FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post


ADVERTISE
Poll

EXCHANGE RATE PREDICTION: 2022

 
 
 
 

View results

ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



Latest topics

» AAIC Next multibugger- destnation beyond EXPO.
by ADVENTUS Today at 2:14 am

» RENUKA AGRI FOODS PLC (RAL.N0000) TP. 7
by Cma Today at 2:08 am

» Sri Lankan Port Transshipment Hub Threats & Opportunities
by rajini Today at 12:53 am

» LANKA INDIAN OIL CORPORATION - Maharaja
by Maharaja Yesterday at 11:07 pm

» ACL; MELS; HHL; BIL; LWL- STOCKS TO WATCH
by Dilshan2020 Yesterday at 10:39 pm

» AAIC 100 = SCAP 16
by SamJay1974 Yesterday at 8:12 pm

» SUNSHINE HOLDINGS PLC (SUN.N0000)
by ADVENTUS Yesterday at 8:02 pm

» APLA - Very very undervalued share - Target Price
by Jana Yesterday at 7:07 pm

» HAYLEYS PLC (HAYL.N0000)
by Chamath1980 Yesterday at 5:07 pm

» New Bermuda Triangle
by rajini Yesterday at 2:17 pm

» BOGAWANTALAWA TEA ESTATES PLC (BOPL.N0000)
by cheetah Yesterday at 6:33 am

» Technical update 12.08.2022 Maharaja
by Maharaja Mon Aug 15, 2022 11:04 pm

» Exterminators Plc (EXT.N)
by ErangaDS Mon Aug 15, 2022 9:09 pm

» ALLIANCE FINANCE COMPANY PLC (ALLI.N0000)
by Gaudente Mon Aug 15, 2022 8:08 pm

» GREAT OPPORTUNITIES FOR EVERYONE-
by ADVENTUS Mon Aug 15, 2022 5:12 pm

» LOLC to enter the giant Indian Market
by samaritan Mon Aug 15, 2022 4:52 pm

» Hidden Gem - GLAS - 40/- Soon
by vijay singh Mon Aug 15, 2022 10:36 am

» Buy lofc tomorrow - Maharaja
by Anushka Perz Mon Aug 15, 2022 12:59 am

» LIOC ....Get in soon
by Citizen Silva Sun Aug 14, 2022 10:26 pm

» L G I L - Maharaja special
by Chula Sun Aug 14, 2022 10:12 pm

EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Sri Lanka tea output to rise in 2012, producer margins will remain thin

Sri Lanka tea output to rise in 2012, producer margins will remain thin

2 posters

Go down  Message [Page 1 of 1]

sriranga

sriranga
Co-Admin

Wage hikes, cash flow woes and rising shipping cost to Mid East and North Africa will squeeze producer margins, says Central Bank
LBR,Tuesday 22 November 2011

Sri Lanka’s tea production, hit by bad weather and low prices is expected to reverse the current downward trend and reach 340 million kilos in 2012, while producer margins will continue to shrink due to escalating costs, Central Bank said.

The country’s national tea production during the first eight months of 2011 saw a marginal decline of 0.08 percent to 220.9 kilos compared with the same period in 2010, mainly due to adverse weather conditions.

By end this year, total national tea output is expected to touch 335 million kilos, marginally up from the 331 million kilos recorded last year on the back of favorable weather conditions and attractive prices, the bank said in a pre-budget report.

High grown tea output grew only 1.7 percent while low grown was up 0.2 percent. Medium grown tea declined by 7.7 per cent during the period January to August 2011.

However, the report noted that ‘Wage increases, cash flow difficulties of tea exporters due to the delay in realization of export proceeds from Iran on account of UN sanctions and rising shipping cost to Sri Lanka’s major tea trading nations in the Middle Eastern and North African regions remain challenges for the tea industry.’

The report cited issues such as political turmoil in the Middle East, the island’s largest tea importing region and North African countries and the likely slowdown in global consumption as challenges to the industry.

Sri Lanka ships nearly 52 percent of its 300 million kilos of annual tea produce to the Mid East in both bulk and value added form.

The industry raked in nearly USD 1.5 billion in exports last year making it the third largest foreign exchange earner to the island.

‘Therefore, in addition to efforts to increase yield, it is equally important to further promote Sri Lankan tea in both traditional and non-traditional export markets,’ it said.

The expansion of the fertilizer support program to cover the estate sector and higher tea prices at the Colombo Tea Auction (CTA), especially in the first quarter, helped to maintain production levels despite adverse weather conditions during this period, the central bank said.

However prices at the Colombo auction, the largest tea auction in the world decelerated from the second quarter of 2011 with the trend continuing in the third quarter.

The average tea price of CTA during the first nine months of 2011 also declined to Rs. 363.00 per kg from Rs. 369.00 per kg in the corresponding period of 2010.

Improved world tea production from the second quarter of 2011 added to the decline.

Budget relief

The State budget for 2012, presented to parliament yesterday noted that if local plantations are to increase their yield a minimum two percent new plantation needs to be maintained.

The President promised a two percent subsidy increment to tea smallholders for re-plantation from Rs 250,000 to Rs 300,000. Subsidies for new plantations will be increased from Rs 50,000 to Rs 150,000.

‘I also propose to introduce a concessionary loan scheme at eight percent annual interest, repayable in 7 years, to assist plantation companies to plant and re-plant,’ the President said.

The government is also to take back 37,000 acres of unused land from regional plantations companies and distribute among small holders on rent for 30 years at the rate of two acres each.

President said the government had done surveys of plantations and identified the land that had been lying unused since the estates were privatized in 1992 with the land leased and estate management given to regional plantations corporations.

The small farmers will also be given low cost loans to develop the land along with plants and fertilizer.
http://www.lbr.lk/fullstory.php?nid=201111212223108798

http://sharemarket-srilanka.blogspot.co.uk/

bakapandithaya

bakapandithaya
Vice President - Equity Analytics
Vice President - Equity Analytics

Will this affects the plantation sector share price?

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum