Tea Board gets promotion money

After a delay of many months, the Government has finally approved granting the tea industry Rs. 1 billion raised in cess money charged from tea exports, a Minister said yesterday.

Cabinet Spokesman Minister Keheliya Rambukwella told media that approval was given to a Cabinet paper submitted by Plantations Minister Mahinda Samarasinghe for the tea industry to, essentially, use money raised by its own experts to promote Ceylon Tea to the world.

The Cabinet approved the implementation of a five-year Strategic Plan for the Promotion of Ceylon Tea after a long delay and the tea industry facing many challenges due to Middle East unrest, drought conditions and low production, especially in the last quarter of the 2011.

The Cabinet paper notes that approval has been given to “present the Regulators under the Sri Lanka Tea Board Law No. 14 of 1975 to Parliament to charge the levy of Rs. 3.50 on every kilogramme of tea exported in order to implement a vigorous promotional campaign.”

The five-year plan will be implemented from 2012-2016, with the appointment of the Cabinet-Appointed Negotiation Committee to select suitable agencies to implement this plan in the respective countries and a Technical Evaluation Committee to assist.

The Promotional and Marketing Committee of the Tea Board believes that a uni-national promotional campaign must be carried out during the first year with gradual increase of emphasis for brand promotion in subsequent years, the Cabinet paper stated.

The strategic plan is expected to sustain current demand in vulnerable markets and increase demand in potential markets, rebuild the image of Pure Ceylon Tea, create consumer awareness of the Lion logo and enhance demand for locally-packed tea through indigenous brands.

Engaging with foreign agencies is also planned. Tea provides direct and indirect employment to around 1.5 million people.