Statistical Information on Plantation Crops 2012 Ministry of Plantation Industries 55/75, Vauxhall Lane, Colombo 2. November 2013 i 2- CM 17140 ii PREFACE The publication of “Statistical Information on Plantation Crops - 2012” is its 24th issue which contains the key statistical information on tea and rubber sectors as well as other major plantation crops. The objective of this publication is to provide basic statistics and information on the plantation crops of the country for the use of decision makers and stakeholders in plantation sector. General public, students and academics who engage in research oriented higher studies are also benefited. This publication mainly deals with the tea and rubber sectors, which come under the purview of Ministry of Plantation Industries at present. Time series data of the period from 2000 to 2012 and tables of statistical analysis for current year (2012) along with relevant narratives are the information given herein. In this publication, data/information on Tea and Rubber are given under each section and subsequent section assigned for Estate Sector which covers Regional Plantation Companies as well as the State Plantations. The final section is assigned for statistics on other plantation Crops. By and large basic information on both smallholding and estate sector is included in this publication. In addition to that the information on world scenario under Tea & Rubber crops is also available. I acknowledge with appreciation the support extended to this Ministry by the relevant Agencies, Associations, and Institutions by furnishing data/ information enabling the successful completion of this task. My sincere gratitude to Mr. U.K.S. Mihindukulasooriya, Additional Secretary (Development), Mrs. Ratna Edirisinghe Director (Planning), Mrs. O.R. Wijegunasinghe, Statistical Officer and all others who had been involved in making this effort a success. Sudharma Karunaratne Secretary. Ministry of Plantation Industries 55/75, Vauxhall Lane Colombo 02 November 2013. iii FOREWORD “Statistical Information on Plantation Crops - 2012” is the 24th annual publication of the Ministry of Plantation Industries of which the staff of the Department of Census & Statistics engaged on its preparation. The publication covers a wide range of statistical tables with relevant narratives of the period 1990 to 2012 on Tea, Rubber and Estate Sector which include both Regional Plantation Companies (RPCs) and State Plantations under the current mandate of Ministry of Plantation Industries. Further statistics on other crops (Cashew, Coconut and Sugarcane) are presented. It is felt that, the statistical information disseminated in this publication will be immensely useful to Decision Makers, Researchers, Academics, Students and Stakeholder who are engaged in plantation industries. I would like to thank Mrs. O.R. Wijegunasinghe, Statistical Officer who engaged in this task with the assistance of the Ministry of Plantation Industries and Institutions under its purview as well as Associations, Agencies responsible for data sources on the plantation sector. I am confident that who use this publication will find it educative, informative and easy to use. Therefore your suggestions, views on further improvement will definitely encourage the staff, preparation of this publication. D. C. A. Gunawardena Director General Department of Census and Statistics 5th Floor Rotunda Tower 109, Galle Road Colombo 03 19th November 2013 iv CONTENT Index Charts, Maps, overviews Abbreviations Weights and Measures Conversion Table Exchange Rates Conversion Table V-X XI XII XIII XIV 1. TEA SECTOR ( Area, Production, Price, Export and World Scenario ) Table Page 1.1 Key Indicators : Tea Review : Key Indicators of Tea 01 02 Tea Area 1.2 Holdings & Extent by sector & by district - 2002 Review: Tea Holdings & Extent 1.3 Tea Extent by ownership 2000-2012 1.4 Tea Smallholdings & Extent – by district 1.5 Tea Smallholdings & Extent by District- 2005 Review : Tea Small Holdings & Extent by District 1.6 Area Replanted & New Planted Tea 1.7 Tea Growing Incentives for Small Holding Sector Review : Area replanted & New planted for tea and incentives for tea smallholdings 04 05 06 07 08 09 10 11 12 Tea Production 1.8 Made Tea Production by Category 1.9 Monthly Tea Production under Different Categories-2012 Review: Monthly Tea Production by category 1.10 Tea Production by Elevation 1.11 (i) Geographical Distribution – High Elevation Tea (ii) Geographical Distribution – Medium Elevation Tea (iii) Geographical Distribution – Low Elevation Tea Review : Geographical Distribution of High, Medium & Low Elevation Tea Production v 14 15 16 19 20 21 22 23 Table Page 1.12 Tea Production by Different Type 1.13 Made Tea Production by Sector 1.14 Monthly Tea Production by Leaf Ownership - 2012 Review : Monthly Tea Production by Leaf Owership 1.15 Made Tea Production by Type of Manufacturer 1.16 Tea Production, Export & Local Consumption 24 25 26 27 28 29 Tea Prices 1.17 1.18 1.19 1.20 Green Leaf Price to Small Holders - 2012 Average Colombo Auction Prices by Elevation Average Tea Prices & Quantity Sold at Colombo Auction – 2012 Monthly average Auction Prices by Manufacturer - 2012 Review : Monthly average Auction Prices by Manufacturer - 2012 1.21 Monthly tea Auction Prices at Main Auction Centers 1.22 Average FOB Tea Prices by Category 34 35 39 40 41 42 43 Tea Exports 1.23 Quantity & Value of Tea Exports by Category 1.24 Monthly Export Quantity & Value by Category – 2012 Review: Export Quantity & Value of Tea by Category 1.25 Sri Lanka Tea Exports by Destination Review: Sri Lanka Tea Exports by Destination 1.26 Tea Imports & Value Added Re Exports 1.27 Tea Imports for Re export – Country wise 1.28 Cess Collection from Tea Exports 45 46 47 51 53 54 55 56 World Tea Scenario 1.29 World Tea Planted Area Review : World Extent of Tea Planting 1.30 Countrywise World Tea Production 1.31 World Tea Production by Type of Manufacturer Review: World Tea Production 1.32 World Main Tea Exporters by Destination – 2012 vi 58 59 60 61 62 63 Table Page 1.33 World Tea Export Quantity & Value Review : World Tea Export Earnings 1.34 World Tea Consumption – Selected Countries Review: World Tea Consumption 64 65 66 67 2. RUBBER SECTOR ( Area, Production, Price, Export & World Scenario ) 2.1 Key Indicators : Rubber Review : Key Indicators of Rubber 73 74 Rubber Area 2.2 Rubber Area by Ownership 2000 - 2012 2.3 Rubber Holdings & Extent by Sector/District-2002 2.4 Rubber Holdings & Extent by Sector/District-2010 Review: Rubber Lands by District, 2002 & 2010 Censuses 2.5 Small Holding Extent by Size Class – 2010 2.6 Small Holding Extent by Size Class and by District – 2010 2.7 Smallholding Area of Immature and Mature – 2010 2.8 Estate Sector Area of Immature and Mature – 2010 Review : Immature & Mature Rubber Extent by District 2.9 Clonal Composition of Small Holding Extent- 2010 2.10 Smallholdings & Extent under Different Clones by District – 2010 2.11 Estate Sector Extent by Different Clones by district – 2010 Review : Clonal Composition by District & Sector 2.12 Rubber Area Re Planted & New Planted Review : Rubber Area Re Planted & New Planted 2.13 Plants Issuance & Target of RDD Nurseries 2.14 Plants Issued from Rubber Nurseries Review : Plants issuance of RDD Nurseries and Private Nurseries 2.15 Planting Incentives Paid to Small Holders 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 Rubber Production 2.16 Comparison of Production, Export & Consumption Review: Rubber Production, Export & Consumption vii 96 99 Table Page 2.17 Production by Different Type 2000-2012 2.18 Monthly Production by Type - 2012 Review : Raw Rubber Production by Different types 2.19 Rubber Production by Type of Management 2.20 Cost of Production – Smallholding Sector 2.21 Cost of Production – Estate Sector Review : Rubber cost of production - Small Holding & Estates 100 101 105 106 107 108 109 Rubber Prices 2.22 Colombo Auction Price by Type 2.23 Monthly Rubber Auction Prices – 2012 2.24 FOB prices on monthly Raw Rubber Exports – 2012 Review: Auction Prices & FOB Prices on Raw Rubber 111 115 116 117 Rubber Exports/Imports 2.25 Raw Rubber Export Quantity & Value 2.26 Monthly Export Quantity and Value – 2012 Review: Raw Rubber Export Earnings 2.27 Raw Rubber Exports by HS Code - 2012 2.28 Raw Rubber Exports by Destination Review: Raw Rubber Exports by Type & Destination 2.29 Rubber Imports by Type 2000 – 2012 2.30 Raw Rubber Imports by HS Code – 2012 Review: Imports of Raw Rubber 2.31 Rubber Finished Products Import by HS Code - 2012 Review: Rubber Finished Product Import 2.32 Export Income from Product Categories 2.33 Rubber Finished Products Export by HS Code – 2012 Review: Rubber Finished Products Export 2.34 Monthly Cess Collection on Rubber Review : Monthly Rubber cess collection 119 120 123 124 125 126 127 128 129 130 131 132 134 135 136 137 World Rubber Scenario 2.35 Extent of World Rubber Plantation 2.36 World Rubber Production 2.37 Key Rubber Indicators of ANRPC Countries – 2012 Review: World Rubber Extent & Production viii 139 140 141 142 Table Page 3. ESTATE SECTOR ( RPCs & State Plantations) Extent & Employment 3.1 Status of RPCs & State Plantations, 2011 – 2012 3.2 Land Utilization of RPCs & JEDB, SLSPC 2000 - 2012 3.3 Staff, Labour Force & Wage for RPCs, JEDB, SLSPC Review: Extent & Labour Force in Estate Sector 3.4 Extent Cultivate in RPCs & State Plantations 3.5 Extent in Bearing in RPCs & State Plantations Review: Extent Cultivate & Bearing in Estate Sector 3.6 Area Tea/Rubber Replanted & New Planted 145 146 147 148 149 150 151 152 Tea Extent & Production 3.7 Tea Extent in Estate Sector – 2012 3.8 Tea Production in Estate Sector - 2012 3.9 Tea Extent, Production & Yield in Estates 2000– 2012 Review: Tea Extent, Production & Productivity 153 154 157 158 Rubber Extent & Production 3.10 Rubber Extent in Estate Sector - 2012 3.11 Rubber Production in Estate Sector - 2012 3.12 Rubber Extent, Production & Yield in Estates 2000- 2012 Review: Rubber Extent, Production & Productivity 159 160 163 164 Coconut Extent & Production 3.13 Coconut Extent & Production in Estate Sector - 2012 3.14 Coconut Production & Yield in Estate Sector 2000– 2012 Review : Coconut Production in Estate Sector 165 166 167 Oil Palm Extent & Production 3.15 Oil Palm Extent & Production in Estate Sector 3.16 Oil Palm Industry Review : Oil Palm Extent & Production in Estate Sector ix 168 171 172 Table Page Forestry Extent 3.17 Forestry Extent in Estate Sector – 2012 173 4. OTHER CROPS (Cashew, Coconut & Sugar Cane ) 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 Extent of Cashew Cultivation by District Extent & Bearing Extent of Cashew Cashew Production & Yield Cashew Kernel Production & Consumption Quantity & Value of Cashew Exports Sugar Statistics 2011 – 2012 Sugarcane Extent by District & DS Division - 2002 Key Indicators : Coconut Coconut Production, Consumption & yeild 2000-2012 Imports of Oils & Fats to Sri Lanka Export of Coconut Products by Different Type 2011/2012 x 177 178 179 183 184 185 186 187 188 189 190 Page CHARTS Chart 1 Chart 2 Chart 3 Chart 4 Chart 5 Chart 6 Chart 7 Chart 8 Chart 9 Chart 10 Chart 11 Chart 12 Tea – Total Production Tea – Yield Tea – Colombo Auction Average Prices Tea Export Income by Category Rubber – Total Production Rubber Production by Different Types – 2012 Colombo Auction Average Prices RSS - I Rubber Export Values by Different Types – 2012 Tea Production in Estate Sector – 2012 Rubber Production in Estate Sector – 2012 Palm Oil Production in Estate Sector – 2012 Cashew – Production and Yield 2000 – 2012 17 31 37 49 97 103 113 121 155 161 169 181 MAPS Map 1 Map 2 Extent of Tea Plantation by District Extent of Rubber Plantation by District xvii 71 OVERVIEWS Overview 1 Overview 2 Overview 3 Overview 4 Overview 5 Overview 6 Overview 7 Overview 8 Overview 9 Overview 10 Tea Area Tea Production Tea Prices Tea Exports Tea World Rubber Area Rubber Supply (Production) Rubber Prices Rubber Export & Import Rubber World xi 03 13 33 44 57 75 95 110 118 138 ABBREVIATIONS ANRPC APCC CDA COP CRI CTC DC DCS FOB GDP Ha IFAD IRSG ITC JEDB KTFL Kg/ha Mn kg MT NFS NR RDD RPCs RSS SLSPC SLTB SPEnDP TIEP TRI TSF TSHDA TSHFL TSR Association of Natural Rubber Producing Countries Asian and Pacific Coconut Community Coconut Development Authority Cost of Production Coconut Research Institute Cut Tear and Curl; A Tea Manufacturing Method Desiccated Coconut Department of Census and Statistics Free on Board; Fob Price to calculate Export Value Gross Domestic Product Hectares International Fund for Agricultural Development International Rubber Study Group International Tea Committee Janatha Estate Development Board Kalubovitiyana Tea Factory Ltd. Kilogram per Hectare Million Kilogram Metric Tons National Fertilizer Secretariat Natural Rubber Rubber Development Department Regional Plantation Companies Ribbed Smoked Sheet Sri Lanka State Plantation Corporation Sri Lanka Tea Board Small Holder Plantations Entrepreneurship Development Project Temporary Import for Export Purpose Tea Research Institute Tea Shakthi Fund Tea Small Holdings Development Authority Tea Small Holdings Factory Limited Technically Specified Rubber; A method of Raw Rubber Processing xii WEIGHTSAND MEASURES CONVERSION TABLE Imperial to Metric Metric to Imperial 1 Inch = 2.540 Centimeters 1 Centimetre = 0.3937 Inches 1 Feet = 0.3048 Meters 1 Metre = 3.281 Feet 1 Yard = 0.9144 Meters 1 Metre = 1.094 Yards 1 Mile = 1.609 Kilometers 1 Kilometre = 0.62137 miles 1 Acre = 0.4047 hectares 1Hectare = 2.471 Acres 1 Pound = 453.6 Grams 1 Gram = 0.002205 Pounds 1 Ounce = 28.35 Grams 1 Gram =0.03527 Ounces 1 Pound = 0.4536 Killograms 1 Kilogram = 2.205 Pounds 1 Lb/Acre =1.121 Kgs/Ha 1 Kg/Ha = 0.892 Lb/Acre 1 Long Ton Mile =1.635 Mt Kms 1 Mt Km = 0.612 Long Ton Mile 1 Pint = 0.75 Litres 1 Litre = 1.76 pints 1 Imperial Gallon = 4.55 Litres 1 Litre = 0.219 Imperial Gallons xiii EXCHANGE RATE 1 US Dollar = Sri Lankan Rupees Year/ Month 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 January February March April May June July August September October November December Annual Average Year End 75.78 89.36 95.66 96.52 101.19 100.50 103.96 110.62 108.33 114.94 113.06 110.57 127.60 Monthly Average - 2012 80.06 93.16 96.73 96.74 104.61 102.12 107.71 108.72 113.14 114.38 110.95 113.90 128.35 113.90 117.23 125.52 128.66 129.38 132.04 132.87 132.07 131.78 129.11 130.33 128.35 Source : Central Bank of Sri Lanka xiv TEA SECTOR xv xvi Map 1 xvii xviii 1 279.52 360.97 210.75 309.90 112,834 1,020.0 212.7 181.4 1,356.0 1,482.3 3.0 ‘000 Ha ‘000 Ha kg/Ha Ha Ha Rs/kg “ Rs/kg Mn Kg Rs Mn US$ Mn 304.6 72.5 54.4 177.7 2007 Mn kg “ “ “ Unit 310.53 429.76 231.49 317.30 137,585 1,270.1 212.7 181.4 1,421.0 1,424.9 0.0 318.7 84.2 49.0 185.2 2008 212.7 181.4 1,312.0 1,418.0 0.0 291.1 73.0 44.8 173.3 2009 361.47 470.10 269.01 289.70 136,180 1,184.8 Source : Sri Lanka Tea Board Tea Small Holdings Development Authority Department of Census and Statistics *Extent and extent in bearing up to 2010 based on the Census of Agriculture in 2002 **Include re- export quantity (import with local blends) 1. Production 1.1 High grown 1.2 Medium grown 1.3 Low grown 2. Extent * Total Extent Extent in Bearing 3. Yeild 4. Replanting 5. New Planting 6. Prices 6.1 Colombo Auction 6.2 Export f.o.b. 7. Cost of Production 8. Exports** 9. Export Earnings Item KEY INDICATORS : TEA 370.61 501.88 313.17 324.40 162,789 1,439.8 212.7 181.4 1,478.0 1,683.0 2.5 331.4 79.1 56.1 196.2 2010 359.89 511.08 355.02 322.60 164,854 1,491.0 206.1 197.0 1,662.0 1,851.0 31.0 327.5 78.2 52.6 196.7 2011 391.64 563.94 390.89 319.90 180,430 1,414.0 203.0 194.5 1,688.4 1,832.0 255.0 328.4 73.7 52.6 202.1 2012 Table No 1.1 Key Indicators of Tea (Reference to Table 1.1) Out of reported total tea extent 203,020 ha, the extent 194,509 ha was matured tea area as at end of the 2012. In the year 2012, the extent replanted ie. 1,832 ha was a slight decline compared with the year 2011, while new planted area had substantially increased to 255ha due to enhancement of Government’s subsidy scheme on new planting. In 2012 only a marginal increase of total tea production was recorded (0.9 mn kg)as weather condition and climatic pattern prevailed for tea cultivation was very similar to 2011. However, in term of the elevationwise tea production is concerned, it has shown fluctuations, especially high and low grown in 2012. The high grown tea production decline 6% or 4.5 mn kg while low grown production increased by 3% or 5.4 mn kg compared to previous year. There is no any significant change reported on Medium grown tea production in the current year. Tea yield is concerned in 2011 & 2012 the substantial increase was recorded due to change on computation method. with effect from 2011. Up to 2010, yield computation was based on dividing total tea production by registered tea extent recorded at SLTB (221,969 ha). This method of computation results the low value of yield. In 2012, with the decision of switching the base (denominator) to mature tea extent (194,508 ha) the yield value increased to 1688 kg/ha. As this is the internationally accepted method of yield computation it will be continued in following years as well. (There is subsequent potential to enhance the achieved yield level at present in tea industry). As tea prices, both Colombo auction and FOB export are shown in increasing trend in this decade and the auction price and FOB price in 2012 are the recorded highest values in the history. Colombo auction average price which was Rs 391.64 per kg indicates 9% increase while export average price of Rs. 563.94 per kg was 10% increase in the year 2012, compared with previous year. In 2012, cost of production of made tea had reached at Rs. 390.89 per kg level as a result of continuous increase in input cost of production and the issues related to the wages of the employees. Including re-exports quantity with local blends, total tea export for the 2012 was 319.9 mn kg and reflects very marginal decline, 2.7 mn kg (0.8%) compared to previous year. However, export earnings increased by Rs 15.6 billion (9%) to Rs. 180.4 billion due to 10% increase of FOB price. 2 TEA AREA Overview - 2012 Extent in Hectares Smallholdings Estates Total 2005 116,492 95,288 211,780 2011 120,955 82,065 203,020 Mature* 116,492 78,016 194,508 (96%) Immature* 4,463 4,049 8,512 (4%) *Estimated Holdings of Tea No. of smallholdings Estimate Average holding size No. of estates Size of holding - 397,223 (2005) 400,000 (2012) < ½ ha – 51% of extent > 5 ha – 16% of extent 286 In RPCs & 35 in State Mostly 20 ha & above Tea Growing Districts - 14 Highest extent - Nuwaraeliya Lowest extent - Gampaha Highest extent in Central Province - 78,000 ha (37%) Replanting Extent & Rate to Mature Area: Past 5 year average - 1,642 ha (0.8%) -National Rate prevailed for - Smallholdings - 0.8% - Estates - 1.1% Replanting Incentives: Subsidies to smallholders (2012) - Rs. 227 mn Plants infilled – 5 year average - 529,369 3 Table No : 1.2 NUMBER OF HOLDINGS AND EXTENT OF TEA BY SECTOR & BY DISTRICT - 2002 Province & District Smallholding No. of Holdings WESTERN Estate Sector Total Extent No. of Extent No. of (hec.) Holdings (hec.) Holdings Extent (hec.) 23,371 6,222 85 1,114 23,456 7,336 Colombo Gampaha Kalutara 366 38 22,967 93 12 6,117 7 78 60 1,054 373 38 23,045 153 12 7,171 CENTRAL 31,115 12,010 517 65,986 31,632 77,995 Kandy Matale Nuwaraeliya 18,432 747 11,936 7,609 356 4,045 235 87 195 14,990 4,774 46,222 18,667 834 12,131 22,599 5,130 50,266 SOUTHERN 105,796 39,828 524 9,946 106,320 49,773 Galle Matara Hambantota 58,314 45,863 1,619 22,062 17,326 440 235 289 - 3,568 6,378 - 58,549 46,152 1,619 25,629 23,704 440 NORTH WESTERN 95 31 1 10 96 41 Kurunegala 95 31 1 10 96 41 17,800 5,686 168 25,876 17,968 31,561 17,553 247 5,616 70 161 7 25,024 852 17,714 254 30,639 922 84,841 29,984 445 16,025 85,286 46,010 70,752 14,089 25,433 4,551 331 114 12,918 3,107 71,083 14,203 38,352 7,658 263,018 93,760 1,740 118,956 UVA Badulla Monaragala SABARAGAMUWA Ratnapura kegalle Total 264,758 212,716 Source: Department of Census and Statistics - Census of Agriculture - 2002 4 Tea Holdings & Extent (Reference to Table 1.2) Number of holdings and extent of tea cultivation for both Small holdings and Estate sectors were compiled, based on the Agriculture Census – 2002 conducted by the Department of Census & Statistics (DCS). In this Census, the definition applied for Small holding sector was below 8 ha (20 acres) and for the Estate sector it was above 20 acres. As a unit below 20 ha is considered as a Small holding administratively by respective institutions, the number of holdings and extent indicated in this table may differ from those shown in other tables and in sources other than DCS. Accordingly, in 2002, total number of Small holdings was 263,000 and total extent was 93,760 ha, which was a definite increase due to the above definition. Similarly number of holdings (1740) in Estate sector and corresponding extent of 118,957 reduced as the minimum size of 20 ha of holding was applied. As far as the macro picture is concerned the largest extent i.e. 78,000 ha of tea cultivation was in the Central Province of which 50,000 ha (65%) were in the Nuwaraeliya District, followed by Southern, Sabaragamuwa and Uva Provinces. Tea Small holdings are mostly accumulated in the Southern and Sabaragamuwa provinces (72%) and the Districts of Ratnapura, Galle & Matara had the highest extent of small holder owned tea land (69%). The majority of Estate sector extent of tea was in Central and Uva provinces (77%) out of which 60% was in Nuwaraeliya & Badulla Districts alone. 5 Table No. 1.3 TEA EXTENT BY OWNERSHIP Hectares Year Estate Sector Small Holding Sector 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 99,564 98,882 97,172 93,522 91,384 95,288 97,587 90,752 92,108 88,624 84,119 85,440 82,065 84,703 85,102 85,664 86,307 91,668 116,492 117,992 119,492 119,768 120,009 120,500 120,664 120,955 Total 184,267 183,984 182,836 179,829 183,052 211,780 215,579 210,244 211,876 208,633 204,619 206,104 203,020 Source : Tea Small Holdings Development Authority Regional Plantation Companies (RPCs) In terms of the definition of Smallholding sector, tea land consist of below 4 ha or 10 acres is come under the purview of the Tea Small Holdings Development Authority while Tea Commissioner of SLTB inspects and supervises Smallholding sector in range of 4 ha - 20 ha and the Estate sector plantations. Extent of total tea lands highlighted a declining trend for the period 1996 to 2004. Since 2004 a gradual increase was recorded till 2008 and it has declined to 203,020 ha in current year. Estate sector tea extent ownership has gradually declined since 1996 onwards due to various factors. This has declined of an average rate of 2,400 ha per annum. Compared to previous year in 2012, the extent of tea land ownership in the Estate sector (RPCs and State owned JEDB, SLSPC and Elkaduwa Plantation) declined by 3,375 ha while 291 ha increase was reported in the Smallholding sector. 6 7 159,865 1,843 40,388 1,631 13,763 36,479 27,964 609 224 13,171 17,713 6,080 No of Holdings 75,769 881 19,269 1,694 6,559 13,603 13,342 207 124 7,030 9,818 3,242 Extent (Ha) 1983 Census Source : Tea Smallholdings Development Authority Total Colombo Gampaha Kalutara Kandy Matale Nuwaraeliya Galle Matara Hambantota Kurunegala Badulla Monaragala Ratnapura Kegalla District 206,652 13 8,494 14,198 705 10,892 56,547 44,051 1,186 135 15,287 77 49,161 5,906 No of Holdings 82,919 14 2,566 9,733 1,305 7,053 17,855 16,886 306 42 6,899 25 17,789 2,446 Extent (Ha) 1994 Census 397,223 491 9 38,263 30,747 1,408 17,547 90,524 67,613 2,533 151 29,679 637 97,984 19,637 118,274 236 2 7,587 12,486 1,190 5,971 25,325 22,971 492 99 7,863 67 28,232 5,753 Extent (Ha) 2005 Census No of Holdings INCREASING TEA SMALLHOLDINGS & EXTENTS BY DISTRICT Table No. 1.4 8 423 9 35,793 25,457 1,011 15,270 79,432 58,470 2,373 111 26,989 551 87,070 17,333 350,292 88.2 75 2 5,441 5,329 229 2,936 15,361 12,140 426 30 4,953 122 17,674 3,264 67,982 51.4 35 1,927 3,345 166 1,663 8,296 6,835 141 23 1,747 72 7,910 1,680 33,840 8.5 25 1,268 2,258 121 1,082 5,640 4,647 91 15 1,191 53 5,317 1,142 22,850 17.3 < 1/2 ha 1/2 - < 1 ha Holding Ex. Ha Holding Ex. Ha 22 396 1,094 81 302 1,840 1,296 14 8 574 11 1,880 400 7,918 2.0 27 497 1,407 106 387 2,372 1,654 17 10 737 14 2,419 508 10,155 7.7 1 - < 2 ha Holding Ex. Ha 8 112 559 78 177 743 720 5 5 267 3 875 163 3,715 0.9 25 312 1,599 231 536 2,121 2,116 12 15 737 10 2,539 479 10,732 8.1 3 35 292 72 135 213 292 4 102 249 61 1,458 0.4 94 305 5,465 985 2,264 1,933 4,860 110 1,402 2,492 700 20,610 15.6 2 - < 5 ha > 5 ha Holding Ex. Ha Holding Ex. Ha Different Class Size of hectare Source: Tea Small Holdings Development Authority - Small Holder Tea Census - 2005 Colombo Gampaha Kalutara Kandy Matale Nuwaraeliya Galle Matara Hambantota Kurunegala Badulla Monaragala Ratnapura Kegalla Total % District TEA SMALL HOLDINGS & EXTENT BY DISTRICT - 2005 491 9 38,263 30,747 1,408 17,547 90,524 67,613 2,533 151 29,679 637 97,984 19,637 397,223 100 246 2 7,823 16,058 1,672 7,205 27,427 25,417 546 180 9,020 199 30,441 6,093 132,329 100 Total Holding Ex. Ha Table No: 1.5 Tea Small Holdings & Extent by District (Reference to Table No. 1.4 & 1.5) Three censuses conducted on smallholdings and corresponding extent had show an significant increase. Cumulative figure of holdings and extent rapidly increased during the 10 year period between 1994 & 2005 compared to the period 1983 to 1994. The main contributory factor was encouragement provided for the smallholders through government subsidy program and other incentive schemes. Smallholdings extent increased rapidly in districts of Ratnapura ,Matara,Galle & Kalutara. During this 20 year period the total extent declined for Kandy,Matale & Nuwaraeliya districts due to various reasons. As given in table 1.5 the total extent of 132,329 ha includes the abandoned/ neglected tea extent of smallholding over and above 118,274 ha of maintained tea lands. Subject to such an over stated extent 51% of extent was of the size of < ½ ha holdings. Some 84% of smallholdings are of extent below the size class of 5 ha. As smallholder tea lands were expanded in recent past since 1990s in the Kalutara & Kegalle districts the abandoned tea lands were minimum in these districts in relation to other districts according to the census of 2005. 