Woes of Ceylon Tea

Ceylon Tea has been synonymous with the South Asian island for more than a century. The beverage has played a crucial role in the socio-economic evolution of Sri Lanka ever since it was introduced into this fertile land by the Scottish planter James Taylor back in 1867.  

Services such as banking, insurance, and transportation were developed at first to aid the growth of the tea industry during the time of British rule. The premier cash crop was the highest foreign exchange earner until about the 1980s when it was surpassed by sectors such as foreign employment, garments, and tourism. The industry occupies a central role within the social fabric of hill areas of the country, with a special significance to Up-Country Tamils – one of the most marginalised communities who faced unprecedented discrimination in the post-independent history of the island.

However, the industry – which was once the prime breadwinner of the economy – is now sailing through turbulent waters with serious question marks over its long-term sustainability. One of the critical factors affecting the long-term commercial viability of the Sri Lankan tea industry is the cost and availability of labour. It is reported that the number of registered workers in the plantation sector declined by around 42% from 304,405 in 1990 to 161,557 in 2016. The younger generation – attracted to good life with the influence of social media and technology – do not like to toil hard and stagnate in tea bushes unlike their previous generations. The development of service sectors of the economy – tourism, retail trade, and transportation – have opened up a plethora of avenues to the plantation youth unlike the bygone days. 

A considerable number of youngsters from the Up-Country Tamil community are employed as sales-related employees in the leading supermarket chains of the island. The low social recognition associated with estate work as well as harsh working conditions in plantations persuade the youth to look for employment outside the plantation sector. To mitigate the labour shortage, experts have urged the industry to embrace mechanisation and automation in both field and factory work. Automation of field and factory operations would be quite imperative in an environment where the labour force is rapidly declining. As the plantation workforce is ageing, the labour productivity too remains low.

The industry’s plight has been further undermined by the political and economic instability of Ceylon Tea’s traditional export markets in the recent past – Russia, Ukraine, Iran, Iraq, Turkey, Syria and many states in the Middle East. Economic sanctions imposed by the West on Russia and Iran have created snags to suppliers with regard to payments from buyers. In the 1960s and early 70s, Ceylon Tea’s market share within the UK was around 30%, but its current export volumes to the European State are negligible. 

Securing international certifications like Rainforest Alliance and Fairtrade that guarantee ethic-conscious consumers in the West that tea they drink is produced by meeting the top standards of environmental, social, and economic sustainability is essential to gain acceptability in conflict-free markets like Australia and Britain. Nevertheless, a program recently aired on ABC News – Australia under the title “The Uncomfortable Truth Behind Your Cup of Tea” questioned the ethical standards and working conditions of some tea plantations in the country that possess such prestigious certifications. Some of these estates supply tea to well-known global tea brands like Lipton, Yorkshire Tea, and Tetley, albeit in minuscule quantities. 

Despite countries in Europe insisting strict adherence to high standards of sustainability, some have questioned the authenticity of the professed altruistic motives of consumers in the West due to their unwillingness to pay premium prices for products that meet high ethical standards.

Given the gravity of the challenges facing the celebrated industry, it is incumbent upon all stakeholders of the tea sector to formulate pragmatic and forward-looking strategies to overcome the stagnation of Ceylon Tea over the last couple of decades.