Sri Lanka Tea Production Jan-June 2011 According to the Agro-Climatic Regions
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1 Te a Research Institute of Sri Lanka
2 Sri Lanka Tea Production Jan-June 2011 According to the Agro-Climatic Regions Agro-Climatic Region Qty (Mn kg) Change % (A) Nuwara Eliya (B) Westerns (C ) Mediums (D) Uda Pussallawa (6.80) (E) Uva (7.56) (F) Low Growns (0.80) Grand Total Source: Sri Lanka Tea Board 2
3 Country-wise classification of world tea production Country Production Form January to April Change Qty(Mn kg) % India Kenya (30.94) (21.00) Sri Lanka Indonesia Upto March (4.68) (24.0) China Source: Sri Lanka Tea Board 3
4 Impact of Fertilizer Subsidy & Wage Increase on Cost of Production in Corporate Sector 4
5 Estimated COP - Before wage revision (Rs/kg) Elevation Up Mid Low Uva Productivity (kg/ha/yr) General charges Plucking Fertilizer application Other field cultivation Manufacturing cost COP (Rs/kg)
6 Comparison of Fertilizer Cost With and Without Fertilizer Subsidy (VP Tea field) Elevation Fertilizer mixture Productivity (kg/ha/yr) Fertilizer cost without subsidy (Rs/ha) Fertilizer cost with subsidy (Rs/ha) Difference (Rs/ha) Difference (Rs/kg) Up VP/UM ,483 23,920 22, Mid VP/UM ,092 21,528 19, Low VP/LC ,600 18,661 16, Uva VP/UVA ,448 20,885 19, Average reduction of cost of production due to fertilizer subsidy is Rs per kg of made tea (3.31 % decrease of total COP) 6
7 Comparison of Fertilizer Cost With and Without Fertilizer Subsidy (Seedling Tea field) Elevation Fertilizer mixture Productivity (kg/ha/yr) Fertilizer cost without subsidy (Rs/ha) Fertilizer cost with subsidy (Rs/ha) Difference (Rs/ha) Difference (Rs/kg) Up ST/UM ,706 13,040 14, Mid ST/UM ,706 13,040 14, Low ST/LC ,702 9,360 9, Uva ST/UVA ,853 14,080 16, Average reduction of cost of production due to fertilizer subsidy is Rs per kg of made tea (3.8 % decrease of total cost of production) 7
8 Estimated COP - After wage revision (Rs/kg) Elevation Up Mid Low Uva Productivity (kg/ha/yr) General charges Plucking Fertilizer application Other field cultivation Manufacturing cost COP (Rs/kg)
9 Impact of Wage Increase on COP (Rs/kg) Elevation Up Mid Low Uva Productivity (kg/ha/yr) General charges Plucking Fertilizer application Other field cultivation Manufacturing cost COP (Rs/kg) % increase Cost of production increased by Rs per kg of made tea ( 15% increase of total cost of production) 9
10 Impact of Wage Increase & Fertilizer Subsidy on Cost of Production (Rs/kg) Elevation Up Mid Low Uva Productivity (kg/ha/yr) Before wage increase After wage increase & fertilizer subsidy Difference % increase Cost of production increases by Rs.40.66, 40.31, & per kg of made tea respectively in up, mid, low and uva (11.7 % increase of total cost of production) 10
11 Major components of Cost of Production Component Share to COP Labour component (%) Plucking Other field cultivation General charges Manufacturing
12 Strategies to cope up with high cost of production Improvement of land productivity Infilling of vacancies Replanting Burying of pruning in mature tea field Improvement of worker productivity Improve plucker intake Reduce below-norm pluckers Offer contract work with proper supervision Mechanization of plucking Increase NSA 12
13 Adopt labour /cost saving technologies Mechanization of agricultural practices Adopt SSFR to reduce cost of fertilizer application Integrated/rational approach of fertilizer application 13
14 Estimation of N requirement based on potential yield Potential yield categories (MT kg ha -1 yr -1 ) Annual N Requirement (N kg ha -1 ha -1 ) < > 400 Seedling tea Vegetatively propagated tea Te a Re s e a r c h I n s titute of Sri Lanka 14
15 Yield (kg MT ha -1 yr -1 ) Actual or potential Vs ratio manuring 6000 Ratio Line Ratio Line An actual response curve N rate (kg ha -1 yr -1 ) Te a Re s e a r c h I n s titute of Sri Lanka 15
16 Actual or potential Vs ratio manuring Disadvantages of Fertilising based on a Crop to N ratio Yield (MT kg ha 1 yr 1 ) Quantity of N (kg N ha 1 yr 1 ) Actual Response Ratio Based Value of Harvestable Crop or Extra Cost (SLR ha 1 yr 1 ) (350) 3000 (300) x 325 = 81,250 (MT kg ha 1 yr 1 ) 40 x 86 = 3440 (kg N ha 1 yr 1 ) * Average of NSA 325 SLR per MT kg * Average Cost of VP Tea Mixtures 86 SLR per unit of N Te a Re s e a r c h I n s titute of Sri Lanka 16
17 Monthly average yield (MT kg ha -1 ) Timing for fertiliser applications in the up country western slopes Monthly average rainfall (mm) 250 Avg Yield Avg RF Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 12 monthly period (year) Te a Re s e a r c h I n s titute of Sri Lanka 17
18 18
19 EU MRL Changes - May 2011 Sulphur MRL is not required(previous MRL 5ppm) Fenthion new MRL 0.05ppm (previous MRL 0.1ppm) Chlorfluazuron Removed from the EU list should be below 0.01ppm 19
20 Field Trials to revise MRLS - Progress Trials on 13 TRI recommended chemicals were completed Applications were submitted to Japan to enhance MRLs Bitertanol, Propiconazole and MCPA Applications for EU and CODEX are being prepared - Bitertanol, Propiconazole, Tebuconazole, Imidachloroprid and Chlorfluazeuron Copper (40ppm) Joint application with India to EU Diuron and Pyroclostrobin Field trials are in progress 20
21 Thank You 21
22 2011, 22
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