Sri Lanka lost out on the so-called value addition that Sri Lanka enjoyed in the past which generated greater export earnings, Ceylon Tea Brokers Chairman Chrisantha Perera said.
This is even though the volume of exports was lower than some of the larger tea producing countries such as China and Kenya,he said.
“Sri Lanka has lost its established position as the highest value exporter. It will be noted that China with a total value of US$ 1.38 billion has surpassed the export value of tea from Sri Lanka of US$ 1.34 billion,Perera said in the company’s annual report for 2015/2016.
Commenting on developing trend in the global market, he mentioned that non tea producer countries such as UAE, Germany, Poland, UK and the USA appear to be establishing themselves as value added destinations not only for their domestic consumption, but more importantly for re-exports.According to Perera Sri Lanka does not appear to have the ability to penetrate into new markets effectively.
“It is important to realise that the oil rich Middle East Region and Russia which dominated our tea market in the past, may no longer be a factor to the same extent in the future. We therefore need to
widen our market horizons including new emerging possibilities such as China. It must be stressed that out of the five leading tea importing countries, namely Russia, Pakistan, UK, USA and Egypt, we have a significant presence only in Russia.” India so far this year has out-placed Sri Lanka as the largest supplier of tea to Russia with 11.67 metric tonnes during the first quarter of 2016 compared with 9.1 metric tonnes from Sri Lanka.
India also appears to be leveraging on trade ties with Iran. Iran, India and Afghanistan are reported to have agreed to revive a project to build a trading corridor that would connect Afghanistan to the Indian Ocean via Iran.
He also added that the tea Industry needs to look at pragmatic solutions and implement decisions to make its presence felt in the ever expanding global tea market.
Solutions and opportunities are out there, but our ability to step out of our comfort zone and create constructive change by facilitating tangible expansion in export markets as well as taking proactive decisions are still to be seen. In this respect, he said adding that the country should urgently examine the hotly debated topic of making Sri Lanka a Tea Hub without compromising the inherent value of marketing Pure Ceylon Tea. Chrisantha Perera.
This is even though the volume of exports was lower than some of the larger tea producing countries such as China and Kenya,he said.
“Sri Lanka has lost its established position as the highest value exporter. It will be noted that China with a total value of US$ 1.38 billion has surpassed the export value of tea from Sri Lanka of US$ 1.34 billion,Perera said in the company’s annual report for 2015/2016.
Commenting on developing trend in the global market, he mentioned that non tea producer countries such as UAE, Germany, Poland, UK and the USA appear to be establishing themselves as value added destinations not only for their domestic consumption, but more importantly for re-exports.According to Perera Sri Lanka does not appear to have the ability to penetrate into new markets effectively.
“It is important to realise that the oil rich Middle East Region and Russia which dominated our tea market in the past, may no longer be a factor to the same extent in the future. We therefore need to
widen our market horizons including new emerging possibilities such as China. It must be stressed that out of the five leading tea importing countries, namely Russia, Pakistan, UK, USA and Egypt, we have a significant presence only in Russia.” India so far this year has out-placed Sri Lanka as the largest supplier of tea to Russia with 11.67 metric tonnes during the first quarter of 2016 compared with 9.1 metric tonnes from Sri Lanka.
India also appears to be leveraging on trade ties with Iran. Iran, India and Afghanistan are reported to have agreed to revive a project to build a trading corridor that would connect Afghanistan to the Indian Ocean via Iran.
He also added that the tea Industry needs to look at pragmatic solutions and implement decisions to make its presence felt in the ever expanding global tea market.
Solutions and opportunities are out there, but our ability to step out of our comfort zone and create constructive change by facilitating tangible expansion in export markets as well as taking proactive decisions are still to be seen. In this respect, he said adding that the country should urgently examine the hotly debated topic of making Sri Lanka a Tea Hub without compromising the inherent value of marketing Pure Ceylon Tea. Chrisantha Perera.
www.dailynews.lk
No comments:
Post a Comment