60%.
Sri-Lanka has always been identified with tea, What are your future approach for the tea sector and where do you see yourself in probably in next two to three years? Also you know that we are targeting business people of the whole world, what would be your final message across to them?
Our final message is that we continue to produce good tea. The quality would not drop. Who ever it is that succeeds me will also follow and continue with the same principles. We will give the world a good cup of tea. Sri-Lankas tea is a gift to the world. That is our motto. We have value added packs. The Lion logo is given to only Tea of the highest quality.
Lion logo can only be used in tea packed in Sri-Lanka; it cannot be used for the off shore packing. At the moment we are having legal battles with Turkey and Syria. They are imprinting our lion logo. Though we have managed to win one of the cases, the court case with Turkey is s till pending. Lion logo is only to be used in pure Ceylon tea and not even in any other blended teas, that is the main reason we do not want every one using the logo, as there would be a limit for it.
In 1995, Tea and health experiments were held by the FAO (Food and Health Organization) for all the tea producing and consuming countries. All the consuming, producing countries and an Organization known as Common Fund, funded this project. On behalf of the consuming countries United Kingdom, Germany, United States, Canada, and Holland. They engaged some of the worlds best known Scientists in this field. Professor. John Wiseburg from America, Professor Carrel Greenwood from Canada, and Dr. Hana from Japan are to name a few. Three scientists conducted research on tea for five years. First on animals followed by human beings. Last year they released the report in Canada at the IGG meeting. It proved that five cups of tea day would prevent Cardio Vascular diseases and certain forms abdominal Cancer. This maybe the reasons that more and more people are consuming tea. This all based on the health logo. The FAO has given all the Tea boards of the world a health logo. This logo is to be sold to the exporters. This health logo on the tea pack would go a long way. At the moment we are working towards that.
We also have a Tea Research Institute based in Talawakle.They conduct various types of research. They have already found that there are very high yielding clones. They are proper gaining as much as 3000-4000 kg of tea per hector. Though these clones do not carry the same flavor as the original seedling tea. In the up country some of the very old seedling teas are still grown. It is grown from the seed and not from cutting. It is also known as China tea. They add a lot to the flavor of a cup of tea. I do not think that some of the estates would replace all their seedling tea with high yielding clones because of this reason. They will have certain amount of clones to bring up their crop but they will also grow flavoring tea on one side. Both would add a definite flavor to the tea. Old systems are still there with help from the modern devises. All the factories have modernized their systems for the manufacturing.
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