Introduction:The Sri Lankan government has recently implemented radical policies to drastically reduce the use of synthetic fertilizers and pesticides, aiming to create "the cleanest tea in the world," with a particular focus on Ceylon tea. This move not only impacts smallholder farming practices and yields but will also reshape international market supply and pricing. This article delves into the soil restoration strategies, labor challenges, and consumer trends behind the new policy, and compares the current pricing and transformation directions of three well-known Ceylon tea brands to help you grasp key insights for future procurement and tasting choices.
The Sri Lankan government has recently introduced a controversial agricultural policy that completely restricts the supply of chemical fertilizers, herbicides, and pesticides, with the goal of steering the tea industry back toward natural, sustainable production methods and further increasing export profitability. The policy covers a wide range of areas, including soil restoration, adjustments to the agricultural labor structure, boosting domestic consumption, and refining international export strategies—marking a profound transformation for the country’s tea industry.
However, the implementation of the policy has immediately drawn attention, particularly regarding delays in fertilizer deliveries to smallholders, which have become a focal point. Kehel Gunanthna, chairman of the Smallholder Tea Growers’ Association, clearly stated that transitioning from synthetic fertilizers to organic fertilizers entirely would require at least a five-year period. He further warned that during this conversion period, both tea yield and quality could decline, potentially adversely affecting Sri Lanka’s tea exports, which are vital to the nation's livelihood.
It is worth noting that although Sri Lanka has a population of only about 22 million, its annual tea production is 100 times its domestic consumption, underscoring its status as a globally important tea-exporting nation. Though tea farmers make up only 5% of the country’s agricultural labor force, they generate over one billion US dollars in foreign exchange income for the nation each year, making it one of the pillars of foreign trade.
Unlike tea-producing countries such as Kenya and India, which primarily produce broken leaf teas in bulk, Sri Lanka is renowned for its "whole leaf tea," emphasizing traditional craftsmanship and quality. While the traditional production process is time-consuming and more costly than the CTC (cut, tear, curl) method, it retains richer layers and flavors, serving as a key distinguishing feature of Ceylon tea compared to other regions.
As global consumers increasingly value sustainability, environmental protection, and health, demand for tea is no longer limited to aroma and taste. Modern tea drinkers are more inclined to choose products with organic certification, low carbon footprints, sustainable cultivation, and eco-friendly packaging. Well-known brands' Ceylon tea series also reflect this consumer trend, highlighting that every step from source to cup meets high standards.
Currently, there are approximately 600,000 smallholder farmers in Sri Lanka, responsible for producing over 70% of the country’s tea, making them the mainstay of the industry. However, these small-scale farmers face tremendous challenges in shifting to organic cultivation, including significantly increased labor demands, sharp declines in yield, and reduced volumes of tea entering the market. Organic agriculture requires more manpower for pest management and soil maintenance. Although the final product may command higher prices, the initial risks and costs are also relatively higher.
Looking back to 2010, when Sri Lanka had 222,000 hectares of tea plantations producing 330 million kilograms of tea, it demonstrated that its unit yield had once reached a certain level. Even by 2020, while tea plantation area expanded to 253,000 hectares, fertilizer usage remained as high as 160,000 tons per year. Although this was 40 million kilograms less than before, it was still at a high level. Jayampathy Molligoda, former chairman of the Tea Board, advocated for actively researching and promoting nationwide organic fertilizer production technology, while also relaxing regulations on the import of high-quality organic fertilizers, striving to gradually achieve the goal of producing Ceylon tea with "zero pesticide residues."
As early as 2017, Rohan Pethiyagoda, a former leader in the country’s tea industry, pointed out that to remain competitive in the international market, "it is not enough to offer distinctive products; we must also meet consumers’ ethical and sustainable expectations." He emphasized that Western buyers are paying increasing attention to whether tea is sourced from fair trade, child-labor-free, and low-pesticide environments, and that Sri Lanka, by meeting all these criteria, has become one of the few places in the world capable of providing "clean, organic, and ethically produced" black tea.
Starting in 2019, Sri Lanka further announced a complete ban on glyphosate—a commonly used but potentially health-risky herbicide in tea plantations—primarily due to concerns that improper use by smallholders could impact their health. According to statistics, although the rural suicide rate in the country has dropped by 70% since 1976, it remains the second highest, claiming 800 to 1,000 lives annually. A 2020 academic study indicated that switching to relatively low-toxicity pesticides such as carbosulfan and profenofos could effectively reduce the risk of farmer self-poisoning.
Although large regional plantation companies (RPCs) are less directly affected by pesticide-related harm incidents, they too face challenges such as soaring fertilizer prices and unstable supply. Due to rising global oil prices and pandemic-induced supply chain disruptions, fertilizer costs have risen sharply, forcing plantation enterprises to rethink their production models. Sri Lanka’s policy shift is seen as a landmark move, with experts likening it to a reenactment of the Green Revolution of the 1950s—one that requires a fundamental restructuring of the industry’s ecosystem.
Tea industry expert Molligoda further noted, "If we do not balance the sustainable development of the land and the community, businesses and shareholders will find it difficult to create long-term value." He emphasized that tea plantation management is not only an immediate economic issue, but also a crucial decision on whether high-quality resources can be left for future generations. "Can we hand over the tea plantations to our descendants in better condition than we inherited them?" This is not just a policy question, but the future vision of the entire industry.
The above content is compiled by CoffeeHunters, a coffee news website.
