By Ashis Biswas
KOLKATA: Sri Lankan (black) tea recently secured the highest price in the world , as one kilogram of its FFE X SP variety was sold for a record price of 125,000 Yuros, (equivalent to 252,500 Sri Lankan rupees) , at a function in Japan . This seems to the best news so far in 2025 for the tea industry as a whole, currently passing through a difficult phase. Spokesmen of the New Vithanakande Tea Company expressed their satisfaction over the world record set up by their product hoping that this would majorly elevate their status in the highly competitive market. International buyers would also take note of the traditions and techniques followed by leading growers on the island, they said.
Relative to its size, tea has been a significant forex earner for Sri Lanka for years. At present it exports nearly 95% of its annual production. It has a high reputation worldwide especially for the high quality production of black varieties. At present there are over 700 plantations employing over 400,000 workers/labourers. While the producers in general have maintained a high standard of production, the Government also has provided much needed financial and other assistance to the industry. After textiles, tea is the second biggest foreign exchange earner for the island.
During the last century, the British rulers had helped the tea industry to grow locally. Earlier there were serious efforts to introduce coffee cultivation but in view of the difficulties involved and the lack of good results, English plantation owners opted to go in for tea cultivation instead. At present, regardless of its size the island exports to over 14o countries signifying its importance as a major player.
News of the record sale has naturally been widely acclaimed by Sri Lankan media and citizens alike. During the past decades, Sri Lanka had seen very hard times as its economy faced an imminent collapse. However, timely rescue packages and other assistance from World Bank and other authorities, not to mention countries like India and China, also providing much needed financial help, improved the situation considerably. A further encouraging development for Sri Lanka is that it has been meeting its repayment targets on the loans etc. without apparently straining the domestic economy.
Meanwhile the outlook for tea production as well as exports is none too positive in India. North Bengal tea plantations including the major ones in Darjeeling have suffered heavily from the recent torrential rains, landslides and flashfloods. Industry circles are still busy in estimating their combined losses at Terai, Dooars and in areas adjacent to Darjeeling. Tea Board sources pointed out that the outlook for tea production whether in Assam and West Bengal in North India, was discouraging, mainly because of factors beyond anyone’s control. In parts of north Bengal, the small producers have taken over many areas for cultivation, but their expertise cannot be relied on. Most of the small plantations in North Bengal have been badly hit. . Industry circles after working out their estimates of the damage caused by the recent s[ell of bad weather, would present a charter of demands. to the state/Central Governments.
As stated already, the situation looked unpromising much before the recent spell of bad weather. Whether in Assam or West Bengal, it seemed that the negative effects of t global warming had taken their toll, not the first time either. It has become common especially in Assam and in parts of north Bengal to go rainless for months following the winter season. During earlier years, there were occasional spells of showers, which ensured greater humidity in the atmosphere. Not any more.
During the last decade, there has occurred very little or no rains in spring. The plantations, already parched, then faced the long summer season, but there was some rainfall from time to time. While there was no shortage of water during the monsoon, excessive rainfall and floods often damaged the plantations! Entire individual plants seemed to shrivel, let alone yield fresh green leaves!
This new pattern of weather seems to be a direct effect of the general global warming that especially nations and countries in the global South complained about!
Nevertheless, during the Jan-June period his year, India’s tea exports have earned Rs 36.39 billion which is YOY a 16% improvement over the corresponding period. It was no different in South India either, as exports increased somewhat.3 marginally by .3%, earning Rs 5.9 billion.
The industry as a whole is worried about the future. For June 2025, overall production may have decreased by around 10%, which would have an impact on the price line of various categories in the domestic market. To survive and come out of stronger the industry must go in for bolder experiments and secure friendly term loans. Not to mention other assistance from the centre and the states. The Assam government had extended some financial support last season to the hard hit segments of the tea industry, but the west Bengal government provided no such help. (IPA Service)
