1. ministry of plantation...
TRANSCRIPT
Ministry of Plantation Industries - Progress Report 2014
1
1. Ministry of Plantation Industries
The Ministry of Plantation Industries plays a significant role to arrive at economic,
social and environmental development targets in the stable macro-economic
environment envisaged to build through “Mahinda Chintana Idiri Dekma” development
strategy. In line with the national policies to be implemented by the Government, the
Ministry mainly undertakes the activities such as formulation, implementation and
handling of policies, programmes and projects related to the subjects of tea and rubber
of the statutory bodies coming under the preview of the Ministry, the functions related
to the development and researches of the tea and rubber industries and the issuance of
licenses and control of the fragmentation of tea, rubber and coconut estates. Since the
promotion and research activities of the plantation crops which were not specifically
assigned to any other Ministry are also coming under the scope of this Ministry, the
activities related to the expansion of oil palm cultivation have also been carried out
under the Ministry.
The following institutions are coming under the purview of the Ministry of
Plantation Industries to carry out the above activities.
Ministry of Plantation Industries
Tea Sector
Rubber Sector
Services
Projects
Sri Lanka Tea
Board
Tea Research
Institute
Tea Small
Holdings
Development
Authority
Tea Shakthi
Fund
Kalubowitiyana
Tea Factory Ltd.
Rubber
Development
Department
Rubber
Research
Institute
Thurusaviya
Fund
National
Institute of
Plantation
Management
Tea, Rubber
and Coconut
Estates (Control
of
Fragmentation)
Board
Smallholder
Plantations
Entrepreneurshi
p Development
Programme
(SPEnDP)
Introduction
Ministry of Plantation Industries - Progress Report 2014
2
By increasing blending and packing of tea locally, to make Sri Lanka
a hub for the tea trade.
To provide incentives for popularizing instant tea.
In order to increase productivity, to take steps to introduce improved
cultivation strains of tea, rubber, coconuts and other export crops.
Support schemes will be introduced for all export crops.
The fertilizer support scheme for all cash crops will be further
extended.
By increasing the productivity of plantation companies leased out to
the private sector, continued employment and better remuneration for
workers will be ensured. These companies will be directed to long
term environmentally-friendly investments in order to conserve the
bio diversity and water resources.
Prospection
The contribution of the Ministry of Plantation Industries towards the
export income of the country which is about 21% at present to be
progressively enhanced in order to achieve the target of the
government to earn an export income of US$ 05 billion by year 2020.
Strategies Identified
Increase of crop productivity utilizing new technological inputs.
Promotion of high quality value added products and local brand names
targeting at growing and emerging market.
Mahinda Chintana Vision for
the Future
Page 91, 92 … .. .
Ministry of Plantation Industries - Progress Report 2014
3
VISION
Achieving national
prosperity through
development of the
plantation industry
MISSION
To enhance the productivity,
profitability and sustainability
of the plantation industry
through ensuring an
economically, socially and
environmentally viable
plantation sector
Ministry of Plantation Industries - Progress Report 2014
4
The following major activities are carried out for development in the plantation sector in
comply with the Policy framework of the Government of Sri Lanka formulated in the year
2010 by the Ministry of Finance and Planning in line with the “Mahinda Chintana Vision
for the Future.”
Key Prospects
Protection and
conservation of
the ecosystem
through the
sustainable use
of lands
Enhancing the
productivity of
cultivated lands
in the
plantation
sector
Development
of the
Plantation
sector
Increasing the
annual rate of
tea and rubber
replanting
Implementing
research and
development
programmes and
promotion
Value addition
for goods &
services and
promoting
brand names
Promoting the
new planting in
non traditional
areas
Ministry of Plantation Industries - Progress Report 2014
5
In line with the Mahinda Chintana policies, the strategic development objectives identified
by the Ministry of Plantation Industries are given below.
Strategic Development Objectives
Strategic
Development
Objectives
Ensuring
sustainable
development
through the
environment
conservation
Supply of
high quality
products to
the local
consumers
Uplifting
living
standard of
the
plantation
community
Enhancing
profitability
of tea small
holders and
plantation
companies
Retaining
the cost of
production
at a low
level
Increase of
the foreign
exchange
earnings
Ministry of Plantation Industries - Progress Report 2014
6
Six performance indicators have been identified with the purpose of achieving medium
term development objectives of the Ministry.
Medium Term Development Plans of the Ministry – Up to 2020
Significance of Tea and Rubber Sectors
The relative contribution to the Sri Lanka Gross Domestic Product, of the tea
and rubber production in the agriculture sector is 1.2%.
The foreign exchange earning from tea and rubber based industries in the year
2013 amounts to Rs.323,424 million (US$2,505).
The number of employment opportunities generated in this sector is
approximately 1.5 million.
In addition to the foreign exchange earning and employment generation, the
contribution of the tea and rubber sectors towards the economy of Sri Lanka in
terms of the sectors such as business promotion, rural socio economic
development, poverty reduction and environment conservation is further
significant.
Ministry of Plantation Industries - Progress Report 2014
7
Details Actual
Number
2013
Targets
2014 2015 2016 2020
Quantity of Production (kg. mn.) 340 344 350 358 386
Productivity (kg/ha) 1,748 1,771 1,803 1,844 1,991
Foreign Exchange Earnings (Rs.
billion)
199 216 234 260 335
Value Addition (%) (Less than
3kg)
39 50 55 60 75
Replanting (ha) 1,479 1,410 1,500 1,700 2,950
New planting (ha) 274 440 650 360 160
Details
Actual
Number
2013
Targets
2014 2015 2016 2020
Quantity of Production (kg. mn.) 130.4 135 142 150 170
Productivity (kg/ha) 1,247 1,250 1,260 1,270 1,500
Foreign Exchange Earnings (Rs.
billion)
124 128 134 155 260
Value Addition (%) 74 76 78 80 95
Replanting (ha) 2,483 3,960 3,850 4,120 4,250
New planting (ha) 2,979 5,000 7,170 7,500 4,000
Tea Sector
Rubber Sector
Ministry of Plantation Industries - Progress Report 2014
8
Special Programmes implemented in the year 2014
Distribution of machinery and equipment at a cost of
Rs.21.3 million among 50 tea smallholder societies
and 25 tea factory owners under the first stage of
mechanization of tea plucking in tea small holding
sector and making an arrangement to continue this
programme with the implementation of the second
stage on their responses.
Coordination of the activities for distributing
among the tea small holders the sum of Rs.435.39
million received from the Budget 2014 for
granting subsiides as Rs.5,000 per hectare for
water and soil conservation in the tea lands owned
by the tea small holders.
Implementing Budget Poposals … .. .
An extent of 57 hectares has been
cultivated with rubber in Vavuniya
and Mullaitivu districts in
Northern Province and necessary
actions have been taken to expand
the rubber cultivation in future.
Ministry of Plantation Industries - Progress Report 2014
9
Implementing Budget Proposals … .. .
Strengthening International cooperations … .. .
An extent of 711 hectares has been
cultivated at present through the
coordination and progress review of the
programme for cultivation of rubber in
10,000 hectares in Ampara District under
the expansion of rubber cultivation to non-
traditional areas.
Planning to establish an office of the
Sri Lanka Tea Board in China for
global tea promotion with the
expansion of bilateral trade relations
with Japan, China and India.
Coordination with the international organizations
related to tea and rubber and coordinating the
implementation of the agreements entered into.
Under the special programme for attraction of
new international tea markets, the delegation
headed by the Hon. Minister and Hon. Deputy
Minister visited Poland, Australia and United
Arab Emirates (UAE) to promote Ceylon Tea.
Ministry of Plantation Industries - Progress Report 2014
10
Annual Conference of Natural Rubber Producing Countries
Malaysia … .. .
Reviewing Progress of the Plantation Sector … .. .
Finding solutions to the issues of Regional Plantation Companies at the
Golden Share Holder‟s Meetings chaired by the Hon. Minister of Plantation
Industries and leading them to the targets of the estate economy.
A delegation headed by the Secretary to the
Ministry participated representing Sri Lanka who
held the Chairmanship at the Annual Conference
of Natural Rubber Producing Countries, hosted in
Kuala Lumpur, Malaysia with the participation of
representatives from 11 countries.
As a result of this Annual Conference, in line with
a proposal of the Minister of Plantation Industries
in Malaysia, it was unanimously resolved at the
Conference chaired by Sri Lanka to hold a high-
level meeting of the Ministers of all member
countries targeting at the global issues of the
rubber cultivation.
Progress of the all institutions coming under the Ministry was reviewed by the
Hon. Minister with the participation of all Heads of the institutions.
Making decisions required for the development of tea and rubber sectors
gathering Hon. Minister of Plantation Industries. Hon. Deputy Minister,
Secretary to the Ministry of Finance and Planning, Secretary to the Ministry of
Plantation Industries and all other relevant officials.
Ministry of Plantation Industries - Progress Report 2014
11
For reinforcement of the Tea Industry … .. .
Joining with Divi Neguma ... .. .
Actions were taken to provide a sum of Rs.16
million to the Regional Plantation Companies
for the purpose of tea replanting under the
Replanting Subsidy Programme implemented
under the Sri Lanka Tea Board.
Initiation of modernization of tea factories
utilizing the additional allocation of Rs.100
million provided for modernization of tea
factories under the Tea Shakthi Fund.
Implementation of various programmes to
be parallel to the inauguration of the stage
VI of Divi Neguma National
Development Programme held on 20th
October 2014.
The activities such as distribution of tea
plants, providing rubber plants for home
garden and infilling, providing plants for
implementation of intercropping
programme, nursery development and
distribution of equipment are being carried
out utilizing Rs.63 million received from
the Ministry of Economic Development.
For modernization of the Rubber Research Institute … .. .
Signing of a Memorandum of Understanding
on 24.10.2014 between the Government of Sri
Lanka and CETC International of China to
obtain Chinese loan assistance for construction
of laborotary complex with modern amenities
to the Rubber Research Institute.
Ministry of Plantation Industries - Progress Report 2014
12
Mapping of the cultivated lands ... .. .
Involving with other development activities ... .. .
Participation with all institutions coming under the ministry at “Deyata Kirula”
National Development Exhibition held at the Technical College, Kuliyapitiya in
March 2014.
In terms of a Cabinet Decision, actions were further taken to amend the Acts
related to the all institutions coming under the Ministry in conformity to the
current requirements. Accordingly, actions have been taken to refer the
amendments to be made to the Acts of the Tea Small Holdings Development
Authority, Tea Research Institute and Tea Shakthi Fund to the Legal Draftsman
and further actions are being taken in respect of the amendments to the Acts of
other institutions.
An arrangement was made to give the consent of the Ministry of Plantation
Industries to import the short term requirement of raw rubber for the rubber
related factories established in the Investment Promotion Zones when it is
difficult to cater natural rubber as a raw material to the said factories sufficiently
from the local market. The relevant consent is given to the Bord of Investment on
recommendations of the Rubber Development Department.
Joining with Stakeholders ... .. .
Contribution at ministerial level to Annual Conferences of Planters‟
Association of Ceylon, Tea Exporters Association of Sri lanka and Private Tea
Factory Owners Association.
Mapping of tea and rubber lands based on
the geographical information of
Ratnapura, Kandy, Kegalle, Kalutara and
Matara districts utilizing the allocation of
Rs.12 million in collaboration with the
Department of Land Use Policy Planning
and finalizing the activities of the pilot
project in Galle district.
Ministry of Plantation Industries - Progress Report 2014
13
Tea plantation was introduced to Sri Lanka by James Taylor in year 1867. The tea
plantation of Sri Lanka has expanded to 123 Divisional Secretaries‟ Divisions of 14
Districts in Up - Country, Mid- Country and Low-Country in Sri Lanka and the total extent
of cultivated lands reported at present is approximately 204,095 hectares.
* Free On Board
The tea production in year 2013 was 340 mn kg and it is projected that the said
quantity will be 344 mn kg in the year 2014.
Accordingly, a considerable increase of 1.2% is expected in the tea production of
year 2014 as against the tea production in year 2013.
Details
(From January to August)
2013 2014 Variance (%)
Tea Production (Mn. Kg.) 223.29 226.79 1.57
Average sale price of tea per kg at
Colombo Auction (Rs. / Kg.)
424.26 474.32 11.8
FOB * price (Rs. / Kg.) 599.41 658.22 9.8
Vision
To ensure the future of the tea industry and promote Ceylon Tea to be the
main partner in the global beverage market through strengthening the tea
small holding sector and the corporate sector for sustainable development.
2. Tea Sector
Overall Performance in the Tea Sector
Expansion of Tea Cultivation
At present, tea cultivation has expanded to an extent of 204,095 hectares of which
121,267* hectares (59.4%) are contributed by the tea small holding sector. Further,
73,445* hectares (36.0%) are owned by 20 Regional Plantation Companies and 9,383
hectares (4.6%) are managed under the government institutions. *Provisional
Ministry of Plantation Industries - Progress Report 2014
14
The average land extent of a tea small holding is approximately 0.33 hectares and in
pursuance of the criteria available at present, an extent of 4 hectares or less is defined as a
tea small holding.
The tea small holding sector expanding in 3,692 Grama Niladharis‟ divisions of 123 D.S.
divisions in 14 tea growing districts of Sri Lanka, represents about 60% of the total extent
of tea lands and it has expanded immensely in 08 Districts such as Ratnapura, Galle,
Matara, Kandy, Badulla, Kalutara, Nuwara Eliya and Kegalle.
Details Up to August 2014
Production of tea small holders (Mn. Kg.) 164.4*
Contribution of the total tea production (%) 72
Productivity (Kg / made tea / hectare) 2,107
*2.2% increase as against the corresponding period of the last year.
Production of Tea Small Holding Sector – Up to 31st August 2014
Source – Tea Small Holdings Development Authority
Tea Small Holding Sector
Contribution of the Tea Small Holding Sector to the National Production
Annual total production of the tea small holding sector has exceeded 200 mn kg
since year 2004.
This quantity has been increased to 245 mn kg by year 2013
Ministry of Plantation Industries - Progress Report 2014
15
Cost of Production
.