9 Table No. 1.6 AREA REPLANTED AND NEW PLANTED TEA Replanting (Hectare) New Planting (Hectare) Year Small Estate Small Estate holder Sector holder Sector Sector (RPCs & State) Sector (RPCs & State) Infilling (No. of plants) Small Holder Sector 2000 518 880 255 9 812,174 2001 574 2,446 399 9 1,078,000 2002 736 380 562 12 2,522,872 2003 765 349 643 11 1,639,601 2004 994 309 12 7 1,489,167 2005 1,058 398 8 7 1,242,648 2006 1,001 389 1 4 520,610 2007 1,024 454 0 3 516,471 2008 881 544 0 0 519,607 2009 777 641 0 0 431,699 2010 847 836 0 3 424,227 2011 772 1,079 28 3 504,322 2012 937 895 239 16 766,991 Source: Tea Small Holdings Development Authority Regional Plantation Companies (RPCs) 10 Table No. 1.7 TEA GROWING INCENTIVES FOR SMALLHOLDING SECTOR Rs Mn Replanting New Planting Infilling/ Crop Rehabilitation Year Rs Mn % Rs Mn % Rs Mn 2000 69.60 86.35 7.23 8.97 2001 77.76 81.26 12.71 2002 99.17 70.33 2003 122.82 76.69 Total % Rs Mn 3.77 4.68 80.60 13.28 5.22 5.46 95.69 30.62 21.71 11.21 7.95 141.00 27.95 17.45 9.38 5.85 160.15 2004 188.10 87.00 3.25 1.50 14.46 6.71 205.81 2005 174.83 95.29 0.30 0.16 8.11 4.42 183.46 2006 179.42 95.57 0.31 0.01 7.81 4.16 187.73 2007 172.89 97.59 4.13 2.33 0.15 0.08 177.17 2008 194.59 97.57 - - 4.84 2.43 199.43 2009 178.17 98.21 - - 3.25 1.79 181.42 2010 177.85 98.03 - - 3.58 1.97 181.43 2011 187.64 96.15 1.19 0.61 6.33 3.24 195.16 2012 226.83 83.79 23.12 8.78 14.36 5.43 264.40 Source : Tea Small Holdings Development Authority 11 Area Replanted and New Planted for Tea and Incentives for Tea Smallholding Sector (Reference to Table No. 1.6 & 1.7) The government continuously provides financial incentives to encourage replanting / new planting and infilling in the small holder sector in Sri Lanka. In the year 2011, the government has decided to provide financial subsidies for small holders at the rate of Rs. 150,000 per hectare to enhance the new planting extent. As a result of that in 2012, the newly planted extent has increased by 8 folds than the previous year. Since 2004, financial incentives for new planting has not been provided during this period only few new plantings were recorded as the past commitments and no new plantings at all since 2007 to 2010. During the period of 1990 and 1995, the newly planted area was 1600 ha average per year and it was 400 ha from 1996 to 2003. Extent replanted shows a gradual increase since 2000 to 2007 since then a decline was recorded by 2011. However, owing to the increment of subsidy payments in the latter part of the 2011, an improvement of the replanted extent was reflected in the year 2012. The number of plants infilled shows a significant decline since 2006 to 2011 due to various reasons. In the year 2012, a significant improvement was recorded. In table 1.7 the three types of incentive schemes was introduced in terms of expenditure parallel with extent and other inputs along with past commitments to be paid in arrears are given. Key portion (86%) of incentive payments were incurred for replanting. In 2012 compared to 2011, major improvement (increase of Rs 69 mn) was reported as incentive expenditure in the smallholding sector. 12 TEA PRODUCTION Overview - 2012 In 4th Place next to China, India & Kenya Total Production in million kilogram - 328.4 mn kg (328,397 Mt) By Elevation : Yield kg per Hectare High Medium Low 1,688 kg/ha - National - 73.7 – 22% - 52.6 – 16% - 202.1 – 62% By Type : Orthodox CTC Green Tea By Sector : - 302.1 – 92% - 23.3 – 7% - 3.0 – 1% Smallholder - 234.2 – 71% Estate Sector - 94.2 – 29% (RPCs & State) By Manufacturing Factory : By Leaf Ownership : Private RPCs State Own leaf Bought leaf - 200.6 –61% - 119.9 –41% - 7.9 – 2% Top eight production Districts Nuwaraeliya -20%, Badulla -10%, Galle, Matara, Ratnapura, Kegalla, Kalutara & Kandy together –67% 13 - 100.6 – 31% - 223.3 – 69% 14 111.4 105.4 6.0 143.9 148.3 14.5 306.7 (4) By Manufacturer - Private Factories - RPC Factories - State Factories Total Production 310.8 163.0 128.3 19.5 92.9 5.5 98.4 212.4 289.2 18.4 3.2 74.7 51.5 184.6 2006 304.6 157.9 126.2 20.5 93.8 5.1 98.9 205.7 284.9 16.2 3.5 72.5 54.4 177.7 2007 318.6 167.7 131.0 19.9 98.3 5.5 103.8 214.8 298.9 16.5 3.2 84.3 49.0 185.3 2008 291.1 164.4 115.4 11.3 84.6 4.6 89.2 201.9 273.0 15.8 2.3 73.0 44.8 173.3 2009 Note : Leaf ownership of state denotes own leaf from JEDB, SLSPC, Tea Shakthi and TRI. Manufacture of Private Factories includes Cooperative and TSHFL Factories. State manufacture denotes the factories belong to JEDB, SLSPC, Tea Shakthi,TRI & Kalubowitiyana Ltd. Source : Sri Lanka Tea Board 317.2 156.6 139.8 20.8 205.8 183.6 123.1 298.5 16.3 2.4 113.3 9.8 288.3 17.5 0.9 (2) By Type - Orthodox Tea - Cut, Tear & Curl (CTC) Tea - Green Tea 80.4 55.1 181.7 2005 (3) By Green Leaf Ownership - Smallholders (Bought leaf) - Non Smallholders (Own leaf) - RPCs - State 83.8 56.4 166.5 2000 (1) Elevationwise - High - Medium - Low Category 331.4 183.1 136.1 12.2 96.9 4.4 101.3 230.1 309.7 18.4 3.3 79.1 56.1 196.2 2010 327.5 185.8 134.1 7.6 94.4 4.1 98.5 229.0 301.9 22.6 3.0 78.2 52.6 196.7 2011 Qty. MADE TEA PRODUCTION BY CATEGORY TIME SERIES DATA FOR 10 YEARS 100 57 41 2 29 1 30 70 92 7 1 24 16 60 % 328.4 200.6 119.9 7.9 90.2 4 94.2 234.2 302.1 23.3 3.0 61 37 2 28 2 29 71 92 7 1 22 16 62 % 100 2012 73.7 52.6 202.1 Qty. Million Kilogram Table No. 1.8 4 - CM 17140 15 13.3 8.7 0.6 14.2 8.6 0.6 23.4 Total Production of each Category Source : Sri Lanka Tea Board 7.0 6.7 0.3 6.8 6.6 0.2 22.6 15.6 21.0 1.4 0.2 21.6 1.5 0.3 16.5 5.5 4.0 13.1 Feb 5.4 3.7 14.3 Jan - Medium - Low (2) By Type - Orthodox - CTC - Green Tea (3) By Leaf Ownership - Smallholders (Bought Leaf) - Non Smallholders (Own Leaf) - RPCs - State (4) By Manufacturer - Private Factories - RPC Factories - State Factories (1) Elevationwise - High Category 28.9 17.7 10.5 0.7 8.2 7.8 0.4 20.8 26.7 1.9 0.3 6.4 4.6 17.9 March 30.1 17.4 11.8 0.8 9.3 8.9 0.4 20.7 27.6 2.2 0.3 7.3 5.8 17.0 April 32.7 18.6 13.3 0.8 10.7 10.2 0.5 22.0 30.1 2.3 0.3 8.7 5.9 18.1 May 26.5 16.4 9.6 0.6 7.5 7.2 0.3 19.1 24.7 1.6 0.2 6.0 3.8 16.7 June 25.0 16.8 7.7 0.5 5.8 5.5 0.3 19.2 23.1 1.7 0.2 4.1 3.4 17.5 July 25.9 16.1 9.1 0.7 7.3 6.9 0.4 18.5 23.4 2.3 0.2 5.4 4.4 16.1 Aug 27.4 18.1 8.7 0.6 6.6 6.4 0.2 20.8 25.5 1.7 0.2 4.9 3.5 19.0 Sept 27.4 17.2 9.6 0.6 7.5 7.3 0.2 19.9 25.0 2.1 0.3 5.9 4.0 17.5 Oct MONTHLY TEA PRODUCTION UNDER DIFFERENT CATAGORIES - 2011 30.6 18.0 11.8 0.8 9.2 8.8 0.4 21.4 27.9 2.4 0.3 7.4 5.3 17.9 Nov 27.8 16.7 10.5 0.6 8.2 7.9 0.3 19.6 25.4 2.1 0.3 6.7 4.2 16.9 Dec 61.0 37.0 2.0 29.0 28.0 1.0 71.0 92.0 7.0 1.0 22.0 16.0 62.0 328.4 100.0 200.6 119.9 7.9 94.2 90.2 4.0 234.2 302.1 23.3 3.0 73.7 52.6 202.1 Total Qty % ' 000 Kilogram Table No. 1.9 Made Tea Production by Category (Reference to Table No 1.8 & Table No. 1.9) Tea production has shown in these two tables were based on the elevation, type of production, leaf ownership and the type of manufacturer. On average elevation wise contribution to made tea production recorded as 59% for low grown, 24% for high grown and 17% for mid grown since the year 2005 to 2012. However, in 2012 it was 62%, 22% & 16% for low, high and medium grown respectively. Compared to the year 2011, Low grown tea contributed significantly to increase the production by 2% in 2012. This elevation wise production variation was caused by several factors such as weather, soil condition, fertilizer applying etc., in addition to the extent of cultivation under each elevation. Monthly tea production has declined the period of January/February and the period of June to July in 2012. Latter part of the year, the tea production kept on an increasing trend. Weather conditions prevailed throughout the year was caused for this discrepancy. Black tea and Green tea were the two main types of made tea contribution in the year 2012 out of which 99% for black tea and 1% for green tea respectively. Based on the processing method the black tea had divided into two types as Orthodox and Cut Tear & Curl (CTC) which accounts 92% and 7% respectively. The green leaf ownership mainly reflects the Smallholder sector production and the Estate sector production as well. In 2012, Smallholder sector contribution to the national production was 71% and this was the highest amount ever recorded in the history while the Estate tea production was reported 94.2 mn kg or 29% contribution to the national tea production. When the manufacturer base tea production is considered, there were three types of manufacturers engaged in tea production ie. Private factories, RPC factories and factories owned by State Institutions. Some 10% increase of made tea production was recorded from Private factories during previous three consecutive years owing to the increase of Smallholding sector supply of green leaf. In contrast, made tea production of RPC factories declined by 12% during previous three consecutive years. In the same period State owned factory made tea production declined by 35%. Non availability of sufficient quantities of bought leaf due to competition from Private factories and decline of own leaf production were the main contributory factors for such decline. 16 17 Source : Sri Lanka Tea Board Chart 1 18 Table No. 1.10 TEA PRODUCTION BY ELEVATION Mn Kg Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 High Grown % Medium Grown % Low Grown % 83.5 75.1 87.0 81.6 75.2 80.4 74.7 72.5 84.4 73.0 79.1 78.2 73.6 27 25 28 27 24 25 24 24 26 25 24 24 22 56.2 53.8 53.9 53.9 49.9 55.1 51.5 54.4 49.0 44.8 56.1 52.6 52.6 18 18 17 18 16 17 17 18 15 15 17 16 16 166.1 166.2 169.1 167.7 184.3 181.8 184.6 177.7 185.3 173.3 196.2 196.7 202.1 54 56 55 55 60 57 59 58 58 60 59 60 62 Source : Sri Lanka Tea Board 19 Total 305.8 295.1 310.0 303.2 309.5 317.2 310.8 304.6 318.7 291.1 331.4 327.5 328.4 Table No. 1.11 (i) GEOGRAPHICAL DISTRIBUTION OF TEA PRODUCTION - 2012 HIGH ELEVATION - TEA LANDS ABOVE 4000 FEET Elevation Administrative District Agro-Climatic District High Nuwaraeliya Agarapatana Bogawantalawa Hatton/Dickoya Kotmale Mathurata Nanuoya/Lindula/Talawakelle Nuwaraeliya Patana/Kotagala Pundaluoya Ramboda Udapussellawa/Halgranoya Upcot/Maskeliya Sub total High Kandy Sub Total Ramboda High Badulla Bandarawela/Poonagalla Demodara/Haliella/Badulla Ella/Namunukula Haputale Koslanda/Haldummulla Madulsima Malwatte/Welimada Udapussellawa/Halgranoya Sub Total High Ratnapura Balangoda Upcot/Maskeliya Sub Total Total Production (High Grown) Tea Production Kilograms 6,833,524 5,409,711 7,401,780 911,038 2,658,803 11,820,100 3,563,956 4,538,615 2,204,878 1,506,517 3,190,730 7,720,750 57,760,400 909,246 909,246 2,953,154 1,993,107 10,830 3,770,704 6,763 2,078,866 1,955,160 1,275,099 14,043,682 108,800 820,458 929,258 73,642,587 Source : Sri Lanka Tea Board 20 Table No. 1.11 (ii) GEOGRAPHICAL DISTRIBUTION OF TEA PRODUCTION-2012 MEDIUM ELEVATION - TEA LANDS BETWEEN 2000-4000 FEET Elevation Medium Agro-Climatic District District Badulla Demodara/Haliella/Badulla Ella/Namunukula Koslanda/Haldummulla Madulsima Malwatte/Welimada Passara/Lunugalla Tea Production Kilograms 5,773,609.50 1,169,367.00 306,973.00 289,077.00 1,242,333.50 4,003,917.00 Sub Total 12,785,277.00 Medium Kandy Gampola/Nawalapitiya/Dolosbage 7,537,247.50 Hunnasgiriya/Matale/Yakdessa 74,721.00 Kadugannawa 1,315,862.00 Kandy/Matale/Kurunegala 1,339,300.00 Kotmale 386,650.75 Madulkelle/Knuckles/Ragala 5,192,588.50 Nilambe/Hantane/Galaha 1,254,702.00 Pussellawa/Hewaheta 4,764,369.00 Sub Total 21,865,440.75 Medium Kegalle Gampola/Nawalapitiya/Dolo 804,428.00 Sub Total 804,428.00 Medium Matale Hunnasgiriya/Matale/Yakdessa 919,339.00 Kandy/Matale/Kurunegala 253,420.00 Madulkelle/Knuckles/Ragala 265,228.00 Sub Total 1,437,987.00 Medium Matara Deniyaya 232,304.00 Sub Total 232,304.00 Medium Nuwara Eliya Gampola/Nawalapitiya/Dolosbage 3,117,972.50 Hatton/Dickoya 1,193,199.50 Kotmale 903,259.50 Maturata 168,497.50 Patana/Kotagala 1,693,370.50 Pundaluoya 293,445.26 Pussellawa/Hewaheta 1,783,471.00 Ramboda 723,405.00 Udapussellawa/Halgranoya 404,386.50 Watawala/Ginigathhena/Norton Bridge 2,836,537.00 Sub Total 13,117,544.26 Medium Ratnapura Balangoda 1,529,524.00 Balangoda/Rakwana 463,164.65 Deniyaya 397,459.00 Sub Total 2,390,147.65 Total Production (Medium Grown) 52,633,128.66 Source : Sri Lanka Tea Board 21 Table No. 1.11 (iii) GEOGRAPHICAL DISTRIBUTION OF TEA PRODUCTION - 2012 LOW ELEVATION - TEA LANDS BELOW 2,000 FEET Elevation Low Administrative District Colombo Galle Hambantota Kalutara Kandy Kegalle Matale Matara Nuwara Eliya Ratnapura Agro-Climatic District Kegalle Galle Kalutara Morawaka Matara Kalutara Gampola/Nawalapitiya/Dolosbage Kadugannawa Kandy/Matale/Kurunegala Kadugannawa Kegalle Ratnapura Kandy/Matale/Kurunegala Deniyaya Galle Matara Morawaka Kelani Vally Balangoda Balangoda/Rakwana Deniyaya Ratnapura Total Production (Low grown) Source : Sri Lanka Tea Board 22 Tea Production Kilograms 675,457 44,359,233 4,196,149 238,231 284,332 17,357,166 3,063,422 5,777,615 1,456,582 702,939 10,141,605 372,343 522,932 14,830,201 33,687 4,175,330 25,250,005 828,544 6,994,718 3,105,452 1,085,245 56,670,132 202,121,318 Geographical Distribution of High, Medium & Low Elevation Tea Production (Reference Table Nos. 1.11 (i), (ii) & (iii)) Tea production can be disseminated geographically in to three elevations according to the altitude i.e. high, medium and low elevations. In addition to that tea production is classified by agro-climatic districts and administrative districts as well. As there is any exactly demarcate boundaries, there are some overlapping in this criteria is concerned. The geographical distribution of tea production is considered, highest production of high grown tea recorded from the Nuwaraeliya district which accounts 78% and medium grown tea comes from Kandy district (41%) and low grown tea comes from Ratnapura district (33%). In accordance with the administrative districts are concerned, Nuwaraeliya district contributed 71 mn kg ie. 22% to the national tea production in 2012 which consists of 57.8 mn kg for high grown tea and 13.1 mn kg for low grown tea. Badulla district had contributed 26.8 mn kg ie. 8% to the national production consists of 14 mn kg for high grown tea and 12.8 mn kg for medium grown tea. Predominantly Ratnapura, Galle, Matara, Kalutara, Kandy and Kegalle districts in low elevation had generated 200 mn kg ie. 61% to the total production and 99% to the low grown tea production. With respect to the Agro- climatic districts of high, medium and low elevations are concerned, the highest tea production was recorded by Ratnapura agro climatic district of low elevation in Sri Lanka. 23 Table No. 1.12 TEA PRODUCTION BY DIFFERENT TYPE Mn Kg Year Black Tea Green Tea % Total Orthodox % CTC % 2000 288.30 94 17.50 6 - 305.80 2001 277.95 94 17.14 6 - 295.10 2002 292.18 94 17.85 6 - 310.00 2003 285.60 94 17.60 6 - 303.20 2004 292.05 94 16.10 5 1.35 1 309.50 2005 298.49 94 16.29 5 2.42 1 317.20 2006 289.19 93 18.42 6 3.19 1 310.80 2007 284.90 94 16.20 5 3.50 1 304.60 2008 298.95 94 16.53 5 3.22 1 318.70 2009 273.00 94 15.80 5 2.30 1 291.10 2010 309.70 93 18.40 6 3.30 1 331.40 2011 301.90 92 22.60 7 3.00 1 327.50 2012 302.10 92 23.30 7 3.00 1 328.40 Source : Sri Lanka Tea Board Note : Orthodox Category includes Bio, Instant & Reclaimed Teas 24 Table No. 1.13 MADE TEA PRODUCTION BY SECTOR Mn kg Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Small Holder Sector % 183.8 183.4 189.6 188.0 203.0 205.8 212.4 205.7 214.8 201.9 230.1 229.0 234.2 60.1 62.1 61.2 62.0 65.6 64.9 68.3 67.5 67.4 69.4 69.4 69.9 71.0 Estate Sector RPCs State 114.2 105.1 113.4 109.1 99.9 106.0 93.7 94.1 98.3 84.7 96.9 94.4 90.2 7.9 6.6 7.1 6.1 5.2 5.4 4.7 4.8 5.6 4.5 4.4 4.1 4.0 % 39.9 37.9 38.9 38.0 34.0 35.1 31.7 32.5 32.6 30.6 30.6 30.1 29.0 National Production 305.7 295.1 310.0 303.2 309.5 317.2 310.8 304.6 318.7 291.1 331.4 327.5 328.4 Source : Sri Lanka Tea Board In 2012, Small holding sector and Estate sector have contributed 234 mn kg (71%) and 94.2 mn kg (29%) to the national production of 328.4 mn kg. Compared to 2011, Smallholder sector enhanced their production by 2% while Estate sector was recorded 4% drop in 2012. However, in 2000 these two sectors Smallholder & Estate added only 60% and 40% respectively to the total production. In 2006, a sudden change of ratio was recorded as 68:32 for Smallholder and Estate sector respectively. The year 2012 registered the best performance of Smallholder sector tea production ever. In 2004 the Estate sector recorded a great reduction compared to previuos period. Since then a gradual decline can be seen in estate sector. That decrement is represented by the RPCs and State institutions such as JEDB, SLSPC & Elkaduwa Plantation Ltd. Effective financial incentives and subsidized inputs for cultivation and fertilizer provided by the Government were the main attributing factors for the increased share of production in the small holding sector. Low labour productivity, low rate of replanting/ new planting were some causes for reduction of the share of the production in Estate sector. 25 26 7,218 16,144 15,638 69 6,990 31 328 2,061 288 4 8 130 25 27 508 12,115 - 20,752 72 8,188 28 8,653 20,287 442 0 150 28,940 527 2,652 316 5 3 175 25 28 465 16,309 - 7,844 March 20,718 69 9,336 31 9,866 20,188 408 0 142 30,054 486 2,936 442 7 3 199 27 30 530 15,980 - 8,863 April 22,009 67 10,702 33 11,317 21,395 414 0 112 32,711 466 3,064 430 7 2 226 44 30 615 17,075 - 10,226 May 19,072 72 7,472 28 8,149 18,395 430 0 109 26,543 454 2,352 212 3 2 180 24 26 677 14,841 - 7,234 June 19,232 77 5,768 23 6,340 18,660 409 0 109 25,000 419 2,229 163 2 172 24 27 572 15,293 60 5,519 July 18,547 72 7,323 28 7,800 18,071 372 0 108 25,871 430 2,133 350 1 2 175 28 28 477 14,824 - 6,943 Aug. 7,279 Oct. 415 0 104 27,413 509 20,789 19,881 76 73 6,646 7,531 24 27 7,071 8,025 20,364 19,388 447 0 126 27,435 543 23,187 2,351 229 218 3 3 199 191 26 31 24 23 426 494 16,706 15,795 - 6,388 Sept. 21,453 70 9,182 30 9,933 20,701 421 0 110 30,635 517 3,056 389 1 2 212 33 25 752 16,361 - 8,757 Nov. 90,174 5,597 99 19,597 234,212 70 71 8,209 94,185 30 29 8,717 100,587 19,089 227,811 29 71 31 69 385 4,843 100 0 3 111 1,426 100 27,806 328,397 478 25 99 1 2 98 51 49 3 97 1 75 Total Qty. % 2,585 29,749 275 3,555 30 22 55 146 2,131 30 338 24 322 508 6,401 15,360 183,713 60 7,882 Dec. '000 KiIogram Table No. 1.14 Note : In order to calculate smallholder and non smallholder contribution in total tea production the own leaf portion of Private Tea Factories is treated as bought leaf. As a result the sector contribution adjusted to 78% and 29% respectively which is given in other tables and elsewhere. Source : Sri Lanka Tea Board 16,523 71 6,839 29 7,498 15,130 354 0 124 23,362 Own Bought Own Bought Qty. % Qty. % 347 0 120 22,627 438 Bought State - Tea Research Institute Private Tea Factories (Individual) Private - Tea Small Holding Factory Limited (TSHFL) Private - Cooperatives MPI Kalubowitiyana Tea Factory LTD Total Production : of which Own leaf Bought leaf Leaf Ownership : Smallholders : (Bought leaf) Non Smallholders : (Own leaf) State - Tea Shakthi 2,011 244 3 3 128 23 31 379 13,056 - Bought Own Bought Own Bought Own Bought Own Bought Own 6,669 6,569 Own Feb. RegRegional Plantation Companies (RPC) (Elkaduwa PLC included) State - JEDB, SLSPC Jan. Leaf Ownership Institution MONTHLY TEA PRODUCTION - 2012 COMPOSITION OF LEAF OWNERSHIP Monthly Tea Production by Composition of Leaf Ownership - 2012 (Reference Table No. 1.14) The supply chain of the tea leaves are concerned there are two ways of supplying leaves to the factory. The own leaf which belongs to owner of the factory and the bought leaf which is outsource to the factory from the others. Although in order to compute the Estate and Smallholder contribution in total tea production the own leaf portion of private factories is treated as bought leaf. Out of these manufacturing institutions the highest production of own leaf was brought by the Regional Plantation Companies (RPCs). In contrast, highest production of bought leaf was gained by the Private Factories. In spite of that maximum contribution to the 328.4 mn kg of made tea production was accomplished by the Private Factories. In 2012, bought leaf obtained top production which accounts 69% and own leaf obtained 31% from the total production. With regard to the Smallholder and Estate contributions to the national production, 71% by the Smallholder sector and 29% by the Estate sector. Private Factories, TSHFL, Co-operatives and Kalubowitiyana Tea Factory mainly depend on the bought leaf. Moreover, the allocation of State Factories (JEDB, SLSPC, TRI & TSHFL, Kalubowitiyana Tea Factory LTD) is just 2%. 27 Table No. 1.15 MADE TEA PRODUCTION BY TYPE OF MANUFACTURER Mn kg RPC Factories Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 % 147.9 140.0 148.5 143.9 133.6 139.8 128.3 126.3 131.0 115.4 136.2 134.1 119.9 48.4 47.5 47.9 47.5 43.2 44.1 41.3 41.5 41.1 39.6 41.1 40.9 37.0 State (JEDB, SLSPC, % TSF & TRI Factories) 14.3 14.4 16.7 20.8 20.0 20.8 19.5 20.5 19.9 11.3 12.2 7.6 7.9 4.7 4.9 5.4 6.9 6.5 6.6 6.3 6.7 6.3 3.9 3.7 2.3 2.0 Private Factories National Production % 143.5 140.7 144.8 138.5 154.5 156.5 163.0 157.9 167.8 164.4 183.1 185.8 200.6 46.9 47.7 46.7 45.7 49.9 49.3 52.4 51.8 52.6 56.5 55.2 56.7 61.0 305.7 295.1 310.0 303.2 309.5 317.2 310.8 304.6 318.7 291.1 331.4 327.5 328.4 Source: Sri Lanka Tea Board Three types of manufacturers are engaged in production process of made tea such as RPC factories, State owned factories and Private factories. RPC factories which depend on 75% own leaf & 25% bought leaf showed a decline in share of production from 48% in 2000 to 37% by 2012. In the decade the category of private factories that consist of individuals, TSHFL and Co-operatives which mainly depend on bought leaf (97%) increased their share of production from 47% to 61% comparatively. The share of State factories (JEDB, SLSPC, TSF, TRI & Kalubowitiyana Factory Ltd) is around 2% at present. TSHFL & Co-operative manufacturers which were categorized under state by mistake are corrected since 2011. As a result state production is adjusted to 7.6 mn kg (2.3%) in 2011 and 7.9 mn kg (2%) in 2012 while increasing the share of private factories. 28 Table No. 1.16 TEA PRODUCTION, EXPORT & LOCAL CONSUMPTION Mn kg Year Production Yield (kg/ha) Exports (without re-exports) % 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 305.8 295.1 310.0 303.2 309.5 317.2 310.8 304.6 318.7 291.1 331.4 327.5 328.4 1618.0 1562.0 1649.0 1613.2 1461.0 1418.0 1386.0 1356.0 1421.0 1312.0 1478.0 1662.0 1663.0 281.4 288.9 287.3 291.5 290.6 298.8 314.9 294.3 301.2 279.9 305.8 303.2 306.0 92.0 97.9 92.7 96.1 93.9 94.2 101.3 96.6 94.5 96.2 96.2 92.6 93.0 Local % Consumption 24.4 23.0 22.7 21.0 22.0 23.5 24.0 25.0 27.0 28.0 32.8 28.0 27.8 8.0 7.8 7.3 6.9 7.1 7.4 7.7 8.2 8.5 9.6 9.9 8.5 8.5 Source: Sri Lanka Tea Board International Tea Committee (ITC) Bulletin Tea Production, Export, Local Consumption (Reference to Table 1.16) In the 1990s, national tea production increased by 70 mn kg. However, in previous decade (2000-2010) the production increased marginally by 25 mn kg. In 2012 the production increased slightly by 0.3% compared to previous year. The quantity exported from national tea production remained around 94% on an average term throughout the decade. This excludes quantity used for blending with tea imported for re-export. In 2012, exported quantity is raised by 0.9%. Following similar trends of production in the 1990s exports increased by 65 mn kg. In the previous decade the quantity of export increased only by 25 mn kg. On average terms around 8% of the total tea production is used for local consumption. The equation of the quantity of production to export plus local consumption is not always matched due to the adjustment of stock remaining at the year end. 29 30 31 Chart 2 32 TEA PRICES Overview - 2012 Average Green Leaf Prices Realized to Smallholder Uva Western High High Rs per kg 49.71 55.62 Uva Medium 61.56 Western Medium 50.78 Low grown 59.66 Colombo Auction Average Sale Price & Quantity Sold High Grown Medium Grown Low Grown Rs per Kg 375.53 351.08 407.14 Mn Kg 69.7 49.8 202.9 All 391.64 322.50 Colombo Auction Average Sale Price by Factory Type RPCs Rs/kg 381.41 JEDB/ TSHFL CoTS Fund SLSPC operatives 301.25 417.60 405.57 360.91 Major Auction Centers Private 426.10 400.64 Tea Export prices (FOB) by category Average Unit Price US$ /kg Kolkata Cochin Guwahati Cuittagong Mombasa Jakarta Colombo Malawi TRI Average Rs/Kg 2.81 1.80 2.47 2.41 2.88 1.97 3.07 1.70 Black Tea - Bulk 495.29 - Packets 516.16 - Tea bags 1,084.01 Instant tea 884.50 Green Tea 1,112.46 Average FOB 552.26 33 Table No. 1.17 GREEN LEAF PRICE TO SMALL HOLDERS BY ELEVATION - 2012 Month Uva High Western High Uva Medium Western Medium Rs/Kg Low Grown 48.81 46.50 50.10 56.39 51.28 51.09 51.03 53.14 56.44 55.02 56.49 57.91 51.56 45.14 46.29 48.52 53.13 49.89 49.98 50.44 53.29 54.28 53.79 54.91 57.80 50.78 53.29 53.18 57.01 64.11 61.58 60.14 61.36 59.51 63.03 60.16 59.26 62.13 59.66 January 42.73 50.95 February 43.50 51.14 March 46.36 52.54 April 51.35 54.11 May 47.59 52.84 June 48.27 52.85 July 50.21 55.14 August 56.78 63.29 September 59.04 61.84 October 56.95 62.71 November 59.14 63.37 December 59.39 66.47 Average 49.71 55.62 Source: Sri Lanka Tea Board High grown & Medium grown elevations were subdivided into four specific green leaf categories on prices monthly basis in 2012. Low grown prices are the highest followed by high grown and medium grown. However, since the end of the third quarter in 2012, Western High green leaf prices got high prices and as an average law price were reported for other High and Medium categories of green leaf. Currently the net proceeds of made tea sold at auctions is divided at a ratio of 68:32 between the smallholder (grower) and manufacturer (factory) respectively based on reasonable price formula. The smallholders’ portion is informed by Sri Lanka Tea Board on a monthly basis as minimum price level for green leaf intake which manufacturer is liable to pay. Green leaf prices of low grown category during April to December are higher than the rest of months. An almost similar pattern of monthly average price variation can be seen for High and Medium growns. Within High grown category the prices of Western high were attractive than Uva high with a difference of Rs 3/= to Rs 8/= per kg. In Medium grown category prices maximum of Rs 3/= difference per kg is realized for Uva medium above the Western medium. 34 Table No. 1.18 AVERAGE COLOMBO AUCTION PRICES OF TEA BY ELEVATION Rs/kg Year High Medium Low All Elevations 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 128.46 135.56 141.73 138.31 171.78 172.24 204.58 253.41 276.06 320.93 337.83 329.95 375.53 119.08 122.63 126.61 126.18 157.96 163.27 177.25 245.72 272.73 315.86 330.88 319.77 351.08 144.79 154.50 160.55 160.86 189.86 199.01 204.50 299.35 336.61 389.11 393.40 381.27 407.14 135.53 143.96 150.28 149.05 180.74 186.20 199.84 279.52 310.53 360.67 370.61 359.89 391.64 Source: Sri Lanka Tea Board In the decade the annual average auction price for tea remained the highest for low grown, second for high grown and the lowest for medium grown. Further, national average price was always higher than the high and medium elevational price (exception for 2006) and below the low grown price throughout. The price fetched at the auction for three different elevations were in parallel with the quantity of tea production for respective elevations in the past 2 decades. Taste of teas, type of production, brands, weather conditions and manner of operation have contributed to the price differences among the elevations. In 2012, the three elevations High, Medium and Low the average auction prices enhanced by 13%, 10% and 7% respectively and national avaverage price computed was increased by 9% for compared to 2011. 