Majority of facilities extended to sector underutilised: Plantation Industries Minister

• Claims industry unaware of projects implemented
• Says not even 50% of Rs. 1.5 b facility provided were explored by industry 
• Points to $ 20 m World Bank facility to improve tea cultivation, which will soon be disbursed via private and public banks
• Tea production increases to 305 mm/kgs last year from 279 mm/kgs in 2020
• Asserts chemical and organic fertiliser should be applied alongside for higher yield 
• Govt. mulls to provide subsidy for chemical fertilisers or to reduce the fertiliser prices within next few months in a bid to aid industry 

Despite multiple programs initiated to improve the plantation sector, the facilities were not utilised to optimal levels, Plantation Industries Minister Dr. Ramesh Pathirana said.

“The Government has implemented several programs to promote tea cultivation. But, the majority were not aware of the projects implemented. I allocated Rs. 1.5 billion for a project to provide water for cultivation purposes, not even 50% of that money has been utilised,” he said at the opening of a multi-purpose building at the Batahena Dharmagaveshi Temple recently.

The Minister also said that the World Bank has extended a facility of $ 20 million for the development of tea cultivation, which will soon be disbursed among the plantations via public and private banks.

 

Dr. Pathirana also laid the foundation stone for the Tea Smallholdings Development Authority (TSHDA) and the Tea Leaf and Agricultural Products Marketing Centre and the Green Tea Collection and Agricultural Product Marketing Centre at Opatha, Galle. 

It was pointed out that TSHDA has spent Rs. 13.4 million on the project under the Smallholder Tea and Rubber Revitalisation (STaRR) project, which will assist about 2,500 tea smallholders in the area.

“Tea production in 2020 was 279 million kilos (mn/kgs), but despite the fertiliser crisis, the sector produced 305 mn/kgs of tea last year,” he said, adding that the tea industry was showing signs of improvement.

Noting that tea plants, compost, high shade plants, short shade plants, and dolomite were provided free of charge, applying too much chemical fertiliser did not increase the yield much.

“Fertiliser has clearly been misused in our country. To get a very high yield, I believe organic fertilisers should be used along with chemical fertilisers,” he pointed out.

In that context, Dr. Pathirana said the Government was considering providing a subsidy for chemical fertilisers or to reduce fertiliser prices within the next three months in order to assist the industry. 

“We are aware that a 50 kg bag of fertiliser costs Rs. 7,200, and people cannot afford it given the current cost of living. Although relief cannot be given immediately, the Government is taking steps to provide relief in a systematic manner. We will provide a subsidy for fertiliser within the next two to three months. We are also working to reduce fertiliser prices,” he explained.

The Minister said that the ban on chemical fertilisers was well-intentioned, but some sectors, including the tea industry, found it difficult to manage without agro-chemicals.

“At present, the prices of not only fertiliser but everything in the world market has skyrocketed, including services. The world’s manufacturing economy has collapsed due to the COVID-19 pandemic. Hence, prices of goods in our country as well as in the world have gone up. No government in the world wants to increase commodity prices and make people queue up during its rule,” he said.

The Minister said that it was time to move on from 2022. “This year, the plantation sector has a lot of work to complete and contribute towards strengthening the economy,” he stressed.