Year Cost of production
per kg of green leaf
(Rs.)
2012 40.70
2013 42.60
The production margin per kg of green
leaf in year 2013 is 22.39. (without
overhead expenses)
Issues and challenges further encountered by the
Tea Small Holding Sector
Unstable market price
Increase in cost of production
Gradual decrease in the production of tea in certain districts
Labour shortage
Higher cost of tea replanting
Main reasons caused for the encouragement of Tea Small Holders
Tea Replanting Subsidy (Rs.350,000 per hectare)
Tea New Planting Subsidy (Rs.250,000 per hectare)
National Fertilizer Subsidy Programme of the Government. (A 50 kg sack
of mixed fertilizer is Rs. 1,300 and a 50 kg sack of unmixed fertilizer is
Rs. 1,200)
Research and extension services impemented by the Tea Research
Institute, Tea Small Holdings Development Authority and Sri Lanka Tea
Board
Ministry of Plantation Industries - Progress Report 2014
16
Special courses of action taken for enhancement of the
Tea Small Holding Sector
Implementing Tea Replanting, Tea New Planting and Crop Rehabilitation
subsidy programmes.
Conducting awareness and training programmes for tea planting permit
holders.
Production and issue of tea planting training materials.
Training for establishment of input nurseries and provision of inputs.
Training of commercial nursery owners and supervision of nursery
activities.
Providing shoots of improved cultivars from TSHDA Mother Bush
nurseries to the tea growers and commercial nursery owners.
Training of trainers on cultural practices such as plucking, pruning, shade
management etc.
Conducting individual farm visits and group extension programmes.
Checking of Soil samples for PH.
Conducting awareness programs for leaf suppliers and dealers to improve
green leaf quality
Strengthening Community Based Organizations, Tea Small Holder
Societies.
Making the farmers aware of the farm management for additional income
earning.
Granting a subsidy of Rs.5000 per acre for soil & water conservation for
productivity improvement with special emphasis on improvement of
fertilizer use efficiency.
Popularizing use of machinery with a view to reducing cost of production.
Ministry of Plantation Industries - Progress Report 2014
17
Under restructuring of the large scale estates owned by the government, 23 private
plantation companies were established in year 1992 and management of the said large scale
estates was entrusted with them. Subsequently, the estates were leased out to the said
companies for a period of 53 years from the year 1995.
Production of Tea in Corporate Sector (Up to August 2014)
Source: Sri Lanka Tea Board
Corporate Sector
At present, 73,445 hectares have been cultivated with tea under 20 plantation
companies.
Further 9,383 hectares have been cultivated in the estates coming under the
government institutions.
At present, about 28% of the total tea production is produced under the corporate
sector.
The contribution of tea production from January to August 2014 is 27.5%.
Ministry of Plantation Industries - Progress Report 2014
18
The total tea production in the first 8 months from January to August 2014 was 226.8 mn
kg showing 1.6% increase as against the tea production of 223.3 mn kg recorded during the
corresponding period of the year 2013.
Tea Production as per the Main Tea Producing Methodologies
(From January to August 2014 )
Source: Sri Lanka Tea Board
Productivity of the Tea Sector The average productivity of the tea sector in year 2013 was 1,748 kg per hectare
and it is about 3.5% growth compared to the average productivity of 1,688 kg per
hectare in year 2012.
Period Productivity
Kg. / Ha.
2013 1,748
2014 (Estimated) 1,771
2015 (Estimated) 1,803
Source: Sri Lanka Tea Board
Tea Production
Production
Methodology
Production
(Mn. Kg.)
Orthodox Black Tea 211.5
C.T.C. Tea 13.1
Green Tea 2.2
Total 226.8
93%
6%
1%
Orthodox
Black
TeaC.T.C.
Tea
Ministry of Plantation Industries - Progress Report 2014
19
The growth of the tea production as per the main tea producing methodologies in year 2014
as against the production in the corresponding period of the year 2013 is given in the Chart
below.
Tea Production as per the Main Tea Producing Methodologies
Source: Sri Lanka Tea Board
Elevation wise Tea Production Mn. Kg
Source: Sri Lanka Tea Board
Elevation From January to August
Variance (%) 2013 2014
High Grown 49.68 54.68 10.1
Medium Grown 37.19 33.31 -10.4
Low Grown 136.42 138.80 1.7
Total 223.29 226.79 1.6
0.00
50.00
100.00
150.00
200.00
250.00
Orthodox Black Tea C.T.C. Tea Green Tea
206.40
14.50 2.40
211.5
13.1 2.2
Kg
.
Category From Jan. to Aug. 2013
From Jan. to Aug. 2014
Ministry of Plantation Industries - Progress Report 2014
20
Agro Climatic Zone wise Tea Production
Mn. Kg
Agro Climatic
Zone
From January to August
2013 2014 Nuwara Eliya 2.713 4.963
Western Hill
Country
33.709 36.285
Mid-Country 30.048 29.531
Udapussallawa 5.790 4.436
Uva 20.294 20.235
Low Country 130.736 131.344
Total 223.291 226.794 Source: Sri Lanka Tea Board
It is projected that the tea production in year 2015 will be 350 mn kg.
Tea - Cost of Production
The average cost of production per kg of made tea in corporate and
private sector tea factories is about Rs. 422.67 in the year 2014.
However, the average sale price per kg of tea from January to August
2013 and 2014 is as follows.
Area
Average sale price (Rs.)
(From January to August)
Variance of
the average
sale price
(%)
2013 2014
High Grown 390.71 429.55 9.9
Medium Grown 381.40 420.33 10.2
Low Grown 447.19 503.73 12.6
All elevations 424.26 474.32 11.8
Source: Sri Lanka Tea Board
Accordingly, the amount of dividends of the producer has increased in
year 2014 as against the year 2013.
Ministry of Plantation Industries - Progress Report 2014
21
The average sale price per kg of tea in the first 08 months of the year 2014 has increased to
Rs. 474.32 from Rs. 424.26 in the corresponding period of the year 2013, recording a
growth of 11.8%.
Tea Market Data
Details
(From January to
August) Variance
2013 2014 Quantity %
Total quantity of tea sale
(Mn. Kg.) 230.9 225.0 -5.9 -2.5
Average sale price per kg
of tea (Rs.) 424.26 474.32 50.06 11.8
Data on Colombo Tea Actions
Year
(January
to
August)
High grown tea Medium grown tea Low grown tea All elevations
Quantity
(Mn. kg.)
Price
(Rs. /Kg)
Quantity
(Mn. kg.)
Price
(Rs. /Kg
Quantity
(Mn. kg.)
Price
(Rs. /Kg)
Quantity
(Mn. kg.)
Price
(Rs. /Kg
2013 49.94 390.71 37.59 381.40 143.34 447.19 230.87 424.26
2014 49.42 429.55 35.41 420.33 140.21 503.73 225.03 474.32
Source: Sri Lanka Tea Board
It is an established fact, that global tea production in both forms (black & green) registered
the highest ever crop figure during 2013 and exceeded 6 billion kilos for the first time ever.
Many analysts estimated that world tea production had a surplus of around 100 m. kgs.
between the supply and demand equation but significantly confined to CTC type of teas and
green teas. The orthodox type of specialty teas which constitutes 94% of the production in
Sri Lanka did not prove the availability of any excess tea between the demand and supply.
As such, while most other global auction centers showed a prominent decline in tea prices,
Colombo Auction prices reflected buoyancy.
Tea Market
Global Demand and Supply of Tea Market
Ministry of Plantation Industries - Progress Report 2014
22
The performance of Ceylon Tea becomes even more remarkable due to the fact that most of
the major tea buying countries such as the Russian Federation, Iran, Syria, Iraq and Libya
are going through heavy turmoil situations and economic crisis.
Global Tea Market - Top Five Tea Producers
Country Quantity of Production
(Mn.Kg)
Growth
(%)
2012 2013
China 1,790 1,924 7.5
India 1,126 1,200 6.6
Kenya 370 432 17.0
Sri Lanka 328 340 3.5
Vietnam 190 180 -5.1
Source: Sri Lanka Tea Board
Sri Lanka remains in the third place among the world leading tea exporters.
Global Tea Market -Top Tea Exporters
Country
Quantity of Exports (Mn.Kg)
Growth (%)
2012 2013
Kenya 430.2 494.3 14.9
China 321.8 332.4 3.3
Sri Lanka 306.0 309.2 1.0
India 206.2 215.5 4.5
Vietnam 144.0 140.3 -2.6 Source: Sri Lanka Tea Board
Ministry of Plantation Industries - Progress Report 2014
23
Sales Details of Main Tea Auction Centres in the World
Source: Sri Lanka Tea Board
Accordingly, the average sale price per kg of Ceylon tea has exceeded the prices of other
countries. The reasons for this higher value are securing Sri Lanka the main position in
production of Orthodox black tea in the world market, available of shortage of Orthodox
black tea in the world market, export of value added tea with a brand name and supply of
high quality tea to the market exceeding other teas.
Tea Exports of Sri Lanka are available in various forms and at present, more promotional
programs have been implemented to expand the tea export quantities. Exports of value
added tea instead of ordinary bulk tea exports are always encouraged. The export revenue
of the year 2013 amounted to Rs.199.4billion and showed a growth of 10.54%
comparatively to the year 2012.
Auction
Centre
From January to August
Variance 2013 2014
Quantity
Mt Price per kg
(US$) Quantity
Mt Price per kg
(US$)
Quantity
Mt Price per
kg
(US$)
Colombo 230,865 3.31 225,033 3.63 -5,832 0.32
Kolkata 92,986 2.85 74,903 2.66 -18,083 -0.19
Cochin 35,520 2.02 35,536 1.70 16 -0.32
Chittagong 29,383 3.22 35,297 2.07 5,914 -1.15
Mombasa 266,816 2.53 256,666 2.10 -10,150 -0.43
Jakarta 23,332 2.06 17,768 1.68 -5,564 -0.38
Guwahati 66,605 2.41 45,127 2.32 -21,478 -0.09
Malawi 7,083 1.89 7,895 1.43 812 -0.46
World 752,590 2.78 698,225 2.63 -54,366 -0.15
Tea Export
Ministry of Plantation Industries - Progress Report 2014
24
Data on Tea Exports
Details
(From January to
August)
Growth
(%) 2013 2014
Export Quantity (Mn.Kg) 205.7 214.7 4.4
Export Revenue (Rs.Bn) 123.3 141.3 14.6
FOB Price 599.4 658.2 9.8
Data on Exports and Re-exports of Ceylon Tea
Category
(From January to August)
Orthodox black tea Green tea Instant tea Total
Quantity
(Mn. kg.).
F.O.B.*pric
e per kg
(Rs.)
Quantity
(Mn. kg.)
F.O.B. price
per kg
(Rs.)
Quantity
(Mn. kg.)
F.O.B. price
per kg
(Rs.).
Quantity
(Mn.
kg.)
Average
F.O.B.
price
per kg
(Rs.)
2013
Exports 197.16 580.69 1.76 1,204.70 1.11 99.29 200.04 588.51
Re-Exports 4.15 802.78 1.51 1,490.22 0.0001 2,052.10 5.66 986.08
Total 201.31 - 3.27 - 1.1101 - 205.70 -
2014
Exports 205.12 640.49 2.00 1,198.71 1.36 1,129.01 208.48 649.04
Re-Exports 4.61 770.69 1.60 1,527.74 0.0019 934.10 6.22 966.04
Total 209.72 - 3.60 - 1.3619 - 214.7 -
Source: Sri Lanka Tea Board * F.O.B. – Free on Board
Ministry of Plantation Industries - Progress Report 2014
25
Data on Tea Exports up to 31st August 2014
Black Tea Quantity
(Kg.) Value (Rs.)
FOB (Rs. / Kg)
Tea Bags 17,256,598 18,853,689,603 1,092.55
Tea Bulk 82,314,526 48,304,871,826 586.83
Tea Packets (4g-1kg) 66,995,796 42,381,683,211 632.60
Tea Packets (1Kg-3Kg) 2,001,519 1,239,249,832 619.15
Tea Packets (3Kg-5Kg) 13,639,381 7,996,322,276 586.27
Tea Packets (5Kg-10Kg) 22,914,189 12,603,650,993 550.04
Sub Total 205,122,009 131,379,467,742 640.49
Green Tea Quantity
(Kg.) Value (Rs.)
FOB (Rs. / Kg)
Tea Bags 606,098 1,085,152,667 1,790.39
Tea Bulk 715,847 429,814,474 600.43
Tea Packets (4g-1kg) 637,033 838,227,196 1,315.83
Tea Packets (1Kg-3Kg) 1,294 1,674,899 1,294.36
Tea Packets (3Kg-5Kg) 4,415 4,599,742 1,041.84
Tea Packets (5Kg-10Kg) 33,855 36,204,831 1,069.41
Sub Total 1,998,542 2,395,673,809 1,198.71
Instant Tea Quantity
(Kg.) Value (Rs.)
FOB (Rs. / Kg)
Packets (>3Kg) 1,363,693 1,539,186,276 1,128.69
Packets (4g-1Kg) 38 473,506 12,460.68
Sub Total 1,363,731 1,539,659,782 1,129.01
Quantity
(Kg.) Value (Rs.)
FOB
(Rs. / Kg)
Total Exports
(Without RTD) 208,484,282 135,314,801,333 649.04
Tea – Ready to Drink
(RTD) 9,774 1,840,074
188.26
Source: Sri Lanka Tea Board
Ministry of Plantation Industries - Progress Report 2014
26
Data on Tea Re-Exports up to 31st August 2014
Black Tea Quantity
(Kg.) Value (Rs.)
FOB
(Rs. / Kg) Tea Bags 2,099,958 2,043,415,988 973.07
Tea Bulk 719,816 316,115,488 439.16
Tea Packets (4g-1kg) 1,764,693 1,173,901,562 665.22
Tea Packets (1Kg-3Kg) 11,309 8,442,009 746.49
Tea Packets (3Kg-5Kg) 7,365 5,547,820 753.27
Tea Packets (5Kg-10Kg) 6,730 5,347,617 794.59
Sub Total 4,609,871 3,552,770,484 770.69
Green Tea Quantity
(Kg.) Value (Rs.)
