If they are not careful, they will cause a deterioration of the brand image which will hit everyone in the industry, from the tea plucker to the factory to the packer to the packager to the transporter to the exporter.

Free Trade is a good thing: if there are unscrupulous traders there should be some kind of regulation, perhaps more so than currently. Who loves Sri Lanka more than short-term money? Don't all speak at once. (I am not a member of the industry. Sorry for any factual errors).

I think his main concern is that buyers will start to doubt whether Pure Ceylon Tea said to be made and packeted in LK, is ACTUALLY Pure Ceylon Tea (or not).

And once people start to doubt....
(it is ironic, but should people start to doubt the purity of pure ceylon tea, it's the existing strong pure ceylon tea brands that are likely to have a much easier life - since people are likely to trust the name)

*my only connection to the plantation industry is that my father is an ex-planter, and that I grew up on estates. And yes, a lot needs to be done in the plantation sector - but that, is another topic.

Tea is an export product. Demand comes externally.

Whether tea is imported to Sri Lanka or not will not make one one iota of difference to the price of tea, since demand is external.

Foreign buyers are free to buy from Sri Lanka or Vietnam or Timbuctoo to blend. Whether that tea is packed in Dubai or Sri Lanka the same buyers will buy probably the same quantity, everything else being equal.

The shifting of the packaging plant cannot change the price of Sri Lanka tea downwards. It may not make any upward shift in Sri Lanka tea either. However it stands to reason that since a Colombo blending plant will use FOB Colombo tea as part of their blend vs CIF Dubai, Ceylon tea will be 'cheaper' to blend than it was before. That may actually increase the volume demand for SL tea and it may cause some marginally improvements in prices as well.

That could potentially push up your costs as well.

It is possible that Sri Lankan tea could do better if Colombo is a blending centre since delivery times will be shorter, documentation easier, working capital needs to be tied up for a shorter time and so on. Certainly it cannot do worse since any person who is buying Sri Lankan tea from abroad will continue to do so.

please see the following from the labour ministry website specifying an allowance for tea trade workers:

1. Tea Growing and Manufacturing Trade

Male workers not under 16 years of age - 7.80 Female workers not under 15 years of age 11.70 Child workers 7.59

Child workers???? It is OK for someone to use his grandchildren in their promotional material, but it is not OK to employ child labour Mr. Dilmah.

Shani De Alwis says: “if Dilmah and other importers can be trusted (It is a big IF I know) to import tea and not contaminate Pure Ceylon Tea, why can't others?”

In fact, the current importation scheme for teas of a type not grown in Sri Lanka is open to ALL since the 1980s. It is not a scheme restricted to some companies only as is implied. This scheme does not impact Ceylon tea negatively. These teas could not be easily passed off as Ceylon tea. Dilmah accounts for two percent of imports under this scheme, importing unique teas like Darjeeling and speciality China teas not available here.

The new proposal is to allow ANY type of tea to be imported duty free. The teas proposed to be imported are of a type that would DIRECTLY SUBSTITUTE for Ceylon Tea and can be imported at HALF the production cost of Ceylon Tea. In fact the documented objective of the Tea Exporters Assoc is that Ceylon Tea does not allow them to “compete” so they need to import cheaper teas. Such teas, that would replace Ceylon tea in blends within a matter of weeks, are currently allowed with an import duty to protect Ceylon tea. The new proposal is to remove this protective barrier to make cheap imports even cheaper.

This will obviously result in a sharp drop in demand for Ceylon tea from those exporters who are under tremendous pressure from the foreign brands they pack for, to reduce export prices by replacing Ceylon tea with cheaper foreign substitutes.

The socio-economic impact of a drop in demand for Ceylon tea would be devastating to the 15% of the population who sustain themselves on tea and are anyway on the borderline.

At no point has the Tea Exporters Association commented on or contradicted the argument that local growers would be quickly and badly affected by their proposal. The scheme would only benefit some exporters to the detriment of the overall industry.

Lets for a moment leave aside other compelling arguments against imports; that it will dilute the image of Ceylon tea, that foreign tea will be passed off as Ceylon tea, that Sri Lankan brands will be impacted to the benefit of foreign brands being packed here etc.

Even those who think that it is a gamble worth taking and believe that all exporters will conduct themselves in an exemplary manner [in an industry where rules are already observed as guidelines], as a Sri Lankan must empathize with the fact that the demand drop for Ceylon tea will have unimaginable consequences for the embattled 2.5m tea growers and dependents.

