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Sri Lankan tea industry consists of three broad sectors and each of them has distinct functions: sellers or producers, the brokers, who act as agents of the producer and the buyers or exporters. The people of these three sectors are not in good relation. Instead of thinking about doing long term business, these people are busy in promoting their own parochial agendas. They are interested in gaining short-term advantages over their counterpart stakeholders.

They attribute the apparel industry's success to all stakeholders speaking in one voice and being able to secure concessions and other benefits, which are denied to the tea industry, which indulges in one-upmanship and squabbling over trivial matters, Akbarally said.

"This must stop! We must yield our personal agendas to those of the industry at large, if we wish to move forward."

Working in unison can yield huge benefits for the tea industry which crossed the billion-dollar barrier in export earnings in 2007.

But, Akbarally warned, the gains from high tea prices could be eroded by soaring costs.

Production costs shot up over 25 percent in 2007 and now the industry has to contend with even greater costs, given increasing oil prices and spiralling inflation, not only in production but in every other link of the supply chain.

Such conflict has destroyed the reputation of the tea industry in the eyes of the politicians and state officials. They are now constantly urging the tea industry to follow the example of the apparel industry; the current leading industry in Sri Lanka. Compared to the tea industry, apparel is very recent but it has grown very fast and the reason behind this growth is good cooperation and collaboration among industry people.

Sri Lanka is the third biggest tea producing country in the world. Of the total global tea production, it produces 9% and exports 19% of the global demand. Sri Lankan tea industry is also the largest employer of Sri Lanka, employing directly and indirectly over one million people. Unfortunately, this billion dollar tea industry is running out of options as businessmen related to the industry are engaged in conflict over minor issues.

Akbarally expressed his concerns over rising costs that could be absorbed by the lucrative prices Ceylon tea. He further said that unless the future wage increases in the plantation sector were linked to productivity, the industry will be destroyed. According to the tea industry statistics, after two wage hikes in one year, currently, labor expenses consists of 65% of the average production cost. The government forced the plantation owners to raise wages as it was pressured by the powerful estate labor unions.

Related articles:
Lanka Business Online

Sri Lanka Tea board official website