FOB
(Rs. / Kg) Tea Bags 744,943 1,617,968,408 2,171.94
Tea Bulk 90,189 49,118,162 544.61
Tea Packets (4g-1kg) 538,834 653,588,220 1,212.97
Tea Packets (1Kg-3Kg) 2,330 1,266,092 543.39
Tea Packets (3Kg-5Kg) 440 912,090 2,072.93
Tea Packets (5Kg-10Kg) 226,625 126,659,432 558.89
Sub Total 1,603,361 2,449,512,404 1,527.74
Instant Tea Quantity
(Kg.) Value (Rs.)
FOB
(Rs. / Kg) Packets (>3Kg) 1,918 1,776,299 926.12
Packets (4g-1Kg) 58 69,486 1,198.03
Sub Total 1,976 1,845,785 934.10
Quantity
(Kg.) Value (Rs.)
FOB
(Rs. / Kg)
Total Exports
(Without RTD) 6,215,208 6,004,128,673 966.04
Tea – Ready to Drink
(RTD) 4,328,964 435,074,440 100.50
Source: Sri Lanka Tea Board
Data on Tea Exports up to 31st August 2014
Quantity
(Kg.) Value (Rs.) FOB (Rs. / Kg)
Exports 208,484,282 135,314,801,333 649.04
Re-Exports 6,215,208 6,004,128,673 966.04
Total 214,699,490 141,318,930,006 658.22 Source: Sri Lanka Tea Board
Ministry of Plantation Industries - Progress Report 2014
27
There are 156 tea export destinations up to August 2014. The main destinations of Ceylon
Tea, the quantity and value of exports are given below.
Main Destinations of Ceylon Tea Exports
(Up to August 2014 )
Country Quantity
(Mn.
Kg.)
Value
(Rs.Bn)
F.O.B.
price per
kg
(Rs.)
Market
Contribution
Growth
Turkey 29.85 18.53 620.54 14.3% 13.7%
Russia 29.13 19.57 671.76 14.0% 14.5%
Iran 19.70 13.80 700.25 9.5% 10.2%
Iraq 13.88 7.06 508.71 6.7% 5.2%
UAE 12.22 6.95 568.89 5.9% 5.1%
Syria 8.74 5.38 616.08 4.2% 4.0%
Kuwait 8.15 3.81 467.89 3.9% 2.8%
Libya 8.13 3.79 466.62 3.9% 2.8%
Azerbaijan 6.76 4.27 631.02 3.2% 3.2%
Japan 6.65 4.58 689.27 3.2% 3.4%
The Cess income earned from tea exports for the period from January to August 2013
amounted to Rs. 1,458 million and it was Rs. 1,514 million during the corresponding period
of the year 2014 showing 3.8% growth.
Value Added Tea Exports
Year
Value Added Tea %
Total exports
with re-exports Total exports without
re-exports 2012 40.2 38.3
2013 39.3 37.9
2014 (Estimated) 50.0 43.0
Ministry of Plantation Industries - Progress Report 2014
28
Issues/Challenges Related to the Tea Industry of Sri Lanka
Low Productivity in tea lands.
High cost of production.
Labour shortage in some areas.
Skilled labour shortage at factory level.
Low adoption of modern technology low capital investment.
Prevailing tariff constrains in the market for „„Ceylon Tea‟‟.
To incline the “brand name” deviating from the market opinion based on
the origin of tea, held by the consumers of prime tea importing countries.
Inadequate production of Tea Bags, Instant Tea, Green Tea and other tea
products.
Insufficient supply of green tea which is also not compatible with the
higher demand internationally.
Inadequate replanting.
Misuse of “Ceylon Tea” brand name and illegal trading of refused tea.
Increasing exports by Kenya, Indonesia and Vietnam.
Ministry of Plantation Industries - Progress Report 2014
29
Special activities undertaken in Year 2014
Any offence under Tea Control Act No. 51 of 1957 may impose a fine and
it has been increased from Rs 50, 000 to Rs 500,000/-.
Suspension of registration of LNSA tea factories. (Low Net Sale Average
Factories which are not following GMP standards).
Introducing incentives for investigation teams.
Continuation of "B Leaf 60" to improve leaf standard.
Launching of Global market campaign.
Poster campaign in all regions together with tea factories to improve the
leaf quality.
Factory based awareness programs for small holders.
Based on the warehouse inspection survey (2013), ordered to take
necessary actions to upgrade the warehouses that ranked under the poor
category. Renewal of registration will not be considered if they are unable
to upgrade the warehouse as advices.
Special Investigation to minimize the malpractices on tea (In export
process and in the local market).
Re-commencement of the registration of tea lands which are above the 10
acres of extent.
Reintroduction of the project for installation of quality systems in tea factories-
CQC.
Ministry of Plantation Industries - Progress Report 2014
30
The rubber plantation which was introduced to Sri Lanka by Sir Henry Wickham in year
1876 has mostly expanded in the traditional rubber growing areas of Sri Lanka such as
Colombo, Gampaha, Kalutara, Kandy, Matale, Galle, Matara, Kurunegala, Badulla,
Ratnapura and Kegalle districts. Since the opportunities to further expand the rubber
cultivation in traditional areas are limited, the rubber cultivation has been initiated in non-
traditional areas such as Monaragala, Hambanthota and Ampara districts on the policy
decision taken by the government and at present, preliminary actions have been initiated to
expand the rubber cultivation to Vavuniya and Mullaitivu districts in Northern Province.
ශර කාවේ ර ර ක ෂේ ර ේ රමකව ර කනයකෂේ සගයක ශකවකව වේකසරේයක ළ රේ කාේ
ව අාර, ආ කථව පරතලකේයකට අතාරර, රය රගේර ආශ කකයකෂේ වත ළ රටශ,
සරයර හාවේම ර තටත ේකගණව ර ේ ර ක සත රයයෂේ න කතේණක කරත ශ
ළ වත නයේ ර ක රගේර ාරදර ත පරචලතා කර ේ වේලය අරකයාේරකෂේ සර.
The root causes for such drop in the production were decline in the prices of rubber
and unfavourable weather conditions prevailed in the rubber growing areas.
The rubber production in the year 2013 recorded 130,421 mt and it is projected that
the said quantity will be 135,000 mt in the year 2014.
Details
(From January to August)
2013 2014 Variance
(%)
Rubber Production (Mt.) 79,999 74,365 -7.0%
Total foreign exchange earning from
rubber exports (Rs. Mn.)
75,421 80,361 6.5%
Vision
Enhancement of the national production and increase of the foreign exchange
earnings through expansion of the quality and productive plantation and creation
of an environment conducive for the improvement of economic conditions and
social status of the people who engage in the rubber industry.
3. Rubber Sector
Overall Performance in the Rubber Sector
Ministry of Plantation Industries - Progress Report 2014
31
Expansion of Rubber Cultivation
At present, rubber cultivation has expanded to an extent of 133,668 hectares of
which 85,083 hectares (63.4%) are contributed by the rubber small holding
sector. Further, an extent of 48,585 hectares (37%) is managed under the
corportate sector.
The estimated extent of rubber lands in year 2014 is 140,000 hectares due to the
rubber new planting in traditional and non-traditional areas. 111,200 hectares of
the total extent of lands are mature (tapping) rubber lands and 28,800 hectares
are immature rubber lands. Since the trend to move away from the rubber
cultivation has decreased at present and the rubber cultivation has been expanded
to non-traditional areas such as Ampara, and Vavuniya Districts, it has been
projected that the total extent of rubber lands will be expanded to 148,000
hectares in year 2015
Details of district wise extents of rubber lands (Hectares)
District 2010 2011 2012 2013
Kalutara 166.82 213.09 145.160 269.09
Kegalle 349.38 351.85 279.920 439.30
Gampaha 29.02 60.481 66.990 86.11
Kurunegala - - 38.360 79.98
Kandy - - 11.270 26.57
Matale - - 11.330 14.73
Ratnapura 125.98 165.374 254.019 339.88
Galle 68.76 91 61.097 89.48
Matara 66.30 84.412 92.453 127.59
Hambanthota 36.02 32.25 26.102 38.65
Colombo 18.70 39.381 57.822 72.50
Monaragala 329.94 310.37 48.510 558.00
Badulla 115.50 146.93 39.100 129.63
Ampara 11.00 44.72 137.500 402.93
Vavuniya - - - 36.80
Anuradhapura - - - 3.60
Polonnaruwa - - - 3.03
Ministry of Plantation Industries - Progress Report 2014
32
The rubber small holders make a greater contribution to the cultivation in the rubber sector
same as in the tea sector. In terms of the Rubber Control Act, No.11 of 1956, an extent of
10 hectares or less is defined as a rubber small holding. However, the lands of up to 50
acres or 20 hectares are considered as rubber small holdings for the administrative
convenience.
Rubber Small Holding Sector
Main reasons for encouragement of rubber growers
Rubber Replanting Subsidy (Rs.175,000 per hectare)
Rubber New Planting Subsidy (Rs.150,000 per hectare)
National Fertilizer Subsidy Programme of the Government (A 50 kg sack of
mixed fertilizer is Rs. 1,300 and a 50 kg sack of unmixed fertilizer is Rs.
1,200)
Necessary steps were taken to further develop the rubber cultivation as high
quality and productive plantation through the policy decisions taken by the
government for enhancement of the rubber industry of Sri Lanka, guidance
and encouragements.
Programmes were implemented continuously through the Rubber
Development Department, Rubber Research Institute and Thurusaviya Fund.
(Good agricultural practices such as application of fertilizer and fixing of rain
guards to rubber cultivation)
The total extent of lands under rubber replanting at the end of year 2013 under
the Rubber Replanting Subsidy of Rs.268.76 million is 1,782.17 hectares.
Further, total value of the subsidy granted for Rubber New Planting Programme
in year 2013 amounted to Rs.167.73 million and the extent of lands cultivated is
1,574.12 hectares.
At present, the extent of rubber small holdings is approximately 85,083 hectares
and it is 63% of the total extent of rubber lands. The rubber small holders have
scattered in 19 Districts of the country and their contribution to the national rubber
production is about 77%. The interest of the rubber small holders to the rubber
cultivation has further improved due to the fertilizer subsidy granted continuously
to the rubber small holders under the National Fertilizer Subsidy Programme and
the increased rubber planting subsidy.
Ministry of Plantation Industries - Progress Report 2014
33
20 Nos. of the Plantation Companies privatized in year 1992 engage in the rubber
cultivation. The lands in extent of more than 50 acres or more than 20 acres are considered
as the lands under the corporate sector.
A productivity of 1,247 kg per hectare had been reported in year 2013 amidst the
unfavourable weather conditions and the relative low prices due to the new planting and
replanting subsidy of the government, motivation of the farmers to obtain maximum output
from the available rubber lands, fixing of rain guards and conducting training programmes
continuously.
The rubber production in the first 08 months from January to August 2014 was 74,365 mt.
It is about 7% decrease compared to the rubber production of 79,999 mt recorded in the
first 08 months of the year 2013. The root causes for such drop in the production were
decline in the prices of rubber and unfavourable weather conditions prevailed in the rubber
growing areas. Further, it is projected that the total rubber production in the year 2014 will
be exceeded 135,000 mt.
Period Productivity Kg. / Ha
2013 1,247
2014 (Estimated) 1,250
Corporate Sector
Productivity of the Rubber Sector
Rubber Production
At present, the extent of rubber lands under the corporate sector is approximately
48,585 hectares and it is about 37% of the total extent of rubber lands. The rubber
holdings of the corporate sector have scattered in 12 districts of the country and their
contribution to the national rubber production is about 23%. This sector is
significant in the local rubber industry due to the production of finished products
purchasing raw material of the rubber small holders. The national fertilizer subsidy
granted continuously to the corporate sector from May 2011 on the government
policies has caused to increase the contribution of production in this sector.
Ministry of Plantation Industries - Progress Report 2014
34
Category wise Rubber Production
(From January to August of 2013 and 2014)
Source: Rubber Development Department
Accordingly, the rubber sheet production which makes the largest contribution to the total
rubber production had increased by 1,794 mt (5%) in the first 08 months of the year 2014
compared to the first 08 months of the year 2013.
Further, it is projected that the rubber production in the year 2015 will be approximately
142,000 mt.
The average cost of production per kg of rubber for small holdings amounted to Rs.136.00
in year 2012. It has increased to Rs.150.00 in the year 2013. As well, it is projected that it
will be increased to Rs. 165 in the year 2014.
Cost of Production
Ministry of Plantation Industries - Progress Report 2014
35
The average price of all types of rubber declined in the first 08 months of the year 2014
compared to the first 08 months of the year 2013. The average prices of the Colombo
rubber auction under RSS types during the corresponding period of the years 2013 and
2014 are given in the Chart below.
Average Auction Prices for RSS Types
(From January to August of 2013 and 2014)
Source: Rubber Development Department *RSS – Ribbed Smoked Sheet rubber
The average price per kg of RSS-1 in the first 08 months of the year 2014 varied at a range
of Rs. 264 – Rs. 321 and since the average cost of production per kg of natural rubber was
about Rs.150 in the year 2013, the dividend of the growers was more than Rs. 100 even
under low prices.