35 36 37 Source : Sri Lanka Tea Board Chart 3 38 Table No 1.19 MONTHLY AVERAGE TEA PRICES & QUANTITY SOLD AT COLOMBO TEA AUCTION - 2012 Month High Grown Medium Grown Mn kg Rs/kg Rs/kg 7.0 331.87 5.1 303.84 20.5 365.11 32.6 348.39 February 5.0 333.28 3.7 315.08 March 5.7 345.58 4.2 334.33 15.6 364.28 24.3 350.35 15.7 390.55 25.7 371.25 April 5.9 364.22 4.3 371.87 17.1 438.31 27.3 411.81 May 6.8 349.11 June 7.3 351.16 5.1 343.18 17.0 420.48 28.9 389.98 5.1 343.24 16.9 410.91 29.3 384.20 July 7.6 August 4.2 366.60 5.2 347.25 20.1 420.97 32.9 396.84 421.11 3.3 366.33 16.2 408.61 23.7 404.99 September 5.0 418.18 3.6 375.66 15.5 430.61 24.2 419.78 October 5.8 420.63 4 372.17 20.1 411.68 29.9 408.17 November 5.0 425.98 3.3 379.75 16.0 405.70 24.3 406.39 December 4.3 439.08 2.9 397.49 12.2 425.54 19.4 424.38 351.08 202.9 407.14 322.5 391.64 Total Qty (Mnkg) and Average Price (Rs/kg) 69.7 375.53 49.8 Source : Sri Lanka Tea Board 39 Mn kg Rs/kg All Elevations Mn kg January Mn kg Rs/kg Low Grown 40 335.48 338.93 356.29 386.49 367.83 363.47 378.44 411.70 417.04 413.24 414.91 432.35 381.41 January February March April May June July August September October November December Average Source : Sri Lanka Tea Board RPCs MONTH 379.69 380.84 401.49 439.54 433.20 419.58 435.96 420.04 443.42 421.27 411.15 426.87 417.60 TSHFL 364.00 367.89 392.94 439.82 419.61 412.39 413.75 394.13 430.90 409.82 405.28 421.57 405.57 Cooperatives 380.79 388.18 401.54 442.40 429.88 409.85 430.54 445.04 461.97 438.53 449.67 491.71 426.10 Tri 360.02 359.51 383.88 430.02 409.61 403.37 411.83 402.77 423.38 406.87 403.08 421.24 400.64 Private Factories 302.33 312.53 353.18 402.77 360.04 372.20 370.01 372.01 389.80 374.48 369.38 384.36 360.91 Tea Shakthi Fund 250.65 272.33 293.29 336.23 294.21 298.10 288.94 304.64 339.54 311.93 322.58 349.24 301.25 JEDB/ SLSPC MONTHLY AVERAGE COLOMBO AUCTION PRICES OF TEA BY MANUFACTURER - 2012 348.79 350.93 371.87 412.03 390.39 384.99 397.14 405.25 420.08 408.25 406.88 424.67 392.03 AVERAGE Rs/kg Table No. 1.20 Monthly Average Colombo Auction Prices of Tea by Manufacturer (Reference to Table 1.19 & 1.20) In terms of the table no 1.20 Tea Research Institute (TRI) has recorded the highest average price for its made tea in 2012. This was followed by TSHFL, Cooperative Factories and Private Tea Factories respectively. RPC factories and Tea Shakthi Factories were below the national average. JEDB & SLSPC factories reported the lowest auction price which was below Rs 91 per kg compared to national average of 2012. Throughout the year the auction prices of Tea Shakthi factories and state owned factories (JEDB/SLSPC) were below the national average. The type of manufacturers are concerned, Sri Lanka has tea manufacturers in terms of the supply chain of the Ceylon tea production. Some manufactures are required to concern on their raw materials quality, Modernizations of factories and methods followed by the other competitors in order to relation in the market and to obtain a good price. On the other hand it is the responsibility of the Tea Research Institute which was reported the best price in the auction for Ceylon tea to share the experience with other stake holders in the market for the best prices. 41 42 2.56 2.23 1.90 2.97 3.08 3.93 3.29 3.01 2.80 2.73 2.51 2.33 2.78 2011 2.22 2.08 1.72 2.56 3.21 3.09 3.04 3.06 3.03 2.95 2.86 2.79 2.81 2012 Kolkata Source: Sri Lanka Tea Board January February March April May June July August September October November December Avarage Month 1.85 1.87 1.82 1.85 1.72 2.01 1.70 1.74 1.85 1.80 1.58 1.52 1.73 2011 1.62 1.75 1.86 1.98 1.86 1.69 1.72 1.75 1.85 1.87 1.81 1.91 1.80 2012 Cochin 2.09 1.88 1.75 2.53 2.76 3.64 2.77 2.52 2.33 2.27 2.09 1.87 2.33 2011 1.73 1.71 1.65 2.89 2.93 2.82 2.59 2.55 2.50 2.55 2.43 2.48 2.47 2012 Guwahati 2.68 2.46 1.53 2.50 2.20 2.87 2.13 2.28 2.26 1.97 1.80 1.90 2.14 2011 1.91 1.96 1.38 N.A. 2.26 2.67 2.40 2.52 2.53 2.38 2.62 2.94 2.41 2012 Chittagong 2.91 2.79 2.74 2.67 2.61 2.70 2.80 2.77 2.67 2.69 2.66 2.61 2.72 2011 2.63 2.64 2.73 2.78 2.80 2.88 2.99 3.08 3.03 2.88 3.05 3.08 2.88 2012 Mombasa 2.04 2.06 2.04 1.95 1.89 1.88 1.97 2.00 2.00 1.96 1.93 1.86 1.97 2011 1.88 1.83 1.79 1.86 1.84 1.96 2.01 2.08 2.11 2.10 2.15 2.24 1.97 2012 Jakarta 3.56 3.55 3.57 3.37 3.12 3.91 3.10 3.16 3.15 3.24 3.17 3.12 3.26 2011 3.06 2.98 2.95 3.20 3.02 2.91 2.99 3.07 3.18 3.16 3.12 3.31 3.07 2012 Colombo MONTHLY AUCTION PRICES OF TEA AT MAIN AUCTION CENTERS 2011/2012 1.66 1.56 1.68 1.57 1.47 1.46 1.57 1.63 1.84 1.87 1.74 1.66 1.64 2011 1.66 1.66 1.69 1.74 1.57 1.64 1.87 1.95 2.04 2.02 1.93 1.87 1.70 2012 Malawi US$/Kg Table No. 1.21 Table No. 1.22 FOB AVERAGE TEA PRICES BY CATEGORY Rs/kg Black Tea Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Bulk Tea Packeted Tea 159.19 173.66 175.16 176.41 203.52 222.75 230.96 313.08 378.53 410.53 437.15 442.66 495.29 181.73 204.09 221.45 212.35 238.37 239.94 264.93 349.13 415.86 457.58 475.24 473.32 516.16 Tea Bags Instant Tea Green Tea Other Average Price 399.74 469.71 491.12 500.85 518.95 545.69 557.82 605.37 722.13 785.70 792.91 912.47 1,084.01 506.53 599.03 645.59 767.67 581.59 614.29 739.63 661.48 898.98 826.62 803.38 861.26 884.50 413.99 523.14 505.14 573.95 520.11 551.76 575.39 713.89 810.18 865.79 891.11 976.98 1,112.46 267.50 308.41 339.02 332.90 380.77 392.32 439.81 526.38 597.38 650.27 781.59 - 181.42 205.37 212.99 216.36 243.95 258.82 274.16 360.97 429.76 470.24 494.59 500.64 552.26 Source : Sri Lanka Tea Board Note : Volume of "Other" category which was appeared previously absorbed in to main categories in 2011 and thereafter. During past two decades, export price for all categories of tea have been shown increasing trends despite a few exceptions in prices in some years. However, annual average prices were continuously in increasing trend. In 2011 “Other” category of tea exports which existed till 2010, has been absorbed into 5 major categories and average FOB price was adjusted accordingly. FOB price of bulk tea category of black tea showed a considerable growth (12%) in 2012 while Packeted tea FOB price was increased by 9%. Tea bags category of Black tea recorded the highest growth (19%) of FOB price greater than the 2011 growth. With regard to Instant tea & Green tea FOB prices highlighted a growth of 3% & 14% respectively. For the average FOB price of all 5 categories, the growth recorded in 2012 was significant i.e. 10%. Current FOB price of value added tea bags and Green tea had recorded the highest price in the market, Rs 1,084 and Rs. 1112.46 per kg respectively. These two categories had taken more than double the price of bulk tea. It shows the market trend of the value addition of tea. 43 TEA EXPORTS Overview - 2012 Total Exports – 319.9 mn kg Quantity Unit Price (mn kg) (FOB Rs/Kg) Normal 306.0 552.26 Re export 13.9 820.84 Total 319.9 563.94 Export Earnings (Rs mn) 169,015 11,415 180,430 ($ mn) 1,324.5 89.5 1,414.0 Category wise Export Bulk tea 129.5 Packeted Tea 151.9 Tea Bags 20.6 Instant Tea 1.6 Green Tea 2.4 Re Exports 13.9 Total 319.9 64,136.6 78,457.0 22,333.5 1,372.2 2,715.2 11,415.4 180,430.3 502.6 614.9 175.0 10.8 21.3 89.5 1,414.0 495.26 516.50 1,084.20 857.63 1,131.33 821.25 563.94 Major Destinations – in mn kg (57% share) Russia Iran Syria Iraq 47.2 38.1 24.7 23.5 Tea Imports mn kg CTC Green Tea Speciality Total Value Rs mn - Libya 16.3 Tea Re-exports 2.7 2.8 0.7 6.2 2,230 Quantity mn kg Value Rs. mn - Tea Export Cess Collected: Rs 2,051 mn (Bulk Rs 10/= & Value Added Rs 4 per kg) 44 13.9 11,415 Turkey 23.1 45 164.6 176.8 125.0 129.5 2009 2010 2011 2012 64,137 55,316 77,275 67,554 67,387 56,317 45,696 39,072 37,979 31,040 32,954 30,407 29,105 Rs mn 152.0 149.9 89.8 75.5 84.3 72.7 79.4 89.1 68.5 82.7 68.9 84.9 74.7 Mn kg 78,457 70,611 42,662 34,542 35,051 25,392 21,042 21,371 16,339 17,557 15,261 17,321 13,569 Rs mn Black Tea Packeted Tea 20.6 23.9 25.7 18.7 20.3 22.0 19.1 18.0 17.8 15.5 14.1 13.0 12.1 Mn kg 22,334 21,778 20,405 14,686 14,652 13,313 10,659 9,816 9,256 7,763 6,944 6,133 4,850 Rs mn Tea Bags 1.6 1.9 1.8 1.4 1.3 1.5 1.0 1.1 1.4 1.3 1.3 1.4 1.2 Mn kg Green Tea Other 1,372 1,630 1,423 1,125 1,183 988 773 655 829 1,017 838 826 617 2.4 2.5 2.8 3.9 3.9 3.5 3.5 2.7 2.3 1.5 1.1 0.8 0.6 2,715 2,442 2,494 3,370 3,184 2,470 2,021 1,509 1,222 845 533 427 266 n.a. n.a. 8.9 15.9 13.4 14.7 14.0 12.5 13.8 14.5 13.7 13.7 9.9 n.a. n.a. 6,963 10,337 8,007 7,737 6,146 4,904 5,270 4,842 4,659 4,213 2,635 Rs mn Mn kg Rs mn Mn kg Rs mn Instant Tea 86,337 77,327 70,895 63,064 61,188 59,327 306.0 169,015 303.2 151,777 305.8 151,222 280.0 131,613 301.2 129,464 294.3 106,217 314.9 298.8 290.6 291.5 287.3 288.9 281.3 Rs mn 51,042 Total Mn kg : Sri Lanka Tea Board : In 2011 Tea export under "Other" category not exist as in previously since it was absorbed in to main categories 178.0 2008 Source Note 179.8 2007 186.6 2004 197.8 176.0 2003 175.4 188.1 2002 2006 175.1 2005 182.8 2001 Mn kg Bulk Tea 2000 Year TEA EXPORT VOLUME & VALUE BY DIFFERENT CATEGORY Table No. 1.23 46 12.40 11.10 12.50 12.30 September October November December 6,283.7 6,494.0 5,758.7 6,342.8 4,972.7 5,288.5 4,918.5 6,058.7 4,343.4 5,508.2 3,967.2 4,200.1 Rs mn 15.20 12.25 11.24 15.89 9.17 13.27 11.10 15.74 12.44 13.65 11.54 10.45 mn kg 7,989.3 6,653.7 6,031.8 8,449.1 4,766.5 7,031.5 5,744.6 8,338.5 6,337.3 6,865.9 5,452.3 4,796.5 Rs mn Packeted Tea Source: Sri Lanka Tea Board 129.50 64,136.6 151.94 78,457.0 10.10 August Total 10.00 10.50 July May June 9.00 11.80 April 11.60 March 9.40 9.00 February mn kg Bulk Tea January Month Black Tea mn kg 2,019.7 1,815.1 1,775.8 2,305.9 1,858.0 1,785.3 1,596.6 2,243.2 1,614.7 2,044.4 1,673.8 147.5 168.9 165.2 115.1 26.9 1.6 131.1 153.6 102.5 116.5 124.8 118.5 Rs mn 1.60 1,372.2 0.10 0.20 0.20 0.10 0.03 0.00 0.10 0.20 0.10 0.10 0.20 1,601.0 0.2000 Rs mn 20.60 22,333.5 1.80 1.50 1.50 2.00 1.60 1.70 1.50 2.10 1.50 2.00 1.60 1.70 mn kg Tea Bags Instant Tea 266.2 318.4 255.6 242.9 208.9 204.7 220.5 228.2 200.4 212.5 211.5 145.4 1,044.6 971.1 986.2 1,142.3 803.1 682.3 770.9 1,055.9 933.3 1,154.9 892.9 977.9 13.90 11,415.4 1.20 1.00 1.20 1.20 0.90 0.80 0.90 1.40 1.20 1.50 1.20 1.40 17,751 16,421 14,973 18,598 12,636 14,994 13,382 18,078 13,532 15,902 12,323 319.9 180,430 30.80 27.75 25.44 31.79 22.00 26.47 23.70 31.44 24.44 29.05 23.74 23.25 Rs mn 11,839 Total Rs mn mn kg Re-Exported Tea Rs mn mn kg 2.40 2,715.2 0.20 0.30 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.10 mn kg Green Tea TEA MONTHLY EXPORT VOLUME AND VALUE BY CATEGORY - 2012 759,623 83,016 - 69,697 147,201 44,456 63,566 65,747 61,292 62,048 40,743 65,473 56,384 Liters 217.6 27.3 - 19.2 41.9 16.8 7.8 13.8 20.2 13.3 15.800 25.300 16.200 Rs mn RTD Table No. 1.24 Export Quantity and Value of Tea by Category (Reference to Table No. 1.23 & 1.24) Bulk tea export quantity which was 65% of total export in 2000 declined gradually to 58% in 2010 and further to 42% in 2012 indicates positive trends of more value addition in the Sri Lankan tea market. However, absolute sum of export earnings of Bulk tea increased by Rs. 35 bn from 2000 to 2012, due to increase of unit price and quantity as well as the devaluation of Sri Lanken Rupee time to time. In between 2000 and 2012 there was a substantial increase on quantity and value in terms of the export of tea packets under the value added categories. However, a much higher value added category, Tea Bags showed a significant increase in quantity from 4% to 7% and in export earnings from 9.5% to 13.2 % in the period between 2000 and 2012 respectively. As a result of the Cess increase in 2011, from Rs.4 to 10 per kg to discourage bulk tea exports the export quantity was declined by 47 mn kg and earnings by Rs.13 bn in 2012 over the year 2010. As expected from Cess adjustment in last year the export earning of tea packets and tea bags increased by 8 bn and 1 bn respectively. In 2012, the amount of bulk tea has expanded by 4.5 mn kg while tea packets expanded by 2.1 mn kg compared to the year 2011. On the other hand quantity of tea packets exported had been declined by 3.3 mn kg. At present export volume is consisted Bulk of Black tea Packets and Bags which contribute to total exports 42.3%, 49.7% and 6.4% respectively. Also very small fraction of exports is shared by Instant tea (0.5%) and Green tea (0.8%). Even in value terms only 2.3% (Rs 4 bn) is accounted for these two categories. A marginal decline has reported for the export volume of Instant & Green teas. The Ministry of Plantation Industries has already given the guidelines to respective agencies to improve the market share of these two categories. In 2011 “Other” category of Black tea which existed in previous years was absorbed into main categories and as a result monthly breakdown of categories was also streamlined. Monthly analysis for year 2012 highlighted that in February, April and August export quantity was less than in other periods on main categories of black tea. With re exported teas 13.9 mn kg (earning Rs.11.4 bn) total export stood at 319.9 mn kg and corresponding value of Rs.180.4 bn. Imported quantity of other origin tea in re exported category is as much as 13.90 mn kg in the year 2012. In addition to that Ready To Drink (RTD) category recorded exports of 760,000 liters at value of Rs.218 mn in the year 2012. 47 6 - CM 17140 48 49 - 1,000.0 2,000.0 3,000.0 4,000.0 5,000.0 6,000.0 7,000.0 8,000.0 February January Export Income by Category - 2012 Source : Sri Lanka Tea Board Income Rs Mn 9,000.0 April March Bulk Tea Tea Bags Green Tea June Month September Packeted Tea Instant Tea Re-Exported Tea August July May Chart 4 December November October 50 51 RUSSIA UAE SYRIA TURKEY IRAN SAUDI ARABIA IRAQ UK LIBYA EGYPT JAPAN JORDAN UKRAINE TUNISIA CHILE GERMANY PAKISTAN USA HONG KONG NETHERLANDS AUSTRALIA GREECE ISRAEL KUWAIT COUNTRY 48.5 34.2 24.8 17.0 11.8 9.7 13.3 8.1 19.0 3.8 7.6 8.4 8.1 6.4 5.4 5.3 2.7 3.3 3.5 3.4 2.7 3.8 2.9 2.5 2001 53.8 30.9 30.1 16.3 14.9 10.1 17.7 7.6 5.5 1.1 7.2 8.3 7.9 6.3 6.3 5.6 3.2 3.3 3.6 3.6 3.2 2.5 2.6 3.0 2002 54.9 27.5 28.5 19.0 13.8 10.4 6.0 7.0 19.5 1.0 8.1 11.4 8.5 4.8 5.6 5.8 3.2 3.5 3.7 4.1 3.2 2.6 2.3 2.6 2003 55.7 29.6 28.8 25.2 20.4 9.3 6.6 5.3 1.6 0.9 9.0 14.3 8.2 6.2 6.2 5.9 3.0 3.5 4.1 3.6 2.8 2.4 2.1 2.2 2004 52.8 37.6 27.6 16.8 24.9 9.9 10.8 3.8 10.8 1.2 8.5 12.0 7.6 5.9 6.8 5.2 3.0 3.1 4.5 3.6 2.9 2.9 2.0 2.7 2005 59.3 44.1 30.6 13.3 27.9 7.4 12.1 4.7 5.4 3.3 10.9 9.5 8.3 8.0 7.2 6.0 3.5 3.7 4.7 4.5 2.7 2.3 2.4 2.6 2006 48.7 43.7 27.3 14.5 31.7 8.5 9.0 3.1 9.3 1.5 10.3 5.9 7.4 5.6 6.4 5.5 0.7 3.0 4.6 2.4 3.0 2.5 1.8 2.5 2007 45.4 45.2 26.1 15.9 31.0 7.3 11.6 2.4 7.2 1.1 10.2 14.3 7.7 4.9 7.2 5.9 1.4 2.7 4.8 4.5 3.2 2.2 2.0 7.5 2008 SRI LANKA TEA EXPORTS BY DESTINATION 42.4 30.9 29.5 15.7 27.7 4.8 9.8 2.2 8.1 1.3 9.5 13.4 6.9 3.5 6.1 4.9 1.6 2.8 5.1 3.8 3.0 2.0 1.6 10.1 2009 44.4 31.1 28.2 19.3 29.1 4.2 13.1 1.8 10.7 1.5 11.2 17.7 7.7 0.8 6.5 5.7 1.0 3.2 5.2 2.6 3.2 2.1 1.4 11.6 2010 49.1 21.8 28.8 19.2 30.9 4.7 22.6 1.3 7.4 2.4 11.6 7.3 8.1 2.0 6.6 6.2 1.5 3.4 5.1 2.6 2.7 2.6 1.5 9.1 2011 47.2 11.6 24.7 23.1 38.1 4.5 23.5 1.7 16.3 3.6 9.5 9.4 8.0 6.6 5.6 4.5 3.0 4.4 2.1 2.7 7.3 2012 Mn kg Table No 1.25 52 2.1 1.8 2.9 4.4 1.3 1.4 18.8 288.9 2001 2002 1.8 2.2 1.9 6.1 1.7 1.2 17.8 287.3 Source : Sri Lanka Tea Board POLAND AZERBAIJAN LEBANON FINLAND ITALY CANADA OTHERS TOTAL COUNTRY 2.2 1.7 2.4 6.0 2.0 1.4 18.8 291.5 2003 2.8 1.6 2.1 6.0 2.0 1.5 17.7 290.6 2004 2.4 1.5 1.6 6.4 1.4 1.3 17.3 298.8 2005 2.7 1.2 1.6 3.0 1.4 1.5 19.1 314.9 2006 3.2 1.4 1.8 6.4 2.0 1.1 19.5 294.3 2007 2.1 2.7 1.8 2.1 1.6 1.2 18.1 301.3 2008 2.6 3.1 2.3 1.9 1.7 0.8 20.8 279.9 2009 2.1 10.4 2.2 0.6 3.2 0.8 23.2 305.8 2010 2.5 12.0 2.1 0.3 1.7 0.7 25.4 303.2 2011 2.4 10.6 2.1 1.8 31.7 306.0 2012 Mn kg Table No 1.25 (Contd.) Sri Lanka Tea Exports by Destination (Reference to Table No. 1.25) Top twenty five (25) tea importing countries from Sri Lanka shared 90% of total exports of Sri Lankan own made tea in the year 2012, which exclude re export blended component of 13.9 mn kg. With a few exceptional cases the import quantity of each country presented is more than 1 mn kg. The balance 10% of export quantity was exported to other 100 odd tea consuming countries of which annual volume of exports between 10,000 kg and 1 million kg. Compared to previous year exports, a marginal increase (1%) was recorded in the current year. As far as the top 25 export destinations are concerned, in the year 2009 which world economic recession was severely affected for total tea imports declined to 280 mn kg. However, past 3 years (except 2009) the level of total imports remained the same. A considerable increase (6 mn kg) shows in respect of destinations in ‘Other’ category in 2012 compared to the period of 2008-2011. However, total tea exports to all destinations have shown in the range between 280 – 315 mn kg over the decade despite of annual variations highlighted for some importing countries. Since 2000, even in 2010 the top five tea export destinations of Sri Lanka were Russia, UAE, Syria, Turkey and Iran. However, in the year 2012 Iraq came into this category replacing the status of UAE. These top five importers along shared 51% of total tea exports from Sri Lanka. The improving export markets in the recent past are Iraq, Japan, Ukraine, Germany, Chile & Azerbaijan. However, the importers who reduced purchase of Sri Lankan tea in the past few years are UAE, UK, Finland, Canada and Saudi Arabia. 53 Table No. 1.26 TEA IMPORTS AND VALUE ADDED RE-EXPORTS Year Imports Qty Mn Kg 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 4.2 3.8 3.5 6.2 7.4 7.8 10.7 13.7 14.8 10.0 12.2 11.4 6.2 Value Rs Mn 578 647 606 1,190 1,416 1,487 n.a. 4,210 7,730 2,980 3,768 3,770 2,230 Re-Exports Total Qty Value Mn Kg Rs Mn 7.5 5.5 4.6 6.8 10.0 11.5 16.0 15.3 18.6 9.8 18.6 19.4 13.9 n.a 2,583 2,353 3,440 4,571 5,085 5,330 6,617 8,121 4,570 11,568 13,077 11,415 Source : Sri Lanka Tea Board In order to fulfill the demand of overseas customers’ taste, the local tea exporters import other origin teas under TIEP (Temporary Import for Export Purpose) scheme, which is implemented by Sri Lanka Customs and Sri Lanka Tea Board. Further, importation of other origin teas to Sri Lanka for re-export in value added form after blending with local tea is regulated due to maintain tea quality. Under this scheme exporters earn substantial volume of foreign exchange. In the year 2012, the quantity of CTC and speciality teas imported shows a significant decline. India & Kenya, were the two main producers of CTC tea of which Sri Lanka imported entire need of special category of CTC requirement as unable to produce such teas locally. Similarly major portion of green tea requirement imported from China. Import of Green tea from vietnam declined in 2011 & 2012 compared to 2010. Other speciality categories of Black/orthodox type teas imported mainly from India. In the year 2012 compared to the 2011 total importation of other origin teas declined by 45%. The quantity of imported other origin teas peaked at 14.8 mn kg. in 2008 and dropped to 6.2 mn kg in 2012. Re-exports with local blends recorded the highest quantity (19.4 mn kg) and export value (Rs. 13.1 billion) in 2011 has declined to 13.9 mn kg and value of Rs. 11.4 bn respectively in the current year. 54 55 0.0 0.0 0.0 3,061.9 182.6 0.0 3,678.6 150.7 0.0 0.0 0.0 0.0 7,073.8 Argentina China Germany India Indonesia Japan Kenya Malawi Nepal Taiwan Vietnam United Kingdom Total 2,821.3 0.0 2,720.8 0.0 2.6 0.0 0.0 0.0 0.0 0.0 0.0 97.9 0.0 Green Tea 2011 1,510.9 0.0 175.0 23.9 1,289.0 0.0 0.0 11.8 0.0 1.2 0.0 0.0 10.0 Speciality Tea 11,406.0 0.0 2,895.8 23.9 4,353.5 182.6 0.0 3,690.4 150.7 1.2 0.0 97.9 10.0 Total 2,688.3 0.0 0.0 0.0 1,429.9 27.8 0.0 1,230.6 0.0 0.0 0.0 - CTC Tea 2,777.3 0.0 2,663.8 0.0 5.8 0.0 0.2 3.5 0.0 0.0 104.0 - Green Tea 2012 716.6 0.0 221.6 1.8 491.5 0.0 0.0 0.0 1.5 0.2 0.0 8.54 0.0 8.5 0.0 0.04 0.0 0.0 0.0 0.0 0.0 0.0 - 41.7 8.0 2.0 0.0 28.2 0.0 0.0 3.5 0.0 0.0 0.0 - Speciality White DecaffeinTea Tea ated Tea 6,232.4 8.0 2,895.9 1.8 1,955.4 27.8 0.2 1,237.6 0.0 1.5 0.2 104.0 0.0 Total MT Sri Lankan position is marginally below the average of other competitors in relation to the subject of tea importation for the re-export purposes. In order to retain the competitiveness of the market, Sri Lankan share of re-exportation to be expanded in accordance with the marketing strategies of other competitors such as China, India, Kenya, and Vietnam etc. Source: Sri Lanka Tea Board CTC Tea Country TEA IMPORT FOR RE - EXPORT PURPOSE - COUNTRYWISE Table No. 1.27 Table No: 1.28 CESS COLLECTION FROM TEA EXPORTS Year Export Quantity Mn kg Cess Collection Rs Mn Value of Exports Rs Mn US $ Mn SDR Mn 2000 281.3 416.5 51,042.9 673.6 510.9 2001 288.9 1,066.5 59,327.6 663.9 521.6 2002 287.3 767.5 61,188.0 639.7 493.7 2003 291.5 739.6 63,064.0 653.4 466.3 2004 290.6 726.5 70,893.2 700.6 473.0 2005 298.8 771.0 77,326.7 769.4 520.9 2006 314.9 755.0 86,336.7 830.5 564.3 2007 294.2 1,146.6 106,217.0 960.2 627.1 2008 301.2 1,186.0 129,464.0 1,195.1 756.1 2009 279.9 1,103.1 131,613.5 1,145.0 742.7 2010 305.8 1,193.9 151,222.0 1,337.5 876.6 2011 2012 303.2 306.0 2,057.8 2,051.4 151,776.5 169,015.0 1,372.7 1,324.5 869.6 865.1 Note: Excludes re-export quantity which Cess is not entitle Source: Sri Lanka Tea Board Cess on tea exports was increased to Rs. 4 per kg in 2006 against the previous rate of Rs.2.50 per kg which was implemented since 1997. The increase of the Cess rate became around 1% of tea export value since 2007. In terms of the annual budget of the 2011, the Cess rate for bulk tea which is considered to be above the 10 kg packs of made tea was increased up to Rs. 10/- per kg while remaining Rs. 4/= per kg on all the other categories. As a result of this total Cess collection for the year 2011 was amounted to Rs. 2057.8 mn. This was a 72% growth of Cess income over the previous year and 1.4% of annual export proceeds of tea. The Cess collection of the current year is reported to Rs. 2051.4 mn which indicates slight decline as against to collection of the previous year. 56 TEA WORLD Overview - 2012 Tea Extent (Thousand Hectares) – 4,021 Of which China India Sri Lanka Indonesia Vietnam Asia 3, 620 Africa 309 Other 92 2, 280 580 203 121 124 Kenya Uganda Tanzania Malawi 191 29 23 19 Argentina Georgia Tea Production (Thousand Metric Tons) – 4,620 Asia 3,939 85.3% Africa 570 12.3% Other 111 2.4% Production by Type (Thousand Metric Tons) – 4,214 Orthodox 1,027 88.1% 1.8% 10.1% Total Asia Africa Other CTC 1,695 67.0% 32.6% 0.4% Green Tea 1,492 100% Export Quantity & Value – Top 4 Exporters 000’ Mt % to Total Value $ mn % to Total Sri Lanka 306 17% 1,325 24.6% China 322 18% 1,116 20.7% India 202 11% 687 12.7% Kenya 430 24.3% 1,328 24.6% Tea Consumption (kg per head/year) Higher end Kuwait – 3.25 UK – 1.97 Libya - 2.39 Lower end France – 0.24 Germany – 0.33 Indonesia – 0.32 57 Moderate Sri Lanka – 1.33 China – 0.95 Russia/CIS – 0.99 40 36 Table No. 1.29 DISTRIBUTION OF WORLD TEA PLANTED AREA - COUNTRYWISE EXTENT Thousand Hectares Country 2001 2005 2008 Asian Region China 1,141 1,352 1,719 India 509 556 578 Sri Lanka 184 212 212 Indonesia 151 139 128 Vietnam 102 124 131 Turkey 77 78 78 Japan 50 48 48 Bangladesh 49 52 54 Myanmar 72 78 78 Nepal 14 16 17 Taiwan 19 18 16 Iran 35 23 18 Other Asia 5 6 7 (Korea & Malaysia) Sub Total - Asia 2,393 2,701 3,095 African Region Kenya 124 141 158 Malawi 19 19 19 Rwanda 13 12 12 Tanzania 21 23 23 Uganda 21 22 24 Other Africa (Eight 36 36 35 Countries) Sub Total - Africa 234 253 271 South America Argentina 37 37 38 Other (Brazil, Peru, Ecuador) 9 9 9 Sub Total - South America 46 46 47 CIS Region Georgia 36 36 36 Other (Azerbaijan, Russia) 7 4 3 Sub Total - CIS 43 40 39 Oceania Australia & Papua 5 5 5 New Guinea Total Extent 2,721 3,045 3,457 2009 2010 2011 2012 1,849 1,970 2,113 2,280 579 579 578 580 209 205 204 203 125 124 124 121 130 130 128 124 77 78 78 78 47 48 48 46 55 55 54 55 78 78 79 79 17 17 17 17 15 15 14 13 18 18 17 17 7 7 7 7 3,187 3,303 3,458 3,620 158 19 12 23 25 33 172 19 12 23 26 33 188 19 12 23 29 33 191 19 13 23 29 34 270 285 304 309 39 9 48 40 9 49 40 9 49 40 9 49 36 2 38 36 2 38 36 2 38 36 2 38 5 5 5 5 3,548 3,680 3,854 4,021 Source : International Tea Committee (ITC) Bulletin Web sites of the Tea Producing Countries Note: Total Planted Tea area (irrespective of bearing & immature extent) at the end of each year is given. 58 World Extent of Tea Planting (Reference to Table No. 1.29 ) At present world tea extent is around 4,021,000 ha which was as low as 2,721,000 ha in 2001. Asian region dominates the tea planted area sharing about 88% - 90% of world tea extent in the decade. African continent shares about 7.5% - 8.5% while rest of the tea growing world, South America, CIS region and Oceania together contribute 2% - 3% of the world tea extent. Since the year 2001, tea extent increasing by 1.2 million hectares or 51% in Asia, in African region extent increase recorded by only 75,000 hectare, which is 32%. In Asia, top five tea growers (China, India, Sri Lanka, Indonesia & Vietnam) possessed over 76% of the world tea extent and 87% of Asian region in the year 2001. In 2012, the contribution of extent to world total and Asian total prevails as much as 82% and 91% respectively. This was due to a substantial extent enhancement under extensive new planting program in China at the rate of mroe than 100,000 ha annually. No significant increase in tea extent recorded for other main growing countries. However, in the decade India, Sri Lanka & Vietnam enhanced the extent by 71,000 ha, 19,000 ha & 22,000 ha respectively, while extent in Indonesia declined by 15,000 ha since the year 2001. A stagnant status of tea extent is highlighted for rest of the Asian countries other than Taiwan & Iran where declining extent in this period. As a dominant tea grower, Kenya owned 62% of tea extent in Africa at present. Since 2001 Kenya expanded tea extent from 124,000 ha to 191,000 ha (54%) through its ambitious new planting scheme targeted to increase tea production rapidly. Apart from Uganda all other tea growers in Africa showed stagnant tea extent in the decade. In South America, Argentina is the main tea grower which recorded same extent of tea land in the decade. In CIS region, Georgia possesses 36,000 ha of tea extent. Tea land extent of other South American countries, other CIS countries and Oceania recorded insignificant quantity and no expansion at all. Currently world tea extent is dominated by 9 Asian countries (including top five growers) and Kenya with 3.7 million hectares or 93% of world extent. 59 Table No. 1.30 COUNTRYWISE WORLD TEA PRODUCTION Thousand Metric Tons Country 2001 Asia China 702 India 854 Sri Lanka 296 Indonesia 167 Vietnam 77 Turkey 143 Japan 90 Bangladesh 57 Myanmar 17 Nepal 12 Taiwan 20 Iran 59 Other (Korea & Malaysia) 7 Sub Total - Asia 2,501 Africa Kenya 295 Malawi 37 Rwanda 18 Tanzania 25 Uganda 33 Other (8 Countries) 59 Sub Total - Affrica 467 South America Argentina 67 Other (Brazil, Ecuador, 9 Peru) Sub Total S. America 76 CIS Region Georgia 5 Other (Azerbaijan, Russia) 4 Sub Total CIS 9 Oceania Australia & PNG 7 Grand Total 3,060 2005 2008 2009 935 946 317 156 133 135 100 61 18 13 19 25 6 2,864 1,258 981 319 153 166 155 93 59 19 16 17 18 6 3,260 1,359 1,475 979 966 290 331 153 151 175 170 153 148 86 83 60 59 19 19 16 17 17 17 18 17 6 7 3,331 3,461 323 38 16 30 38 43 488 346 42 20 32 43 38 521 314 53 21 32 51 43 514 399 52 22 32 59 46 610 378 47 24 33 54 47 583 370 42 25 32 55 46 570 80 10 72 10 90 10 95 10 93 11 84 11 90 82 100 105 104 95 3 4 7 4 4 8 4 4 8 4 4 8 4 4 8 5 4 8 8 3,457 8 3,879 Source: International Tea Committee (ITC) Bulletin Web Sites of the Tea Producing Countries 60 2010 8 8 3,961 4,192 2011 2012 1,623 1,790 1,116 1,126 329 328 142 137 178 190 145 147 82 86 59 62 19 20 17 17 17 15 16 15 7 7 3,751 3,939 8 8 4,454 4,620 Table No. 1.31 WORLD TEA PRODUCTION BY TYPE OF MANUFACTURE Thousand Metric Tons 2011 Country Black Tea Ortho- CTC dox Green Tea 2012 Total Black Tea Ortho- CTC dox Asia Region China 114 - 1137.6 1251.6 132 India 104 874 10.2 988.2 9 9 1,016 Sri Lanka 303 23 3 329 302 23 Indonesia 80 9 31 120 94 10 Vietnam 86 12 80.1 178.1 87 13 Turkey 145 145 148 Japan 77.4 77.4 Bangladesh 3 56 0.2 59.2 3 59 Myanmar 19 19 20 Nepal 2 15 17 2 15 Taiwan 1 16.7 17.7 1 Iran 16 16 15 korea 4.1 4.1 Malaysia 2 2 2 Sub Total Asia 875 989 1,360 3,224 905 1,136 African Region Burundi 7 7 7 Kenya 1 4 364 378 13 357 Malawi 47 47 42 Rwanda 24 24 25 Tanzania 33 33 32 Uganda 54 54 55 Zimbabwe 15 15 13 Camaroon 4 4 5 Other Africa 22 22 22 Sub Total Africa 1 8 566 584 18 553 CIS 8 1.2 9.2 8 South America Argentina 91 1.9 92.9 84 Other 10 0.6 10.6 12 Sub total South 101 2.5 103.5 96 America Papuwa New Guniea 7 7 6 Grand Total 1,002 1,562 1,364 3,928 1,027 1,695 Source: International Tea Committee (ITC) Bulletin : Websites of the Tea Producing countries 61 Green Tea Total 1,248 11 3 33 90 86 0 17 4 1,492 1,380 1,126 328 137 190 148 86 62 20 17 18 15 4 2 3,533 - 7 370 42 25 32 55 13 5 22 571 8 0 84 12 96 1,492 6 4,214 World Tea Production (Reference to Table No. 1.30 & 1.31) First time of the history, in the year 2012, world tea production was 4.6 million meteric tons. This is a 51% growth compared to 2001 and 4% growth over the previous year. The share of tea production over the decade has recorded within the range of 82% - 85% for Asia, 12% to 15% for Africa and 2-3 % for rest of the world. Compared to 2011, total tea production increased by 167,000 metric tons which was caused mainly by an increase in tea production of 167,000 mt in China. In 2012, major tea producing countries in Asia such as China, India, Sri Lanka, Indonesia, Vietnam and Turkey had shared 80% or 3.7 mn mt of the world tea production and 94% of Asian tea production. This indicates the positive trend throughout the decade. Tea production in China has increased rapidly with an annual growth of 13% resulting in more than doubling the production since 2001 and owned by 39% of global share currently. Indian production growth rate was slightly below the growth rate of China. India owned global share of 24%. Since 2001, Sri Lanka & Vietnam increased their production by 11% and 147% respectively while Indonesian production declined by 18%. Kenya dominates the African region producing 8% of world production and 65% of African share. Argentina which is the main producer in South America, produces 2% of world production in comparison to Sri Lankan share which remains 7% currently. It is significant fact that Kenya has increased its production by 25% since 2001 and has currently surpassed Sri Lanka which was similar status at beginning of the decade. In respect of other producers, they have not shown significant production increase in the decade. Currently the shares of three types of manufacturing of world tea production are Orthodox 24%, CTC (40%) and Green tea (35%). Asian region produces all three types showing Green tea (42%), CTC (32%) and Orthodox (26%) of Asian total in 2012. Also China, Vietnam, Japan & Taiwan are prominent in Green Tea production while CTC is the main production in India and Bangladesh. Orthodox production is dominated by Sri Lanka, Indonesia, Turkey & Vietnam. Tea production in African region is confined to CTC (97% of region total) and Kenya production alone is about 65% of African CTC or 357,000 mt in 2012. In South American region, Argentina produces Orthodox exclusively. Overall China dominates Green Tea manufacturing producing 84% of total Green Tea while 81% of total CTC is produced by India & Kenya. Orthodox type is concerned, 5 main producers (Sri Lanka, Indonesia, Vietnam, Turkey and Argentina) share 715,000 mt or 70% of global Orthodox total. 