Rising production costs and stagnant leaf prices are pushing small tea estate owners into a deepening financial crisis, industry leaders warn.
Small tea estate owners across the country are facing mounting financial pressure as the cost of tea cultivation has risen sharply while tea leaf prices have failed to keep pace, according to the National Tea Growers Association.
The Association states that production costs in tea cultivation have increased by between 30 percent and 40 percent within a year, creating severe difficulties for small-scale growers. However, the price paid for raw tea leaves has remained largely unchanged, leaving growers unable to absorb the rising expenses.
Secretary of the Association, Wasantha Alwis, said that the current price paid for a kilogram of raw tea leaves generally ranges between 170 rupees and 190 rupees. He pointed out that tea leaf prices were at the same level in December last year, highlighting the lack of adjustment despite higher input costs.
Alwis further explained that labour expenses have increased significantly over the past year. The daily payments made to workers and tea pickers have risen compared to last year, adding to the burden on estate owners. Previously, growers paid around 40 rupees per kilogram of tea leaves as labour costs, but that figure has now increased to between 50 and 60 rupees per kilogram.
With fertiliser prices, wages, and overall cultivation costs climbing, small tea growers say their profit margins are shrinking rapidly. Industry representatives warn that unless tea leaf prices are revised to reflect current production realities, the sustainability of small tea estates and rural livelihoods linked to the tea industry will be at serious risk.