Actually, what is proposed is to blend Ceylon Tea which is unable to make the grade to qualify for the Lion logo (to be exported as Pure Ceylon Tea) with cheaper imported tea and re-export as a Sri Lankan blend. Only 50 percent of our tea exports go under the Lion logo.

This unique quality features are in Ceylon Tea mainly due to Sri Lankas' geographical location, terrain of the tea gardens (estates)and weather patters casued by two monsoons which no other tea growing country in teh world is blessed with. Tea enthusiates, especially the Europeans and alike do appreciate this uniqueness in Ceylon Tea. However, Ceylon Tea is expensive at source due to many reasons, politics based rather than productivity based labour being the cost leader.

Due to the above, leading global/regional tea brands are compelled to strike a commercially viable balance bewteen quality and price by blending multi origin teas to maximize short and medium term profits and stil associating with Ceylon Tea (not PCT). In thsi process, what is inevitable is, changing (down playing) of unique aromatic features of Pure Ceylon Tea and thereby moving (down)consumer understanding/preference of Ceylon Tea to a different taste profile. Over a period Ceylon Tea fans may get accustomed to a Tea that anybody can blend and thereby Ceylon Tea as a brand will move away from its unique postion and become a COMODITY where price and the advertized image will be the key USP's in the market mechanism to compete between brands.

Having said the above, we are aware what good Dilmah has done to Ceylon Tea Brand in a national perspective, along with a few other Sri Lankan brands. However, Dilmah, as I know, by far enjoys a leading edge in the international market. Dilmah has suggested by example standards for Sri Lankan Brands. Its promotional and advertizing uplifts Pure Ceylon Tea image in the international markets. Thus, an opinion by a Sri Lankan Tea brand who experience market pulses more than any other party should be considered objectively, in this case, more in a national and long term perspective than short term commercial.

In the Tea trade, there is a clear diffrence between blending of multi origin teas agaist single origine teas. All Dilmah tea leaflets which I have read claims that its teas are PCT and single origin. But I know Dilmah has got speciality teas of other origins as well, mostly in Tea presenters.

But Parties those who advocate tea imports whould blend teas of diffrent origin and still claims that it contains Ceylon Tea and packed in Sri Lanka which is good enough to confuse the consumer with heavy advertising and promotional campaigns. Also during the time free tea imports were permitted for blending, no significant Sri Lankan Brand emerged whereas multi national brands benefited.

A handful number of Sri Lankans brands, Dilmah being the leader, have already proved what good PCT preposition can do against multi National tea brands. Brand means value addition by creating a consumer perception based on an unique feature which neccessiates to move away from bulk trading, in the modern economy. This is what all brands of developed countries do, be it Microsof, Toyota, Kellogg's, KFC etc. Therefore any campaign for Sri Lanaka to become a bulk trading Centre for Tea will be detrimental to PCT and if Sri Lanka does not understand this reality and do not protectand promote this blessed product to harvest its full economic potential on along term perspective, Sri Lanka will never be able to create a manufacturing brand in the international market.

It finally boils down to labelling. You can have PCT pack competing with a tea blended in Sri Lanka. Even Cadbury Bournville says it may contain imported ingredients. But that has not stopped us buying it. Ceylon Tea is already sold abroad blended (also abroad) with low quality Kenyan and Indonesian teas. Has it killed the market. NO.

Senake, as for the 22 million kilos of tea imported last year, please refer tea board figures. I don't know from where Dilmah got their numbers from. Possibly, the 11 million is what they imported.

What is allowed to Sri Lanka presently are speciality teas which stands on its own like Chinese tea and Darjeeling of India. Malik Fernando or His Brother Dilhan Fernando of Dilmah or Anslem Perera of Mlesna will be able to add more light to this aspect as this is an essential requirment of international tea trading.

Malik Fernando referred to 11Mn Kgs of tea imports to Sri Lanka annually and Shani de Alwis referes to 22Mn kgs. Needs to obtain statistics from official sources (customes) before speculation for an objective discussion.

Perhaps instead of getting bogged down in this purist vs. realist debate, we should agree on what to do with poor grade "refuse" tea that is slipping into "Pure Ceylon Tea". It is the contamination with poor grade "refuse" that is posing a danger to our good name.