62 Table No 1.32 WORLD MAIN TEA EXPORTERS BY DESTINATION - 2012 Importing Country United Kingdom Germany Greece Italy Netharlands Poland Russia & CIS Canada USA Chile Kuwait Saudi Arabia UAE Hongkong Iran Iraq Japan Jordan Lebonan Pakistan Syria Turkey Egypt Libya Tunisia Australia Malaysia Afganistan Indonesia Taiwan Senegal Yeman Mali Nigeria Niger Sudan Algeria Togo Cameroon Mauritania Morocco Sri Lanka Kenya China India Total % of total export E xporting Country - Quantity Export in Metric Tons Sri Lanka India China 1,693 19,950 2,001 5,630 7,730 9,341 1,071 1,690 1,991 3,110 1,926 2,402 3,470 1,537 69,393 54,040 52,172 603 1,010 1,512 2,950 11,030 25,921 6,551 7,278 4,438 2,380 11,240 18,690 698 4,389 - 10,649 38,111 13,780 6,900 23,464 90 9,540 3,220 17,703 9,355 2,118 4,487 23,720 4,887 24,712 25 23,129 290 3,633 5,440 1,395 16,281 3,260 4,985 16 3,265 2,705 3,670 1,586 725 1,472 660 975 225 1,936 7,702 6,465 194 3,804 - 14,374 - 12,178 7,702 - 12,513 - 54,979 1,860 2,807 9,620 3,025 488 54 285,044 187,020 271,947 93% 92% 85% Indon- Vietnam Kenya esia 9,121 4,919 711 3,558 11,703 491 4,000 583 506 2,048 190 1,298 63 7,500 4,500 900 8,000 761 8,876 6,700 966 900 1,635 2,003 7,222 3,200 951 4,000 - 18,000 758 21,000 39 77 1,933 13,000 1,114 4,000 65,463 124,200 93% 83% Source : International Tea Committee (ITC) Bulletin 7 - CM17140 400 4,000 1,300 3,600 23,200 Argentina 59,312 2,053 758 2,924 23 1,885 2,346 4,905 1,431 33,185 941 1,888 317 2,793 48,055 - 12,451 2,061 23,844 4,985 1,858 90,394 340 2,109 88,830 41,808 802 13,798 3,904 24,884 1,123 290 3,053 1,213 407,400 73,163 95% 95% Table No. 1.33 WORLD TEA EXPORTS QUANTITY AND VALUE 2010 Country Quantity Value MT US$ mn 2011 Unit Quantity Price MT US$/ kg Value US$ mn 2012 Unit Quantity Price MT US$/kg Value US$ mn Unit Price US$/ kg Producers India Bangladesh Sri Lanka Indonesia China 218,660 639 2.92 213,174 685 3.21 202,400 913 2 2.30 1,454 3 1.98 1,507 296,383 1,300 4.38 301,271 1,358 4.51 87,101 179 2.05 75,450 167 2.21 302,525 784 2.59 322,581 888 2.75 687 3.39 3 1.82 306,040 1,325 4.33 70,071 157 2.24 321,785 1,116 3.47 Taiwan 2,627 18 6.74 2,816 18 6.50 3,145 20 Japan 2,287 50 21.95 2,420 60 24.88 2,408 64 26.76 Turkey 6 6.30 4,000 6 1.48 3,700 6 1.54 4,200 Vietnam 137,970 201 1.45 130,000 200 1.54 150,000 1.52 Kenya 441,021 1,234 2.80 421,272 1,231 2.92 430,205 1,328 3.09 227 1.51 Malawi 48,579 77 1.58 44,893 69 1.54 41,834 64 1.54 Rwanda 21,350 56 2.61 22,958 62 2.70 23,000 64 2.78 Tanzania 26,133 48 1.83 27,114 47 1.74 27,777 56 2.02 Uganda 53,178 96 1.80 46,150 92 2.00 52,272 98 1.87 Argentina 85,346 93 1.09 86,197 104 1.21 76,840 Brazil 2,544 9 3.38 1,965 9 4.37 1,643 7 4.20 Papua New 5,800 7 1.21 5,100 7 1.41 5,000 8 1.56 47,283 54 1.14 48,235 57 1.18 50,525 61 1.20 104 1.35 Guinea Other Countries Total 1,783,700 4,894 1,756,750 5,063 1,770,652 5,395 42.40 39.40 38.20 Exported % of Global Crop Non Producers United 30,653 327 10.68 26,434 262 9.90 21,288 196 9.20 3,150 50 15.75 3,105 52 16.64 28,337 225 7.93 26,149 217 8.30 Kingdom France Germany Source: 3,974 25,935 51 12.89 194 7.49 International Tea Committee(ITC) Bulletin Websites of the Tea Producing Countries 64 World Tea Export Earnings (Reference to Table No. 1.32 & 1.33 ) In 2012, global tea export stood at 38% of global crop (production) and compared to previous year this was a 1% decline. Quantity of export increased declined marginally while export earnings increased by $ 332 mn due to increasing FOB unit price in 2012 than of 2011. Major 7 tea producers (India, Sri Lanka, China, Indonesia, Vietnam, Kenya & Argentina) were the significant exporters as well sharing 88% of global export which is similar to the share prevailed in 2011. Except for Kenya & Vietnam no significant increase was recorded in 2012 by major exporters while export of india and Agentina in a declining trend. Due to heavy local consumption of tea produced by China & India export share was around 18% of production. In contrast, Sri Lanka and Argentina export accounted more than 90% of their production while this share for Indonesia and Vietnam was 51% & 79 % respectively. Turkey and Japan as other two main tea producers export only insignificant quantity as local tea consumption out of owns production is heavy. Kenya exports more than its production as adding with some other teas. As presented in table 1.32 seven major exporters dominate in certain regions/ countries in terms of export quantity. Russia & CIS region, the largest tea consumer is the top destination of Sri Lankan tea exports. UK market is one of the highest destinations of Kenyan exports. Middle East region (UAE, Iran, Iraq, Syria, Turkey) is also a market for Sri Lankan exports, however, Kenya & India are entering gradually. USA tea consumption is provided mainly by Argentina while India & China also remain as substantial suppliers. Main tea supplier to Pakistan, Egypt & Afghanistan is Kenya at present. Significant export destinations of China are North Africa (Morocco, Algeria), Japan & Russia/CIS. Taiwan & Russia are the main destinations of Vietnam exports. In 2012, Sri Lanka shares 17% of global tea exports with the highest export earning ($1.33 bn) and the highest unit price at $4.33 per kg. The same amount of tea export earning ($1.33 bn) was realized by Kenya with export share of 24% including teas from some other producers in Africa. Share of Indian tea exports declined marginally from 12% in 2011 to 11% in 2012. China earned $ 1,116 million with a global export share of 18% and attractive FOB unit price of $ 3.47 per kg. Indonesia, Vietnam & Argentina together share the 17% of global exports and $ 488 mn (9%) of total export earning in 2012. Non tea producers (UK, France & Germany) re exported some imported teas with the higher unit price worth of $ 465 million in 2012. However, the highest unit price ($ 24.8 per kg) of tea export was reported for Japan in 2012. Share of global exports held by black tea (Orthodox & CTC) and Green tea were 80% & 20% respectively as main green tea producer, China consumed major portion locally. 65 Table No. 1.34 WORLD TEA CONSUMPTION IN SELECTED THIRTY COUNTRIES Country Tea Producers China India Indonesia Japan Sri Lanka Turkey Iran Taiwan Kenya Tea Consumers UK France Germany Poland Russia & CIS Canada USA Chile Afganistan Iraq Kuwait Pakistan Saudi Arabia Syria Egypt Libya Morocco South Africa Australia Hong Kong New Zealand Tea Imports for Consumption (MT) Apparent Consumption 2010-2012 Average 2010 2011 2012 11,500 20,040 10,870 43,274 8,700 55,000 31,041 13,735 12,200 21,170 19,812 41,972 8,900 66,500 29,267 7,793 11,000 20,620 24,397 37,735 9,000 67,200 29,918 8,940 1,279 872 75 122 28 152 63 44 20 0.95 0.73 0.32 0.96 1.33 2.04 0.97 1.64 0.49 119,178 15,311 24,912 29,395 266,437 15,880 126,836 21,362 57,700 41,400 10,500 120,345 14,800 27,300 93,500 12,300 56,300 19,800 12,500 9,395 4,400 128,066 14,924 25,937 33,978 274,497 17,470 127,469 21,945 46,600 40,750 8,500 126,170 16,400 28,000 84,000 8,900 58,500 19,500 11,800 9,416 4,440 123,287 14,730 29,836 29,483 279,029 16,422 125,653 21,060 43,500 38,900 7,050 131,250 14,600 24,200 97,400 19,600 53,700 17,000 11,400 9,649 4,200 124 15 27 31 275 17 127 21 49 40 9 126 15 27 92 14 56 19 12 9 4 1.97 0.24 0.33 0.80 0.99 0.48 0.41 1.24 1.97 1.21 3.25 0.74 0.54 1.25 1.14 2.39 1.74 0.37 0.53 1.34 0.99 Source : International Tea Committee (ITC) Bulletin 66 Total Kg per (1000 MT) Head World Tea Consumption in Selected Countries (Reference to Table No. 1.34) During the period from 2010 to 2012 the two main tea producers; China and India reported an average local consumption of 81% and 78% of their local production respectively. The import quantity of these two countries on other origin teas for consumption was not significant. Apparent annual consumption of two countries are in moderate level, i.e. 0.95 & 0.73 kg per head per year. While Sri Lanka is not importing other origin teas for local consumption at all, Kenya imported a negligible volume. Despite being moderate tea producers; Iran, Taiwan and Japan import large quantities as their average production were 27%, 34% and 70% of total consumption need respectively. Among tea producing countries Indonesia reported the lowest level of tea consumption per head while Turkey is the highest in the scale consuming its total production along with some imported volume. In respect of Taiwan, Sri Lanka and Japan tea consumption per head is also in the higher side of the scale. As defined in FAO World Tea Model there is a simple equation consisting of 5 parameters for a particular country on tea industry activities. They are Production, Export, Import, Stock and Consumption of tea in unit of quantity. The formula is Production plus Imports minus Exports adjusting to Stock should equal to the Consumption or vise versa by changing any parameters. As the formula is applied for tea producer countries, it almost tallies for India, Sri Lanka & other countries except China, Iran and Kenya. In these three countries due to issues on tea statistics, heavily depending on imported tea for re export and difficulties in stock verification, some adjustments need to be incorporated to activate formula properly. Merely tea consumer countries are concerned, apparent annual average tea consumption is more than 100,000 mt for UK, Russia/CIS, USA & Pakistan where Russia/US at the top. However, tea consumption per head was high in the scale (more than 2.0 kg per head/yr) only in 3 countries i.e. Turkey, Kuwait & Libiya. The highest consumption per head (3.25kg) was recorded in Kuwait while the lowest (0.24 kg) is highlighted in France among tea consuming nations. 67 68 RUBBER SECTOR 69 70 Map 2 71 72 73 116.1 89 1,171 1,257 1,032 148.07 141.17 77.37 31.63 72.7 4,724 39,836 44,560 443 '000 Ha ,, Kg/ha Ha Ha Rs/kg ,, ,, Mn kg ,, Rs Mn Rs Mn Rs Mn Rs Mn US$ Mn Note : In some sources 10.2 & 10.3 treated as end products Source : Rubber Development Department : Sri Lanka Customs 104.4 Mn Kg 1. Production 2. Area 2.1 Under cultivation 2.2 Under tapping 3. Yield 4. Replanting 5. New Planting 6. Prices 6.1 Exports f.o.b. 6.2 Colombo Auction RSS 1 7. Cost of Production(COP) 8. Exports 9. Domestic consumption 10. Export earnings 10.1 Raw Rubber 10.2 Semi Processed Rubber (Reclaimed, Compounded etc.) 10.3 End Products Total Export Earnings 2005 Unit Item 46,864 56,538 544 9,674 201.57 202.34 97.20 46.3 63.1 119.5 96.8 1,128 4,353 1,900 109.2 2006 53,605 65,671 594 12,066 234.65 233.69 112.69 51.42 73.9 119.5 93.2 1,246 5,192 2,034 117.6 2007 58,785 72,320 668 13,535 278.39 267.90 114.00 48.62 80.1 122.2 93.5 1,382 6,105 3,189 129.2 2008 KEY INDICATORS: RUBBER 44,300 55,627 484 11,327 202.30 202.79 118.56 55.99 84.9 124.3 95.3 1,437 6,361 1,824 136.9 2009 22,811 535.41 513.05 129.56 42.61 111.7 128.1 101.7 1,555 3,050 3,016 158.2 2011 15,726 420.77 416.61 136.00 37.38 110.3 130.8 104.2 1,459 3,243 3,382 152.1 2012 2,664 5,535 63,968 95,169 103,921 83,224 120,644 125,182 736 1,091 981 19,256 338.23 402.71 119.80 51.50 107.2 125.6 96.7 1,582 5,942 2,888 153.0 2010 Table No 2.1 Key Indicators of Rubber (Reference to Table 2.1) In terms of the data source on rubber production by Rubber Development Department (RDD) the continuous growth rate of production prevailed as averaged 7% for a year between 2005 and 2011 has declined in 2012 by 3.8% or 6.1 mn kg. This was due to reasons such as the growth of replanting area, price fluctuations in the global market and bad weather conditions etc. The annual production level based on more realistic estimate could be between 110,000 and 115,000 mt per year. Based on census of rubber lands-2010 conducted by RDD and its subsequent annual updating the area under rubber cultivation and matured area further expanded by 2,660 ha and 2,500 ha respectively in 2012 over the status in 2011. In 2012, the total extent of replanted and new planted were 3,243 ha and 3,382 ha respectively. These extents showed substantial improvements over the previous year. The acceptable replanting rate of 3% has been maintained. The enhanced value under the government subsidy schemes for replanting and new planting caused to this trend in addition to encouragement on smallholders & RPCs created by attractive rubber prices realized during past 3 years in supply chain. In 2012, Colombo auction price and FOB export price declined by around Rs.100 per Kg compared to previous year of which peaked both prices fetched in the decade. As in usual trend cost of production of sheet rubber in smallholding sector was increased by Rs. 6.44 per Kg in 2012 compared to previous year. Around 110 mn kg appearing as domestic consumption out of locally produced rubber in rubber product manufacturing sector in 2012 and this was 73% of total rubber production in the country reflecting much high volume of value addition. The quantity of raw rubber export in 2012 was declined by 12% to 37,377 mt from 42,605 mt which was in previous year. The corresponding export earnings also declined by Rs.7,085 mn as declining of FOB price and volume. In addition Rs.5,535 mn earned by semi processed rubber exports which is twofold of previous year earning in 2012. The quantity of this category accounted 15,356 mt of which majority was compound rubber. In 2012, export earnings from rubber finished products reached at Rs.104 billion recording 9% growth over previous year. Thus, total export earning of rubber reached at Rs. 125 bn in 2012. However, due to depreciation of rupee value, foreign exchange earning confined to US$ 981 million lesser the US$ 1,091 mn compared to total earning of US$ 1091 mn in 2011. 74 RUBBER AREA Overview -2012 ¾ Extent in Hectares Smallholdings Estate Total 2005 68,109(59%) 47,941 (41%) 116,050 2012 81,863(63%) 48,917 (37%) 130,780 Mature 71,272 32,928 104,200 (80%) Immature 10,591 15,989 26,580 (20%) ¾ Holdings of Rubber No. of small holdings Average holding size No. of Estates (2012) Size of holding ¾ - Mature 97,074; Immature 30,018 < 1 Acre – 50,078 (39%) 1 - < 2 Acres – 51,980 (41%) 135 in RPCs & 9 in State Mostly 20 ha & above Rubber Extent by Clone (ha) - 2010 % Smallholding Estate PB 86 35 34,220 9,329 RRIC 100 26 20,421 12,782 RRIC 121 23 17,083 11,865 RRIC 102 3 3,275 514 Other 13 4,397 11,759 79,396 46,250 Total ¾ Rubber Growing Districts Non-traditional - 18 of which 6 non traditional - Killinochchi, Ampara, Monaragala, Hambantota, Mulativu & Vaunia Kegalle(37,165), Ratnapura(26,604), Kalutara(28,765) Extent of top 3 Districts (74%)in ha - ¾ Replanting Extent & Rate (2012) : 3,243 ha; 3.1% (National) Smallholders Estates Extent 1,117 ha 2,126 ha 75 Rate 1.6% 6.5% Table No. 2.2 RUBBER AREA BY OWNERSHIP - 2000-2012 Ha Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Estate Sector Small Holder Sector Total 56,832 56,105 55,498 52,044 50,100 47,941 50,360 49,867 50,360 48,968 46,250 48,516 49,435 100,199 100,995 59,183 62,752 65,219 68,109 69,140 69,676 71,736 75,332 79,395 79,604 81,345 157,031 157,100 114,681 114,796 115,319 116,050 119,500 119,543 122,200 124,300 125,645 128,120 130,780 Source: Rubber Development Department Table 2.2 According to the Agriculture Census-2002 of DCS, it was revealed that the extent stood at 115,000 ha approximately in 2002 Smallholder sector ownership of rubber extent reported about 59,000 ha in 2002. The extent reported in 2002 may be the definition applied for DCS Agriculture Census of which smallholder was considered below 8 ha (20 acres) of land and Estate sector was above 8 ha of land in ownership. Since 2002 to 2012 Smallholder land ownership indicated a significant improvement with annual average growth of 2,300 ha extent of new planting. The census of rubber lands conducted by Rubber Development Department (RDD) in 2010 confirmed that 79,395 ha belonging to the ownership of smallholders. This extent updated by RDD for 2011 & 2012 has shown an improvement of 79,604 ha and 81,863 ha respectively. Since 2005 to 2012, the fluctuations of the extent of Estate sector (RPCs and state agencies) shows a marginal increase. Since the lowest extent reported in the total rubber extent in 2002, it has improved up to 130,780 ha in 2012 with annual average growth of 1,600 ha , due to significant contribution of the Smallholding sector. 76 Table No. 2.3 RUBBER HOLDINGS & EXTENT BY DISTRICT 2002 DCS AGRICULTURE CENSUS Size Class of <20 Size Class of >=20 Hectare Hectare District Colombo Gampaha Kalutara Kandy Matale Nuwaraeliya Galle Matara Hambantota Kurunegala Badulla Monaragala Ratnapura Kegalla Tolal No. of Holdings Extent (Ha) 5,048 4,039 24,849 1,648 306 37 3,422 2,473 114 896 76 902 14,967 24,309 83,086 3,580 2,867 15,280 1,137 469 33 2,501 2,254 71 967 144 592 11,797 16,959 58,651 Total No. of Extent No. of Extent Holdings (Ha) Holdings (Ha) 18 5 98 2 20 0 35 24 0 17 7 7 72 106 411 Source: Department of Census & Statistics. 77 3,482 211 14,572 93 1,403 0 4,175 1,477 0 1,888 288 1,273 10,350 18,614 57,826 5,066 7,062 4,044 3,078 24,947 29,852 1,650 1,230 326 1,872 37 33 3,457 6,676 2,497 3,731 114 71 913 2,855 83 432 909 1,865 15,039 22,147 24,415 35,574 83,497 116,478 Table No. 2.4 RUBBER HOLDINGS & EXTENT BY DISTRICT 2010 RDD CENSUS OF RUBBER LANDS Size Class of <20 Hectare District No. of Holdings Colombo Gampaha Kalutara Kandy Matale Nuwaraeliya Galle Matara Hambantota Kurunegala Puttalam Badulla Monaragala Ratnapura Kegalla Tolal 6,774 5,916 33,556 2,699 489 4 4,190 3,301 276 1838 234 368 7802 21,028 38,473 126,948 Extent (Ha) Size Class of >=20 Hectare No. of Extent Holdings (Ha) 4,159 3,548 17,804 1,548 542 6 2,815 2,719 155 1512 193 352 4402 14,048 21,316 75,119 20 6 153 6 14 0 83 38 0 25 0 28 8 138 193 712 Source: Rubber Development Department 78 Total No. of Extent Holdings (Ha) 2,161 6,794 6,320 287 5,922 3,835 10,961 33,709 28,765 306 2,705 1,854 769 503 1,311 0 4 6 3,167 4,273 5,982 1,286 3,339 4,005 0 276 155 1,506 1863 3,018 0 234 193 1,274 396 1626 403 7810 4,805 12,557 21,166 26,605 15,849 38,666 37,165 50,526 127,660 125,645 Distribution of Rubber Lands by District under 2002 & 2010 Censuse (Reference to table 2.3 & 2.4) In Agriculture Census - 2002 the Smallholding was defined as extent below 8 hectares while estate sector as above 8 hectares. In Census of rubber lands - 2010 Smallholding sector was defined as rubber land owned by the smallholder irrespective of upper limit subject to individual ownership limit under Land Reform Commission (LRC) Law while estate sector land ownership is considered as all rubber lands belonging to Regional Plantation Corporations (RPCs) and State Agencies. It is difficult to disaggregate the real increase between Smallholding and Estate sector in said two Censuses due to different definitions applied. Therefore in order to make much realistic comparison two benchmarks were applied distinguishing the size class of extent less than 20 hectares (< 20) and extent greater than or equal 20 hectares (>= 20) for tables 2.3 and 2.4 to show number of holdings and corresponding extent in hectares by district. However, in the size class of extent greater than or equal 20 hectares, there are smallholder sector owned combining parcels of land of family union under the LRC Law while it is very unlike the estate ownership of rubber lands in the size class of less than 20 hectares category. Subject to above explanation it is evident from two tables that total number of holdings and extent increased by 53% and 8% respectively between 2002 and 2010 period. Class size of < 20 hectare category, virtually Smallholding sector, both holding and corresponding extent were increased by 53% and 28% respectively. However, class size >= 20 hectare category by and large estate sector was increased number of holdings from 411 to 712 while extent declined from 57,800 ha to 50,500 ha by 13% over the period 2002 and 2010. Reasons for this decline were the diversification of rubber lands into Oil Palm and abandoning of rubber plantations in State Agencies (JEDB, SLSPC, Kurunegala and Elkaduwa Plantations) The main rubber growing districts (Kalutara, Kegalle, Ratnapura) are concerned, both number of holdings and extent had been increased significantly in relation to the below 20 ha category (Smallholders) during 2002 & 2010. Further in the Monaragala district it was reported that the seven fold increase in relation to the smallholders and extent. Other districts Colombo, Gampaha, Galle & Matara are shown only marginal increase of rubber growth. Puttalam is one of the districts introduced rubber cultivation in recent past. Also extent of Estates and large size smallholders (>= 20 ha category) has declined by 5200 ha for main districts (Kalutara, Kegalle, Ratnapura & Galle) due to crop diversification & other reasons in this period. However, a rubber holding has increased from 300 to 550 in the districts where the Smallholdings are larger than 20 hectare. 79 8 - CM17140 Table No. 2.5 RUBBER EXTENT BY SIZE CLASS OF HOLDING -2010 SMALL HOLDING SECTOR Size Class of Holding Less than 1/4 Acre 1/4 - < 1/2 Acre 1/2 - < 3/4 Acre 3/4 - < 1 Acre 1 - < 2 Acre 2 - < 3 Acre 3 - < 5 Acre 5 - < 10 Acre 10 - < 20 Acre 20 - < 50 Acre 50 Acres & Above Total Number & Holdings % Share of Holding Extent (Hectares) 1.1 7.6 18.5 12.2 40.9 11.4 4.6 2.3 0.9 0.4 0.1 100.0 78 1,216 4,955 4,920 24,299 12,642 8,336 7,435 5,723 5,514 4,277 79,395 1,414 9,616 23,491 15,557 51,980 14,552 5,864 2,891 1,111 472 144 127,092 % Share in Extent 0.1 1.5 6.3 6.2 30.6 15.9 10.5 9.4 7.2 6.9 5.4 100.0 Source : Rubber Development Department : Census of Rubber Lands 2010 Disaggregated data on number of rubber holdings and corresponding extent under different size classes are depicted in table no. 2.5 while district wise breakdown is given in table no. 2.6. In the rubber sector related legislations, smallholder is defined as a holder of rubber land up to 10 acres or 4 hectares. Accordingly there are 125,365 smallholdings with a total extent of 63,881 ha or 80% of total extent of smallholdings. However, the balance 20% is also managed by the Rubber Development treating as Small holdings. As Land Reform Commission law stipulates the provision that maximum land ceiling for an individual can hold up to 50 acres and rubber related institutions adhere this rule to compute smallholder extent and provide facilities and subsidies. Without effect to 50 acre family units of which a cumulative extent of 4,277 ha (5.4%) was revealed in 2010 Census of Rubber Lands. These lands are also come under the smallholder definition. The extent of holdings below 1 acre size shows 14.1% of total while 10 to 50 acre category shares the same percentage. As a single category size class 1-2 acre represents maximum percentage i.e. 30.6% while less than ¼ acre smallholder share of extent is the lowest 0.1% of total. 