Local Rubber Market
Ministry of Plantation Industries - Progress Report 2014
36
Average Colombo Auction Prices for Various Types of Rubber
Price
From January to August 2014
Price of RSS (Rs./Kg) Price of Latex Crepe (Rs./Kg Price of Scrap Crepe
(Rs./Kg)
RSS1 RSS2 RSS3 RSS4 RSS5 LC1X LC1 LC2 LC3 LC4 1XBr 2XBr 3XBr 4XBr
Average 294 287 277 272 268 316 307 274 245 228 220 213 209 201
Maximum 321 316 290 284 275 349 340 322 298 273 256 253 237 227
Minimum 264 256 257 254 242 297 287 257 221 205 198 190 193 185
Source: Rubber Development Department
The rubber production of Sri Lanka is about 1.08% of the total global rubber production
and about 82% of the production is consumed by the local producers. However, the changes
in the price of global economy and demand and supply of the rubber directly affect to the
local rubber price
Rubber Production
(Association of Natural Rubber Producing Countries) ‘000 Mt
Country From January to August
2014
Indonesia
Malaysia
India
Vietnam
China
Sri Lanka
Philippine
Cambodia
Thailand
2188.3
511.9
510.0
550.0
486.0
86.4
63.6
52.5
2,331.0
Total 6,779.7
Source: Association of Natural Rubber Producing Countries
It is projected that the growth of the global natural rubber production in the year 2014 will
be 1.9%. As per the projections of the International Rubber Study Group (IRSG), the total
global natural rubber production and the consumption in the year 2014 will be about
12,275,000 mt and 11,904,000 mt respectively. However, further expansion of rubber
cultivation in Sri Lanka as well, is economically advantageous since the demand for rubber
will increase in future with the global economic growth.
Ministry of Plantation Industries - Progress Report 2014
37
The raw rubber export of Sri Lanka from January to August 2014 was 12,848 mt and it is
17% of the total production of 74,365 mt in the same period of year 2013.
Export of Rubber
Source: Rubber Development Department
Accordingly, the raw rubber export in the first 08 months of the year 2014 has dropped by
about 13% as against year 2013. The reason for the drop is that 61,772 mt of raw rubber
had been value added locally during the relevant period of year 2014.
The category wise rubber exports from January to August 2013 and 2014 are given in the
Table below.
Year (January –
August)
Quantity of
Exports (Mt.)
Rubber
Production (Mt.)
Exports in
Production %
2013 14,791 79,999 18
2014 12,848 74,365 17
Rubber Exports
Locally value added products, appeared a significant
trend
Tyre and tube
Rubber plates
Sheets and belts
Surgical and other gloves
Carpets
Mats and other rubber based products
Ministry of Plantation Industries - Progress Report 2014
38
Category wise Rubber Exports
Mt.
Category
From January to
August
2013 2014
Sheet 3,327 1,584
Sole Crepe 1,165 1,519
Latex Crepe 7,817 7,766
T.S.R 1,603 817
Centrifuge/Other 879 1,162
Total 14,791 12,848
Source: Rubber Development Department
The Cess income from rubber exports, imports and local industries from January to August
2013 amounted to Rs. 1,487.2 mn and the Cess income during the corresponding period of
year 2014 amounted to Rs.1,385.7 mn.
Cess Earnings
Rs. Mn
Cess Category January - August
2013 2014
Export 285.6 222.2
Import 1,027.3 1,009.2
Local Industries 174.3 154.3
Total 1,487.2 1,385.7
The total foreign exchange earnings from rubber exports during the period from January to
August 2014 amounted to Rs.80,361 mn and it is 6.5% increase as against Rs.75,421 mn of
export income in the corresponding period of year 2013. The export income from category
wise rubber exports during the first 08 months of year 2013 and 2014 is given in the Table
below.
Ministry of Plantation Industries - Progress Report 2014
39
Value of category wise Rubber Exports
Rs. Mn
Category
January - August
2013 2014
Raw Rubber 5,939 4,687
Finished
Products
69,482 75,674
Total 75,421 80,361
Source: Rubber Development Department
Value Added Rubber Products
A quantity of 61,772 mt of rubber was value added during the first eight months
of the year 2014 and As well as year 2013, tyre and tube, rubber plates, sheets
and belts, surgical and other gloves, carpets, mats and other rubber based
products were significant among them . This is 6.8% decrease as against the
value addition of 66,261 mt. recorded during the relevant perion in year 2013.
The total natural rubber quantity used for production in the year 2013 was
107,259 mt and it is projected that the relevant quantity will be approximately
100,000 in year 2014.
The foreign exchange earnings from the export of value added rubber products
during the period from January to August 2013 amounted to Rs. 69,482 mn and
it is Rs.75,674 mn during the corresponding period of year 2014.
Further, as a result of making efforts by many manufacturers of rubber based
finished products to reach the international standards using new manufacturing
methods for modernization of their products, the natural rubber quantity used for
finished products further will take a higher percentage of the total production.
The target of the Ministry of Plantation Industries is to take necessary measures
to use about 80% of the total local rubber production for value added products
by year 2016.
Ministry of Plantation Industries - Progress Report 2014
40
Issues related to the Rubber Sector
Insufficient of the supply of high quality plants tolerant to various climatic
conditions and meet the requirement for expansion of the cultivation.
Practical difficulties for further expansion of rubber plantation to the
traditional areas due to the urbanization and industrialization.
Shortage of skilled rubber tappers.
Decline in the prices of rubber.
Low interest of the rubber small holders in utilization of new techniques such
as fixing of rain guards.
Practical difficulties to use lands lawfully for the expansion of rubber
cultivation to non- traditional areas.
Insufficient of the researches related to the diversification of rubber products.
Insufficient of application of fertilizer to the mature plantation.
Special courses of action taken for enhancement of the rubber sector
Producing high yielding quality budded plants.
Maintaining a replanting rate at 3%.
Expanding rubber cultivation to non-traditional areas.
Adopting good agricultural practices and increasing the productivity.
Implementing rubber tapping training programmes.
Revising Cess Levy in respect of the decline in the price of rubber and taking
necessary actions to set a fixed price for rubber.
Ministry of Plantation Industries - Progress Report 2014
41
The beginning of the oil palm cultivation in Sri Lanka has been reported in an area of 20
hectares of Nakiyadeniya estate in year 1969. Generally, the areas where the annual
rainfall is more than 1800ml, temperature is 20 C˚ - 40 C˚ and sun setting is more than 05
hours per day are suitable for the oil palm cultivation. Accordingly, there is a feasibility to
grow oil palm in the districts of Galle, Matara, Kalutara, Colombo, Kegalla, Gampaha,
Kurunegala, Kandy, Matale and Ratnapura.
The oil palm cultivation initiated in an area of about 20 hectares of Nakiyadeniya estate in
year 1969 had been expanded to 1,200 hectares by year 1974. By year 2000, it was further
expanded to 03 State Plantation Companies in Kalutara and Matara districts. For the first
time, oil palm refinery factory was established in Kalutara district in year 2007. At present,
the oil palm cultivation has expanded in approximately 7,953 hectares. Out of that, five
Regional Plantation Companies manage 7,934 hectares and Sri Lanka State Plantation
Corporation manages 19 hectares.
The following Table provides year 2013 details of expanding the extent of oil palm
cultivation in the estates which are managed by the Plantation Companies
Vision
Contribution to the national economy through development of oil palm as a
commercial crop to meet the local edible oil requirement and saving the foreign
exchange for import of edible oil.
Expansion of Oil Palm Cultivation
4. Oil Palm Sector
Ministry of Plantation Industries - Progress Report 2014
42
Expansion of the Oil Palm Cultivation - (2013) Hectares
Plantation Company Extent
under
Mature
Extent
under
Immature
Total
Extent
Agalawatta
Watawala
Namunukula
Elpitiya
Kotagala
(SLSPC)
997
1,935
1,128
843
01
19
300
994
679
493
563
-
1,297
2,930
1,807
1,336
564
19
Total 4,924 3,029 7,953
Source: Planters‟ Association of Ceylon
Sri Lanka State Plantation Corporation (SLSPC)
Details of the oil palm production of the Regional Plantation Companies in year 2012 and
2013 are given in the Table below.
Oil Palm Production of Plantation Companies - (2012/2013)
Mt.
Plantation Company Year
2012 2013
Agalawatta 6,809 7,421
Watawala 29,733 32,796
Namunukula 14,088 15,788
Elpitiya 10,716 10,892
Kotagala - 0
SLSPC 289 69
Total 61,635 66,966
Source: Planters‟ Association of Ceylon
Sri Lanka State Plantation Corporation (SLSPC)
As per the Table above, the oil palm production has increased by 8.6% in the year 2013
Compared to the year 2012.
Overall Performance of the Oil Palm Sector
Ministry of Plantation Industries - Progress Report 2014
43
Making recommendations to import the seeds required for oil palm cultivation of the
Plantation Companies under tariff concessions is done by the Ministry of Plantation
Industries. Further, the Ministry gives its support for coordination of studies and promotion
campaigns on the use of oil palm cultivation and importance of its expansion as well.
Accordingly, the recommendation has been made to import of 51,000 seeds required for the
Plantation Companies to cultivate during the year 2013 and recommendation has been
given to import 102,000 seeds in the first 8 months of year 2014.
At present, the estimated productivity of the oil palm production in Sri Lanka is
approximately 3.4 mt per hectare.
Saving of the foreign exchange incurred for import of vegetable oil.
Reducing the variations of the prices for coconuts in the local market.
Sustainable use of the lands while assuring the use of uncultivated bare lands for the
oil palm cultivation.
Possibility to supply of high quality palm oil to the local market.
While using uncultivated lands owned by the Plantation Companies and the lands of
small holders, it has been targeted to expand the extent under oil palm cultivation in
Sri Lanka up to 25,000 hectares within next 10 years.
Taking actions to expand Oil Palm cultivation targeting at Low Grown areas under
crop diversification at regional level on climatic changes.
Oil Palm Research Division has been installed at the Coconut Research Institute to
conduct researches continuously.
Give assurance to make capabilities to import quality seeds from some other
countries in addition to Papua New Guinea.
Productivity of Oil Palm
.
Advantages achievable from the Oil Palm Cultivation
Future Plans for the Oil Palm Sector
.
Ministry of Plantation Industries - Progress Report 2014
44
The total revised estimate for the Ministry and the institutions coming under the Ministry
up to 30th
September 2014 amounts to Rs. 5,014.68 million. Its progress is given in the
Table below.
Financial Progress of the Ministry and the Institutions coming under its purview up to
30th
September 2014
Rs. million
Commercial enterprises coming under the Ministry namely, Kalubowitiyana Tea Factory
Ltd. and Tea Shakthi Fund are not allocated funds by the Treasury.
Institution Capital
amount
Recurrent
amount
Capital
expenditure Recurrent
expenditure
Capital
Progres
s %
Recurrent
Progress
%
Ministry 996.48 151.2 319.3 104.14 32 69
Sri Lanka Tea Board
70.0 140.0 35.0 99.0 50 71
Tea Research
Institute of Sri Lanka 133.5 300.0 44.38 210.6 33 70
Tea Small Holdings
Development
Authority
600.0 275.0 414.05 195.94 69 71
Rubber Development
Department 1,123.0 213.9 666.09 163.77 59 77
Rubber Research
Institute of Sri Lank 84.2 252.5 22.9 192.32 27 76
Thurusaviya Fund
6.9 12.0 5.11 9.07 74 76
National Institute of
Plantation
Management
25.0 31.0 14.8 18.40 59 59
Smallholder
Plantations
Entrepreneurship
Development
Programme
600.0 - 233.93 - 39 -
Total
3,639.08 1,375.6 1,755.56 993.24 48 72
5. Financial Progress of the Ministry of Plantation Industries
Ministry of Plantation Industries - Progress Report 2014
45
A number of 439 large scale estates more than 50 acres in extent, managed by the Janatha
Estates Development Board (JEDB) and Sri Lanka State Plantation Companies (SLSPC)
were vested in 23 Regional Plantation Companies in 1992 and privatized. The lands of
these estates still remain under the supervision of JEDB and SLSPC. The management and
plantations of the said estates have been handed over to the Regional Plantation Companies
on the lease basis of 53 years. The role of this Division is to execute the powers entrusted
with the Secretary to the Treasury as the Golden Shareholder of these RPCs, on behalf of
the government. Accordingly, functions performed by this Division are given below.
Granting approval for the amendments to the Articles of Association.
Inspecting the functions of Regional Plantation Companies (RPCs) and accordingly,
review of the progress.
Monitoring of replanting and field development activities.
Inspection of the factory modernization and continuation of human resources
development activities.
Looking into the matters such as prevention of soil erosion, application of fertilizer,
conservation of water sources & water catchments and environment conservation
activities related to the estates.
Inspection of management irregularities in the estates.
Monitoring of sub leasing and transfers made by the Plantation Companies.
Taking action to release the lands leased out to the RPCs, for public purposes.
Monitoring of reforestation management programmes and making recommendations
on field inspections for timber felling.
Collection of lease rentals to be paid by the RPCs to the Government.
Taking action in respect of the squatters for establishment of possession of the state
lands.
Identification of cultivable but uncultivated lands managed by the Regional
Plantation Companies
In line with the consent given by the Plantation Companies, demarcation of the lands
identified at district level and preparation of land use plans are being carried out in
collaboration with the District Secretaries. It has been decided to conduct a meeting
Plantation Management Monitoring Division
6. Progress of Development Divisions/ Projects of the Ministry
Progress of the year 2014
Ministry of Plantation Industries - Progress Report 2014
46
with the participation of Hon. Minister of Economic Development, Hon. Minister of
Plantation Industries and all relevant officials to review the progress and to obtain
instructions in respect of the manner in which this programme is to be implemented in
future.
Recovering lease rentals from the Regional Plantation Companies
Although the estimated arrears of lease rentals to be collected during the year 2014 was
Rs. 144 million, Rs. 156 million has been recovered as at 31.08.2014. The estimated
amount of lease rentals to be collected for the year 2014 is Rs. 811 million of which
Rs. 272 million has been recovered as at 31.08.2013.
Financial Progress Review of the Regional Plantation Companies
Proper studying and analyzing of quarterly and annual accounts statements of the
RPCs and thereby, instructing to the Companies to make rectifications where
necessary actions are being undertaken and arrangements have been made to continue
it more regularly. Moreover, a data base on the financial and physical progress of the
Plantation Companies is maintained and action has been taken to furnish the required
details to the relevant sectors.
Monitoring of Timber Harvesting
As per the five year management plan, actions are being taken by this Division for
granting approval required for timber felling in the estates managed by the plantation
Companies, with the involvement of the other relevant government institutions. The
field inspections and other necessary actions have been taken by this Division in respect
of the timber felling in 47 estates managed by 07 Plantation Companies from
01.01.2014 to 15.09.2014. In addition, approval has been granted for the removal of
trees in other various occasions (Ex: - Trees dangerous for lives and other properties,
trees to be removed for establishment of high tension power lines, trees to be removed
for other public purposes such as housing projects and playgrounds etc., trees to be
removed whenever required for crop diversification and unnecessary trees shading to
the cultivations).