Banning imported tea is like banning marijuana - it will become even more attractive with a booming black market. (I am obviously not an employee of Dilmah nor a tea importer either). Dilmah has the most recognised Sri Lankan brand in the world, and it has not come cheap. They have to import infusions because they are not produced here, and are not strictly tea.

In a country where companies are not trans;parent and are not required to be so - i think we are asking for trouble - in a more mature ecenomy - yes maybe so - but the majority of importers do not have a brand to protect therefore they stand to lose nothing if they import, blend and re-ecport - thereby degrading our country brnaidng of PCT.

And no i am not employee of Dilmah - this is just a view - think about it.

I think there is a confusion about what our national objectives and what our competencies should be. can Sl be a volume leader; thats not sustainable if we rely only on locally produced tea. And our industry competency should be labor management but tea manufacturing and marketing. And move up the value chain.

We will be closing many a opportunities if we emotionally tied to CT only proposition.

This clearly states what they did with the tea, and also that they never claimed that non-Ceylon Tea was Ceylon Tea. We should protect the integrity of what we promote as Ceylon Tea. To roughly estimate how much they have imported you only need to multiply 200k kg by the number of years it has been in operation - as he says, a tiny perrcentage of total imports.

Brunswick says: "Shani de Alwis really is clueless. Dilmah does not import any tea at all."

Please see comments in this forums. No lesser a person than Malik J Fernando of Dilmah says they imported 200,000 kilos of tea last year. All I asked was for their imports from the incenption and you can clearly see what they did with it and how they built a "Sri Lankan brand" with foreign tea! That is excellent. So why can't others do the same!

But if there was in fact a a demand by customers for such a blended product, the French wine makers who blend would be bowing to the customer demand, pleasing them and making more money in true capitalist fashion.

It is sad and also ridiculous that there is so much nationalism and restrictions in regard to tea here, rather than a focus on pleasing human customers. Perhaps it is not surprising, since nationalism has been the driving force of this country since independence from British rule and its results are there for all to see.

French wine has its origins in Greek settlers. In Sri Lanka it is the British. So what is the logic in nationalism?

Since you mentioned Champagne, it was British wine importers who were mainly responsible for its development and appreciation. The French wine makers originally thought sparkling was a flaw and tried to stamp it out.

The French AOC system started only in the last century, and to what extent it has helped or not helped, people should decide for themselves. By the way it has been overhauled several times.

Brands are best developed by the people themselves based on freedom and choice and not with state restrictions or nationalist oppression.

And certainly France import a large amount of wine. Its people unlike ours, seem to have more freedom to drink any wine. France is among the top five importers of wine in the world. So that is fine.

But EU/French agricultural subsidies have been aimed at keeping prices up particularly of Languedoc - Roussillon wine. That is the largest wine growing region in France and even the world. Farmers have been encouraged to uproot vines. This is the problem of state intervention.

The heyday of Languedoc - Roussillon was when it was blended with imported Algerian wine.

That is a lesson for the Sri Lankan tea industry, straight from the country where Champagne also comes.

Algeria and Morocco were at one time among the largest international traders in wine. Following Algeria's independence and trade restrictions this business has entirely collapsed. And as the experience in Languedoc - Roussillon showed, it hurt France and Algeria both.

This is a very very basic lesson, that we do not yet understand - free trade is mutually beneficial, while state interventions and especially nationalism dehumanizes and causes harm.

In the meantime, Italy has become the World's largest exporter of wine by far and is therefore pleasing the most people. Other countries like US, Australia and Chili have become large players.

Probably all this has led to an increase in people enjoying wines around the world. On the other hand per capita wine consumption in France has dropped.

You can also see what has happened with Sri Lanka's expropriations and the emergence of African tea.

The state either in France of Algeria or Sri Lanka can restrict their citizens. But cannot steal the freedom of all the citizens in all the countries.

Someone somewhere else will have the freedom to please the customer they will make use of that opportunity. And both of those people will have a better life and eventually die happier.

The tea exporters are not not asking to stop having Nuwara Eliya tea, Dimbula tea or even Ceylon Tea with specific rules of origin.

We have had a tendency to grab all the restrictions developed in the West but not the freedoms.

What would have happened to the long term value and demand for genuine French Champagne?