80 81 3,094 2,242 15,361 1,131 181 0 1,570 794 77 568 5 46 636 7,977 16,396 50,078 Holdings 662 508 3,403 245 32 0 339 187 21 128 2 9 141 1,836 3,657 11,170 Extent ha Less than 1 Acre 2,328 1,130 2,326 1,123 13,423 6,257 1,039 486 134 62 1 0 1,688 767 1,580 719 129 60 682 323 98 41 203 82 4,767 2,059 8,396 3,910 15,186 7,280 51,980 24,299 Holdings Extent ha 1<=2 Acre 1,027 1,156 3,840 427 101 2 671 682 66 457 116 88 2,342 3,531 5,910 20,416 1,113 1,231 3,955 446 109 2 716 763 65 477 121 76 2,017 3,735 6,152 20,978 Holdings Extent ha 2<=5 Acre Source : Rubber Development Department : Census of Rubber lands 2010 Colombo Gampaha Kalutara Kandy Matale Nuwaraeliya Galle Matara Hambantota Kurunegala Puttalam Badulla Monaragala Ratnapura Kegalla Total District 220 140 572 69 38 1 174 154 4 78 15 13 43 734 636 2,891 Holdings 554 362 1,471 175 103 4 442 395 9 202 30 34 104 1,898 1,653 7,436 Extent ha 5<=10 Acre Above 50 Acre Total 105 52 360 33 35 0 87 91 0 53 0 18 14 390 345 1,583 700 324 2,718 196 236 0 551 655 0 382 0 151 81 2,669 2,574 11,237 6 2 42 0 9 0 5 7 0 9 0 8 0 24 32 144 150 6,780 55 5,918 1,254 33,598 0 2,699 323 498 0 4 180 4,195 174 3,308 0 276 290 1,847 0 234 310 376 0 7,802 687 21,052 853 38,505 4,276 127,092 4,309 3,603 19,058 1,548 865 6 2,995 2,893 155 1,802 193 662 4,402 14,735 22,169 79,395 Holdings Extent Holdings Extent Holdings Extent ha ha ha 10<=50 Acre RUBBER LAND BY SIZE CLASS OF HOLDING & BY DISTRICT SMALLHOLDING SECTOR - 2010 Table No. 2.6 82 636 625 3,005 222 96 6 349 321 88 425 183 258 3,713 2,585 4,217 16,729 District Colombo Gampaha Kalutara Kandy Matale Nuwaraeliya Galle Matara Hambantota Kurunegala Puttalam Badulla Monaragala Ratnapura Kegalle Total 15 17 16 14 11 12 11 57 24 95 39 84 18 19 21 % 1,089 1,167 5,789 494 40 4 521 465 153 508 227 286 6,627 4,383 8,265 30,018 No. of Holdings Mature Rubber Land 376 232 1,147 101 49 0 74 209 23 92 6 11 279 1,124 1,711 5,434 796 573 3,419 202 63 0 337 400 11 276 4 13 227 3,008 3,510 12,839 1,095 1,047 5,177 266 104 0 743 829 13 282 0 11 109 3,115 5,309 18,100 870 689 3,425 309 82 0 782 536 10 210 0 72 35 2,995 3,850 13,865 537 437 2,885 448 471 0 710 598 9 518 0 297 39 1,908 3,572 12,429 7<=13 13<=19 19<=25 25<=31 Over 31 years years years years years Hectare Hectare Hectare Hectare Hectare Source : Rubber Development Department : Census of Rubber lands 2010 0<=7 years Hectare Immature Rubber Land 3,674 2,978 16,053 1,326 769 0 2,646 2,572 66 1,378 10 404 689 12,150 17,952 62,667 Totoal mature extent (Ha) 85 83 84 86 89 88 89 43 76 5 61 16 82 81 79 % 5,691 4,751 27,809 2,205 458 0 3,674 2,843 123 1,339 7 90 1,175 16,669 30,240 97,074 No. of Holdings IMMATURE & MATURE RUBBER AREA BY AGE GROUP & DISTRICT - 2010 SMALLHOLDING SECTOR 6,780 5,918 33,598 2,699 498 4 4,195 3,308 276 1,847 234 376 7,802 21,052 38,505 127,092 No. of Holdings Total 4,310 3,603 19,058 1,548 865 6 2,995 2,893 154 1,803 193 662 4,402 14,735 22,169 79,396 Extent (Ha) Table No. 2.7 83 417 67 2,013 103 170 0 533 193 0 348 0 517 41 3,495 3,058 10,955 Colombo Gampaha Kalutara Kandy Matale Nuwaraeliya Galle Matara Hambantota Kurunegala Puttalam Badulla Monaragala Ratnapura Kegalle Total 21 29 21 34 38 18 17 29 54 10 29 20 24 % 7 2 76 6 2 0 34 15 0 11 0 17 8 61 89 328 No. of Holdings Mature Rubber Land 379 14 1,036 33 0 0 442 144 0 115 0 67 134 1,332 2,100 5,796 504 67 1,997 71 0 0 475 273 0 178 0 123 227 2,124 2,172 8,211 539 10 2,822 46 19 0 1,050 220 0 361 0 145 0 3,202 4,144 12,558 153 69 1,702 53 0 0 433 222 0 214 0 56 0 1,546 3,128 7,576 18 6 137 0 257 0 55 60 0 0 0 56 0 170 394 1,153 7<=13 13<=19 19<=25 25<=31 Over 31 years years years years years Hectare Hectare Hectare Hectare Hectare Source : Rubber Development Department : Census of Rubber lands 2010 0<=7 years Hectare District Immature Rubber Land 1,593 166 7,694 203 276 0 2,455 919 0 868 0 447 361 8,374 11,938 35,294 Totoal mature extent (Ha) 79 71 79 66 62 82 83 71 46 90 71 80 76 % 39 9 301 14 7 0 155 73 0 44 0 13 8 275 460 1,398 No. of Holdings IMMATURE & MATURE RUBBER AREA BY AGE GROUP & DISTRICT - 2010 ESTATE SECTOR (RPCS & STATE) 2,010 233 9,707 306 446 0 2,988 1,112 0 1,216 0 965 402 11,869 14,996 46,250 Extent (Ha) 46 11 377 20 9 0 189 88 0 55 0 30 16 336 549 1,726 No. of Holdings Total Table No. 2.8 Immature and Mature Rubber Extent by District (Reference to Table No. 2.7 & 2.8) As reveal in Census of Rubber Lands - 2010 the table 2.7 highlighted that immature rubber extent of smallholding sector was 21% while remaining 79% as mature portion of the total extent of 79,395 ha. However, as highlighted in table 2.8 Estate sector immature & mature share were 24% and 76% respectively under the same parameter used for the computation such as immature period of 7 years. Smallholding sector is concerned, traditional rubber growing districts share around 10% - 20% of immature extent while in non-traditional districts (Monaragala, Puttalam) this rate was over 85% indicating new planting of rubber has expanded rapidly in the recent past. On the other hand Hambantota and Badulla districts highlight the share of mature extent 43% & 61% respectively being the rubber lands grown over the decades but with considerable portion of immature areas as well. In the smallholding sector, three age group categories between 13 and 31 years comprise the maximum extent of mature areas, ie. 44,800 ha (71%) of total mature lands. Economic life of this extent is considered, the current level of production will be assured for next few years. The very young mature category (7 - 13 yrs) extent is around 9% of total mature extent. The extent of 12,429 ha or 20% of total mature area which is over 31 years of age requires immediate replanting with high yielding clones to ensure continuous rubber supply with increasing production in future. In the Estate sector (comprising RPCs & State Plantations) three age categories between 13 and 31 years consist of 28,350 ha or 80% of total mature extent. This is the strength of economical rubber supply in estate sector. Young mature category (7 -13 years) remains 16% while extremely old mature category (over 31 years) which need immediate replanting in high yielding clones consisting 1,153 ha or 3% of total mature lands. In estate sector traditional rubber growing districts (Ratnapura, Kegalle, Gampaha, Kalutara) highlight 20% - 30% of immature extent and more than 2/ 3 of mature lands. Immature portion of Galle and Matara districts were comparatively low while in Monaragala this share is always 10% in contrast to the smallholding sector. In Badulla district where estate rubber plantation is more prominent, immature share is very high (54%) as recent trend of crop diversification in favour of rubber. This mature and immature composition of rubber lands came out at 2010 Census should be updated with RDD finalized figures for end of current year 2012. 84 Table No. 2.9 CLONAL COMPOSITION OF SMALL HOLDING SECTOR RUBBER EXTENT - 2010 Mature Area Immature Area Clone Extent No. of No. of Extent Hold- (Hectings are) trees ‘000 Holdings (Hectare) No. of % Share trees of ‘000 extent by clone 50,729 30,350 3,254 5,223 67 6 7,448 97,077 12,539 7,817 877 1,624 44 2 1,374 24,277 1,249 2,283 2,414 22,993 375 77 627 30,018 725 1,126 1,223 13,213 225 42 176 16,730 323 519 561 6,028 103 19 79 7,632 No. of PB 86 RRIC 100 RRIC 102 RRIC 121 RRISL 203 RRISL 2000 Series Clonal Rubber Total 33,495 19,295 2,052 3,870 97 4 3,851 62,664 Source : Rubber Development Department ; Census of Rubber lands 2010 85 43.1 25.7 4.1 21.5 0.4 0.1 5.1 100.0 86 13,863 1,173 123 Kalutara Kandy Matale 6,736 20,421 5,071 4,826 272 6 5 362 35 786 865 0 113 286 5,702 999 1,093 5,668 2,400 762 728 36 1 89 2 117 98 0 6 94 713 381 241 3,275 1,320 499 373 15 1 44 1 98 63 0 2 41 463 222 133 Source : Rubber Development Department : Census of Rubber Lands 2010 8,823 51,978 34,220 32,633 5,406 466 16 4 403 63 1,003 958 0 84 514 Total 7,124 298 350 0 640 27 1,598 1,515 0 271 720 18,365 10,929 Ratnapura 1,677 1,656 8,442 10,230 1,749 2,275 Kegalla 517 Monaragala 0 74 Badulla 507 Kurunegala Puttalam 42 1,618 Matara Hambantota 2,271 Galle 0 2,673 Nuwaraeliya 3,628 Gampaha RRIC 102 RRIC 121 RRISL 203 RRISL 2000 Clonal Total 4,057 3,340 3,456 291 187 438 91 317 304 4 58 223 3,060 533 724 28,216 17,083 7,266 4,894 6,086 250 229 470 167 381 442 3 29 467 5,493 961 1,078 442 251 45 2 0 0 10 0 5 6 1 1 18 62 24 17 322 122 24 1 0 0 5 0 4 3 2 2 7 127 15 10 83 57 17 0 0 0 0 0 0 1 0 0 2 3 3 0 46 35 7 0 0 0 0 0 0 1 0 0 1 1 1 0 8,072 1,343 1,474 3 0 0 368 2 184 419 0 255 431 3,234 199 160 3,603 4,309 4,402 662 193 1,802 155 2,893 2,995 6 865 1,548 38,505 22,169 21,052 14,735 7,802 376 234 1,847 276 3,308 4,195 4 498 2,699 33,598 19,058 5,918 6,780 4,029 127,092 79,395 635 633 2 0 0 313 1 90 245 0 419 270 1,263 84 74 Extent No. of Extent No. of Extent No. of Extent No. of Extent No. of Extent No. of Extent h a Holdings h a Holdings h a Holdings h a Holdings h a Holdings h a Holdings h a RRIC 100 No. of Extent No. of Holdings ha Holdings Colombo District PB 86 DISTRIBUTION OF SMALL HOLDINGS & EXTENT UNDER DIFFERENT CLONES BY DISTRICT - 2010 Table No. 2.10 Table No. 2.11 DISTRIBUTION OF RUBBER EXTENT UNDER DIFFERENT CLONES BY DISTRICT ESTATE SECTOR - 2010 Hectare District PB 86 Extent RRIC RRIC 100 102 Extent Extent RRIC RRISL Clonal Other Total 121 203 mix extent Extent Extent Extent Extent Hectare Colombo 496 558 51 644 0 199 63 2,011 Gampaha 68 67 43 54 0 0 0 232 1,715 2,287 69 2,063 47 3,254 272 9,707 Kandy 53 15 25 156 0 30 26 306 Matale 0 25 19 130 15 19 238 446 Nuwaraeliya 0 0 0 0 0 0 0 0 Galle 279 1,526 0 881 2 7 291 2,986 Matara 194 550 7 262 0 20 79 1,112 0 0 0 0 0 0 0 0 318 122 16 347 58 276 80 1,217 Kalutara Hambantota Kurunegala Puttalam 0 0 0 0 0 0 0 0 Badulla 45 127 4 263 0 464 62 965 121 33 41 0 0 208 0 403 Ratnapura 2,185 3,904 26 3,310 376 1,247 821 11,869 Kegalle 3,855 3,568 213 3,755 149 2,619 837 14,996 Total 9,329 12,782 514 11,865 647 8,343 2,769 46,250 Monaragala Source : Rubber Development Department : Census of Rubber Lands 2010 87 Clonal Composition by District & Sector (Reference Table No. 2.9, 2.10 & 2.11) As presented in table 2.9 and 2.11 three popular clones PB 86, RRIC 100, and RRIC 121 cover mature and immature extent of 71,724 ha or 90% of total extent in smallholding sector while in Estate sector the coverage of these clones is 33,976 ha of total extent or 73% at present. However, immature extent of PB 86 and RRIC 100 share only 1851 ha or 2% of total extent indicating of these clones are no longer a trend of further expanding while RRIC 121 is still attractive as remains 13,213 ha (17% of total) among smallholders. In Smallholding sector all other clones contribute 10% or 7670 ha of extent. As disaggregated data presented in table 2.10 main rubber growing districts Kegalle, Kalutara, Ratnapura are dominated by said three popular clones with total extent of 50,473 ha (64%) while large scale new planting of RRIC 121 was attracted by smallholders in Monaragala District. As highlighted in table 2.11 Census of Rubber Lands - 2010 found that in Estate sector most popular clone is RRIC 100 with the coverage of 12,782 ha or 28% of total at present. This followed by RRIC 121 which is extended to 26% of clone composition. Further clonal mix category is also significant at 7,120 ha in extent in said three districts i.e. Kegalle, Kalutara and Ratnapura . RRIC 102, RRISL 203 and Other clones have not expanded in Estate sector indicating marginal extent, 8% of total hecterage. 88 Table No. 2.12 RUBBER AREA REPLANTED & NEW PLANTED Hectare Replanting Small Holding Sector New Planting Year Estate Sector (RPCs & State) Total Estate Small Sector Holding (RPCs & Sector State) Total 2000 1,853 770 2,623 34 243 277 2001 4,584 558 5,142 14 150 164 2002 2,066 712 2,778 7 227 234 2003 494 565 1,059 7 451 458 2004 1,264 819 2,083 5 518 523 2005 2,329 1,257 3,586 11 1,032 1,043 2006 2,331 1,122 3,453 297 1,603 1,900 2007 4,199 993 5,192 333 1,701 2,034 2008 5,293 812 6,105 414 2,775* 3,189 2009 5,360 1,002 6,362 74 1,750* 1,824 2010 4,756 1,186 5,942 96 2,792* 2,888 2011 1,927 1,123 3,050 838 2,178* 3,016 2012 2,126 1,117 3,243 1,086 2,296* 3,382 * Note : New planting in small holding sector includes cultivated area, under IFAD Project Source : Rubber Development Department Regional Plantation Companies (RPCs) IFAD SPEnDP Project. 89 Rubber Area Replanted & New Planted (Reference No. Table 2.12) National Rubber replanting rate computed (replanted area of particular year divided by mature extent of the year end) that should be around 3% or above as acceptable norm which indicates the average growth of the industry. Although replanted extent has shown a high quantity in the recent years, the average of the decade was around 3000 ha per annum in Smallholding sector and Estate sectors as well. The annual replanting extent is much higher due to encouragement under the Government Subsidy Scheme and new investments of the RPCs. The smallholders who received government subsidy through the RDD eligible to replant around 900 ha on annual basis. It is estimated that apart from the government subsidy schemes, there was another 200 ha replanted by the Smallholders from their own funds. Although rubber new planting extent in Estate sector was very low in the decade, in 2012 it has reported that they planted 1086 ha. Since 2005 new planting in Smallholding sector was increased at annual average extent of 2000 ha under the government subsidy scheme. New planting extent in Monaragala District was substantially expanded under IFAD Credit program from 2008 to 2012. The new planting under IFAD project accounted 4,827 ha. Also in view of the expansion of rubber cultivation in non-traditional areas it is reported that 150 ha had been cultivated in the district of Ampara. 90 Table No. 2.13 PLANTS ISSUANCE AND TARGET OF RDD NURSERIES RDD Nurseries District Nursery Target 2012 Production 2012 Plant Issuance 2012 Target 2013 Gampaha Welikadamulla Mirigama 450,000 350,000 417,287 295,154 379,608 168,361 450,000 350,000 Kalutara Egaloya Gurugoda 325,000 350,000 306,705 310,460 262,408 238,150 350,000 400,000 Ratnapura Karapincha 175,000 102,109 90,611 200,000 Monaragala Kumbukkana 450,000 395,673 124,626 450,000 Hambantota Middeniya 100,000 128,212 97,836 1,500,000 2,200,000 1,955,000 1,361,600 3,700,000 Total Source: Rubber Development Department 91 Table No. 2.14 ISSUANCE OF PLANTS FROM RUBBER NURSERIES No. of Plants Issued Year RDD Nurseries Private Nurseries Total 2002 629,829 41,500 671,329 2003 723,409 10,900 734,309 2004 83,975 79,000 162,975 2005 1,359,685 258,000 1,617,685 2006 1,557,735 169,520 1,727,255 2007 1,574,249 500,719 2,074,968 2008 1,476,651 803,026 2,279,677 2009 1,264,556 622,253 1,886,809 2010 1,597,937 834,314 2,432,251 2011 1,316,974 1,049,244 2,366,218 2012 1,361,600 1,869,415 3,231,015 Source: Rubber Development Department 92 Plants Issuance of RDD Nurseries and Private Nurseries (Reference to Table No. 2.13 & 2.14) During the 10 year period from 2002 - 2012, rubber nursery plants issued by Rubber Development Department (RDD) from its seven nurseries have been increased up to 1.4 mn in 2012 with certain annual fluctuations. The highest output is recorded in 2010. The private sector contribution on rubber nurseries is also shown higher growth. They equally contributed to the national growth along with the RDD. The plant production target of RDD nurseries for 2012 was same as previous year (2.2 mn ) but achievement recorded only 62%. In 2012, the total requirement of planting material for entire extent (3400 ha replanting and new planting in Smallholding sector) was 1.9 mn plants at the rate of 550 plants per hectare. However, quality plants which were distributed from Rubber Development Department nurseries were limited to 1.36 mn in 2012, which creates a vacuum of 540,000 plants. This gap was bridged by private nurseries and small portions from Estate sector (RPCs) rubber nurseries. In 2012 planting material total requirement was 2.4 mn (for 4400 ha of replanting and new planting) had been fulfilled. RPCs managed their own nurseries to meet the planting material requirements to a great extent. Plant production of private sector nurseries are part of the intake for the Smallholding sector. All the nurseries are inspected by the extension officers attached to the Rubber Research Institute (RRI) especially for the quality assurance of the plants. The RDD is running 7 large scale nurseries in the island while private sector and the Regional Plantation Companies maintain about 200 and 90 nurseries respectively. 93 Table No. 2.15 FIELD DEVELOPMENT INCENTIVE PAYMENTS FOR RUBBER SMALL HOLDING SECTOR Rs. Mn. Smallholdings Year Replanting New Planting 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 63.3 51.1 38.2 42.1 33.9 77.7 89.8 97.4 92.9 77.9 121.5 176.3 162.0 26.5 17.7 15.8 18.8 15.8 31.1 71.1 32.3 102.0 55.6 128.5 211.7 125.4 Source: Rubber Development Department 94 RUBBER SUPPLY (Production) Overview - 2012 ¾ Production in Metric Tons (Mt) Sheet Crepes TSR Centrifuged Total & Other 2005 50,170 18,536 5,880 29,766 104,352 2011 59,242 39,732 8,672 44,403 152,050 ¾ Sectorwise Smallholdings Estates (RPCs & State) 2005 69,200 (66%) 35,100 (34%) 2012 122,360 (81%) 29,690 (20%) ¾ Supply, Export and Consumption (Mt) Supply Export Consumption 2005 104,400 31,700 72,700 2012 152,050 37,377 110,038 ¾ 2012 Monthly Production (Mt) – 12,671 (Average) Highest Supply Lowest Supply - 16,272 in March 10,651 in December ¾ Supply by Management (Mt) Regional Plantation Companies (RPCs) State (JEDB, RRI, Elkaduwa etc.) Smallholders/dealers - 28,834 (19.0%) 856 (0.6%) 122,360 (80.4%) ¾ Yield (kg/ha) 2012 = Production/Tapped Area = 1,459 (National) Smallholdings - 1,717 Estates (RPCs & State) ¾ In 2012 Cost of Production (Rs/kg) Smallholding Sector – 136.00 Estate Sector – 223.70 95 9 - CM17140 - 902 Table No. 2.16 RUBBER PRODUCTION, EXPORTS AND CONSUMPTION 1990 - 2012 Mn. kg Year Production mn kg 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 87.6 86.2 90.5 92.0 94.7 104.4 109.2 117.6 129.2 136.9 153.0 158.2 152.1 Exports mn kg % 32.5 32.0 36.1 35.2 40.3 31.6 46.3 51.4 48.6 56.0 51.5 42.6 37.4 37 37 40 38 43 30 42 44 38 41 34 27 25 Domestic Consumption Dry Rubber mn kg % 40.2 35.2 35.5 39.4 29.3 41.8 36.4 42.4 46.1 48.0 60.6 62.4 60.4 73 65 65 69 54 57 58 57 58 57 57 56 55 Latex mn kg % 14.9 18.8 18.9 17.4 25.1 30.9 26.7 31.5 34.0 36.9 46.6 49.3 49.6 Total mn kg 27 35 35 31 46 43 42 43 42 43 43 44 45 55.1 54.0 54.4 56.8 54.4 72.7 63.1 73.9 80.1 84.9 107.2 111.7 110.0 Source : Rubber Development Department MONTHLY BREAK DOWN - 2012 Mn kg Month Production Export Domestic Consumption Dry Rubber January February March April May June July August September October November December Total 13.52 13.28 16.27 13.80 12.31 13.35 13.16 12.17 11.27 11.22 11.05 10.65 152.05 4.05 4.94 5.99 3.52 2.34 1.73 1.39 1.78 2.99 2.64 2.47 3.53 37.38 4.24 5.48 7.03 4.80 4.75 5.26 5.56 5.63 4.49 4.44 4.63 4.09 60.41 Source : Rubber Development Department 96 Latex 3.87 4.15 5.58 3.40 3.31 5.15 4.46 4.10 3.75 4.10 4.11 3.66 49.62 Total 8.11 9.63 12.60 8.20 8.06 10.41 10.02 9.73 8.24 8.55 8.74 7.75 110.04 97 Source : Rubber Development Department Chart 5 98 Rubber Production, Exports & Consumption (Reference to table 2.16) Since 2001 with 6.5% average annual growth the production increased throughout the decade showing a record level in 2011 at 158 mn kg, with only a marginal increase in tapping (mature) area. Such a continuous increase of rubber supply was realized as a result of yield increase due to adopting good agricultural practices, attractive prices that prevailed in the past & favourable weather conditions. In 2012 the production declined by 3.9% due to bad weather conditions prevailed throughout the year. Disaggregated data on 2012 monthly production reveals that during the month May and August to December the production declined in comparison to the rest of the year. Rubber demand is created through raw rubber export market and domestic consumption for local manufacturing industry. In the decade, export of raw rubber grew with a 2.5% annual average growth. The exports peaked in 2009 recording 56 mn kg or 41% of the production long after 75% exports prevailed in early 1990s. In 2012 volume of export decreased by 5.2 mn kg compared to 2011 and ratio adjusted to 25% of production. Within three consecutive years since 2009, raw rubber exports declined by 18.6 mn kg or 33%. The average ratio of export that prevailed for the decade is 35% of production. Rubber prices in global markets and government policy favourable for rubber product manufacturing industry are the factors contributing to adjust the rubber demand ratio between exports and consumption. Monthly breakdown of rubber exports in 2012 showed similar trends to that of production and exports declined in the period from June to August. Concerning the domestic raw rubber consumption, in this decade, it remains as 65% - 72%. Dry rubber content, bulk of which goes for tyre sector was 55% of domestic consumption in 2012. The Latex component used for the highest level of value addition such as surgical & examination gloves increased from 32% in early 2000s to 45% in the 2012 reacting the growing requirement of Latex based products. As certain value added products must incorporate synthetic rubber in the formation to meet required standards, 25 mn kg per annum has been imported to Sri Lanka in average. Monthly consumption of rubber (Dry & Latex) in 2012 varied between 7.8 mn kg and 12.6 mn kg. 99 Table No. 2.17 RUBBER PRODUCTION BY DIFFERENT TYPE MT Year Sheet Sole Crepe Scrap Crepe Latex Crepe TSR Centrifuged latex and other Total 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 34,003 30,344 42,770 50,015 46,705 50,170 46,260 48,875 55,011 54,550 59,248 60,699 59,242 4,512 3,915 2,987 2,195 2,035 2,739 3,949 4,077 3,937 5,448 6,711 3,384 1,902 1,788 2,743 2,185 3,117 3,708 2,883 1,606 1,693 2,711 3,502 1,842 1,332 1,280 28,110 26,112 20,831 17,131 12,481 12,914 20,224 21,756 21,043 31,670 52,504 59,933 36,550 3,879 3,657 1,231 1,193 2,812 5,880 9,038 9,564 10,968 11,775 8,341 7,981 8,672 15,344 19,461 20,514 18,359 27,000 29,766 28,076 31,586 35,573 29,934 24,341 24,869 44,403 87,636 86,232 90,519 92,010 94,741 104,352 109,153 117,551 129,243 136,880 152,987 158,198 152,050 Source: Rubber Development Department 100 Table repe Table No. 2.18 MONTHLY PRODUCTION OF RAW RUBBER BY TYPE - 2012 Mt Year Sheet Sole Crepe Scrap Crepe Latex Crepe TSR Centrifuged latex and other Total January 5,271 130 108 4,798 784 2,424 13,516 February 5,379 187 126 1,916 797 4,876 13,281 March 6,623 130 143 3,121 976 5,279 16,272 April 5,382 165 124 1,718 856 5,556 13,800 May 4,431 141 111 1,333 739 5,554 12,308 June 5,205 125 100 5,378 694 1,844 13,346 July 4,962 126 105 4,865 717 2,385 13,161 August 4,539 113 93 4,598 655 2,174 12,172 September 4,283 229 96 4,429 514 1,719 11,270 October 4,377 197 90 1,819 617 4,123 11,223 November 4,531 157 98 1,139 685 4,440 11,050 December 4,260 202 85 1,436 639 4,029 10,651 59,242 1,902 1,280 36,550 8,672 44,403 152,050 Total Source : Rubber Development Department 101 102 103 Source : Rubber Development Department Chart 6 104 Raw Rubber Production - Different Types (Reference to table 2.17 & 2.18) Currently 3 main products: RSS sheet (39%), Latex Crepe (24%), and Centrifuged Latex (29%) contribute to 92% of total production. Total natural rubber production was reduced by 6,148 mt in 2012 compared to 2011. RSS sheet the main production category of small holder sector grew by 25 mn kg in the period of 2000 to 2012, maintaining average 40% share of total production. Latex Crepe mainly produced by RPCs and private owned factories was showing a declining trend up to 2008 and then increased up to 2011 at a record level and 14.9% over the previous year. In 2012 it was declined by 23 mn kg or 39% which is very unusual. Average annual production of Centrifuged Latex & other specialized product category has shown a remarkable boost (79%) by adding 19.5 mn kg compared to 2011 that is also peculiar with industry practies. This increasing trend was attributed to the demand for gloves and foam products which are based on centrifuged Latex. In 2012, the contribution to total production by Sole Crepe, Scrap Crepe and TSR were 1.3%, 0.8% and 5.7% respectively. These types are mainly produced by private sector & RPCs. Sole Crepe production has remained at 3.5 mn kg of annual average up to 2008 and a sudden increase was shown in 2009 & 2010. However, in 2012 44% reduction was recorded in Sole Crepe category. Since 2005, but except in 2009, the Scrap Crepe production has been decreasing due to increased TSR production using Scrap Crepe as raw material. Monthly production data in 2012 highlights that RSS sheet supply declined from August to December compared to rest of months. Centrifuged Latex production has also declined during June to September and in January. In respect of other categories no clear pattern of monthly variation shows. 105 Table No. 2.19 RUBBER PRODUCTION BY TYPE OF MANAGEMENT Mn Kg Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 RPCs 36.1 38.4 34.8 33.6 32.9 34.8 34.5 37.8 33.8 32.5 32.2 30.7 28.8 % 41.2 44.5 38.5 36.5 34.3 33.3 31.6 32.1 26.2 23.7 21.1 19.4 19.0 State (SLSPC, JEDB, Elkaduwa PL, Kurunegala PL & RRI) % 0.6 0.4 0.4 0.3 0.3 0.3 0.3 0.2 0.2 0.6 0.6 0.5 0.4 0.4 0.3 0.3 0.3 0.3 0.3 0.3 0.9 0.9 Small Holdings 51.5 47.8 55.2 58.0 62.5 69.2 74.4 79.5 95.1 104.1 120.4 126.6 122.4 % Total 58.7 55.5 60.7 63.0 65.3 66.3 68.1 67.6 73.6 76.1 78.7 80.0 80.5 87.6 86.2 90.5 92.0 95.7 104.4 109.2 117.6 129.2 136.9 153.0 158.2 152.1 Source: Rubber Development Department, RPCs and JEDB Since 2000 RPCs contribution to production had been declined from 40% to 19% while small holding sector contribution had increased from 59% to 81%. Since 2011 onwards Elkaduwa Plantations Ltd., Kurunegala Plantations and Rubber Research Institute were included for the State sector apart from the JEDB/SLSPC. Therefore production of State sector has risen by 600 mt in 2011, producing only 900 mt per annum and same trend prevailed in 2012 too. Small holding sector growth in raw rubber production recorded 3% decline in 2012 against the previous year. Thus, sector wise raw rubber production ratio is 80:20 between small holdings and RPC estates at present. Rubber processing plants & factories in RPCs produced crepe types mainly. Individual smallholdings and group processing centers produced RSS sheet predominantly. Other types such as scrap crepe, TSR & centrifuged are the products of private sector rubber factories depend on bought latex. In addition to that, large quantity of field latex was supplied to latex based manufacturing plants by the farmers. 106 107 77.37 13.31 6.06 5.10 11.16 2.75 41.11 7.16 1.88 50.15 2005 Source: Rubber Development Department 73.37 12.62 4. Other Charges & Maintenance Grand Total 5.75 4.84 10.59 2.61 38.98 6.79 1.78 47.55 2004 1. Cultivation Cost Labour Materials Maintenance Sub Total 2. Processing Cost Labour Materials Sub Total 3. Marketing Cost Item 97.20 16.72 7.61 6.41 14.02 3.45 51.65 9.00 2.36 63.01 2006 112.69 10.75 43.00 1.19 44.19 4.00 43.00 7.53 3.23 53.75 2007 114.00 4.45 4.69 0.95 5.64 2.35 66.01 27.42 8.13 101.56 2008 118.56 10.00 12.00 1.56 13.56 5.00 80.00 7.50 2.50 90.00 2009 119.80 10.00 12.00 2.30 14.30 5.00 80.00 8.00 2.50 90.50 2010 RUBBER COST OF PRODUCTION - SMALL HOLDING SECTOR 129.56 11.10 14.25 1.81 16.06 5.50 85.30 8.40 3.20 96.90 2011 136.00 11.85 15.50 2.00 17.50 6.25 88.50 8.50 3.40 100.40 2012 Rs/kg Table No. 2.20 108 2.54 18.48 0.68 59.77 5. Estate Maintenance 6. Genaral Charges 7. Marketing & Related Exp. Total 65.98 0.75 13.65 4.29 Source : Department of Census and Statistics 6.53 4. Factory Cost 4.82 5.70 3. Maint. of Immature Rubber 5.23 22.10 2. Tapping & Collecting Cost 16.77 2003 14.67 2002 9.54 1. Maint. of Mature Rubber Cost Item 72.56 0.80 15.93 6.98 4.47 6.41 27.93 10.04 2004 87.65 0.57 20.35 4.33 5.92 13.04 28.72 14.72 2005 102.30 0.44 28.86 4.68 4.01 12.65 25.88 25.78 2006 119.89 1.00 37.23 5.85 11.67 13.00 31.47 19.67 2007/08 135.83 0.72 40.15 7.42 6.71 18.27 33.78 28.78 2008/09 158.94 0.84 46.98 8.69 7.85 21.38 39.52 33.68 188.23 1.49 61.92 8.48 12.32 28.52 44.98 30.52 2009/10 2010/11 RUBBER COST OF PRODUCTION ESTATES - 20 ACRES AND ABOVE 223.70 2.66 57.58 13.78 18.54 43.32 50.59 37.23 2011/12 Rs/Kg Table No.2.21 Rubber Cost of Production Small Holding & Estates (Reference to table 2.20 & 2.21 ) In 2012 the cost of production in Smallholding sector increased marginally Rs. 6.44 (5%) per kg compared to the previous year. All the cost components including the labour cost increased slightly. Based on a separate methodology adopted for the calculation of Estate sector, the cost of production was recorded an increase of Rs. 35.47 per kg in cost of production in 2012. It is an increase of 19% in six cost components except general charges compared to previous year. Thus, the cost of production between these two sectors has much widened in 2012. 109 RUBBER PRICES Overview - 2012 ¾ Auction Price by Type (Average: Rs/kg) 2005 2012 ¾ RSS-1 RSS-2 RSS-5 133.75 391.92 Scrap Crepe (1XBR) 124.68 375.93 Latex Crepe (1X) 152.70 409.10 141.17 416.27 138.66 407.99 457.67 429.08 443.00 469.25 336.78 378.00 2011 Monthly Highest April 465.68 Lowest August 363.29 356.93 318.00 December ¾ In 2012 Price Growth (%) Over 2011 RSS-1 -19% ¾ Latex Crepe -29% FOB Export Price (Average -2012) Rs/kg US$/kg ¾ Scrap Crepe -19% RSS Sheets 430.36 3.37 Sole Crepe 618.25 4.85 Latex Crepe 407.18 3.19 TSR 351.20 2.75 Centrifuged Latex & other 479.80 3.76 FOB US$/kg Highest April January May June Lowest September November December 3.81 3.68 6.00 3.77 5.21 2.99 3.98 2.78 2,89 0.84 110 Table No. 2.22 RUBBER : COLOMBO AUCTION PRICES BY DIFFERENT TYPES Rs/Kg Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 RSS1 RSS2 RSS3 54.91 54.77 68.89 102.58 127.04 141.17 202.34 233.69 267.90 202.79 402.71 513.05 416.27 52.10 52.84 66.84 99.86 126.59 138.66 196.82 229.20 264.79 198.62 394.52 504.56 407.99 50.16 51.48 65.25 97.38 122.96 136.66 192.93 226.62 262.22 194.76 390.63 492.45 395.13 RSS4 48.75 50.20 63.47 95.67 120.76 134.89 189.08 222.60 257.89 190.25 379.47 486.12 388.70 RSS5 Scrap Crepe (1XBR) Latex Crepe (1X) 47.67 49.31 61.86 93.71 118.34 133.75 186.07 219.29 254.93 183.82 373.01 470.92 391.92 49.62 46.31 56.91 90.06 117.62 124.68 179.50 206.96 245.61 176.28 364.11 461.83 375.93 66.70 58.49 76.92 122.71 142.43 152.70 242.75 236.82 273.79 208.62 455.94 575.65 409.10 Source: Rubber Development Department Colombo auction price for different types of rubber mainly RSS 1 - 5 grades, scrap crepe & latex crepe increased in every year over the decade excluding the year 2009, in which global financial crisis affected adversely to the rubber industry. However, having recovered from recession, attractive auction prices were realized in 2010 above 99% for RSS-1, 106% for scrap crepe and 118% for latex crepe compared with the previous year. The auction price showed a further growth in 2011 for all types. The auction prices for all types were turned down in 2012. This decrease was recorded in 17% - 20% range for RSS grades, 19% for scrap crepe and 29% for latex crepe respectively. All types of products recorded the highest auction price in 2011 due to depreciation of local currency, benchmarks in other rubber markets in Asia, prevailed gap between global rubber supply-demand, and favorable domestic market responses etc. In contrast auction price declined by the range of Rs. 100 to Rs. 165 per kg for all types in 2012. 