Ministry of Plantation Industries - Progress Report 2014
47
Release of lands for public purposes of the government
Necessary actions are being taken by this Division to obtain approval of the Golden
Share Holder on the consent of the Plantation Companies in respect of the release of
estate lands managed by the Regional Plantation Companies for development activities
of the government and other public purposes and conducting relevant field inspections
as the case may be.
During the period from 01.01.2014 to 15.09.2014, actions have been taken in respect of
around 32 requests made to this Division regarding the acquisition of estate lands for
the activities such as highways, industrial parks, supply of water facilities and other
infrastructure development and in addition, actions have been taken in respect of the
requests made for 18 housing projects, 11 schools, 03 estate hospitals, 26 religious
places, 18 cemeteries and 72 requests for playgrounds and other welfare activities. In
addition, 07 field inspections related to the cases hearing at the court in respect of the
release of lands for public purposes have been conducted.
Eviction of squatters in the government owned lands
This Division acts in respect of the squatters and unauthorized constructions in the estate
lands managed by 23 Plantation Companies in terms of the provisions of the State Lands
(Recovery of Possession) Act No.1979 pertaining to the recovery of possession of the
state lands to the government.
During the period from 01.01.2014 to 15.09.2014, actions are being taken by this
Division in respect of 785 such cases in the estates managed by 23 Plantation
Companies. 15 field inspections related to the cases hearing at the court in respect of the
unauthorized use of estate lands have been conducted.
Sub-lease of the lands managed by the Regional Plantation Companies
As per the conditions referred to in 04 (a) of the Lease Agreement entered into between
the government and the Regional Plantation Companies, the Plantation Companies
reserve the right to sub lease the said lands to a 3rd
party for various activities aiming at
the development of the country ( Eg:- Construction of Telecommunication towers and
Ministry of Plantation Industries - Progress Report 2014
48
Mini hydro power stations). These activities are carried out by this Division as per
approved specific procedure and necessary actions are also taken by this Division to
obtain approval of the Golden Share Holder for the purpose.
During the period from 01.01.2014 to 15.09.2014, approval of the Golden Share Holder
has been granted to sub lease approximately 12 plots of lands from the estates managed
by 23 Plantation Companies to various parties for the purposes referred to above and
actions are being taken by this Division in respect of such 15 requests.
Cadastral surveying in the estate lands
After the cadastral surveying in the estate lands were re-commenced with the
involvement of the Surveyor General‟s Department and the Regional Plantation
Companies, surveying in 19 estates owned by 07 plantation companies is being
conducted to be in line with the “Bim Saviya” programme implemented by the
government from 01.01.2014 to 15.09.2014. Surveying in some estates has been
completed and at present, 29 maps including the year 2013 have been handed over to this
Division.
Complaints from the public
Necessary actions are being taken with the assistance of the Plantation Companies in
respect of the various complaints and requests on the estate sector made by the people to
H.E. the President and Hon. Minister of Plantation Industries and the Division has taken
actions in respect of around such 650 requests during the period from 01.01.2014 to
15.09.2014.
Conducting Golden Share Holder’s Meetings
Three Golden Share Holder‟s Meetings chaired by the Hon. Minister of Plantation
Industries and attended by the Regional Plantation Companies, Planters‟ Association and
other relevant government institutions have been conducted during the period from
01.01.2014 to 15.09.2014 and the discussions on the short term and long term economic
Ministry of Plantation Industries - Progress Report 2014
49
and social issues in the estate sector and the practical solutions to be taken for the issues
were held thereat and the companies have been made aware to take necessary actions.
The special attention was drawn and necessary courses of action have been taken by this
Division in respect of the matters discussed on the estate sector at the District
Development Committee Meetings presided over by H.E. the President in Ratnapura,
Matale, Badulla, Galle and Kurunegala districts.
Coordination of the functions of Consultative Committee Meetings and appointed
Sub-Committee Meetings on the affairs of Plantation Industry
During the period from 01.01.2014 to 15.09.2014, the priority has been given to 150
requests and issues referred to the Consultative Committee by the Hon Members of
Parliament. As well, coordination of the all activities including preparation of Terms of
Reference of the Sub-Committee appointed to study and make recommendations on the
issues arisen in respect of the obligations and duties of the plantation companies which
were previously owned by the government and privatized later and submission of the
copies of lease indentures pertaining to over 400 estates to the members of the
Committee are being undertaken by this Division.
Implementation of the Housing Project in the estates of Regional Plantation
Companies (RPCs) under the project implemented by the Urban Development
Authority for construction of 50,000 houses for providing housing facilities to low
income familities
In this context, actions are taken by this Ministry to obtain the consent of the RPCs to
release the identified lands in Deniyaya and Agalawatte areas. As well, actions are also
being taken to submit the details of the selected RPCs in Badulla, Ratnapura and Nuwara
Eliya districts to the Urban Development Authority.
Ministry of Plantation Industries - Progress Report 2014
50
The Smallholder Plantations Entrepreneurship Development Programme (SPEnDP) has
been funded by the International Fund for Agricultural Development (IFAD) and the
Government of Sri Lanka.
The main target of this programme is to increase income and livelihood of the marginalized
smallholder tea producers in eight Divisional Secretaries‟ Divisions of the mid-country
region, covering Kandy, Nuwaraeliya & Kegalle Districts and poor upland crop farmers in
eight Divisional Secretaries‟ Divisions of intermediate zone of Moneragala District who
wish to take up smallholder rubber plantation.
39,250 persons living in 8,700 household units of the said areas are the immediate
prospective beneficiaries of this programme and actions have been taken to encourage them
to undertake tea planting in 250 hectares in Mid-country region and rubber planting in
5,000 hectares in Moneragala district.
Smallholder Plantations Entrepreneurship
Development Programme
Donor Agency : International Fund for Agricultural
Development (IFAD)
Donor Agency : 05.11.2007
Total Cost : US$ 28.0 million
Project Period : From 05.11.2007 to 31.12.2016
Purposes of the Programme
Enable smallholders to develop sustainable out-
grower systems with nucleus estates and down-
stream processing enterprises
Promote and consolidate effective partnerships
between the target groups and private and public
sectors.
Ministry of Plantation Industries - Progress Report 2014
51
Community Development & Strengthening of Grassroots Institutions
47 Nos. of rural roads were constructed at a cost of Rs. 24.225Mn.
113 matching grants (MGs) worth of Rs. 5.54 mn were provided to selected
entrepreneurs to develop income generating activities.
The project has obtained the service of out side service provider for strengthening of
Village Rubber Development Clusters (VRDC), providing matching grants and
formation of business groups and in this context,
- 32 preliminary awareness programmes were conducted at VRDC level and 688
beneficiaries were attended. 271 beneficiaries have been selected for future training
programmes.
- 04 business planning training programmes were conducted with the participation of
90 beneficiaries.
Thirteen business groups were formed and registered through a service provider at a
cost of Rs.1.3 million for 400 beneficiaries to whom grants were provided to support
their income generating activities under the Mid Country Sub-Programme.
51 training programmes were conducted at a cost of Rs.1.09 million for 1,652
beneficiaries who engage in income generating activities.
During the period under review, 09 leadership training programmes were conducted
for 191 beneficiaries at a cost of Rs. 0.118mn.
Progress from January to August 2014
Ministry of Plantation Industries - Progress Report 2014
52
An art competition was held and gifts were awarded at a cost of Rs.0.38 million to
improve skills and talents of the school children of the VRDC farmers.
Identification of suitable locations for construction of 20 wells were completed at a
cost of Rs.0.93 million in collaboration with the Ground Water Section of the National
Water Supply & Drainage Board to supply drinking water requirement of the rural
folks living in the identified areas in Monaragala district.
Capital grants of Rs 1.7 million were provided to 2400 beneficiaries of 240 Savings
and Credit Groups formed under the Mid Country Sub-Programme.
Rehabilitation of Doragala Irrigation Tank in Udapaltha DS division was executed at a
cost of Rs. 5.4mn which benefits 54 farm families to cultivate vegetables in 25
hectares.
Two operational manuals one for entrepreneurship groups and another for Savings and
Credit Groups formed under the Mid Country Sub-Programme were prepared, printed
and introduced at a cost of Rs. 1 million.
Two social development programs were conducted for the beneficiaries in Aranayake
and Doluwa DS divisions with the collaboration of Sri Lanka Police.
Ministry of Plantation Industries - Progress Report 2014
53
Agriculture Development and Crop Diversification
A sum of Rs.54.3 million has been provided as rubber subsidies to 2,698 beneficiary
farmers who maintain rubber cultivations successfully.
Technical training programmes were conducted at a cost of Rs.0.316 million with the
participation of 643 rubber growing beneficiaries.
25,632 cocoa plants and 15,900 passion fruit plants were distributed among the
beneficiaries at the cost of Rs.2.8 million to maintain intercropping with rubber
cultivation.
Subsidies of Rs.16 million were provided for replanting in 32 hectares of tea owned by
300 beneficiary families.
Subsidies of Rs.1.87 million were provided for infilling in 50 hectares of tea owned by
500 beneficiary families.
Export crops were provided at the cost of Rs.1 million
for intercropping in 50 hectares of tea smallholdings
owned by 500 beneficiary families.
Ministry of Plantation Industries - Progress Report 2014
54
Providing raw material to produce compost for vegetable cultivation and providing
subsidies for cultivation of Gliricidia in 21 selected lands with the purpose of soil
conservation.
Completing the survey of lands at the cost of Rs.4.02 million to establish the
ownership of 336 holdings owned by 300 beneficiary families in Kegalle and
Bulathkohupitiya Divisional Secretaries‟ Divisions and 450 holdings owned by 400
beneficiary families in Doluwa and Udapalatha Divisional Secretaries‟ Divisions.
Marketing, Processing & Value Addition
Construction of shops besides main roads in Monaragala district at the cost of Rs.1.28
million.
02 milk collecting centres have been established in Buttala and Madulla D.S. Divisions
at the cost of Rs. 2.06 million.
72 goats (Male/Female) have been distributed at the cost of Rs.0.25 million under 31
Matching Grants and improved dairy cattles were provided to 72 families at a cost of
Rs.3.58mn under the Mid Country Project.
Conducting 30 training programmes for 305
beneficiaries on replanting of tea, intercropping
of export crops, soil conservation through the
relevant line agencies.
Ministry of Plantation Industries - Progress Report 2014
55
240 Bee boxes, Face Covers, Honey Extractors and Smokers were given to 80
beneficiaries under the Mid Country Project to develop Bee Honey production
programme at a cost of Rs. 0.21mn.
Eighty beneficiaries were selected and trained for Kithul Development program in
Kothmale DS division. Two Brix meters, two for sucrose testing kits and 80 boiling
pans were provided at a cost of Rs. 0.24mn.
One hundred and eighteen beneficiaries formed in to two business group and 32
Protective nets were provided at a cost of Rs 0.15mn. Market linkages were formed
with two private foliage exporting companies.
17 entrepreneurship training workshops were conducted at the cost of Rs.0.95 million.
Ministry of Plantation Industries - Progress Report 2014
56
Microfinance Credit Programme
Loans worth of Rs 43.62mn were granted to 141 rubber smallholders and 248 tea
related beneficiary families under the concessionary interest rate jointly with the
Commercial Banks.
Construction of access roads & farm tracks in Monaragala district rubber cultivated
lands, construction of 100 drinking water wells for each VRDC & tea replanted lands
in Mid-country area at the total estimated cost of Rs. 83mn.
Formation of Village Rubber Development Clusters (VRDC), strengthening them
financially and structurally, formation and establishing small scale business groups,
enhancing VRDC capacity to be village entrepreneurs in order to take up various
village development activities at the cost of Rs.40mn Similar activities will be carried
out in Mid-Country area.
Under the development assistance of rubber small holdings and tea smallholdings the
project will spend RS.262.8mn during 2015-2016. The payments for rubber & tea
subsidies are the major activities.
The project will provide agricultural inputs for tea, rubber and intercropping such as
cocoa, pepper and maize cultivations at the cost of Rs.30.2mn during 2015-2016
100 small scale (100kg capacity) rubber sheet processing centres will be established in
2015-2016 at the cost of Rs.80mn.
The project will grant Rs.126.8mn for agriculture, income generation and self-
employment activities at the rate of 9% interest during next two years.
The project will provide matching grants for poor beneficiaries to start small scale
businesses, self-employment and livelihood development activities such as dairy
framing, goat farming, chicken farming etc. at the cost of Rs.91.7mn.
Project will start outcome measuring and impact monitoring of project activities during
next two years.
Under the proposed dairy development programme project has already taken steps
provide 300 high yielding cattle to its beneficiaries and it will continue during next two
years too as a part of livelihood development programme.
Targets for the year 2015
Ministry of Plantation Industries - Progress Report 2014
57
7. Progress of the Institutions coming under the Ministry
Sri Lanka Tea Board
The Sri Lanka Tea Board was established on 01st
January 1976, under the Sri Lanka Tea Board
Law No. 14 of 1975, as amended by Act No. 17
of 1985, No. 44 of 1990, No. 29 of 2003, and
No. 44 of 2006. The main functions of the Sri
Lanka Tea Board are to regulate, develop the tea
industry and promote Sri Lanka Tea (Ceylon
Tea) globally.
Prioritized Areas
Registration of Tea Factories and Green
Tea Dealers.
Taking necessary steps for Reasonable
Price Payment.
Implementation of GMP Improvement
Programme.
Inspection on Adulteration and quality
certification of tea.
Conducting Leaf Quality Improvement
Programme.
Facilitating for Re Planting Subsidy
Scheme.
Facilitating for Factory Modernization
Subsidy Scheme.
Registration of Exporters, Tea Packers
Importers and warehouses.
Global and Local tea promotion campaigns.