This is an utter untruth and no doubt part of the disinformation campaign by the pro-import tea traders.

Dilmah's roots were in Australia where we introduced a high quality Pure Ceylon Tea to a market starved of it.

Currently, we import 200,000 kg of speciality tea annually to Sri Lanka under the existing scheme for good teas of a type not grown here, like Darjeeling, and export every kg under Dilmah speciality ranges **without blending with Ceylon Tea or referring to Ceylon Tea**. This is 2% of the total 11 million kgs imported currently by all exporters, most of which is exported under foreign brands.

There is also innuendo about Dilmah blending overseas. If we were in fact doing so, that is precisely what we encourage others to do, to prevent Sri Lanka becoming known as a mixing centre and also to take advantage of tariff benefits packing in consuming markets. **Fact though is that we do not mix even a kilo of Ceylon tea overseas** and that includes Poland...

If Sri Lankan marketers can’t create brands or develop existing ones further with Ceylon tea and its unique attributes, how an earth could they hope to do so with a cocktail of cheaper teas intended to sell on price? What point of difference would Sri Lankan brands carrying foreign tea have over all the other cheap teas out there? The global brands would always sell cheaper with their massive economies of scale and promote heavily.

Several pundits have said that it is too tough for Sri Lankans to create brands and market against global giants. So if we can’t brand and market, what would we do with all the tea planned to be imported?

What this is all about is an attempt by “quick fix” traders to become a mere packing centre for foreign brands using foreign tea [these brands don’t want to use costly Ceylon Tea], to the detriment of Ceylon Tea, its producers and Sri Lankan brands.

I endorse the view that Sri Lanka should import what are called 'fillers' or price reducers in addition to the certain quality teas now allowed to be imported. But such imports should be confined to one or two Free Trade Zones bordering a harbour and not allowed to be brought into the country.Exporters who wish to blend and market price competitive brands can do so from the Free Zones. Even Ceylon Tea has to be strictly speaking 'imported' to the Free Zone. If imports of cheap teas are allowed into the country the chaos that prevails now in Kenya will appear in Sri Lanka too.

This way those in favour of 100% packeted Ceylon Tea exports under a symbol of an identity like the present Lion Symbol can continue to do so.And bulk exporters of pure Ceylon Tea can also continue their exports without hindrance.

Our nation and the final consumers are both big losers in this equation while the foreign middle men make big profits. Today if you go to any supermarket in western countries, Russia, ME etc you will find many brands of teas but 99% of these brands are not Sri Lankan owned, and they are not value added, packed and exported from Sri Lanka. The foreign middlemen buy the teas cheap from Sri Lanka in bulk and they do the value addition, blending and packing all in foreign countries. Dubai has now become a major tea trading center as a result.

Our foolish short thinking policies have allowed this to go on an on and on for years and all the brand value is held by foreigners abroad. To give you an example can you buy a bottle of scotch whisky or french wine bottled out of their respective countries?

Sri Lanka must wake up and put a stop to the export of our premium teas in bulk by placing a hefty export duty on bulk teas. We can do this because our tea is very very good and highly sought after by discerning consumers worldwide.

Only the off grades and secondary grades of teas should be allowed to export in bulk.

Sri Lanka needs a very strong global marketing drive as tea is a gold mine that is currently wasted away.

For the record as I write I know of many retailers in Canada who have stopped buying Ceylon Tea due to poor quality and they go for other tea. I dont want to be the devil advocate but lets face the harsh reality and before its late try to salvage the tea trade with or without the assistance of the government. Where ever the govt goes there is corruption!!!!. This is not a situation that was created by Dilmah as you try to proove.

Besides, whats holding us back from creating our own brand and why on earth would we still want the British multy national companies to "promote" Ceylon Tea. Can't we do value addition and brand creation and create a market while stategically maintainin our position as the worlds Best Tea producing country. In Sri Lanka everything that one can think of has been politicised over the years.

Be it admit child to school to getting a job and now the various is speading even to the Tea industry and this is the end of that industry too...I give the tea industry a maximum of 10 years before other nations take over and kick us on the teeth!!!

Sad but true!

Sri Lankan economy is on the verge of a collapse wheter one sees it and agrees. Please dont politicise the major export for when that happens the Central Bank chief will want all sri lankans to go and find employment in the middle east so that he can say drop in tea exports are insignificant as we get more money from middle east nannies.