111 10 - CM17140 112 113 Source : Rubber Development Department Chart 7 114 115 January February March April Latex Crepe 1X 382.63 413.50 451.81 469.25 1 373.21 409.40 444.68 457.40 2 363.00 403.20 441.56 451.33 3 362.00 398.14 437.50 447.17 4 358.00 393.00 437.36 447.00 Scrap Crepe 1 X Br 348.22 387.80 430.67 443.00 2 X Br 331.77 380.25 416.00 433.60 3 X Br 339.57 380.71 416.78 429.67 4 X Br 330.11 372.79 411.89 427.20 Flat Bark 331.50 343.33 404.16 403.33 Sheet RSS 1 381.42 431.71 461.66 465.68 RSS 2 383.57 426.71 448.86 457.67 RSS 3 376.67 413.30 442.25 445.33 RSS 4 367.75 407.43 426.17 435.00 RSS 5 358.00 394.00 416.00 429.08 Skim 313.33 334.43 378.89 431.90 Source: Forbes and Walker Commodity Brokers (Pvt) unq - unquoted. Month 410.00 406.00 393.60 385.20 373.42 366.42 372.67 358.55 345.20 unq 414.83 405.87 394.80 386.10 381.50 370.40 418.60 409.25 392.57 391.67 372.33 454.60 456.67 441.56 436.33 416.50 423.43 Ltd. June 438.00 432.79 429.83 424.56 426.10 May 437.96 422.21 408.40 392.50 384.33 370.61 378.00 368.70 352.72 342.78 331.25 409.07 406.39 396.63 390.03 387.56 July 363.29 356.93 345.42 339.75 318.00 311.42 336.78 332.00 324.56 314.29 292.00 382.00 372.50 356.33 353.00 347.67 422.42 407.70 389.00 361.00 359.00 292.00 361.63 332.67 324.08 320.60 296.40 407.60 399.25 388.38 377.38 372.69 August September 412.36 407.17 395.00 378.00 409.00 304.06 361.06 344.67 327.00 318.67 305.17 409.00 405.22 393.13 381.56 374.33 October 379.00 371.20 366.38 356.50 unq 292.50 338.22 331.71 323.44 312.22 301.75 379.17 376.88 365.25 353.56 347.56 374.42 370.17 360.40 348.67 343.00 313.60 348.00 336.88 323.84 315.75 305.00 378.00 376.40 364.00 358.00 352.50 Novem- December ber AVERAGE MONTHLY PRICES OF RUBBER AUCTION BY TYPE - 2011 416.27 407.99 395.13 388.70 391.92 344.31 375.93 366.12 356.77 349.83 336.37 409.10 404.45 393.82 388.98 384.56 Average Rs/kg Table No. 2.23 116 386.84 425.18 470.96 489.67 486.32 419.44 398.88 424.26 393.67 423.00 393.98 394.03 430.36 Rs/Kg 3.40 3.63 3.75 3.81 3.76 3.18 3.00 3.21 2.99 3.28 3.02 3.07 3.37 US$/Kg RSS Sheet Source: Rubber Development Department January February March April May June July August September October November December Average Month 683.79 541.76 632.10 631.10 654.72 736.63 680.79 631.69 609.22 582.92 518.40 594.00 618.25 Rs/Kg 6.00 4.62 5.04 4.91 5.06 5.58 5.12 4.78 4.62 4.51 3.98 4.63 4.85 US$/Kg Sole Crepe 370.63 389.36 443.18 473.20 450.15 434.43 400.09 391.02 379.88 377.62 362.05 380.39 407.18 Rs/Kg 3.25 3.32 3.53 3.68 3.48 3.29 3.01 2.96 2.88 2.92 2.78 2.96 3.19 US$/Kg Latex Crepe 421.34 415.40 448.21 484.79 487.70 446.76 416.57 468.01 391.94 366.38 387.48 107.27 351.20 Rs/Kg 3.70 3.54 3.57 3.77 3.77 3.38 3.14 3.54 2.97 2.84 2.97 0.84 2.75 US$/Kg TSR FOB PRICES ON MONTHLY RAW RUBBER EXPORTS - 2012 408.98 456.04 511.71 553.81 540.04 687.67 614.84 665.35 543.91 520.65 376.72 412.93 479.80 Rs/Kg 3.59 3.89 4.08 4.30 4.17 5.21 4.63 5.04 4.13 4.03 2.89 3.22 3.76 US$/Kg Centrifuged Latex & Other Table No. 2.24 Monthly Auction Price & Fob Price of Rubber - 2012 (Reference to Table No. 2.23 & 2.24) Average monthly auction prices recorded in the highest for Sheet (RSS), over the other types of processed natural rubber in 2012. A slight decline of prices has been reported in the month of January, August, November & December. The difference between the highest (in April) and the lowest (in December) price for latex crepe 1X grade was Rs. 91 per kg. For Latex Crepe type which was taken as the second highest average price has recorded at the Colombo auction with increasing prices from January to April while May to December prices was declined gradually other than the month of September and October on all Latex Crepe grades. Auction prices of other types i.e. Scrap Crepe, Flat Bark and Skim declined the later part of the year since July. There was a difference between FOB price and the auction price prevailed for RSS and latex crepe grade. The price margin was not significant between auction price & FOB price on RSS grades throughout the year. FOB prices on sole crepe were highest among all types exported recording upper end value of $ 6.0 per kg. In respect of Latex Crepe export FOB prices were high upto July and since then recorded a declining trend FOB prices of TSR type peaked in April & May at $ 3.77 per kg and declined significantly in the latter part of the year. Similarly export price of Centrifuged latex recorded much higher value in June while declining the FOB price November to February period. 117 RUBBER EXPORT and IMPORT Overview - 2012 ¾ Raw Rubber Exports Earnings Type Quantity(Mt) Direct Supply Sheets 11,222 Crepes 19,131 TSR 4,462 Centrifuged & other 2,562 Semi-Processed Reclaimed/Compounded 15,356 Total 52,734 Rs Mn 4,817 8,107 1,556 1,248 5,535 21,262 $ Mn 37.8 63.5 12.2 9,8 43.4 166.6 ¾ Major Destinations for Raw Rubber Mt $ Mn Malaysia 11,640 33.2 Pakistan 5,382 15.8 India 5,598 19.5 Germany 1,951 6.8 ¾ Raw Rubber Imports Sheets Centrifuged/other Synthetic Semi-Processed Total Import Cost Quantity(Mt) 11,147 4,529 33,789 21,599 71,064 Rs Mn 4,659 1,382 11,011 3,197 20,249 ¾ Rubber Products Import at cost of Rs. 13.7 bn ($ 107 mn) 1.7mn units of Tyres at Rs 6.9 Bn, Machinery/Vehicle Parts Rs 2.3 bn ¾ Rubber Products Export Earnings Rs. 103.9 Bn.($ 814 mn) Major Categories and Values • • • ¾ USA 1,723 6.3 Solid Tyre (18,4 mn units) Rs. 42.2 bn New Pneumatic Tyre (10.1 Mn units) Rs. 26.5 bn Gloves (25,190 mt) Rs 22.5 bn. Cess from : Imports - Rs 1,331 mn; Exports - Rs. 581 mn 118 $ Mn 36.5 10.8 86.3 25.1 158.7 119 10,566 9,523 14,983 16,079 18,502 12,246 19,800 18,079 17,257 24,402 20,914 13,561 11,057 Mt 546 522 1,011 1,571 2,204 1,706 3,759 4,014 4,583 4,863 7,563 6,936 4,758 Rs mn 2,971 2,808 2,601 2,185 1,996 2,724 2,493 3,225 3,283 2,110 2,152 2,471 1,486 mt 337 316 282 311 344 519 709 1,155 1,077 659 1,085 1,743 919 Rs mn Sole Crepe Source: Rubber Development Department 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year Sheet 10 73 177 626 2,723 305 601 656 506 226 71 - mt 0 2 10 52 77 34 79 102 98 28 14 - Rs mn Scrap Crepe Rs mn 16,737 1,168 16,986 1,126 16,174 1,094 14,335 1,568 11,669 1,848 12,371 1,866 16,333 3,467 17,503 4,112 15,335 4,255 13,683 2,732 18,472 6,927 20,904 11,101 17,645 7,187 mt Latex Crepe 1,756 1,830 537 1,187 2,880 2,136 4,515 5,979 4,986 6,541 2,844 3,655 4,582 mt 93 102 32 135 389 310 911 1,311 1,391 1,251 1,023 1,822 1,609 Rs mn TSR 462 731 1,636 788 2,554 1,853 2,601 5,979 7,251 9,028 7,050 2,014 2,607 mt 31 46 86 68 275 249 417 1,372 2,131 1,794 2,644 1,209 1,252 Rs mn Centrifuged Latex & Other RAW RUBBER EXPORT QUANTITY AND VALUE OF DIFFERENT TYPES 32,502 31,951 36,108 35,200 40,324 31,633 46,343 51,421 48,618 55,991 51,503 42,605 37,377 mt 2,175 2,115 2,515 3,705 5,137 4,684 9,341 12,066 13,535 11,327 19,256 22,811 15,726 Rs mn Total Table No. 2.25 120 1,272 1,815 1,782 1,414 461 505 256 237 894 643 919 860 11,057 Mt 492 772 839 692 224 212 102 100 352 272 362 339 4,758 Rs Mn 92 133 91 118 105 89 108 175 170 141 121 144 1,486 Mt 63 72 57 74 68 66 73 110 103 82 63 86 919 Rs Mn Sole Crepe Source -: Rubber Development Department January February March April May June July August September October November December Total Month RSS Sheet 1,781 1,825 2,972 1,576 1,246 896 860 1,229 1,366 1,455 1,085 1,354 17,645 Mt 660 710 1,317 585 561 389 344 480 519 549 393 515 7,024 Rs Mn Latex Crepe 425 472 604 189 315 207 125 96 499 381 204 1,064 4,582 Mt 179 196 271 91 154 93 52 45 196 140 79 114 1,609 Rs Mn TSR 483 694 545 228 215 34 42 43 59 17 141 106 2,607 Mt 197 316 279 128 116 23 26 28 32 8 53 44 1,252 Rs Mn Centrifuged Latex & Other MONTHLY EXPORT QUANTITY AND VALUE OF RAW RUBBER - 2012 4,053 4,940 5,994 3,524 2,342 1,731 1,391 1,778 2,988 2,637 2,470 3,529 37,377 Mt 1,592 2,067 2,763 1,734 1,124 783 598 764 1,202 1,052 950 1,097 15,726 Rs Mn Total Table No. 2.26 121 Source : Rubber Development Department Chart 8 122 Raw Rubber Export Earnings of Different Types (Reference to Table No. 2.25 & 2.26) During the decade from 2002 to 2012 raw rubber exports increased from 36,108mt in 2002 to 37,377 mt in 2012. Export earning also increased from Rs. 2.5 billion to Rs. 15.8 billion during the period. However, in 2012 compared to year 2011, quantity of export declined by 5,228 mt or 12%, while export earnings decreased by Rs. 7 billion or 31% due to low FOB prices prevailed throughout the year in all categories of rubber exports. Export of RSS sheets peaked in 2009 at 24,400 mt and started to decline in 2010. A sharp decline was recorded in 2011 & 2012 showing 13,561 mt and 11,507 respectively. In past years sole crepe export quantity remained at a steady level but in 2012 a significant decline recorded 985 mt or by 40%. No scrap crepe was exported in 2011 & 2012 at all as local demand was attractive in terms of prices. In the decade export of latex crepe maximized in terms of both quantity and earnings in 2011 but a drastic decline (35%) of earnings reported in 2012. TSR export reached at 6541mt. in 2009 declined to 4,582 mt in 2012 and earned the highest export income in 2011 due to attractive FOB price. Centrifuged Latex exports are declining sharply since 2009 as local manufactures’ demand was very high. In 2012, Rs. 1.3 billion earned with 2,607 mt of export quantity. Disaggregated monthly export data for 2012 highlights that sheet rubber quantity exports declined from May onwards. While sole crepe export was very low in January, March and June latex crepe recorded the lowest level in July Minimum quantity of TSR export recorded in August. Centrifuged latex recorded the lowest export quantity and earnings in October 2012. 123 Table No. 2.27 RAW RUBBER EXPORTS BY HS CODE - 2012 HS Head 4001.10 HS Code Description Natural Rubber (NR) Natural Rubber (NR) latex 40011010 & 90 Centrifuged & other latex 4001.21 40012110 40012120 40012130 40012140 40012150 40012190 4001.22 40012200 4001.29 40012911 40012912 40012913 40012914 40012920 40012940 40012950 40012960 40012990 40.02 40.03 40030000 40.04 40040090 40.05 40051020 40059100 40059900 40.06 400610 & 90 Smoked Rubber Sheets (RSS) RSS - 1 RSS - 2 RSS - 3 RSS - 4 RSS - 5 Other Smoked Sheets Technically Specified Natural Rubber (TSNR) TSNR Crepes Sole Crepe pale Crepe Brown Crepe Scrap Crepe Performance Quantity Value Mt Rs Mn 2,064 986 11,222 704 _ 3,495 4,270 2,588 165 4,817 315 _ 1,529 1,820 1,095 58 4,462 19,131 1,486 8,812 8,833 _ 1,556 8,107 919 3,790 3,398 _ Block Rubber Deproteinized Natural Rubber (DPNR) MG Rubber Other (SP Rubber) Other NR Natural Rubber - Sub Total Synthetic Rubber (SR) Semi - Processed Rubber Reclaimed Rubber Granules of waste, Parings & Scraps Compounded Rubber Compounded with carbon black or silica Plates, Sheets, Strips Other Compounded Other Forms of unvulcanized Rubber Strip & Oter types 160 68 169 103 1 1 152 85 16 5 37,377 15,726 1 1 Semi Processed - Sub Total Grand Total 15,356 5,535 52,734 21,262 Source : Sri Lanka Customs - Data from Statistical Unit. 124 952 1,894 12,483 320 190 11,973 71 134 5,326 244 157 4,926 27 4 Table No 2.28 RAW RUBBER EXPORTS BY DESTINATION 2009 Country 2010 2011 Quantity MT Value Rs Mn Quantity MT Pakistan 9,473 1,798 7,680 2,812 Germany 1,606 370 3,269 1,128 India 14,100 2,846 10,430 3,842 3,865 USA 2,691 615 2,555 1,055 3,259 10,902 2,008 12,693 Japan 1,462 333 1,755 788 2,251 1,425 1,413 670 Italy 1,326 285 1,559 629 1,401 788 1,273 598 326 56 498 210 226 129 388 178 China 2,625 486 789 293 1,371 858 722 320 Spain 330 75 323 122 177 108 191 84 Malaysia UK Value Quantity Rs Mn MT 2012 Value Quantity Rs Mn MT Value Rs Mn 7,628 3,570 5,382 2,014 2,468 1,444 1,951 867 1,911 5,598 2,483 1,945 1,723 810 6,134 11,640 4,238 4,344 12,635 Turkey 715 145 1,054 398 533 285 250 105 South Korea 581 129 376 142 194 131 184 104 1,240 238 1,839 656 460 246 495 222 Singapore Taiwan 160 39 121 54 207 120 183 85 South Africa 499 171 759 394 1,124 695 476 301 Hong Kong 660 148 728 365 654 440 240 112 France 459 100 312 154 370 234 286 141 Chile 205 42 95 38 51 30 10 5 Netherlands 132 37 328 137 317 190 217 100 Belgium - - - - 306 178 246 121 Kenya - - - - 250 119 455 190 Sweden - - - - 225 139 112 53 Vietnam - - - - 987 735 970 560 Other 6,450 1,394 4,070 1,696 1,647 955 2,972 1,367 Total 55,942 11,315 51,503 19,256 42,606 22,811 37,377 15,726 Source : Rubber Development Department 125 Raw Rubber Exports by Type & Destination (Reference to Table No. 2.27 & 2.28) Total quantity of raw rubber exports were categorized under customs Harmonized System (HS) head 40.01 to 40.06 was 52,734 mt with corresponding export value of Rs. 21,262 mn in 2012. Under HS head 40.01 all types (Centrifuged Latex, RSS, TSNR, Crepe, Other NR) are direct supplies from estate plantations and smallholdings based on field Latex collected and subsequently processed in the factories or grass root processing centers. Total quantity of Crepes exported was 19,131 mt while realizing Rs.8,107 mn (52% of total) revenue earning in 2012. Other than Sole Crepe the type of Latex Crepe included both Pale Crepe & Brown Crepe. Crepe is the main processed product of RPC factories and a few private factories. The volume of RSS grades, TSNR & Centrifuged Latex categories exported together was 17,748 mt and with corresponding value of Rs.7,359 mn. Block rubber is included in TSNR category. Other NR type (such as DPNR, MG, SP) were not significant comprising of total 498 mt and value of Rs.262 mn. Thus, total quantity exported as direct supply (under HS head 40.01) in 2012 was 37,377 mt while total earnings realized was Rs.15,726 mn. In table 2.28 quantity of direct NR supply exported is presented sorted by destination. Pakistan which was the highest importer in 2008 declined in share and became 3rd place in 2012. In 2009 India was top destination while from 2010 to 2012 Malaysia was the highest importer of Sri Lankan rubber supply. In addition, Germany, USA, Japan, Italy, China and Vietnam are the other significant natural rubber purchasing countries. In 2011 a few new destinations for raw rubber exports emerged while declining trends were shown for conventional exporters such as UK, Chile, and Spain. Other than direct supply of NR (under HS 40.01) there are semi-processed rubber products which are categorized as raw rubber under HS head 40.02 to 40.06 as given in table 2.27. Main such types are Reclaimed rubber, Granules of waste or scrap and Compounded rubber which are processed by local manufacturers for local consumption or export purpose. In 2012 Reclaimed, Granules and Compounded categories were exported 952 mt, 1,894 mt and 12,483 mt respectively and earned cumulative export value of Rs.5,531 mn. 126 Table No 2.29 RUBBER IMPORTS BY TYPES 2000 - 2012 MT Natural Rubber Sheet Year Sole Scrap Latex Crepe Crepe Crepe TSR Centrifuged Latex & Other Total Synthetic Rubber 2000 2,223 0 0 0 21 518 2,762 16,851 2001 636 0 0 13 0 78 727 15,168 2002 4,315 0 0 0 0 584 4,899 15,128 2003 5,093 0 0 0 121 3,965 9,179 17,636 2004 8,836 0 0 44 261 5,116 14,257 20,634 2005 9,101 0 0 0 40 1,164 10,305 19,593 2006 4,505 1 0 90 0 2,589 7,185 45,346 2007 7,467 0 0 0 0 1,181 8,649 30,234 2008 2,805 0 0 0 0 830 3,635 29,521 2009 3,139 0 0 0 61 1,992 5,192 21,974 2010 8,236 0 0 2,035 197 4,156 14,624 29,101 2011 11,773 0 0 0 42 4,707 16,522 42,084 2012 11,147 68 0 17 187 4,257 15,675 33,789 Source : Rubber Development Department : Sri Lanka Customs 127 11 - CM17140 Table No. 2.30 RAW RUBBER IMPORTS BY HS CODE - 2012 HS Head HS Code 40.01 4001 4001 4001 4001 4001 4001 4001 4001 4001 4001 4001 4001 4001 4001 40.02 4002 4002 4002 4002 4002 4002 4002 4002 4002 4002 4002 4002 4002 4002 40.03 4003 40.04 4004 40.05 4005 40.06 4006 Description Natural Rubber (NR) in primary forms 1010 to 90 Centrifuged NR latex & Other Latex 21 Smoked Rubber Sheets (RSS) 2110 RSS 1 2120 RSS 2 2130 RSS 3 2140 RSS 4 2150 RSS 5 2190 Other RSS 2200 Technically Specified Natural Rubber (TSNR) 29 Crepes 2911 Sole Crepe 2912 Pale Crepe 2920 Block Rubber 2990 Other NR Natural Rubber Sub Total Synthetic Rubber in primary forms 1100 Latex of SBR/ XSBR 1900 Other - SBR & XSBR 2000 Butadiene Rubber (BR) 3100 Isobutene -Isoprene (butyl) Rubber (IIR) 3900 Haloisobutene -isoprene rubber (CIIR/ BIIR) 4100 Chlorobutadiene rubber (CR) - Latex 4900 Chlorobutadiene rubber (CR) - Other 5100 Acrylonitrile - butadiene rubber (NBR) Latex 5900 NBR - other 6000 Isoprene rubber (IR) 7000 Ethylene - propylene (EPDM) 8000 Mixture with any product of NR 9100 Latex of other SR 9900 Other - Synthetic Rubber (SR) Synthetic Rubber Sub Total Semi Processed Rubber 0000 Reclaimed rubber 0010 to 90 Granules, Scrap of tyre & waste & curing bags Compounded rubber, unvulcanised 1011 to 99 Compounded with carbon black or silica of NR 10 to 90 Other forms of rubber & articles of unvulcanised Semi -Processed Sub Total Grand Total Source : Sri Lanka Customs - Data from Statistical Unit 128 Performance Quantity Value mt. Rs.mn. 4,217 1,267 418 3,765 4,704 192 1,516 1,982 2,260 126 969 53 68 17 61 40 15,676 20 8 20 13 6,041 150 9,179 5,200 285 190 683 616 9,611 42 3,370 2,008 127 76 342 446 2,186 4,760 1,013 256 309 126 71 2,541 935 193 85 33,789 11,011 7,850 5,544 745 407 4,744 1,590 3,462 455 21,599 3,197 71,064 20,249 Imports of Raw Rubber (Reference to Table No. 2.29 & 2.30) As one of the main NR producing countries, Sri Lanka discourages the import of NR through high import Cess rate (5% on CIF) along with usual other Customs duties. On the other hand fairly high Cess rate (Rs. 15 per kg at present) on export of NR is imposed in order to discourage the export of raw rubber out of local production and in turn divert local production to local consumption for finished products manufacturing. In 2012, Sri Lanka imported quantity of sheet rubber 11,147 mt to overcome the scarcity of NR in certain months to meet the demand of rubber product manufacturers. Compared to RSS export of 11,222 mt the imports are also in similar range of quantity. Within crepe types Sole Crepe and Pale Crepe were imported very small quantity only 68 mt and 17 mt respectively. TSR and block rubber together imported was 187 mt. Centrifuged latex of 4,217 mt was imported while the quantity of such export was as low as 2,064 mt. Thus, in 2012 total import of NR under HS 40.01 was 15,675 mt with the corresponding CIF value of Rs. 6,041 mn. Other than NR types, the main imported category was Synthetic rubber related to HS head 40.02 and in 2012 the quantity imported was 33,789 mt valued at Rs. 11,011 mn. As Sri Lanka is not a producer of synthetic rubber and certain products must incorporate synthetic rubber to meet required standard the need is there to import synthetic rubber. In the decade synthetic rubber import was within the range of minimum 15,000 mt and maximum 45,000 mt on yearly basis. Compared to previous year, synthetic demand decreased in 2012 by 8,295 mt, which was substantial. Sri Lanka imports semi processed product type of raw rubber under HS heads 40.03 to 40.06. The quantity imported in such forms of Reclaimed, Scraps, Compounded, other form of unvulcanized was 21,599 mt at CIF value of Rs.3,197 mn. In the mean time such types were also exported. In 2012, total of imported raw rubber quantity under three main categories were direct NR 15,675 mt, synthetic 33,789 mt, semi processed products 21,599 mt totaling to 71,064 mt with cumulative CIF value of Rs.20,249 mn. 129 Table No. 2.31 RUBBER FINISHED PRODUCTS IMPORTS BY HS CODE - 2012 HS Head HS Code Description 40.07 40070000 Rubber thread and code 40.08 400911 to 42 Plates, sheets, strip, rods & profile shapes Products of cellular rubber products of non cellular rubber Tubes, pipes & hoses of vulcanised rubber Various types of products 4010 11 to 39 Conveyor/ transmission belts or belting V belts & other types 40.09 40.1 40.11 40.12 40.13 400811 & 19 400821 & 29 40119910-90 New pneumatic tyres of rubber of a kind used on motor cars (No.) of a kind used on buses & lorries (No.) of a kind used on aircraft (No.) of a kind used on motorcycles (No.) of a kind used on bicycles (No.) other - Agri. Forestry, construct and industry vehicle/ machinery (No.) of a kind used for auto tryshows (No.) 4012.11 to 20 4012.9010 - 90 Retreated & solid tyre Retreated tyre (No.) solid tyre (No.) 4013 1000 4013 2000 4013 9000 Inner tubes of rubber of a kind used on cars, buses & lorries (No.) of a kind used on bicycles (No.) other use of vehicles (No.) 4011 1000 4011 2000 4011 3000 4011 4000 4011 5000 4011.61 to 94 40.14 40.15 40.16 40.17 4014.10 &90 40151100 4015.19 & 90 40161000 4016 9100 4016 9200 4016.93 09 - 90 40169400 4016.9510 & 90 4016.99 09-90 40170010 & 90 Hygenic/ Pharmaceutical articles Contraceptives Gloves of vulcanised, unhardened rubber surgical gloves Other - Industrial gloves Other articles of vulcanised rubber of cellular rubber Floor covering & mats Erasers Gaskets, washers & oil seals Boat or dock fenders Air bags, steam bags and inflatable articles Being parts of textile, agriculture, diary & poultry machinery & equipments Articles of hard rubber Waste, scrap & ebonite… etc Total Mt/Value Total No (Units)/Value Total Value 2012 Annual Average Exchange Rate , 1 US$ = Rs.127.60 Source : Sri Lanka Customs : Data from Statistical Unit 130 Performance Quantity Value mt. Rs. mn. 210 111 237 562 103 461 875 610 1,108 819 1,652,124 550,062 195,666 503 224,097 564,003 51,962 6,887 2,697 3,040 58 375 169 379 65,831 169 208,486 764 207,722 159 14 145 2,688,995 898,053 847,433 943,509 1,018 604 67 347 91 1,065 943 122 116 924 794 130 2,639 20 390 427 646 15 134 1,007 2,426 16 61 67 1,164 6 175 937 31 6,817 4,549,605 20 5,588 8,064 13,653 Import of Rubber Finished Products (Reference to Table No. 2.31) Under the same HS heads 40.07 to 40.17 export as well as import of different types of rubber products is provided. In table 2.31 such types of imports in terms of quantity and CIF value are presented for the year 2012. Sri Lanka imported different types in quantity of 6,817 mt and total number of units 4.5 million with total CIF value of Rs.13,653 mn. Only tyres and tubes (40.11, 40.12 & 40.13) are given in units while all other products are in metric tons. The main type of imported finished rubber was New Pneumatic tyres (HS 40.11) which accounted for 1.7 mn units with corresponding value of Rs. 6,887 mn or 50% of total CIF value. In terms of CIF value the next type ranked second was articles of vulcanized rubber (Floor mats, Gaskets, Washers, Seals, Machinery parts) which accounted for Rs.2,426 mn or 18% of total. Inner Tubes of rubber (HS 40.13), Belts (HS 40.10), Pipes/hoses (HS 40.09) were followed by CIF values Rs 1,018 mn, 819 mn, 610 mn respectively. Other types of import (threads, cellular & non cellular rubber products, solid tyres, gloves and contraceptives) carried moderate quantity and value of CIF at Rs. 1,894 mn or 14% of total CIF. In 2012, Sri Lanka exported new pneumatic tyres greater than 4 fold of such imports in value terms. In respect of solid tyre category compared to import value, export from Sri Lanka was more than 275 times. Similarly gloves were exported 24 fold of import value of the same. As rubber product imports are subject to the above 5% of cess rate on CIF value in 2012 the Cess income collected was Rs.683 mn. 131 132 30,623.6 10,879.2 (6) Apparel Clothing Accessories Of Which : Surgical gloves Industrial gloves 1.1 2.5 1,010.3 3.5 2006 (5) Tyres and Tubes Of Which : New Pneumatic tyres Solid tyres Tubes (4) Rubber Belts V - Belts & Other type belting (3) Rubber Hoses Tubes, Pipes, & Hoses (2) Unhardened Rubber - Plates,sheets,strips,rods & profile shapes of which : products of cellular rubber products of non cellular rubber (1) Rubber Thread & Cord Rubber Product 12,235.3 34,376.7 1.3 2.7 882.0 7.3 2007 12,713.7 36,594.7 8.1 3.4 781.0 158.3 2008 13,070.3 24,591.8 0.0 0.7 1,338.3 23.6 2009 15,335.4 39,396.0 1.0 5.3 1,908.0 5.2 2010 20,012 4,553 15,459 63,169 23,821 39,065 283 13 22,546 5,731 16,815 69,049 26,463 42,208 378 26 20 1,404 854 1,023 789 30 2,258 7 2012 Rs Mn Table No 2.32 1,812 22 2011 EXPORT INCOME FROM DIFFERENT PRODUCT CATERGORIES OF RUBBER 133 56,205.9 - 9,341.5 46,864.4 65,671.3 - 12,066.0 53,605.3 644.2 72,319.7 - 13,535.0 58,784.7 633.2 55,627.8 - 11,327.0 44,300.8 376.6 137.3 2,664.0 22,811.0 95,169.0 240 - 83,224.5 120,644.0 - 19,255.7 63,968.8 392.1 153.5 125,182.0 5,535.0 15,726.0 103,921.0 242 - 6,684 1,963 1,126 9,773 2012 Rs Mn Sri Lanka Customs Note : For the year 2012, this table is improved incorporating disaggregated value in main products under product categories 2,5,6 & 7 to understand easily and compatible to simillar other tables. * Semi Processed include Granules, Reclaimed & Compounded rubber mainly. Source : Export Development Board Total Export Value Semi Processed Rubber Total * Raw Rubber Total Total of Rubber Products 414.2 (9) Rubber Products Unclassified 110.1 9,871 2011 6,224 123.7 (8) Footwear 96.8 6,772.3 2010 - Parts of macinery & equipments 4,762.2 2009 2,482 7,782.2 2008 - Gasketes, Washers & other Seals 5,359.0 2007 1,165 3,806.3 2006 - Floor covering & Mats (7) Articles of Hardened Rubber Of which : Rubber Product EXPORT INCOME FROM DIFFERENT PRODUCT CATERGORIES OF RUBBER (Contd.) Table No 2.32 Table No. 2.33 RUBBER FINISHED PRODUCTS EXPORT BY HS CODE - 2012 HS Head HS Code Description 40.07 40070000 Performance Quantity Value Mt Rs Mn Vulcanized rubber thread & cord Plates, sheets, strips & profile shapes 12 7 40.08 400811 & 19 Products of cellular rubber 1,804 1,404 400821 & 29 Products of non cellular rubber 2,265 854 40.09 400911 to 42 Tubes, pipes & hoses of vulcanized 23 20 40.10 401011 to 39 Conveyor/Transmission belting 62 26 (v-belts) 40.11 New Pneumatic Tyres of Rubber 10,065,455 26,463 40111000 Tyres on motor cars (No) 45,490 454 40112000 Tyres on buses & lorries (No) 1,574,889 3,082 40113000 Tyres on aircraft (No) 303 19 40114000 Tyres on motorcycles (No) 30,908 24 40115000 Tyres on bicycles (No) 6,463,952 2,120 401161 to 94 Tyres on Industrial vehicles/ 434,071 2,407 machines (No) 40119910 Tyres on Auto Trishaws(No) 83,566 1,446 40119990 Other type of Tyres (No) 1,432,276 16,911 40.12 Retreated & Solid Tyres of Rubber 18,371,967 42,208 401211 to 90 Retreated Tyres (No) 2,751 7 40129010 Solid Tyres (No) 7,044,999 24,433 40129090 Other types of solid tyres(No) 11,324,217 17,768 40.13 Inner tubes of Rubber 401310, 20 & 90 Tubes on motor cars, bicycles & 1,438,750 378 other (No) 40.14 401490 Contraceptives (mt) 284 218 40.15 Articles of apparel - Gloves etc 25,190 22,546 40151100 Surgical Gloves 4,483 5,731 401519 & 90 Other Industrial Gloves 20,707 16,815 40.16 Other Articles of Vulcanized 18,453 9,792 rubber 40169100 Floor coverings and mats 5,058 1,126 40169390 Gaskets, washers & seals 1,138 1,963 40169910 to 90 Being parts of textile machinary and other type of machinary/ equipments/ vehicles 12,233 6,684 40169510 & 90 Other miscellaneous items 24 19 40.17 Articles of Hard rubber 40170010 &90 Waste, scap & ebonite.. Etc 57 4 Sub Total mt/ Value 48,150 34,871 Sub Total No Units/ Value 29,876,172 69,050 Total Value 103,921 Source : Sri Lanka Customs Statistical Unit. 134 Rubber Finished Products Export (Reference to Table No. 2.32 & 2.33) In accordance with the table 2.32, since 2006 export value of rubber finished products increased gradually except for 2009. In 2006 it was Rs.46.9 bn and by 2008 with a 25% growth recorded to Rs.58.8 bn. However, with global economic recession experienced in 2009 export earnings declined by 25% over the previous year (2008). Having recovered from the recession in 2010 the growth recorded was a moderate 9% against the year 2008. In 2012 the highest export earnings achievement was recorded with Rs.103.9 billion export earnings and 9% growth over the previous year. During the period from 2006 to 2012 total rubber product export earnings increased by Rs.57 billion or 122% which is extremely outstanding. The table 2.32 is improved since 2011 disaggregating export values in main product categories for easy understand and to make compatible to similar type of other tables. In 2012, the highest export earnings were realized by solid tyre export of Rs.42.2 billion with corresponding to 18.4 million units. This was followed by new pneumatic tyre export amounting to Rs.26.5 billion and 10.1 mn units. Thus for tyre sector alone export earning was Rs.68.7 billion or 66% of total earnings of the current year. Other than tyre sector Gloves export earned Rs.23 billion or 22% of total value of export. Other articles of vulcanized rubber under HS head 40.16 (Mats, Gaskets, Washers, Seals and Machinery parts) accounted Rs. 9.8 bn or 9% of total export value. Balance 3% of export earnings were realized from cellular and non-cellular rubber products (HS 40.08), Inner rubber tubes (HS 40.13) and contraceptive (HS 40.14) exports. Thus, in 2012 total export income of Rs.103.9 billion was earned exporting rubber finished products manufactured in local firms. Total units of tyres & tubes exported was 29.9 million while other products measured in metric tons were 48,150. 