Testing of tea samples and verification of
samples.
Vision
To position Ceylon Tea
as the “most aspired
beverage” in the global
market.
Mission
To increase the foreign
exchange earnings to the
country through
sustainable development
of the industry and
thereby ensuring the
economic development
of the plantation
community.
Ministry of Plantation Industries - Progress Report 2014
58
Registration of 26 Local Tea Packers to establish minimum standards for local
consumers.
Re-registration for 500 tea lands which are more than ten (10) acres in extent.
Establishment of Barcode system to secure the sampling and analytical procedure.
Automation of Pre auction and Pre Shipment sampling.
Strengthen the audits under B Leaf 60 Program to enhance the quality of green leaf
up to 60%.
Introduced the computerized Online Authorization for exports.
Analytical and testing report generations through system. [
Introduced an e-mail address for Exporter communication.
Initiated random group visits to collect samples.
Factory Modernization Subsidy Scheme (FMSS) paid Rs.5.02 million for 8
factories.
Rs.16.31 million has been paid as subsidy payments under the Tea Replanting
Subsidy Scheme.
Reintroduction of the project for installation of quality systems in tea factories-CQC
(Ceylon tea Quality Certificates)-39 new factories implemented under the CQC.
Providing machines and accessories to 25 factories under introducing and
facilitating the projects for mechanization of tea harvesting.
Facilitating SLSI-SLTB Product quality certification system.
Conducting 6 Awareness Programs for Registered Tea Manufactures and 15
Programs for Green Tea Dealers.
Registration of Tea Factories and Green Tea Dealers.
Restoration of Registration - 02, Suspension of Registration - 03, Suspension of Sales
-12.
Progress from January to August 2014
Ministry of Plantation Industries - Progress Report 2014
59
Details of the inspections conducted during the period under review are given in the
Table below.
Inspection Type
No. of
Inspections
GMP Improvement Programmes 173
Surprise Inspection for Adulteration 64
Pre-Auction Samples 2,922
Warehouse Inspection 54
Inspection of Local Packers‟ Offices 72
Exporter Office Inspection 47
5211 Cusdec Selection for sampling.
Identifying 23 Shipments for below Standards.
No. of lines denatured is 29.
No. of Import Permits issued is 346. Details of the registrations and renewals during the period under review are given in
the Table below.
Category No. of Registrations Renewals
Packers 67 464
Exporters 32 390
Warehouses 44 253
Packets 170 -
Importers 10 64
Introduction of new tests parameters such as total Poly Phenols and Catechins of
Black and Green Tea, Urea, Gluten, Sugar according to the industrial requirements.
Renewal of Sri Lanka Cricket sponsorship for the 2nd year.
Ministry of Plantation Industries - Progress Report 2014
60
Launch of "Ceylon Tea Moments" a unique one stop tea shop/tea house at Race Course.
Participated in Joint bilateral Economic Commission meetings in Iran & Iraq.
Soft launch of Ceylon Tea campaign in UK through Harrods Knightsbridge.
Finalization of marketing communication strategy programs for Australia Japan, UK and
Latin America (Brazil & Chile).
Progressing with Market Communication Strategy programs for USA, Russia, UAE,
China and Poland.
Arrangements for next "Estate Tea of the Year" competition in Dubai February 2015.
Continuation of the registration process of Geographical Indications of the Ceylon Tea
name (Jordan & Lebanon) and seven agro-climatic regions names/logos in identified
target markets (Japan & USA).
Registration of the Ozone friendly logo and the renewal of the Lion Logo trade mark in
Japan, EU, Malaysia, Kuwait & Syria.
Tea promotion with other state bodies such as National Craft Council.
Finalization of Dubai & Sharjah Airport Advertising program.
Appointment of Honorary Tea Commissioners for UK & Netherlands.
Organizing & participation at 09 international trade fairs & exhibitions.
Maximize the testing capacity of the labs with existing facilities.
Ministry of Plantation Industries - Progress Report 2014
61
Targets for the year 2015
“Ceylon Tea” campaign in 25 countries.
In line with the Global Ceylon tea campaigns, advertising on
TV/Radio/Press.
Ensuring higher price for leaf producers.
Further promotion of value added tea exports and reaching the
revenue above US $ 2 million.
Trade fair participation and conducting promotion campaigns in
existing markets and new markets.
Promotion of tea through country promotion campaigns and joint
promotion campaigns with other government agencies.
Introduction of accreditation for sampling and inspection by Sri Lanka
Tea Board.
Introduce new tests related to Tea Industry.
Ministry of Plantation Industries - Progress Report 2014
62
Tea Research Institute of Sri Lanka
The Tea Research Institute (TRI) which was
established in 1925, as there was a need in the
industry for professional tea research, operates
in terms of the Tea Research Board Act, No. 52
of 1993. The objective of the institute is to
conduct scientific and technological research
on tea, study all issues related with the tea
plantation and collect and disseminate the
knowledge and information gained thereby.
Vision
To achieve excellence in
tea research, generating
and transmitting new
technologies to make Sri
Lankan tea competitive
and the most preferred tea
in the world.
Mission
To generate, introduce and
transfer scientific
knowledge and technologies
appropriate to improve
productivity and quality of
tea production in a most
profitable manner.
Prioritized Areas
Crop improvement.
Land productivity improvement.
Impacts of climate change, adaptation &
mitigation of adverse impacts.
Mechanization of Agricultural Practices in
tea sector.
Crop management and introduction of
nursery management techniques.
Tea processing technology and new
machinery and new methodologies for tea
processing.
Introduction and improvement of value
added tea products.
Finding and popularizing health benefits
of tea.
Technology dissemination and services to
stakeholders.
Ministry of Plantation Industries - Progress Report 2014
63
Under the project for mechanization of tea harvesting in tea small holdings sector,
04 initial awareness programmes for 430 participants covering all the regions and
07 TOT programmes for 220 participants were conducted.
Distribution of machineries among 50 small holders‟ societies and 25 tea
factories.
Distribution of machineries in second round is in progress.
Application of molecular technology to support genetic conservation & improvement
of tea.
SQI validation extended to corporate sector plantations to cover major soil series under
agro ecological regions during replanting period and the researches on bio fertilizer
suitable for tea cultivation conducted using BFBF formulation revealed that the
application of non-organic fertilizer could be reduced by 50% in the application of this
fertilizer to the tea nurseries
Improvement of land productivity through agronomic practices.
Adaptation to the impacts of climatic changes & mitigation of adverse impacts.
Recommendation of an integrated crop protection approaches, to minimize economical
damage & address health, safety & environmental issues & meet consumer
requirements.
Progress from January to August 2014
Under breeding of new tea cultivars to improve
productivity, quality & to face emerging
challenges, around 300 plants developed for
further evaluations.
Ministry of Plantation Industries - Progress Report 2014
64
H.E. the President conferred awards to the scientists of the Tea Research Institute of
Sri Lanka at the 5th Plantation Crop Research Symposium held on 15.10.2014 at the
Bandaranayake Memorial International Conference Hall (BMICH).
A method to prepare a stabilized catechin mixture which can be incorporated into
cosmetics as antioxidants was developed.
Implementation of socio-economic studies and application of Geographic Information
System (GIS) to tea sector.
Three TOT programs for the Para Trainers groups of Kahawatte and Watawala
Plantations, one familiarization program for para trainer group of Kahawatte
plantations were conducted. Two PEA programs were conducted by Watawala
Plantations with the participation of Para trainers, management and the TRI.
The energy consumption of tea factories could be
minimized through using Tea Processing Technology.
In line with the new technology introduced for
production of black tea under the value addition, new
product development and product diversification, the
possibility to extract protein containing in refuse and
spent tea and use it as a food source was established.
Ministry of Plantation Industries - Progress Report 2014
65
Targets for the year 2015
Recommendation of improved TRI 5000 series cultivars and issue of
planting materials to improve productivity, quality and to face emerging
challenges.
Increase the number of seedgardens up to 11.
Distribution of TRI 3000 and 4000 series 7 million cuttings among growers.
Introduction of low cost tissue culture techniques to produce planting
materials in commercial scale.
Identification of drought resistant varieties of TRI 5000 series suitable 1-2
varieties for mid country.
Identification and recommendation of 1-2 varieties with drought resistance
and 2-3 varieties with pest and disease resistance for different tea growing
regions.
Development of strategies with respect to integrated soil management.
Conduct 30,000 analyses for soil, plants and fertilizers.
Recommendation of 1-2 new grass varieties for soil rehabilitation.
Recommendation and introduction of a package and a user guide on rain
water harvesting and conservation.
Recommendation and introduction of 1-2 new shade tree varieties.
Make predictions on Carbon fixation according to different weather and
climatic conditions.
Comparison of requirements of Live Termite with the data available on
climate change, Computer modeling and making predictions on the damage
by Tea Tortix.
Recommendations for different potting media, different bag dimensions and
recommendation of the most ideal shade percentage and bag dimensions.
Introduction of high quality 1 acariicide, 1 fumigant, 1 pesticide having
minimized residuals, which suit for small and large scale tea growers and
favourable to the environmental conditions. Launching 20 awareness
programs of Integrated Pest Management Practices.
Establishment of laboratory facilities in Deniyaya Regional Centre for pest,
mite, and nematode assessments for small and large scale tea esate holders.
Ministry of Plantation Industries - Progress Report 2014
66
Recommendation of proper spacing for Cassia and Caliandra for
introduction of Cassia and Caliandra stem cuttings as bio fuel.
Identification of parameters and development of models to examine the
importance of fluidization parameters for producing quality black tea.
Development of automated energy optimizing self-withering system for
minimizing cost of production through development of energy optimizing
techniques.
Promotion of effective and efficient tea grading mechanism for promotion
and development of factory machineries.
Improving the quality of instant black tea optimizing the parameters such
as temperature and pressure.
Identification of strategies to minimize productivity variations in the tea
cultivation of low country tea small holders.
Identification of strategies to reduce cost of production and increase
competitiveness through analyzing competitiveness of world tea market.
Continuing studies to introduce out grower model that can be succeeded in
both social and economic conditions as a solution to labour shortage and to
reduce cost of production.
Conduct 3 adoptive trials and surveys on newly introduced technologies.
Advisory circular – 2900, Tea estate visits- 575, small holding tea estate
visits- 250, Training programs- 520, Commercial nursery inspection 500-
600 and establishment of 2 techno parks.
Conduct 15-20 Para extension programs for the co-operate tea sector.
Under the organization of seminars for stake holders, organizing two E &
E (English) forums, two E & E (Sinhala) forums , 8 Regional Scientific
Committee seminars , 4-6 Exhibitions 1 extension work shop.
Ministry of Plantation Industries - Progress Report 2014
67
The Tea Small Holdings Development
Authority is a statutory organization established
under the Tea Small Holdings Development
Act, No.35 of 1975 to identify, register and
monitor tea small holdings, formulate strategies
to improve production and productivity of tea
small holders, provide welfare facilities,
relevant incidental technical and support
services and subsidies to the tea small holders.
Tea Small Holdings Development Authority
Vision
To create an economically &
socially sustainable tea small
holding sector
Mission
To improve productivity and
quality in the tea small
holding sector through
providing excellent support
services.
Prioritized Areas
Implementation of Tea Replanting
Subsidy Scheme, Tea New Planting
Subsidy Scheme and Crop
Rehabilitation Subsidy Scheme for tea
small holdings.
Provision of support services such as
distribution of fertilizer, planting
material, implements and transport
facilities.
Implementation of extension and
advisory services.
Registration of small holder
development societies, control and
provision of assistance to registered
society members and formulating of
Rules & Regulations.
Promotion of investment in Tea Small
Holdings.
Collect data on tea small holding
sector and make aware of
development capabilities of tea small
holdings.
Improve the quality of green leaf in
tea small holdings.
Ministry of Plantation Industries - Progress Report 2014
68
Land preparation of 369 hectares at a cost of Rs.93.6 million under tea replanting has
been completed and soil rehabilitation in 430 hectares under the first stage and 415
hectares under the second stage were undertaken and 339 hectares have been
replanted with tea.
Tea new planting in 296 hectares at a cost of Rs.12.03 million has been initiated.
Crop rehabilitation (infilling) in tea lands at a cost of Rs.2.105 million was
undertaken and 96,479 plants under the first stage and 134,000 plants under the
second stage have been distributed among the farmers.
162,236 shoots of new cultivars vegetatively propagated by mother cultivations have
been provided to the commercial plant nurseries, tea small holders, institutional
nurseries and other required persons as well.
7,879 soil samples for pH have been checked to maintain a replanting rate of 2% and
7,880 soil samples for pH have been checked to improve pruning practices on 10%.
126 mt of Dolomite has been supplied to the farmers under the loan scheme.
Utilizing provisions of Rs. 19.88 million allocated by the Ministry of Economic
Development under the Divi Neguma Programme, distribution of 780,000 plants
among 780 beneficiaries to initiate tea new planting, providing 100,000 plants to the
targeted 416 beneficiaries for tea infilling, supply of 26,000 pepper plants to 1040
farmers for intercropping are in progress.
Visiting 15,008 small growers at their farms and resolving their issues.
Awareness programmes have been conducted as follows for various stakeholders at
various occasions for enhancement of the tea small holding sector.
Progress from January to August 2014
Ministry of Plantation Industries - Progress Report 2014
69
Conducting of Awereness Programmes
Project for mechanization of tea leaf plucking in the tea small holding sector
During the year 2014, The Tea Small Holdings Development Authority had
distributed 50 Nos of machinery and equipment package for the 50 Nos Tea Small
Holder Development Societies and the expenditure for them was Rs. 283,970/- .
Under above selected societies 500 Nos of farmers were trained as machine operators.