135 136 74.95 74.32 86.84 80.46 86.02 71.42 94.40 103.57 118.69 95.26 139.10 122.57 1,147.60 Imports 26.41 29.01 38.56 52.11 30.27 28.34 34.65 57.61 44.73 42.68 31.72 55.38 471.47 45.40 28.30 17.30 22.88 13.40 14.52 23.87 19.00 18.54 39.28 15.04 20.37 277.90 2011 Exports Local Source : Sri Lanka Customs Rubber Development Department January February March April May June July August September October November December Total Month 146.76 131.63 142.70 155.45 129.69 114.28 152.93 180.18 181.96 177.22 185.86 198.32 1,896.97 Total 118.62 78.12 125.93 116.20 101.35 99.57 106.29 103.01 112.30 120.08 129.28 120.10 1,330.86 Imports RUBBER : MONTHLY CESS COLLECTION 63.40 76.70 93.00 56.10 38.90 28.20 24.18 31.26 43.84 42.46 39.66 43.01 580.71 17.45 21.86 30.88 20.26 14.40 29.79 15.23 17.10 17.84 18.69 15.99 16.01 235.45 2012 Exports Local 199.47 176.68 249.81 192.56 154.65 157.56 145.70 151.37 173.98 181.23 184.93 179.13 2,147.02 Total Rs Mn Table No. 2.34 Monthly Rubber Cess Collection (Reference to Table No. 2.34) Compared to previous year, the total cess collection on rubber and rubber products increased by 13% in 2012. Cess at 5% of CIF value on rubber and rubber product imports increased by Rs.183 mn over the previous year. Although quantity of raw rubber exports in 2012 declined by 5 mn kg the export cess collection increased by 23% due to cess rate adjustment from Rs.4 to Rs.8 per kg and further adjustment upwards (Rs. 15 per kg) in the later part of 2011. Cess collection on local consumption of local rubber supply at a fixed rate of Rs.4 per kg depends on quantity consumed by manufacturers yearly. Local consumption of raw rubber by rubber product manufacturers in 2011 & 2012 was 112 and 110 mn kg respectively. When this rate is applied to collected amount the consumption figure should tally if cess was collected without any arrears. However, reported cess collection of Rs.235 mn in 2012 accounted for local consumption of raw rubber only 59 mn kg which was under stated compared to actual local consumption given i.e. 110 mn kg leaving substantial gap. This needs to be clarified, as recent industry survey on manufacturer confirmed that actual consumption was 75mnkg in 2012. 137 RUBBER WORLD Overview - 2012 ¾ Rubber Extent (Thousand Hectares) – 12,127 Asia Africa 11,225 (93%) 613 (5%) America 289 (2%) ¾ Extent of ANRPC and Non-ANRPC (’000 ha) ANRPC Member Countries 10,655 (87.8%) Non- ANRPC Countries 1,476(12.2%) ¾ Extent of Major Growers (’000 ha) – 83% Indonesia - 3,484 Thailand - 2,761 Malaysia - 1,041 Vietnam - 910.5 China India ¾ Rubber Production (Thousand Metric Tons) – 11,623 ANRPC - 10,647 (92%) Non-ANRPC Asia - 10,817 (93.2%) Africa America - 312.1 (2.5%) Top Three Producers (’000 mt) 7,741 (68%) Thailand - 3,778 Indonesia - 3,040 Malaysia ¾ ANRPC Performance -2012 Production/Tapped Area = Yield 1,454 kg/ha Top three (yield) Countries (kg/ha) • Thailand - 1,903 • India - 1,823 • Vietnam - 1,707 Cumulative Status (’000 mt) • Consumption - 6,620 • Export - 8,184 • Import - 4,839 138 - 1,110 759 - 977 (8%) - 493.8 (4.3%) - 923 Table No. 2.35 EXTENT OF WORLD RUBBER PLANTATION '000 Ha Country Brazil Guatemala Mexico Cameroon Ivory Coast Gabon Ghana Liberia Nigeria Congo Bangladesh Cambodia China India Indonesia Malaysia Myanmar Papua N.G. Philippines Sri Lanka Thailand Vietnam TOTAL Year 2011 2010 2010 2011 2011 2011 2010 1999 2011 1999 2009 2012 2012 2012 2012 2012 2011 2007 2012 2012 2011 2012 Total 184.5 90.0 14.0 52.0 190.0 28.5 16.9 108.9 182.0 35.0 40.8 280.3 1,110.0 759.0 3,484.0 1,041.0 504.7 24.5 178.6 130.8 2,761.0 910.5 12,127.0 Source : International Rubber Study Group (IRSG) Association of Natural Rubber Producing Countries (ANRPC) 139 140 785 9,690 599 796 856 World Total 9,827 10,065 10,128 Source : International Rubber Study Group (IRSG) Association of Natural Rubber Producing Countries (ANRPC) 820 2,440 856 98 137 3,164 711 644 34 8,905 2009 60 129 112 81 45 203 156 121 116 89 79 42 183 167 94 108 73 65 41 178 39 881 2,751 1,072 103 129 3,090 660 548 37 9,272 2008 85 123 93 83 49 194 229 811 2,755 1,200 101 118 3,056 606 590 33 9,269 853 2,637 1,284 88 109 3,137 555 533 32 9,229 1. India 2. Indonesia 3. Malaysia 4. Philippines 5. Sri Lanka 6. Thailand 7. Vietnam 8. China 9 Cambodia ANRPC Member Countries Total Other Countries 10. Liberia 11. Brazil 12. Myanmar 13. Guatemala 14. Nigeria 15. Ivory Coast 17. Other Non ANRPC Countries Total 2007 2006 Country WORLD RUBBER PRODUCTION 895 10,406 62 136 120 83 54 232 208 851 2,736 939 99 153 3,252 752 687 42 9,511 2010 936 11,261 65 166 128 89 55 234 200 893 3,013 996 106 158 3,569 812 727 51 10,325 2011 977 11,623 64 172 136 95 56 254 200 919 3,040 923 111 152 3,778 864 795 65 10,647 Mn kg 2012 Table No. 2.36 141 '000 mt Kg/ha 2. NR Production 3. Average Annual Yield to tapped area 4. Annual growth rate of production 5. NR Consupmtion 6. NR Gross Export 7. NR Gross Import 8. Area Planted New Planted Replanted 60 0 38.0 2.2 27.5 280.0 55.0 65.0 1,166 3,834 14.0 3,368 40 25 9.4 1,110 640 795 1,242 Cambodia China Source : Association of Natural Rubber Producing Countries (ANRPC) '000 mt '000mt '000mt '000 ha '000 ha % '000 ha Unit Total Area Tapped Area 1. Area Item 988 15 251.0 24 17 2.9 759 504 919 1,823 India 502 2,532 27.0 10 50 0.9 3,484 2,814 3,040 1,159 Indonesia 459 1,344 871.4 17 37 -7.3 1,041 631 923 1,462 72 39 0.1 19 0.9 4.7 179 84 111 1,324 110 36.6 15.7 3.5 4.3 -3.8 131 104 152 1,459 Mala- Phillip- Sri ysia pines Lanka KEY RUBBER INDICATORS OF ANRPC MEMBERS - 2012 505 3,121 3.5 - 5.9 2,761 1,985 3,778 1,903 Thailand 150 1,023 302.0 79 12 6.4 911 506 864 1,707 Vietnam Table No. 2.37 World Rubber Extent & Production (Reference to Table No. 2.35, 2.36 & 2.37) At present total extent of World rubber plantation stands at 12,127,000 hectares. Out of this extent 10,655,000 ha or 88 % belongs to 9 ANRPC member countries in Asia. The extent of rubber in rest of the World (non ANRPC countries in Asia, Africa & America) is about 1,472,000 hectares or 12% of the World total. Although data coverage is not comprehensive around 80% of the extent came under the smallholding sector while 20% was in estate sector representing the large scale plantations with the ownership of State or private sector companies. Out of total rubber extent (10,655,000 ha) of ANRPC countries, 69% or 7,323,000 ha was at matured (tapped area) stage from which NR production of 10,647,000 mt is realized at present. Thus, in 2012 average yield was recorded at 1,454 kg per hectare/ year while varying yield level range (1,159 - 1,903 kg per ha) is recorded for individual countries. Despite total world rubber production increased since 2006 to 2011 (with exception in 2009) at an average annual growth of 2.4 %, in 2012 it grew at a high rate of 3.2%. The growth of ANRPC member countries alone averaged 2% during the period of 2006-2011, and in 2012 the growth was remarkable as high as 3.7%. With regard to ANRPC member countries Thailand, Indonesia, Malaysia, India, Vietnam and China are the major producers ranked in order for the period between 2005 and 2012. Among non ANRPC countries major share of rubber production comes from Brazil, Ivory Coast and Myanmar throughout. Total production of this group of countries increased from 599 mn kg in 2006 to 977 mn kg in 2012 by 63% while annual average growth of production recorded was 9% which is much higher than ANRPC. Key rubber indicators as given in table 2.37 highlighted that the highest yield was recorded for Thailand (1,903 kg/ha) followed by India & Vietnam in 2012. In ANRPC group the NR consumption out of ANRPC production was 62% leaving the balance for export, at present. The formula on NR Production, plus import, minus export, equal to consumption adjusting with stock almost tallied in respect of cumulative parameter values for ANRPC in 2012. Total area replanted of ANRPC stood at the rate of 2% of tapped area in 2012 while new planted area was 2.2% of total rubber extent. 142 ESTATE SECTOR 143 144 145 Hapugastenne Watawala Balangoda Kahawatte Bogawantalawa Malwatte Valley Maskeliya Agalawatte Talawakele Kelani Valley Horana Agarapatana Maturata Elpitiya Madulsima Kegalle Pussellawa Kotagala Namunukula Udapussellawa Chilaw Pl Ltd Kurunegala Pl Ltd Elkaduwa Pl Ltd JEDB SLSPC Total Source:- RPCs, State Plantations 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 RPCs & State Agency 19 20 23 16 27 23 18 15 16 27 16 21 19 13 12 17 24 22 19 7 8 10 10 17 12 431 2011 20 19 22 16 28 23 18 15 14 26 16 21 19 13 12 17 24 21 19 7 8 9 11 17 12 427 2012 No. of Estates 9,234 11,161 9,399 9,096 12,903 9,519 10,277 7,697 5,132 9,231 4,875 7,832 6,692 6,148 5,393 7,335 9,002 8,798 7,095 2,815 5,297 4,637 2,719 6,181 6,168 184,637 4,998 7,111 5,674 5,334 8,018 6,891 5,534 5,895 3,992 6,598 3,881 6,395 5,549 4,354 3,766 5,599 5,383 5,816 5,686 2,269 3,756 3,785 1,969 4,234 3,020 125,507 535 647 572 511 775 552 650 473 450 707 432 684 544 370 486 499 636 663 404 248 185 240 179 370 272 12,084 2011 2012 615 723 601 618 716 487 726 466 466 696 469 769 609 360 450 356 714 702 377 257 127 189 128 389 320 12,330 Staff 8,669 11,427 10,590 7,767 14,484 10,709 13,348 7,525 10,324 13,935 7,562 14,232 9,207 6,589 8,693 7,165 9,074 10,632 6,932 4,017 820 1,259 1,901 5,807 4,567 207,235 7,833 11,039 10,032 7,009 13,067 9,839 12,602 7,108 9,386 12,711 7,552 12,796 8,925 6,429 7,978 6,609 8,812 9,831 6,797 3,813 791 939 1,758 5,482 4,274 193,412 2012 Table No. 3.1 Labour 2011 STATE PLANTATIONS (2011 - 2012) Extent Bearing Ha 2011 2012 9,106 5,623 10,307 7,285 7,180 7,653 9,108 5,592 11,527 7,927 9,232 6,970 7,450 5,512 8,295 5,727 4,995 3,961 9,787 7,101 4,950 3,994 6,666 6,391 6,312 5,367 6,080 4,394 5,375 3,781 7,608 5,894 9,149 5,434 9,160 6,044 8,196 6,024 2,787 2,226 5,953 4,724 4,888 3,669 2,437 1,975 4,524 4,456 4,043 4,884 175,115 132,608 Extent Cultivated Ha 2011 2012 REGIONAL PLANTATION COMPANIES (RPCs) AND 146 418 411 408 407 401 401 409 388 401 401 400 RPCs 374 370 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 SLSPC 18 14 18 14 18 14 16 14 16 11 16 11 17 12 17 12 17 12 17 12 17 12 State Plantations 57 57 JEDB 180,410 176,399 173,518 174,593 166,150 163,231 166,137 156,765 165,785 165,242 164,659 RPCs 159,635 153,270 RPCs SLSPC 6,461 7,812 6,445 7,803 6,443 7,697 5,670 6,058 5,163 5,813 5,159 6,629 6,820 6,624 6,300 6,585 6,215 6,567 6,236 6,614 6,087 3,710 State Plantations 25,002 21,845 JEDB Extent Cultivated 134,120 130,555 128,257 127,244 118,710 124,581 122,691 118,559 123,060 121,580 121,001 RPCs 112,900 108,743 RPCs Land extent in Hectare Source:- RPCs, JEDB and SLSPC Note: The RPC Category includes 3 Plantations Limited of Chilaw, Kurunegala and Elkaduwa 2011 2012 RPCs Year No. of Estates SLSPC 4,481 4,814 4,471 4,888 4,472 4,806 4,219 3,788 4,307 3,639 4,300 4,011 4,667 4,059 4,799 4,025 4,787 3,997 4,811 3,075 4,311 3,620 State Plantations 19,708 16,764 JEDB Extent in Bearing LAND UTILIZATION IN REGIONAL PLANTATION COMPANIES AND JEDB, SLSPC Table No. 3.2 147 14,260 13,813 13,491 13,249 13,406 13,279 12,811 12,129 12,288 12,162 12,446 RPCs 10,838 11,177 RPCs SLSPC 451 479 427 466 467 479 478 395 446 366 376 393 430 404 416 363 393 331 375 317 375 256 State Plantations 1,246 1,153 JEDB 261,417 255,226 249,807 239,902 236,527 233,046 231,845 218,130 217,035 200,439 202,204 RPCs 192,881 180,168 RPCs SLSPC 8,258 8,211 8,290 8,483 8,113 8,180 7,322 6,799 7,953 6,560 6,917 6,515 6,684 6,152 6,402 5,607 6,055 5,564 5,693 5,424 5,810 4,812 State Plantations 14,354 13,244 JEDB Labour Force Table No. 3.3 380.00 380.00 115.25 121.00 121.00 121.00 135.00 135.00 170.00 200.00 285.00 285.00 285.00 Daily Wage 30.00 30.00 20.00 20.00 20.00 30.00 30.00 30.00 Price Share 105.00 105.00 25.00 70.00 70.00 90.00 90.00 90.00 Incentive 515.00 515.00 115.25 121.00 121.00 121.00 135.00 180.00 260.00 290.00 405.00 405.00 405.00 Total Labour Wage Rates for Male and Female Pertaining to Tea and Rubber (Rs) Source: RPCs, JEDB & SLSPC Planters' Association of Ceylon Note: Chilaw Pl Ltd., Kurunegala Pl Ltd., Elkaduwa Pl Ltd., JEDB & SLSPC under State Plantations 2011 2012 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year Staff STAFF, LABOUR FORCE AND WAGE RATE FOR RPCs, JEDB AND SLSPC 2000 - 2012 Crop Extent & Strength of Labour Force in Estate Sector (Reference to Table No. 3.1, 3.2 & 3.3) In the management point of view, Estate Sector comprises of 20 Regional Plantation Companies (RPCs) & 7 State Institutions namely state owned plantations of Chilaw, Kurunegala, Elkaduwa; Janatha Estate Development Board (JEDB), Sri Lanka State Plantation Corporation (SLSPC) and TRI, RRI who manage own estates for research purposes. Cropwise estate sector consists of Tea, rubber, forestry as major crops and coconut, oil palm with reasonable extent in addition to small extents of other crops such as cinnamon, cashew, spices, fruits etc. Since early 1990s after privatization of State Plantations, RPCs possessed about 375 estates while number of estates owned by JEDB & SLSPC were 17 and 12 respectively. Throughout, 28 estates belonged to Chilaw, Kurunegala & Elkaduwa Plantations while TRI & RRI managed 2 estates each affiliated to their research stations. As per disaggregated data given in table 3.2 the extent cultivated in RPCs & State Plantations gradually declined since 2000 by about 20,000 ha at present due to various reasons. Extent cultivated in JEDB & SLSPC averaged to 6,200 ha each in the decade. The extent bearing (matured or being harvested) of RPCs declined in the decade from 134,000 ha in 2000 to 108,700 ha in 2012. Bearing extent coming under the JEDB & SLSPC was around 4,500 ha on an annual average for the decade. Compared to previous year, in 2012 the extent cultivated and extent matured in estate sector showed a decrease of 5% & 5.4% respectively. However, this may be compromised due to some inconsistencies prevailed in the source of data in terms of definition, coverage and accuracy. In view of the strength of staff and labour force are concerned, in respect of 20 RPCs the number of staff declined over the decade from 14,200 to 12,400 in 2010. In 2012 the number of staff increased marginally compared to the year 2011. As per disaggregated data provided in table 3.3, labour force in RPCs gradually declined from 261,400 in 2000 to 180,168 in 2012 by 31% which is a remarkable amount. This reduction is very prominent for JEDB & SLSPC by 30% and 44% in the same period respectively. The labour wage rate which prevailed at Rs. 115.25 in 2000 increased up to Rs.515 in 2011 & 2012 by 348% has created long term sustainability to the industry. 148 149 Hapugastenne Watawala Balangoda Kahawatte Bogawantalawa Malwatte Valley Maskeliya Agalawatte Talawakele Kelani Valley Horana Agarapatana Maturata Elpitiya Madulsima Kegalle Pussellawa Kotagala Namunukula Udapussellawa Chilaw Pl Ltd Kurunegala Pl Ltd Elkaduwa Pl Ltd JEDB SLSPC TRI RRI Total Source:- RPCs, State Plantations 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 RPCs & State Agency 5,000 5,976 4,723 3,851 4,102 5,040 5,853 1,491 4,210 3,914 2,283 6,683 4,925 2,612 3,832 1,367 2,736 2,598 2,580 2,151 1,292 3,987 4,022 212 85,440 2011 Tea 4,343 4,454 4,449 3,825 3,985 5,026 5,836 1,503 3,962 3,879 2,183 6,616 4,872 2,580 3,802 1,358 2,750 2,672 2,505 2,084 1,288 3,927 3,954 212 82,065 2012 1,523 1,244 2,410 2,216 5,803 3,170 28 4,414 202 4,597 2,284 603 1,395 53 5,328 4,700 4,527 2,365 81 220 355 597 70 330 48,516 2011 2012 1,890 722 2,731 2,284 5,815 3,137 44 4,857 257 4,639 2,314 50 683 1,410 81 5,246 4,848 4,455 2,252 92 247 354 597 70 323 49,398 Rubber 31 31 46 477 9 51 33 124 33 465 114 11 356 165 4,442 4,189 337 2 10,915 2011 451 114 11 326 165 4,442 4,179 342 10,873 31 10 61 67 472 33 9 127 33 2012 Coconut 2,674 1,159 1,163 119 1,442 58 6,615 2011 3,071 1,301 1,210 583 1,598 19 7,782 2012 Oil Palm 2,459 1,226 658 2,704 1,430 1,165 2,228 428 720 669 275 1,028 1,016 846 1,489 1,452 1,111 780 267 10 304 723 748 23,737 2011 Table No. 3.4 5 23,903 748 298 426 801 1,478 287 1,437 1,110 1,305 446 10 2,841 1,773 831 2,755 1,252 1,705 1,526 428 775 1,269 402 221 1,609 280 1 75 30 196 121 22 82 20 425 241 166 151 850 378 136 157 1,293 6,454 2011 203 47 14 266 248 213 1,500 462 155 1,293 3 5,512 441 177 2 200 44 196 51 2012 Hectares Other Crops 2012 Forestry EXTENT CULTIVATED IN RPCs AND STATE PLANTATIONS 2010 AND 2011 150 Hapugastenne Watawala Balangoda Kahawatte Bogawantalawa Malwatte Valley Maskeliya Agalawatte Talawakele Kelani Valley Horana Agarapatana Maturata Elpitiya Madulsima Kegalle Pussellawa Kotagala Namunukula Udapussellawa Chilaw Pl Ltd. Kurunegala Pl Ltd. Elkaduwa Pl Ltd. JEDB SLSPC TRI RRI Total 4,627 4,334 4,674 3,697 3,775 5,001 5,512 1,440 3,775 3,749 2,214 6,361 4,847 2,546 3,762 1,286 2,587 2,456 2,541 2,014 1,278 3,936 *3928 185 80,525 2011 Source:- RPCs & State Plantations * Contract plucking extent 578 ha. included 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 RPCs & State Agency Tea 3,976 4,357 4,339 3,618 3,775 4,992 5,534 1,422 3,807 3,435 2,116 6,396 4,832 2,509 3,756 1,272 2,564 2,456 2,476 2,056 1,288 3,927 3,954 212 79,069 2012 996 1,046 1,370 1,575 3,895 1,899 3,331 185 3,302 1,749 396 997 5 3,764 2,747 3,345 2,013 76 191 287 363 65 251 33,848 2011 1,022 687 1,275 1,575 3,811 1,899 3,340 185 3,163 1,726 390 992 5 3,563 2,706 3,360 1,898 76 188 302 363 65 246 32,837 2012 Rubber 25 46 450 9 51 32 124 33 419 100 11 227 137 3,900 3,478 267 2 9,311 2011 5 - 251 137 3,756 3,403 267 8,941 408 113 127 33 9 432 2012 Coconut 1,875 947 785 1,106 58 4,771 2011 1,910 947 781 1,061 19 4,718 2012 Oil Palm EXTENT IN BEARING OF RPCs & STATE PLANTATIONS 2011 & 2012 1,608 273 62 75 30 33 13 425 232 138 824 378 106 157 831 5,185 2011 199 37 5 266 195 123 3 1,044 177 39 2012 Hectares Other Crops Table No. 3.5 Extent Cultivated & Extent in Bearing in Estate Sector (Reference to Table No. 3.4 & 3.5) As per disaggregated data given in the two tables, cultivated and bearing (matured) extent under each RPCs and State Plantation Agencies is assessed in respect of main crops for current year and 2011. While tea cultivated extent has declined by 3,375 ha in 2012, extent in bearing was also declined by 1,458 ha in 2012. However, matured extent to tea cultivated extent were at high rate i.e. 94% and 96% in 2011 & 2012 respectively, which is within the acceptable norms. In 2012, rubber cultivated extent was 49,398 ha which is a 1.8% increase over the previous year. However, matured extent was below 1000 ha the same of 2011. As a result in 2012 the percentage of mature extent of the cultivated area further declined from 70% to 66%. Compared to maturity rate in tea immature share of rubber is substantial and it affects production level and yield parameter. No significant difference is visible of coconut cultivated area between 2011 & 2012 while bearing (mature) extent reported 370 ha less in current year. As a result, the maturity ratio of coconut extent declined from 85% to 82% in 2012. This is in between the percentage prevailed for tea & rubber. Oil palm cultivated hectarage increased by 1,167 ha in 2012 over the previous year. However, no increase has taken place on mature extent. At present matured percentage of cultivated area is 61% while it was 72% in 2011. This is due to rapid growth of immature plantation & sluggish growth of matured extent. In 2012, the extent under forestry (timber, fuel wood and forest reserve) stood at 3rd place next to tea and rubber reporting 23,903 ha under estate sector. In previous year extent reported was 23,737 ha. For "Other Crops" category in estate sector, extent cultivated in 2012 was 5,512 ha. while it was 6,454 ha. in 2011. The percentage prevailing for bearing (mature) extent to cultivated extent in respect of all crops is 81% at present. 151 Table No. 3.6 TEA & RUBBER REPLANTED & NEWPLANTED AREA BY RPCs, JEDB & SLSPC Hectares Extent Replanted Tea Year RPCs Extent Replanted Rubber JEDB SLSPC RPCs Extent new planted Tea JEDB SLSPC RPCs Extent new planted Rubber RPCs 2000 793 63 24 3,045 - - 9 34 2001 2,421 19 6 4,584 - - 9 14 2002 359 10 11 2,031 35 - 12 9 2003 344 4 1 452 42 - 11 7 2004 306 - 3 1,199 65 - 7 5 2005 398 - - 2,329 - - 7 11 2006 389 - - 3,231 - - 4 297 2007 454 - - 4,199 - - 3 333 2008 544 28 - 5,293 - - - 306 2009 640 9 3 5,309 41 10 - 74 2010 819 7 10 4,717 39 - 3 96 RPCs 1,882 State Plantations 45 2,087 39 RPCs 2011 977 State Plantations 102 2012 813 82 RPCs 10 State Plantations 761 1,086 Source:- RPCs, SLSPC & JEDB Note: Chilaw Pl Ltd., Kurunegala Pl Ltd., Elkaduwa Pl Ltd., JEDB & SLSPC under State Plantations 152 153 No. of Estates Extent Cultivate RPCs 1 Hapugastenne 17 4,343 2 Watawala 17 4,454 3 Balangoda 23 4,449 4 Kahawatte 16 3,825 5 Bogawantalawa 11 3,985 6 Malwatte Valley 17 5,026 7 Maskeliya 18 5,836 8 Agalawatte 7 1,503 9 Talawakelle 16 3,962 10 Kelani Valley 23 3,879 11 Horana 10 2,183 12 Agarapatana 21 6,616 13 Maturata 19 4,872 14 Elpitiya 11 2,580 15 Madulsima 12 3,802 16 Kegalle 6 1,358 17 Pussellawa 16 2,750 18 Kotagala 10 2,672 19 Namunukula 10 2,505 20 Udapussellawa 6 2,084 RPCs Total 286 72,684 State Agencies 1 Elkaduwa Pl.Ltd 6 1,288 2 JEDB 16 3,927 3 SLSPC 11 3,954 4 TRI 2 212 State Total 35 9,381 Total 321 82,065 * Contract plucking extent 578 ha. included Source : RPCs, Planters' Association, State Plantations RPCs & State Agency 2,192 2,648 1,870 2,250 2,395 1,570 2,989 935 2,478 2,251 1,391 2,176 1,878 1,472 1,624 492 1,639 2,162 909 1,026 36,347 473 1,200 1,137 182 2,992 39,339 804 2,672 1,799 2 5,277 38,678 VP 1,784 1,709 2,529 1,368 1,380 3,422 2,545 487 1,329 1,184 725 4,220 2,954 1,037 2,132 780 925 294 1,567 1,030 33,401 Seedling Bearing extent 1,277 3,872 *2,936 184 8,269 78,016 3,976 4,356 4,399 3,618 3,775 4,992 5,534 1,422 3,807 3,435 2,116 6,396 4,832 2,509 3,756 1,272 2,564 2,456 2,476 2,056 69,747 Total 11 55 1,018 28 1,112 4,248 367 97 50 207 210 34 502 81 155 444 67 220 40 71 46 86 186 216 29 28 3,136 Immature extent TEA EXTENT IN ESTATE SECTOR - 2012 RPCs & STATE PLANTATIONS 2 78 2 82 895 6 1 31 37 184 3 313 78 15 23 17 31 14 6 26 17 2 9 813 Replanting extent 6 6 16 10 10 New planting extend 4 11 12 3 30 285 255 16 33 20 27 18 2 22 12 9 13 15 11 8 6 13 19 11 - Hectares Nursery extent Table No. 3.7 Table No. 3.8 TEA PRODUCTION IN ESTATE SECTOR - 2012 (RPCS & STATE PLANTATIONS ) RPCs & State Agency 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Mature Production (MT) Extent Estate Bought Total (hectare) Leaf Leaf RPCS Hapugastenne 3,976 Watawala 4,356 Balangoda 4,399 Kahawatte 3,618 Bogawantalawa 3,775 Malwatte Valley 4,992 Maskeliya 5,534 Agalawatte 1,422 Talawakelle 3,807 Kalani Valley 3,435 Horana 2,116 Agarapatana 6,396 Maturata 4,832 Elpitiya 2,509 Madulsima 3,756 Kegalle 1,272 Pusellawa 2,564 Kotagala 2,456 Namunukula 2,476 Udapusellawa 2,056 Sub Total/Average 69,747 STATE AGENCY Elkaduwa Pl Ltd. 1,277 JEDB 3,872 SLSPC 2,936 TRI 184 Sub Total/Average 8,269 GRAND TOTAL 78,016 Source: Estate Yeild kg/ha Company Level COP NSA Rs/kg Rs/kg 4,243 6,069 4,050 3,197 5,775 3,903 8,177 1,774 6,033 5,922 3,456 7,874 5,067 4,058 3,996 1,317 3,534 5,273 1,780 2,659 88,157 3,059 7,302 3,209 9,278 2,803 6,853 2,887 6,084 2,537 8,312 551 4,454 661 8,838 689 2,463 1,622 7,655 957 6,879 435 3,891 372 8,246 1,187 6,254 991 5,049 924 4,920 934 2,251 2,901 6,435 1,188 6,461 1,747 3,527 1,010 3,669 30,664 118,821 1,067 1,393 921 884 1,530 782 1,478 1,248 1,585 1,724 1,633 1,231 1,049 1,617 1,064 1,035 1,378 2,147 719 1,293 1,264 384.61 390.56 361.73 400.13 395.86 376.45 330.50 378.87 392.10 369.98 371.08 391.60 351.50 380.31 391.60 423.94 374.44 358.61 363.02 348.69 375.96 360.05 392.12 376.76 416.21 389.84 412.96 388.87 363.60 410.73 388.45 415.31 388.58 371.46 381.47 361.19 355.27 380.76 381.97 308.17 345.22 383.16 2,527 2,228 2,102 338 7,195 95,352 2,527 2,228 2,102 322 660 322 7,517 30,986 126,338 1,979 575 716 1,838 870 1,222 375.94 373.18 345.69 387.91 366.92 371.44 249.07 276.26 285.93 455.36 278.90 331.03 Regional Plantation Companies (RPCs ) & State Institutions 154 TRI SL SPC JED B N a m u n u ku la Ko ta g a la Ke g a lle M a d u lsim a Elp itiya M a tu ra ta Ag a ra p a ta n a H o ra n a Ka la n i Va lle y RPCs & State Agencies Pu se lla w a M a ske liya M a lw a tte Va lle y Bo g a w a n ta la w a Ba la n g o d a W a ta w a la - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 9,000 8,000 Estate & Bought Tea Production (MnKg) 10,000 H a p u g a ste n n e 155 Source : RPCs & State Agencies Ag a la w a tte Estate T a la w a ke lle Ka h a w a tte Chart 9 Bought Leaf U d a p u se lla w a Leaf TEA PRODUCTION OF RPCs & STATE AGENCIES- 2012 Elka d u w a Pl L td . 