Training Programme Training
Programme Participation
Awareness programmes for permit holders
447 11,490
Establishment of input supply nurseries for permit
holders
73 1,020
Training of commercial nursery owners
116 1,587
Training on tea planting
262 8,055
Improve harvesting practices
724 18,094
Farmer training programmes on pruning practices
493 12,607
Awareness programmes on soil management
1,117 113,067
Training programmes on shade establishment &
management
546 32,950
Training on nutrient management
571 20,488
Training programmes on plucking
301 7,094
Conduct joint awareness programmes on leaf quality 71 4,414
Progress of Implementation of Budget Proposals
Ministry of Plantation Industries - Progress Report 2014
70
Soil & Water Conservation Development Programmes
Progress of Soil & Water Conservation Development Pogramme as at 31
st August 2014
District No of Societies
No of
Acres
No of Small
Holders
Subsidy
Rs.
Galle 135 21,866 30,540 57,039,474
Matara 155 27,018 35,237 67,600,000
Kandy 23 503 737 1,907,082
Badulla 153 11,979 18,035 29,935,211
Kalutara 192 13,036 15,897 30,910,531
Ratnapura 13 781 774 3,283,750
Nuwara Eliya 949 949 2,372,500
Kegalle 1,000 1,000 2,196,143
Total 671 77,132 103,169 195,244,691
Implementation of Tea Replanting Programme
Land Preparation (Ha.) - 1942
Soil Rehabilitation I (Ha.) - 1722
Soil Rehabilitation II (Ha.) - 1270
Tea Planting (Ha.) - 1205
Maintenance (Ha.) - 1090 Provision of Implements (No.) - 1428
Implementation of Tea New Planting Programme
Land Preparation (Ha.) - 503
Tea Planting (Ha.) - 467
Maintenance (Ha.) - 445
Implementation of the programme of 854,643 plants for
Crop Rehabilitation
Implementation of the programme to improve quality of
leaf
Implementation of the Soil & Water Conservation
Subsidy Scheme
Taking steps to Strengthen Tea Small Holdings
Development Society
Ministry of Plantation Industries - Progress Report 2014
71
Modernization of Yatinuwara Tea Factory has been started.
Tea Shakthi Fund
Progress from January to August 2014
Vision
To be the centre of excellence
committed to the
advancement of the economic
and social wellbeing of tea
small holders.
Mission
To manage Tea Shakthi Fund
efficiently and effectively to
uplift the living standard of
its members.
Objectives
To inculcate the saving habits in
and to improve the economic and
social status of tea small holders.
To promote necessary
investments related to the tea
industry.
Marketing, promoting and
developing the products of such
tea factories.
Taking necessary steps to uplift
those who engage in the
production of tea as tea small
holders.
Tea Shakthi Fund had been incorporated as a self-financed
entity, under the Parliament Act, No.47 of 2000.
During the period from January to 31st
August 2014, the Tea Shakthi Factories have
collected 5,546,770 kg of green leaf and
produced 1,175,912 kg of tea.
Ministry of Plantation Industries - Progress Report 2014
72
The amount of proceeds from the sale of Tea Shakthi tea at the Colombo Tea
Auction was Rs. 488.17 million.
The profit earned from Mawarala Estate amounts to Rs.1.7 million.
Productions of Kothmale Factory are being carried out successfully from 14th
July
2014 under the new management.
A sum of Rs.7.5 million has been provided by the International Fund for
Agricultural Development (IFAD) for development of Mahaweli Factory and the
modernization of the factory has been commenced utilizing the said sum of money.
Tea Shakthi Welfare Project has provided Rs.6.8 million of benefits to 375
members by the end of August 2014.
Tea Shakthi Pension Scheme is being implemented in collaboration with the
Agricultural and Agrarian Insurance Board and at present, 530 Tea Shakthi
members have entitled to draw Tea Shakthi Pensions.
Training workshops were conducted for Management Assistants covering the entire
Tea Shakthi Fund operation.
The Tea Shakthi fertilizer project earned Rs.2.1
million from the sale of 910.23 mt during the
period under review.
The local tea sale division has earned Rs.1.8
million from the sale of 3.85 mt.
Targets for the year 2015
It is projected to receive 13,179,150 kg of green leaf and to produce
2,833,580 kg of tea thereby.
To earn Rs. 89.3 mn through the sale of 4,200 mt. of Tea Shakthi fertilizer.
To earn Rs. 9.3 mn through the sale of 15,934 kg of tea in the local market.
Ministry of Plantation Industries - Progress Report 2014
73
Kalubowitiyana Tea Factory Ltd.
The Kalubowitiyana Tea Factory Ltd. which is
being operated on self-financed basis was
incorporated as a government entity on 30th
September1992. The Kalibowitiyana Tea
factory with the production capacity of
1,350,000 kg per year, Derangala Tea factory
with the production capacity of 485,000 kg and
Hiniduma Hills Tea factory with the production
capacity of 485,000 kg are operated under the
company.
Vision
To be the most recognized model
in manufacturing and marketing of
best Sri Lankan CTC and
Orthodox Tea.
Mission
To manufacture superior quality,
tasty and consumer friendly Sri
Lankan Tea aiming at internal and
external markets.
Objectives
Utilizing the maximum capacity
of the tea factories.
To meet green leaf requirement
through company own tea
plantations and undertaking tea
new planting.
To become a model in the low
grown tea industry.
To meet the capital investment
requirement.
To motivate the staff.
Ministry of Plantation Industries - Progress Report 2014
74
Productions
No.
Descripti
on
Kg
Kalubowitiyan
a Tea Factory
Derangala
Tea Factory
Hiniduma
Hills Tea
Factory
01 Green
Leaf
Estimate
Kg.
3,478,000 1,031,000 837,200
Actual Kg.
2,934,419 894,795 455,477
Percentage
% 84.37 86.79 54.4
02 Tea
Producti
on
Estimate
Kg 747,000 218,440 179,945
Actual Kg
630,651 182,477 93,657
Percentage
% 84.42 83.54 52.02
03 Gross
Sale
Average
Estimate
Rs.
557.50 475.63 479.38
Sales price Rs. 551.94 521.03 523.64
04 Tea production for 100
kg of green leaf
Kg 21.49 20.39 20.56
05
Profit
/Loss
Rs.
12,254,358.46
(1,711,988.58)
(8,701,463.84)
A Colour Separation Machine was installed to Derangala Tea factory and ISO 22000,
HACCP, GMP Quality Certifications have been received for both Derangala and
Kalibowitiyana Tea factories.
Progress from January to August 2014
Ministry of Plantation Industries - Progress Report 2014
75
A line of CTC machines were installed to the Kalibowitiyana Tea factory.
A Winover and two Michisifters were installed to Hiniduma Hills Tea factory to carry
out production activities efficiently.
The profit carried by the company from January to June 2014 amounted to Rs.
1,773,128.00.
Targets for the year 2015
Installation of Hot Water Generator System to Kalubowitiyana Tea
Factory in order to save fuel cost.
Construction of building for Kalubowitiyana Tea Factory to store
1500 yards of firewood.
Increase of annual tea production of Derangala Tea Factory up to
350,000 kg.
Increase of annual tea production of Hiniduma Hills Tea Factory up to
260,000 kg.
Establishment of tea plant nurseries.
Ministry of Plantation Industries - Progress Report 2014
76
Rubber Development Department
The Rubber Control Department was established under the
Ordinance No.6 of 1934. It was reorganized as the Rubber
Development Department in 1994. The Rubber Replanting
Subsidy Act No. 36 of 1953 was implemented in 1953 for
replanting of rubber. There was legal provision for the
implementation of export duty in terms of section 7 of the Rubber
Replantation Funds Act No. 36 of 1953.
As per the Gazette No. 1518/18 dated 30th
August 2008
containing the Cess Regulations on Natural Rubber No. 01 of
2007, there is provision to charge a Cess of raw material required
for natural rubber based products manufactured for the purpose of
export or local consumption. The power of above Cess collection
vested to the Director General of Rubber Development
Department. The department is liable to act for enhancement of
the rubber industry in Sri Lanka while paying special attention to
the rubber smallholders.
Prioritized Areas
Rubber New Planting and Replanting
Subsidy Programme.
Granting subsidies for intercropping in the
immature phase of rubber cultivation.
Conducting training programmes for Latex
Harvesting Assistants.
Producing high quality rubber plants in the
plant nurseries owned by the Department.
Registering rubber traders, shippers and
rubber product manufacturers and issuing
annual licenses.
Levying Cess.
Vision
Management of the rubber
plantation industry for the
socio-economic
development in Sri Lanka.
Mission
Execution of the legal
provisions for qualitative
and quantitative
development of the rubber
plantation industry, supply
of financial subsidies,
agricultural inputs and
extension services for the
cultivation of rubber.
Ministry of Plantation Industries - Progress Report 2014
77
Activities Physical
Targets
2014
Physical
Progress Progress
%
Rubber replanting
(Traditional) - Hectares 2,050 730 36
Rubber new planting
(Traditional) - Hectares 1,920 409 21
Rubber new planting (Non-
traditional) - Hectares 5,670
2.83
(Licenses have
been issued for
318 hectares)
0.04
Rubber replanting
(Corporate sector) -
Hectares 1,640
(Licenses
have been
issued for 706
hectares)
Intercropping (Traditional)
- Hectares 270 110 41
Intercropping (Non-
traditional) - Hectares 330 17 5
Rain Guards (Smallholding
sector) - Hectares 1,500 192 13
Rain Guards (Plantation
Companies) - Hectares 5,000
(Licenses
have been
issued for
4,809
hectares)
Training of Latex Harvesting
Assistants – General
(Traditional) - Persons 2,220 1,367 62
Training of Latex Harvesting
Assistants – General (Non-
traditional) - Persons 680 440 65
Training of Latex Harvesting
Assistants – Professional -
Persons 330 306 93
Training of Bud Grafters -
Persons 270 180 67
Plant production - Plants 2,450,000 1,220,205 50
Progress from January to August 2014
Ministry of Plantation Industries - Progress Report 2014
78
In order to further enhance rubber cultivation to non-traditional areas, providing high
quality plants for new planting of rubber in 10,000 hectares targeting at the Ampara
and Mahaoya areas and improve plant nurseries.
New planting programme in Ampara
Year Extent of land cultivated
Hectares
2012 137.50
2013 402.93
As at 31st
August 2014 Licenses have been issued for 41.88
hectares
Expenditure for development of nurseries from 2012 to 2014
Activity Expenditure
for 2012
Rs. mn
Expenditure
for 2013
Rs. mn
Expenditure up
to 31st August
2014 Rs.
mn
Improving nursery
irrigations 19.34 12.02 1.25
Purchasing nursery
equipment 0.32 3.99 -
Nursery constructions 9.62 18.69 6.05
Under the new planting of rubber in Vavuniya District in Northern Province,
the rubber cultivation has been initiated in approximately 37.2 hectares
Progress of Implementation of Budget Proposals
Ministry of Plantation Industries - Progress Report 2014
79
Progress of Implementation of Divi Neguma National Development
Programme.
Programme Physical
Targets Progress as at
31.08.2014
Supply of budded
rubber plants for
infilling in rubber
smallholdings (Plants)
100,000 Beneficiaries are being
identified and 8,397
rubber plants have
been distributed.
Providing new
technological rubber
tapping knives (Knives)
3,230 1,682 tapping knives
have been distributed.
Supply of plants for
intercropping (Plants) 18,200 Banana 2,554 Banana
have been distributed.
For nursery
development activities
07 Preparation of
estimates and
procurement
activities are in
progress.
Total 12.53 0.82
Progress of other institutionally implemented programmes up to 31st August
2014.
Providing facilities in collaboration with the Sri Lanka Institute of Information
Technology to get rubber prices through the Short Message Service (SMS).
The basic needs report to develop the computer system of the Department has
been prepared.
Ministry of Plantation Industries - Progress Report 2014
80
Activities
Financial
target for
planting in
year 2015
Rs. million
Physical
Target
Training of Latex Harvesting
Assistants – General (Traditional) -
Persons
3.41 2,340
Training of Latex Harvesting
Assistants – General (Non-traditional) -
Persons
1.07 740
Training of Latex Harvesting
Assistants – Professional - Persons 2.99 390
Training of Bud Grafters - Persons 0.27 270
Rubber replanting (Traditional) -
Hectares 109.40 2,145
Rubber new planting (Traditional) -
Hectares 82.75 1,970
Rubber new planting (Non-traditional)
- Hectares 218.40 5,200
Rubber replanting (Corporate sector) -
Hectares 86.73 1,700
Intercropping (Traditional) 2.95 295
Intercropping (Non-traditional) 4.60 460
Rain Guards (Smallholding sector) 21.00 1,500
Rain Guards (Plantation Companies) 70.00 5,000
Targets for the year 2015
Ministry of Plantation Industries - Progress Report 2014
81
Rubber Research Institute of Sri Lanka
Vision
To emerge as the centre of
excellence in providing
high quality rubber with
scientific technologies to
the rubber Industry for
enhancement of the
industry.
Mission
To make optimum
contribution to the rubber
industry and the economy
of Sri Lanka by
disseminating the modern
technology through the
advisory services identified
through economically
productive and
environment friendly
innovations.
Prioritized Areas
Introduction of high yielding clones,
agronomic practices and suitable
technologies to rubber growers.
Multiplication, dissemination, maintenance
and evaluation of the Germplasm collection
of Hevea.
Expansion of rubber cultivation in Northern
and Eastern provinces.
Providing training and extension services to
rubber growers, producers and other
relevant parties.
Control and suppression of the white root
disease spreading at present.
Popularization of rubber plantation as an
environmental friendly long term income
generating commercial crop.
The Rubber Research Scheme formed by the Rubber
Research Ordinance on 30th
August 1930 was
incorporated as Rubber Research Institute by
Parliamentary Act in 1951. The main objective of the
Institute is to undertake biological researches in the
rubber plantation, researches on chemistry of natural
rubber latex and technology for manufacturing of
articles. Further, technology exchange programmes are
conducted for the relevant officials and stakeholders and
training & extension services are provided by this
Institute.
Ministry of Plantation Industries - Progress Report 2014
82
Basic requirements were completed on the project of multiplication, dissemination,
maintenance and evaluation of the Germplasm collection of Hevea obtained from 1981
IRRDB expedition from Amazon.
A company has given consent to manufacture products utilizing a new invention, the
nitrosoamine free preservative for natural rubber latex
Development of a rubber latex based adhesive to cater a glove industry.
Natural rubber / styrene butadiene rubber / palmyra fibre composites suitable for tyre
treads were produced.
Nano reinforced nitrile rubber based adhesive was developed to bond nylon fabric onto
the vulcanized rubber surface.
The expensive Polyurethane, used as a coating material for coir pith and silicone soap,
used as the medium which enhance the water absorption capacity of coir pith were
successfully replaced by a cheap, readily available binder and soap.
Preservative system consisting of a readily available, non toxic, low cost chemical was
developed to produce low ammonia centrifuged latex with low VFA and high MST
values for latex based products manufacture and applications have been forwarded for
Patent License for this process.
It was found that chemical stimulations used for rubber seeds and seedlings are
tolerable to the unfavourable environmental conditions.
Effect of nitric oxide on growth and rooting of rubber seedlings
Progress from January to August 2014
Ministry of Plantation Industries - Progress Report 2014
83
The expansion of rubber cultivation in the Eastern province would minimize the
environmental harshness to some extent and create an eco-system where farmers find it
easier to engage in cultivation.
Study of the effect of rubber cultivation standing in Vavuniya district on the
environment, society and economy.
Expansion of nursery area and establishment of agricultural wells and irrigation systems
at a cost of Rs. 1.66 million for enhancement of the productivity of the nursery at
Monaragala Sub Station.
Maintaining adaptive research trials at Monaragala and Polgahawela Sub Stations and
initiating new planting at a cost of Rs. 0.821 million.
Ministry of Plantation Industries - Progress Report 2014
84
Popularization of intercropping with rubber for enhancement of land consumption and
contribution to the farmers‟ economy.
2,000 rubber plants were distributed among 100 persons in Kandy district.
500 families who could undertake home gardening have been identified from 8
Divisional Secretaries‟ Divisions including Moneragala, Siyabalaanduwa, Medagama
and Wellawaya in Moneragala district and plant distribution is in operation.
500 families who could undertake home gardening have been identified in Galle
district.
2500 farmers have been identified in Ampara district and a participatory programme
was conducted for 200 farmers.
500 families who could undertake home gardening have been identified in Vauniya
district and 500 families who could undertake home gardening in Trincomalee district
have been identified.
Implementation of Divi Neguma National Development Programme
(From January to August)
09 awareness programmes were conducted in
Kalutara district and 2404 relevant persons were
made aware and 87,100 rubber plants were
distributed among 4355 families.
Ministry of Plantation Industries - Progress Report 2014
85
The following special projects are to be implemented since year 2015 in addition to the
research and development activities carried out by the Rubber Research Institute.
Project
Objective
Improvement of standard small
latex coagulation tanks for
small holders. (2015)
Encouragement for manufacturing of high
quality sheet rubber and manufacturing
10,000 kg dry rubber per day
Development of new fertilizer
mixture for the rubber grown in
the Red Brown Earth soil in the
dry zone of Sri Lanka (2015 –
2020)
To identify new fertilizer recommendations
appropriate for soil nutrition in the said area.
Evaluation of growth and
productivity of rubber
cultivation in drier areas of
Badulla district for expansion of
rubber cultivation in the area.
(2015-2025)
To identify rubber cultivars suitable for the
area.
To expand rubber cultivation in drier areas in
Badulla district.
Productivity improvement in
existing rubber lands in
Monaragala area. ( 2015-2020)
To develop maintenance of immature
cultivations and to improve the productivity
of rubber lands in the area through the correct
harvesting technologies.
Increased adoption of rubber
cultivation in Mullaitivu district
through financing unemployed
women. (2015-2020)
To promote rubber cultivation in Mullaitivu
district by providing financial support to
unemployed women.
Identification of pests and
diseases in non-traditional
rubber growing areas and to
develop suitable strategies to
control them. (2015-2020)
To improve the productivity through
appropriate management strategies,
identifying diseases and pests affect to the
rubber economy.
Estimation of productivity of
the smallholders. (2015-2016)
To estimate productivity of the smallholders
and develop productivity maps covering all
rubber growing districts.
Targets for the year 2015
Ministry of Plantation Industries - Progress Report 2014
86
Thurusaviya Fund
Vision
To elevate the local rubber
industry as the foremost
foreign exchange earner in
Sri Lanka.
Mission
To uplift economic
conditions of the rubber
small holders through the
improvement of
productivity and quality of
the rubber industry.
Prioritized Areas
To inculcate and promote the savings
habit in, and uplift the economic and
social status of rubber smallholders.
To establish rubber prosessing units
for manufacture of yield of the rubber
smallholdings.
To register and regulate Rubber
Smallholdings Development Societies
referred to as “Thurusaviya Societies”
and to provide assistance to the
members of such societies registered
with the Fund.
To take such measures as may be
necessary for the improvement and
well being of those engaged in the
production of rubber in smallholdings.
The Thurusaviya Fund, which was established under the
Parliament Act No.23 of 2000 functions to strengthen rubber
small holders who make large contribution to the production of
the rubber sector and thereby, uplift their economic and social
status. At present, 680 No. of Thurusaviya Societies have been
formed mobilizing rubber small holders scattered at village
level in the districts of Kalutara, Ratnapura, Kegalle, Kandy,
Matale, Kurunagala, Galle, Matara, Hambanthota, Colombo,
Gampaha, and Monaragala. A contribution is made through
these societies to create favourable market for rubber, improve
the quality of products, enhance the habit of saving and develop
technical know-how.
Ministry of Plantation Industries - Progress Report 2014
87
Providing a loan Rs.12.3 mn under a concessionary intrest jointly with the Bank of
Ceylon to 67 beneficianary.
Making arrangements to construct one day drying 20 smoke houses with new
technology.
Conducting 25 awareness programmes at district level.
Progress from January to August 2014
Cummencing productions of group processing
centers established at Hemmathagama in
Kegalle District and Lunugama in Gampaha
District.
Taking actions to distribute 90 smooth rollers
and diamond rollers to Thurusaviya societies
under the subsidy scheme
Taking actions to distribute 4000 rubber
coagulation pans to Thurusaviya societies for
producing Rubber Sheet No.01.
Ministry of Plantation Industries - Progress Report 2014
88
Constructions of the Himbutugoda Group Processing Center in Galle District and
Kehelowitigama Group Processing Center in Rathnapura District are being carried
out on the technical advices of the Rubber Research Institute (RRI).
Targets for the year 2015
Intervention to retain the members attractively through the formation of
new Thurusaviya societies, promoting members and conducting
awareness programmes.
Construction of model Group Processing Centers at Divisional
Secretaries‟ Divisions.
Providing 30 Nos. of new technological one day drying smoke houses and
pairs of rubber rollers to 120 Thurusaviya societies under the subsidy
scheme.
Providing 10,000 rubber coagulating pans and 4,000 improved tapping
knives for producing Rubber Sheet No.01 in line with the
recommendation of RRI.
Providing loans under the loan scheme of the Thurusaviya societies for
replanting, new planting, construction of smoke houses with new
technology and purchasing equipment for rubber based industries.
Conducting training programmes in respect of the production of RSS
No.1, latex based products and rubber planting.
Strengthening established 692 societies and
formation of new Thurusaviya Societies.
Ministry of Plantation Industries - Progress Report 2014
89
National Institute of Plantation Management
Vision
To be the Centre of
Excellence in providing
training and conducting
consultancy and research on
Plantation Management.
Mission
To elevate the professional
competence of all human
assets in the Plantation
Industry towards perfection
through quality training.
Prioritized Areas
Conducting academic courses and
training programmes in order to meet
the training needs of the smallholders
involved in cultivation of plantation
crops such as Tea, Rubber, Coconut,
Sugarcane, Cashew and Palmyra who
contribute around 75% to the total
plantation produce.
The National Institute of Plantation Management
(NIPM) was established by the National Institute
of Plantation Management Act No. 45 of 1979 to
conduct academic courses and training
programmes related to the plantation sector.
Ministry of Plantation Industries - Progress Report 2014
90
Conducting 22 income generating programmes.
Conducting 194 programmes for development of the plantation sector.
Training programmes
No of
programmes
No of
participants
Income
generated
Academic and Professional 7 208 6.55
Management Development 8 232 0.65
Skill Development 2 39 0.68
Worker Development & Project
Programmes
1 49 0.05
Special Training Programmes 4 93 0.56
Total 22 621 8.49
Progress from January to August 2014
Ministry of Plantation Industries - Progress Report 2014
91
Capacity Building Programmes
Capacity Building
Programmes
No of
programmes
No of
participants
Cost (Rs Million)
Rubber smallholders &
workers
113 8,869 3.74
Coconut smallholders 35 2,066 1.11
Tea smallholders 31 2,152 0.93
Sugarcane smallholders 11 547 0.26
Other programmes 4 132 0.13
Total 194 13,766 6.17
Workshop, conducted to the stakeholders who are interested in the institution
A one day workshop was conducted at HARTI on 01.09.2014 with the participation of
CEO‟s of the Plantation Companies, heads of plantation Research Institutions,
representatives from Private Tea Factory owners, Planters Association, Small holders,
Brokers, Exporters, and Board members of the NIPM to identify the needs of the
Ministry of Plantation Industries - Progress Report 2014
92
stakeholders. The prospectus and training schedules are being prepared on the outcome of
the workshop to meet the stakeholder‟s needs.
Smallholder programmes
Income Generating Programmes
Description
No.of
Programm
es
No of
participants
Projected
cost (Rs.
Million)
Programmes for rubber related small
holders
120 6,000 6.00
Programmes for tea related small holders 100 5,000 5.00
Programmes for coconut small holders 50 2,500 2.50
Programmes for sugarcane growers 15 750 0.75
Other programmes 15 750 0.75
Total 300 15,000 15.00
Training Programme
No.of
Programmes
No of
participants
Projected
income
( Rs.000)
Academic and Professional 16 315 9.65
Management, Technical, and Business
Developments
13 245 0.93
Skill Developments 5 100 1.75
Worker Development 3 150 0.06
Induction Courses for planter trainees 5 75 3.83
Basic Courses 8 160 2.33
Special Demand driven courses 20 225 2.00
Total 70 1,270 20.55
Targets for the year 2015
Ministry of Plantation Industries - Progress Report 2014
93
Although provisions were incorporated in the Tea and Rubber Estates (Control of
Fragmentation) Act No.02 of 1958 for control of fragmentation of tea and rubber estates,
provisions were not made available in the said Act for control of fragmentation of coconut
estates.
The land owners assigned their lands to land sale agencies due to the economic collapse
prevailed in or about the year 2005 and the productive coconut lands were auctioned
speedily. Accordingly, the coconut yield dropped rapidly and coconut based market was
threatened thereby.
Having lengthy study on this matter, Tea and Rubber Estates (Control of Fragmentation)
Act No.02 of 1958 was amended by the Tea and Rubber Estates (Control of Fragmentation)
(Amendment) Act No.20 of 2005.
In terms of the said Act, a formal mechanism was formulated to control fragmentation of
tea, rubber and coconut estates and accordingly, approval of the Tea, Rubber and Coconut
Estates (Control of Fragmentation) Board should be obtained for transfer of the ownership,
sale, assigning as a gift or exchange of the coconut estates. The transfers made deviating
from such provisions will become null and void.
In terms of the amendments made to the Act No.02 of 1958 by the Act No.20 of 2005,
transfer of the ownership of the tea and rubber estates more than 20 hectares and coconut
lands more than 04 hectares with the prior approval of the Board or subject to the
conditions of the Board will become enforceable in the Law.
Since approval of the Board should be obtained under the provisions section 8(1) B of the
Act in transferring of lands as a single unit even not resulting a fragmentation, approval of
the Cabinet of Ministers has been obtained to amend the Act of Fragmentation relevant to
Section 3, 5 and 8 (1) (A) having considered the requirement to transfer lands without delay
and to minimize the difficulties faced by the people. Approval of the Cabinet of Ministers
has been obtained to reduce the limit for coconut lands up to 02 hectares and at present, the
amendments have been referred to the Legal Draftsman. Further, having considered the
timely needs, preliminary actions are being taken to make relevant amendments to the
composition of the Board of Directors of the Tea, Rubber and Coconut Estates (Control of
Fragmentation) Board.
At present, a large No. of applications is being received by the Board and the Board plays a
vital role to further protect the staple economic crops such as tea, rubber and coconut.
Tea, Rubber & Coconut Estates (Control of Fragmentation) Board
Ministry of Plantation Industries - Progress Report 2014
94
Year
No. of
Applications
submitted to
the Board
Method
of
transfer
Extent of land applied Extent approval granted
Acres Roods Perches Acres Roods Perches
2010
473
Single
units
4,731
02 09
4,731
02
09
Other* 5,860
00
02
3,302
01
10
Total 10,591 02 11 8,033 03 19
2011 589
Single
units
11,251
03
17
11,251
03
17
Other* 6,772
03
33
4,421
01
08
Total 18,024 03 10 15,673 00 15
2012 566
Single
units
1,697
02
00
1,697
02
00
Other* 10,623
03
16
7,719
03 31
Single
units 12,321 01 16 9,417 01 31
2013 530
Single
units
2,027
03
05
2,027
03
05
Other* 10,473
00
33
6,443
02
18
Total 12,500 03 38 8,471 01 23
From
January
to 31st
August
354
single
units
1,623
00
22
1,623 00
22
Other* 9,749
02
31
6,682
03
20
Total 11,372 03 13 8,306 00 02
* Transfers to children and other persons / institutions subject to conditions of the Board
Progress of the Tea, Rubber & Coconut Estates (Control of
Fragmentation) Board in previous years
Ministry of Plantation Industries - Progress Report 2014
95
09 Board Meetings have been held from 01.01.2014 to 31.08.2014.
364 applications have been submitted to the Board of Directors.
Progress from January to August 2014
Details of the applications received
Description
No. of
applications
Applications from Kurunegala District 178
Applications from Puttalam District 76
Applications from Gampaha District 52
Applications from other Districts apart from the above
Districts
48
Total No. of applications received 354
No. of applications brought forward from the last year 22
Applications incomplete and referred to obtain reports 12
No. of applications received – District wise