156 157 89,843 89,191 87,592 85,318 83,336 86,880 89,334 82,513 84,181 80,833 76,534 RPCs 75,927 72,684 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 SLSPC 4,654 5,067 4,641 5,050 4,638 4,942 4,323 3,881 4,307 3,741 4,300 4,108 4,261 3,992 4,177 4,062 3,930 3,997 4,173 3,618 4,001 3,584 State Plantations 9,513 9,381 JEDB State 80,374 81,721 79,264 78,606 78,774 78,027 78,572 70,346 73,862 72,955 72,741 RPCs 71,198 69,747 RPCs SLSPC 4,522 4,828 4,471 4,888 4,472 4,806 4,219 3,788 4,237 3,639 4,240 4,011 4,209 3,949 4,137 4,025 4,147 3,997 4,146 3,523 3,949 3,495 State Plantations 9,327 8,269 JEDB State 149.7 147.5 149.7 145.0 135.0 143.5 135.3 123.6 129.7 109.9 126.5 RPCs 122.9 118.8 RPCs 4.4 4.4 4.0 4.3 3.8 4.3 3.1 3.7 2.5 2.9 2.7 2.9 2.4 2.7 2.4 2.5 2.7 2.8 2.2 2.1 2.3 2.0 State Plantations 5.9 7.5 JEDB SLSPC State (mn kg) Tea Production Source : Regional Plantation Companies (RPCs) & State Plantations Note : Chilaw Pl Ltd., Kurunegala Pl Ltd., Elkaduwa Pl Ltd., JEDB & SLSPC under State Plantations 2011 2012 RPCs (Ha) (Ha) Year Extent in Bearing Extent Cultivate JEDB SLSPC State (kg/Ha) 1,491 950 920 1,441 889 896 1,450 843 887 1,413 714 867 1,311 579 784 1,392 647 707 1,312 565 670 1,283 581 669 1,357 686 769 1,506 517 591 1,284 587 583 RPCs State Plantations 1,276 586 1,264 870 RPCs Average Tea Yeild TEA EXTENT, PRODUCTION & YEILD IN ESTATE SECTOR (RPCs & STATE) Table No 3.9 Tea Extent, Production & Productivity - Estate Sector (Reference to Table No. 3.7, 3.8 & 3.9) The Estate sector (RPCs & State Plantations), 95% of tea extent is matured (bearing) area out of cultivated tea lands at present. This percentage is quite low (88%) in State Plantations. Total mature extent consists of 38,678 ha (49%) seedling teas & 39,339 ha (50%) VP teas. Seedling tea extent is much higher (64%) for State Plantations compared to RPCs. Out of immature tea extent of 4,248 ha in Estate sector shares 24% or 1,018 ha which is substantial. In 2012, 813 ha or 1.2 % replanting rate was shown in RPCs while new planting was reported only 10 ha of extent. In estate sector the extent of tea nurseries which were maintained was 285 ha as per the table 3.7. In 2012, estate leaf (Own Leaf) production of RPCs recorded was 88.2 mn kg and corresponding average yield level calculated was 1,264 kg per hectare. The yield for State Institutions remained as low as 870 kg per hectare and thus overall for estate sector it was 1,222 kg per hectare calculated on 78,016 ha of mature extent. RPCs tea production was not only based on own leaf but also on a fairly high volume of bought leaf (26% of total) mainly from smallholders. State Plantations entirely depend on own leaf (96%) for the production of made tea. Eight RPCs run at Cost of Production (COP) below the Net Sales Average (NSA) in the range of Rs. 3 to Rs. 65 per kilogram of made tea calculated at company/ head office level. With exception of Tea Research Institute, State institutions produce tea unprofitably due to its' COP values are greater than the NSA values. In the table 3.8 under each RPC and State institution yield and profitability is enumerated. As per table 3.9 disaggregated data highlights the declining trend of mature extent for RPCs and main State agencies such as JEDB & SLSPC since 2000. Yield calculated for own (estate) leaf also declined in parallel to same trend in tea production. In addition to JEDB & SLSPC two State agencies i.e. Elkaduwa Pl. Ltd and TRI are included as State agencies in the years 2011 & 2012. Further overall Estate Sector tea yield (1,222 kg/ha) is far below the national tea yield remaining at present. 158 Table No. 3.10 RUBBER EXTENT IN ESTATE SECTOR - 2012 RPCs & STATE PLANTATIONS Hectares RPCs & State Agency RPCs 1. Hapugastenne No. Extent of Cultivate Estates Mature Immature Re New Nursery Aban(Tapping) Extent Planting Plan- Extent dond Extent ting Extent 135 47,844 31,764 16,052 7 1,890 1,022 868 2,087 1,086 194 43 260 235 8 - 2. Watawala 4 722 687 35 - - 2 - 3. Balangoda 8 2,731 1,275 1,456 111 361 26 9 4. Kahawatte 8 2,284 1,575 709 120 - 13 - 5. Bogawantalawa 16 5,815 3,811 2,004 190 331 15 - 6. Malwatte Valley 6 3,137 1,899 1,238 31 - 12 - 7. Maskeliya - 44 44 - 16 - - 8. Agalawatte 8 4,857 3,340 1,517 215 - 29 - 9. Talawakelle 2 257 185 72 26 - - - 10. Kelani Valley 13 4,639 3,163 1,449 320 - 26 - 7 2,314 1,726 588 113 - 18 203 11. Horana 12. Agarapathana - 50 - 50 - - - - 12. Maturata 4 683 390 293 - 293 3 23 13. Elpitiya 7 1,410 992 418 45 - 6 - 14. Madulsima - 81 6 75 - 39 3 - 15. Kegalle 12 5,246 3,653 1,593 225 - 29 - 16. Pussellawa 12 4,848 2,706 2,142 301 - 21 - 17. Kotagala 12 4,492 3,360 1,132 127 - 36 - 8 2,252 1,898 353 64 - 13 - 18. Namunukula 19. Udapussellawa 1 92 76 16 5 3 - - State Agencies 9 1,591 1,164 426 39 0 21 144 Kurunegala Pl.Ltd 3 247 188 58 - - - - Elkaduwa Pl.Ltd 2 354 302 52 - - - 90 JEDB 1 597 363 234 33 - 8 33 SLSPC 1 70 65 5 - - - 21 6 - 13 - 2,126 1,086 281 379 RRI Total 2 323 246 77 144 49,435 32,928 16,478 Source : RPCs, Planters' Association & State Agencies 159 13 - CM17140 160 4,214 841 1,202 2,171 0 4,214 1,864 518 302 121 50 132 256 123 143 219 44 44 1,908 Centrifuged RPCs 31,764 8,126 10,525 1. Hapugastenne 1,022 2. Watawala 687 584 3. Balangoda 1,275 378 4. Kahawatte 1,575 668 5. Bogawantalawa 3,811 3,263 6. Malwatte Valley 1,899 216 137 7. Agalawatte 3,340 251 2,204 8. Talawakelle 185 109 9. Kelani Valley 3,163 1,049 318 10. Horana 1,726 1,281 11. Maturata 390 201 12. Elpitiya 992 13. Madulsima 6 14. Kegalle 3,653 1,581 15. Pussellawa 2,706 882 1,700 16. Kotagala 3,360 330 2,212 17. Namunukula 1,898 134 1,120 18. Udapussellawa 76 31 Average State Agencies 1,164 132 148 Kurunegala Pl.Ltd 188 Elkaduwa Pl.Ltd 302 JEDB 363 SLSPC 65 32 RRI 246 100 148 Average Grand Total 32,928 8,258 10,673 Source : RPCs , Planters' Association & State Agencies Latex RSS Mature Extent (Ha.) Crepe RPCs & State Agency 2,391 0 - 280 112 37 384 221 246 146 1 96 124 328 143 273 2,391 Scrap 29,690 856 210 115 207 32 292 28,834 839 584 993 1,094 3,712 1,387 2,861 109 2,849 1,393 494 871 5 4,136 2,926 2,931 1,619 32 Total RUBBER PRODUCTION BY ESTATE SECTOR - 2011 RPCS & STATE PLANTATIONS Production (Mt.) 228.94 330.89 315.39 283.29 244.13 199.84 276.11 346.20 310.25 265.86 194.69 362.11 154.08 312.50 307.58 295.88 294.09 428.01 285.61 316.00 338.66 355.80 192.00 197.46 283.60 285.55 1,117 381 570 492 1,187 735 902 COP (Rs/kg) 372.00 407.46 385.87 379.34 374.79 381.34 396.85 360.48 379.12 385.88 387.82 399.38 385.47 394.72 369.00 396.00 372.27 366.61 419.46 398.97 419.22 390.40 419.19 386.60 386.66 397.31 NSA (Rs/kg) Company Level 821 850 779 695 974 730 857 589 901 807 1,267 878 833 1,132 1,081 872 853 421 908 Yield (kg/ha.) Table No. 3.11 161 Source : RPCs & State Agencies Chart 10 162 163 56,832 56,105 53,676 50,221 48,277 47,318 48,538 47,948 48,473 47,030 45,213 RPCs 46,943 47,844 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 SLSPC 1,822 1,823 1,823 623 1,822 1,822 97 1,822 65 1,873 65 555 67 State Plantations 1573 1591 JEDB State 40,108 39,172 37,055 36,716 36,545 36,780 36,349 36,005 35,303 33,950 33,561 RPCs 32,691 31,764 RPCs SLSPC State 600 449 466 458 447 416 67 396 65 396 65 362 65 State Plantations 1157 1164 JEDB (Ha) Extent in Bearing 37.55 37.51 34.81 33.56 32.98 34.81 38.24 39.68 35.85 32.47 32.20 RPCs 30.68 28.83 RPCs RPCs SLSPC 747 1,017 802 695 704 755 244 708 889 542 824 777 772 State Plantations 806 735 JEDB State (kg/Ha) Average Rubber Yeild 886 923 0.45 887 0.46 867 0.37 838 0.32 892 0.31 833 0.31 - 1,048 0.28 958 0.21 0.05 919 0.28 0.05 884 State Plantations RPCs 0.93 939 0.86 908 JEDB SLSPC State (mn kg) Rubber Production Source :Regional Plantation Companies (RPCs) & State Plantations Note :Kurunegala Pl Ltd., Elkaduwa Pl Ltd., JEDB , SLSPC & RRI come under State Plantations 2011 2012 RPCs Year (Ha) Extent Cultivate RUBBER EXTENT, PRODUCTION & YEILD IN ESTATE SECTOR (RPCs & STATE) Table No 3.12 Rubber Extent, Production & Productivity - Estate Sector (Reference to Table No. 3.10, 3.11 & 3.12) Out of cultivated rubber lands in the island (49,435 ha), some 67% or 32,928 ha of extent is in bearing or mature area in estate sector at present. Mature share was 66% in RPCs while it was 73% for state agencies. In some RPCs immature rubber extent reported was at a high rate. In 2012, replanted rubber extent was 2,087 ha with 4.4% replanting rate in RPCs which reflects a satisfactory level due to the fact that the rate was above the accepted norm. New planting extent was revealed as 1,086 ha, while maintaining 260 ha nursery extent ensuring sufficient planting materials for RPCs re/new planting programs. However, abandoned extent remained at 0.8% of the total extent cultivated though abandoned land being cultivated extensively throughout the area. In 2012, total rubber production in RPCs recorded was 28,834 mt and this includes a small quantity of production from bought latex. The yield of RPCs was calculated as 908 kg per hectare while for state institutions it was as low as 735 kg per hectare. Among rubber production types in RPCs, Crepe volume was 37% of total. While reporting RSS production as 1,864 mt, the production of Latex and Centrifuged types together was quite substantial i.e. 12,350 mt (43% of total). According to statistics total Crepe production (all types) in RPCs is not more than 20,000 mt in 2012. This is questionable since total Latex Crepe production reported was 36,550 mt along with smallholdings sector in 2012, where Crepes were not the predominant product of smallholders. Due to attractive rubber prices prevailed in 2012, in RPCs on average NSA was above the COP by about Rs. 111 per kg. Even for State Plantations, this margin was Rs.97 per kg on average. However, this is 50% of margin prevailed in the year 2011. The table 3.12 shows improvement of State Plantations for the year 2011 & 2012. Three State agencies such as i.e. Kurunegala, Elkaduwa Plantations Limited, RRI are included as State in addition to the JEDB & SLSPC. For the current year the rubber yield in RPCs declined to 908 kg per hectare while combined state institutions recorded 735 kg/ha which is lower than the reported yield of the previous year. 164 Table No. 3.13 COCONUT EXTENT & PRODUCTION IN ESTATE SECTOR - 2012 RPCs & STATE PLANTATIONS RPCs & State Agency Extent Cultivate (Ha) RPCs Extent in bearing (Ha) Total Crop ‘000 Nuts Average Yield Nuts/Ha. COP Rs/nut NSA Rs/nut 1,932 1,608 6,612 4,111 18.57 23.16 31 - - - - - 2 Watawala 10 5 - - - - 3 Kahawatte 67 - - - - - 4 Bogawantalawa 472 432 2,566 5,940 21.91 25.23 5 Malwatta Valley 33 - - - - 9 9 7 778 10.42 25.00 51 51 - - - - 1 Hapugastenne 6 Agalawatte 7 Kelani Valley 8 Horana 9 Maturata 1 0 Elpitiya 33 32 - - - - 127 127 303 2,382 19.37 23.30 33 33 54 1,641 10.39 19.61 1 1 Kegalle 451 408 1,763 4,321 15.01 21.53 1 2 Pussellawa 113 113 224 1,976 16.29 20.94 11 11 - - - - 1 3 Kotagala 1 4 Namunukula 326 251 975 3,886 20.16 22.22 1 5 Udapussellawa 165 137 720 5,275 14.27 21.94 State Agencies 9,214 7,468 34,876 4,670 18.71 21.33 Chilaw Pl Ltd 4,442 3,756 15,508 4,129 19.80 20.91 Kurunegala Pl Ltd 4,179 3,403 18,103 5,320 17.94 21.69 Elkaduwa Pl Ltd 342 267 1,220 4,569 16.68 21.50 JEDB 251 42 45 1,064 10.19 17.24 - - - - - - 11,146 9,076 41,488 4,571 18.69 21.62 SLSPC Total / Average Source : Regional Plantation Companies (RPCs) & State Plantations 165 Table No. 3.14 COCONUT EXTENT & PRODUCTION IN ESTATE SECTOR 2000 - 2012 Year Extent Extent ProducYield COP NSA Cultivated bearing tion (Nuts/Ha) (Rs/Nut) (Rs/Nut) (Ha) (Ha) (Mn Nuts) Margin (Rs/Nut) 2000 11,254 10,085 49 4,887 4.53 4.80 0.27 2001 11,200 9,904 44 4,502 4.13 7.28 3.15 2002 11,337 9,856 32 3,251 5.95 11.20 5.25 2003 12,507 9,634 36 3,720 6.15 8.88 2.73 2004 10,691 9,813 39 3,977 6.35 10.48 4.13 2005 10,799 9,628 32 3,177 8.59 12.35 3.76 2006 10,979 9,553 40 4,082 8.64 10.34 1.70 2007 10,334 9,553 40 4,203 11.91 16.18 4.27 2008 10,791 9,568 38 3,962 13.90 20.29 6.39 2009 10,855 9,601 41 4,501 13.37 16.10 2.73 2010 10,797 9,306 40 4,284 19.82 23.19 3.37 2011 10,914 9,309 37 3,977 17.91 26.09 8.18 2012 11,146 9,076 41 4,571 18.69 21.62 2.93 Source : Regional Plantation Companies (RPCs) & State Plantations 166 Coconut Extent & Production in Estate Sector (Reference to Table 3.14) At present compared to total coconut extent and production in the country Estate sector share is 2.8% and 1.3% respectively which is negligible. Coconut area both cultivated and matured extent has declined and reported since 1995 in the estate sector. As a result of that coconut production and yield per hectare also declined gradually. In 1995 estate sector nut production was 48 million which has been dwindling to 37 million by 23% in 2011. However in 2012 the production has increased substantially up to 41.5 mn nuts. Coconut extent and production is concerned, two state agencies i.e. Chilaw Plantation Ltd and Kurunegala Plantation Ltd play a prominent in role in the estate sector. These state institutions owned extent cultivated & matured 77% & 79%of total in the estate sector respectively. Further these 2 institutions are responsible for 81% of total production of coconut. Out of 15 RPC of which coconut cultivation is maintained even in a reluctant manner, a few companies (Bogawanthalawa, Kegalla Namunukula, Udapussellawa) produced 15% of total estate sector production in 2012. Average yield per hectare in overall estate sector was 4,571 nuts per ha while it was higher for state agencies as much as 4,670 nuts/ha in 2012. Average COP was Rs. 18.69 per nut while NSA reported Rs.21.62 per nut leaving a slight profit profit margin of Rs.3/- per nut which is not sufficient enough for the sustainability. Other than two State Plantations (Chilaw & Kurunegala) all other RPCs & institutions are displaying a declining trend of coconut cultivation & nut production in Estate Sector. 167 168 2012 2011 Source : 2011 2012 Elpitiya 2011 2012 Watawala 2011 0 159 0 172 Planters' Association of Ceylon Sri Lanka State Plantation Corporation (SLSPC) - 2,786 1,770 2,475 0 0 319 6,274 7,294 0 0 55 0 0 75 19 19 0 289 2012 SLSPC 1,301 1,163 1,209 2,674 3,071 5 8 947 785 782 1,875 1,910 5 8 354 378 428 799 1,162 0 6,809 9,899 10,716 26,080 29,733 220 2012 Agalawatte Total Extent (Ha) 1,442 1,597 1,159 Mature Extent (Ha) 1,106 1,061 947 Immature Extent (Ha) 336 536 209 Production (Mt) 13,984 14,088 8,125 Fresh Fruit Bunch (FFB) Production (Mt) of 3,636 3,663 2,031 Palm Oil (Crude & Kernel) New Planting (Ha) 3 Re-planting (Ha) 126 - 2011 Namunukula Regional Plantation Companies (RPCs) & State OIL PALM EXTENT & PRODUCTION IN ESTATE SECTOR 119 - - 119 118 - 2011 2011 2012 Total 217 - - 122 298 0 217 478 14,471 15,588 583 6,615 7,780 4,771 4,719 583 1,839.4 3,063 - 58,308 61,635 2012 Kotagala Table No. 3.15 169 Source : RPCs & State Agencies Chart 11 170 Table No. 3.16 PRESENT STATUS OF EDIBLE OIL INDUSTRY Unit 2008 2009 2010 2011 2012 Import of Palm Oil Palm Olein Crude Palm Oil Palm Kernel & Stearin mt 73,561 26,084 53,519 105,528 44,878 mt 30,114 20,750 15,299 19,300 12,593 mt 37,135 4,403 6,425 10,750 9,281 Oil Palm Cultivation Total Extent Mature Extent Immature Extent New Planting Re Planting Ha Ha Ha Ha Ha 5,408 4,517 825 - 5,625 4,582 982 257 - 6,211 4,761 1,450 181 - 6,615 4,771 1,840 122 298 7,780 4,719 3,063 217 478 Edible Oil Industry Local Palm Oil Production mt 12,985 13,508 12,729 14,471 15,588 (Crude & Kernel) Cost of Production (average) Rs/Kg 47 55 n/a n/a n/a Local Coconut Oil Production mt 59,018 75,495 65,133 53,093 81,859 Total Edible Oil requirement mt 160,000 160,000 160,000 160,000 160,000 Source : Planters' Association of Ceylon Source : Planters' Association of Ceylon 171 Oil Palm Cultivation & Palm Oil Industry (Reference to table 3.15 & 3.16) At present Oil palm cultivation is confined mainly to RPCs while a small extent is maintained under SLSPC. In 2008, oil palm cultivated extent with 4 RPCs (Agalawatte, Elpitiya, Namunukula & Watawala) and SLSPC stood at 5,408 ha. This has increased upto 6,615 ha in 2011 recording annual growth of 6% or total expansion of 1,200 hectarages. In alignment with Ministerial Policy concluded in 2010 on expansion of oil palm cultivation up to 25,000 ha, the RPCs alone are targeting to expand total extent cultivated from present level to 10,000 ha by 2016. Mature extent of oil palm was 4,517 ha in 2008 and expanded to 4,582 ha in 2009 and further to 4,761 in 2010. However, in 2012 it was 4,719 ha recording a marginal decline. In the current year, total cultivated extent was 7,780 ha which is a 1,165 ha increase from previous year. Although mature extent remained stagnant between 2011 & 2012 the increase of cultivated hectarage was occured due to replanting and new planting process. In addition to new planting extent of 583 ha recorded for Kotagala RPC, other 4 RPCs undertook replanting of their old Plantations in a gradual manner. As presented in table 3.16 country demand for edible oil (including palm oil and coconut oil mainly) is around 160,000 mt per annum for human consumption and industrial use. As local coconut oil production is limited to varying range of 35% to 50% the balance requirement needs to be provided through palm oil. In 2012, imported palm oil quantity was around 66,752 mt while locally produced coconut oil quantity was 81,859 mt. As edible oil demand is not fulfilled by local coconut oil industry alone, palm oil import is a continuous Phenomenon for edible and industrial oil need in the country. The production of Fresh Fruit Bunch (FFB) was around 61,635 mt in 2012. The FFB were processed in two extraction plants owned by producing RPCs and realized 24% of output as crude palm oil and Kernel oil. In 2012, produced quantity was 15,588 mt which is 8 % higher than previous year. Extracted palm oil is refined and graded in a few refineries located around Colombo for value addition before exporting or sending to local market depending on prevailing price structure. 172 Table No 3.17 FORESTRY EXTENT IN ESTATE SECTOR - 2012 Hectares RPCs & State Agencies Timber Extent RPCs Fuel Wood Extent Reserve Forest Immature Extent New Re planting planting 5,527 8,078 4,344 4,666 340 157 1. Hapugastenne 555 1,145 1,141 478 78 7 2. Watawala 177 996 601 1,173 44 - 3. Balangoda - - - - - - 4. Kahawatte 1,161 658 419 658 - 37 552 424 275 32 12 6 - - - - - - 7. Maskeliya 515 571 441 43 - - 8. Agalawatte 75 353 - 112 112 - 9. Talawakelle 18 5. Bogawantalawa 6. Malwatte Valley 65 469 241 206 54 10. Kelani Valley - - - - - - 11. Horana - 350 51 - - 12 577 273 208 - 6 8 - 30 - 32 10 - 12. Agarapatana 13. Maturata 14. Elpitiya 63 738 68 237 - 40 15. Kegalle 47 165 74 - - - 16. Madulsima 50 1,428 - 445 - - 17. Pussellawa 1,004 190 243 414 - 23 477 239 394 716 16 1 18. Kotagala 19. Namunukula - - - 74 - - 20. Udapussellawa 209 49 188 46 8 5 State Agencies 138 576 287 29 23 0 Chilaw PL Ltd - - - - - - Elkaduwa PL Ltd 138 - 160 29 23 - JEDB - 576 127 - - - SLSPC - - - - - - 5,665 8,654 4,631 4,695 363 157 TOTAL Source : Regional Plantation Companies (RPCs) & State Plantations 173 174 OTHER CROPS 175 176 Table No 4.1 TOTAL EXTENT UNDER CASHEW CULTIVATION BY DISTRICT Hectares District Puttalam Kurunegala Matale Polonnaruwa Kandy Badulla Ampara Monaragala Hambantota Ratnapura Anuradhapura Batticaloa Mannar Vavuniya Trincomalee Gampaha Killinochchi Total Total Extent 2011 Bearing Extent Total Extent 2012 Bearing Extent 8,170 6,179 1,022 440 140 1,071 1,014 1,098 1,107 416 3,204 1,086 170 209 404 907 431 6,127 4,634 766 330 105 803 760 824 830 312 2,403 814 128 157 303 680 323 12,631 9,655 1,909 973 201 1,722 1,859 1,775 1,804 558 5,858 1,981 325 353 965 1,165 843 9,473 7,241 1,431 730 151 1,291 1,394 1,331 1,353 418 1,393 1,486 244 265 728 874 632 27,068 20,299 44,940 30,707 Source : Sri Lanka Cashew Corporation 177 Table No. 4.2 CASHEW TOTAL EXTENT AND BEARING EXTENT 1996 - 2012 Hectares Year Total Extent Bearing Extent 2000 29,136 17,584 2001 32,873 24,752 2002 34,503 25,728 2003 35,646 26,435 2004 37,167 28,641 2005 38,846 28,746 2006 40,506 29,974 2007 41,741 31,306 2008 45,441 34,140 2009 48,999 36,736 2010 22,708 17,031 2011 27,068 20,299 2012 44,940 33,707 Source : Sri Lanka Cashew Corporation 178 Table No. 4.3 CASHEW PRODUCTION AND YIELD 1996 - 2012 Year Production Mt Average yield Kg/Ha 2000 4,678 267 2001 6,197 250 2002 6,441 250 2003 8,319 315 2004 8,660 302 2005 9,036 314 2006 9,721 324 2007 11,655 371 2008 5,000 146* 2009 12,000 320 2010 8,000 470 2011 6,000 296 2012 10,000 312 * Severe yeild drop due to unexpected rains Source: Sri Lnaka Cashew Corporation 179 180 181 Source : Sri Lanka Cashew Corporation Chart 12 182 Table No. 4.4 CASHEW : KERNEL PRODUCTION AND DOMESTIC CONSUMPTION Metric Tons Year Kernel Production Domestic Consumption 2000 935 843 2001 1,239 1,092 2002 1,288 1,145 2003 1,663 1,596 2004 1,732 1,544 2005 1,807 1,527 2006 1,944 1,744 2007 2,331 2,213 2008 1,000 * 2009 2,400 2,199 2010 1600 * 1,325 2011 1200 * 886 2012 2,000 *Yeild drop has affected Source: Sri Lanka Cashew Corporation 183 791 1,854 Table No. 4.5 CASHEW : QUANTITY AND VALUE OF EXPORTS Year 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Quantity Mt 1,281.4 309.0 92.5 147.1 142.9 66.2 187.2 279.5 170.0 117.5 208.9 201.1 275.0 314.4 145.7 Source: Sri Lanka Cashew Corporation 184 Value Rs Mn 277.0 112.0 47.4 73.8 75.9 42.5 121.6 178.4 129.0 101.4 154.6 133.8 246.4 309.9 170.3 Table No. 4.6 STATISTICS OF THE SUGAR SECTOR 2011-2012 Item 1. Total Area under cane (with ratoons)(c) 2. Area Harvested (c) 3. Cane Harvested (c) 4. Private Cane purchased 5. Quantity of Cane crushed 6. Average Yield (c) 7. Sugar Production (without sweeping) 8. Sugar recovery rate (d) Unit 2011(a) 2012(b) Ha 6,992 9,187 Ha Mn kg Mn kg Mn kg Mt.Tons/Ha Mn kg 6,024 290 172 440 45 35 7,034 348 112 432 56 36 % 7.9 8.2 (a) Revised (b) Provisional (c) Includes nucleus estates and the allottees. (d) Recovery Rate = Sugar produced x 100 Quantity of cane crushed Source : Central Bank of Sri Lanka : Annual Report 185 Table No 4.7 SUGAR CANE : EXTENT OF SMALL HOLDINGS BY DISTRICT AND DS DIVISION - 2002 Distrcit DS Division Acres Extent Badulla Meegahakivula Soranathota Passara Lunugala Badulla Hali-Ela Haldummulla Sub Total Moneragala 5.6 84.5 512.1 8.9 5.2 4.3 143.5 764.1 Bibila Madulla Medagama Siyambalanduwa Moneragala Badallkumbura Wellawaya Buttala Sevanagala 84.3 1,512.2 57.4 2,141.4 828.2 2,273.1 1,262.4 6,304.2 6,518.2 20,981.4 Damana 65.3 65.3 21,810.8 Sub Total Ampara Sub Total Sri Lanka Total Source : Agriculture Census - 2002 186 187 Unit Mn.nuts MnKg MnKg MnKg Mn.nuts 000 Ha Rs/nut '000 MT. Rs/'000 Nuts Ha Ha Rs Mn US$ Mn Rs Mn US$ Mn Rs Mn US$ Mn Source: Coconut Development Authority Department of Census & Statistics National Fertilizer Secretariat Coconut Cultivation Board (CCB) * Quantity of Fertilizer issued by CCB 9.2 Other Products 9.1 Kernel Products 1. Production 1.1 Desiccated Coconut 1.2 Coconut Oil 1.3 Copra 1.5 Domestic nut Consumption 2. Total Extent 3. Average Export Price (F.O.B.) 4. Fertilizer issued 5. Cost of Production 7. Replanting 8. New planting 9. Export earnings Item 2,515 37 20 37 2,047 395 24.88 33 4,870 3,495 3,783 17,529 173 7,933 78 9,596 95 2005 2,785 45 38 51 2,222 395 24.26 47 5,436 3,865 4,101 19,661 188 9,142 87 10,519 101 2006 2,869 43 76 117 2,451 395 27.56 33 6,124 2,528 2,955 24,096 218 11,270 102 12,826 116 2007 KEY INDICATORS: COCONUT 2,909 38 59 104 2,437 395 34.92 29 8,795 2,468 3,683 28,094 259 13,667 126 14,426 133 2008 2010 2,853 2,317 38 29 75 65 123 101 2,269 1,956 395 395 31.06 29.38 25 5.5* 9,166 9,492 3,154 2,684 4,390 3,705 29,081 32,433 253 287 11,974 11,096 104 98 17,107 21,337 149 189 2009 2012 2,808 2,940 47 42 53 82 77 125 2,328 2,481 395 395 57.73 51.53 14.3 10,273 11,634 1,551 4,774 1,553 4,814 47,306 46,667 428 366 21,030 16,688 190 131 26,276 29,978 238 235 2011 Table No. 4.8 188 6,998 6,259 5,407 5,791 6,486 6,370 7,054 7,266 7,368 6,995 6,544 7,112 7,446 3,162 3,219 3,584 4,135 4,774 4,869 5,435 6,123 8,795 9,166 9,492 10,273 11,634 Cost of Production (Rs/’000 Nuts) : Cost of Production in Estate Sector (20 Acres & above) 3,096 2,769 2,392 2,562 2,591 2,515 2,785 2,869 2,909 2,853 2,317 2,808 2,940 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Yield (Nuts/Ha) : * fertilizer issued from CCB only NA : Not Available. Source : Coconut Development Authority Note Production (Mn Nuts) Year 35,615 32,487 37,048 38,958 33,648 32,842 47,114 32,708 29,131 25,201 5456* 14,316 NA Fertilizer Applied MT 2,126 2,322 2,056 1,922 1,943 2,047 2,222 2,451 2,437 2,269 1,956 2,328 2,481 69 84 86 75 75 81 80 85 84 82 84 83 84 Domestic % of Domestic Consumption Consumption (Mn Nuts) COCONUT PRODUCTION, CONSUMPTION & YEILD 2000 - 2012 110 124 126 100 101 104 112 122 122 111 108 111 NA Average Nuts per person Table No. 4.9 189 30,612 24,383 43,738 31,104 37,240 15,030 32,326 25,257 23,100 2,822 5,500 10,713 6,252 2000 2001 2002 2003 2004 2005* 2006* 2007* 2008 2009 2010 2011 2012 288 248 384 437 474 419 478 645 993 778 1,032 1,284 1,239 Average CIF Value US$/MT 4,237 2,531 36,292 44,237 15,988 4,137 3,559 4,663 14,035 1,582 925 37 3,029 Volume MT Palm Olein Crude Palm Oil Tallow Coconut Oil Soy Oil & Sun Oil 525 319 400 416 407 465 556 891 806 672 788 2,603 864 47,057 36,483 44,318 22,773 81,585 98,216 96,717 57,245 73,561 26,083 53,519 105,528 44,878 413 316 379 457 438 406 212,908 395 467 168,083 415 733 123,131 706 1,064 30,114 868 761 20,750 640 923 15,299 850 1,206 19,300 1,012 1,067 12,593 918 10,053 380 4,323 339 222 4,994 429 25,381 3,289 506 64,086 2,989 536 3,200 3,119 463 1,369 4,076 445 953 4,597 626 335 4,830 942 788 4,529 701 805 3,155 949 2,080 2,305 1,275 3,062 826 1,225 2,165 - 1,077 487 645 429 605 439 736 450 772 554 675 582 861 883 5,566 1,503 541 901 536 1,171 685 1,882 1,021 1,022 969 649 597 634 691 732 679 819 679 1,871 1,148 1,472 1,778 1,784 Average Volume Average Volume Average Volume Average Volume Average Volume Average CIF MT CIF MT CIF MT CIF CIF CIF Value Value Value Value Value Value US$/MT US$/MT US$/MT US$/MT US$/MT US$/MT ** Palm Kernel & Stearin * Revised ** Figurs up to 1998 include palm stearin & thereafter only kernel Source : Coconut Development Authority Volume MT Year Palm Stearin IMPORTS OF OILS & FATS TO SRI LANKA 2000-2012 7,096 8,620 17,527 20,616 21,628 22,936 26,345 30,018 19,218 42,933 13,179 14,701 13,670 537 432 499 558 638 598 787 790 1,200 892 1,172 1,581 1,432 Volume Average CIF Value US$/MT Others Table No. 4.10 Table No: 4.11 EXPORT OF COCONUT PRODUCTS BY DIFFERENT TYPE 2011/2012 Volume (MT) Product Category 2011 2012 KERNEL PRODUCTS 1. Coconut Oil 1,931 2,499 2. Desiccated Coconut 45,761 40,224 3. Copra 2,185 653 4. Fresh Nuts, Seed Nuts & 8,056 19,492 King Coconut (‘000 Nuts) 5. Coconut Poonac 6,522 9,685 6. Coconut Cream 1,745 2,000 7. Coconut Milk 6,351 9,036 8. Defatted Coconut 3,876 3,116 9.Instant Coconut Milk Powder 4,446 4,641 SUB TOTAL KERNEL PRODUCTS FIBRE PRODUCTS 1. Mattress Fibre 78,174 57,924 2. Bristle Fibre 9,450 8,160 3. Twisted Fibre 26,808 45,119 4. Coir Yarn 767 1,025 5. Coir Twine 5,417 7,148 SUB TOTAL FIBRE PRODUCTS 120,616 119,376 SHELL PRODUCTS 1. Coconut Shell Charcoal 4,957 6,919 2. Coconut Shell & Shell Flour 546 698 3. Coconut Shell Actvtd. Carbon 31,359 30,271 SUB TOTAL SHELL PRODUCTS 36,862 37,888 FINISHED PRODUCTS (FIBRE) 1.Coir Brooms & Brushes (Nos) 24,498,840 19,957,696 2. Tawashi Brushes ( Nos) 23,791,814 26,312,793 3. Coir Fibre Pith & Husk Chips 146,224 148,342 (Mt) 4. Rubberized Coir Pads & Mettress for bedding -M2 Nos 2,512,641 4,178,312 5. Coir Mats & Rugs - M2 146,063 39,773 Nos 1,533,343 624,581 2 6. Coir Mattings (M ) 18,308 15,663 7.Geo Coir Textiles (MT) 3,722 2,536 8.Moulded Coir Products for use in Horticulture (MT) 64,547 66,151 SUB TOTAL FINISHED PRODUCTS OTHER PRODUCTS 1. Coconut Arrack & Vinegar 63,340 62,819 (litre) 2. Coconut Ekels & Coconut 8,686 11,034 Fatty Acid (MT) SUB TOTAL NON KERNEL PRODUCTS TOTAL VALUE OF ALL PRODUCTS Source: Coconut Development Authority 190 Volue (Rs Mn) Change (%) 2011 2012 Change (%) 29 -12 -70 142 854.10 13,956.87 280.54 467.20 1,277.12 8,625.57 90.49 1,000.20 50 -38 -68 114 48 15 42 -20 4 202.85 667.22 1,255.33 822.99 2,522.89 303.45 655.49 1,651.40 525.72 2,558.92 50 -2 32 -36 1 21,030.00 16,688.36 -21 -26 -14 68 34 32 3,354.62 635.62 1,436.44 68.04 869.48 2,566.22 637.20 2,372.18 127.56 1,037.33 -24 0 65 87 19 -1 6,364.19 6,740.49 6 40 28 -3 3 278.42 22.79 7,396.07 7,697.28 475.04 34.76 8,759.17 9,268.97 71 53 18 20 -19 11 1 2,235.14 433.53 5,036.83 2,174.05 558.56 6,118.00 -3 29 21 66 -73 -59 -14 -32 255.01 685.00 296.62 627.47 16 -8 15.54 440.53 11.46 385.43 -26 -13 2 2,927.41 3,517.04 20 12,029.00 13,688.64 14 -1 18.19 20.25 11 27 167.14 259.79 55 26,275.79 29,978.15 14 47,305.79 46,666.51 -1
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