Statistical Information on Plantation Crops 2018

Ministry of Plantation Industries & Export Agriculture, 11th Floor, Sethsiripaya Stage II, Battaramulla.

February 2020

CONTENT

Index V-XII Charts, Maps, Overviews XIII-XIV Abbreviations XV Weights & Measures Conversion Table XVI Exchange Rates Conversion Table XVII

1. TEA SECTOR

(Area, Production, Price, Export & World Scenario)

Table Page 1.1 Key Indicators: Tea 01 Review: Key Indicators of Tea 02

Tea Area

1.2 Extent under Tea by status of cultivation - 2013/14 04 1.3 Tea Extent by ownership 2007 – 2018 05 1.4 Increasing Tea Smallholdings & Extent – by district 06 1.5 Tea Smallholdings & Extent by District- 2005 07 Review: Tea Smallholdings & Extent by District 08 1.6 Rainfall and sunshine information 09 Review: Monthly average rainfall and sunshine 10 1.7 Rainfall figures in TRI stations 11 1.8(i) Fertilizer: Annual usage for Tea Sector 12 1.8(ii) Fertilizer: Annual use of products for Tea Sector in 2018 13 1.9 Area Replanted & New Planted Tea 14 1.10 Tea Growing Incentives for Small Holding Sector 15 Review: Area Replanted & New Planted for tea and 16 Incentives for tea small holdings

Tea Production 1.11 Made Tea Production by Category, 2010-2018 18 1.12 Monthly Tea Production under Different Categories-2018 19

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Review: Monthly Tea Production by category wise 20

Table Page

1.13 Tea Production by Elevation 22 1.14 (i) Geographical Distribution – High Elevation Tea 23 (ii) Geographical Distribution – Medium Elevation Tea 24 (iii) Geographical Distribution – Low Elevation Tea 25 Review: Geographical Distribution of High, Medium & Low Elevation Tea Production 26 1.15 Tea Production by Different Type 27 1.16 Made Tea Production by Sector 28 1.17 Monthly Tea Production by Leaf Ownership – 2018 29 Review: Monthly Tea Production by Leaf Ownership 30 1.18 Made Tea Production by Type of Manufacturer 31 1.19 Tea Production, Export & Local Consumption 32 1.20 Cost of Production of made Tea 34

Tea Prices

1.21 Green Leaf Price to Small Holders – 2018 36 1.22 Average Colombo Auction Prices by Elevation 37 1.23 Average Tea Prices & Quantity Sold at Colombo Auction – 2018 39 1.24 Monthly average Auction Prices by Manufacturer – 2018 40 Review: Monthly average Auction Prices by 41 Manufacturer - 2018 1.25 Monthly tea Auction Prices at Main Auction Centers 42 1.26 Average FOB Tea Prices by Category 43

Tea Exports

1.27 Quantity & Value of Tea Exports by Category 46 1.28 Monthly Export Quantity & Value by Category – 2018 47 Review: Export Quantity & Value of Tea by Category 48 1.29 Sri Lanka Tea Exports by Destination, 2007-2018 50 Review: Sri Lanka Tea Exports by Destination 52 1.30 Tea Imports & Value Added Re Exports 53

Review: Tea Imports & Value Added Re Exports 54 1.31 Tea Imports for Re export – Country wise 55 1.32 Cess Collection from Tea Exports, 2007-2018 56 Table Page

World Tea Scenario

1.33 World Tea Planted Area 58 Review: World Extent of Tea Planting 59 1.34 Country wise World Tea Production 60 1.35 World Tea Production by Type of Manufacture 61 Review: World Tea Production 62 1.36 World Main Tea Exporters by Destination – 2018 63 1.37 World Tea exports and value of exports 64 Review: World Tea Export Earning 65 1.38 World Tea consumption in selected countries 66 Review: World Tea consumption 67

2. RUBBER SECTOR (Area, Production, Price, Export & World Scenario)

2.1 Key Indicators: Rubber 72 Review: Key Indicators of Rubber 73

Rubber Area

2.2 Rubber Area by Ownership 2007 – 2018 76 2.3 Rubber Holdings & Extent by District-2013/14 77 2.4 Rubber Holdings & Extent by District- 2010 78 Review: Rubber Lands by District, 2010 & 2013/14 Censuses 79 2.5 Small Holding Extent by Size Class – 2010 80 2.6 Small Holding Extent by Size Class and by District – 2010 81 2.7 Smallholding Area of Immature and Mature – 2010 82 2.8 Estate Sector Area of Immature and Mature – 2010 83 Review: Immature & Mature Rubber Extent by District 84 2.9 Clonal Composition of Small Holding Extent- 2010 85 2.10 Smallholdings & Extent under Different Clones 86 by District – 2010 2.11 Estate Sector Extent by Different Clones by district – 2010 87

Review: Clonal Composition by District & Sector 88 2.12 Expected rainfall in rubber growing areas 89

Table Page

2.13 Expected rainfall in areas where rubber is recently introduced 90 2.14 Monthly distribution of rainfall in rubber growing areas - 2018 91 2.15(i) Fertilizer: Annual use of products and nutrients for Rubber 93 2004-2014 2.15(ii) Fertilizer: Annual use of products for Rubber Sector, 2015-2018 94 2.16 Rubber Area Re Planted & New Planted 95 Review: Rubber area Re Planted & New Planted 96 2.17 Plants Issuance & Target of RDD Nurseries 97 2.18 Plants Issued from Rubber Nurseries 98 Review: Plants Issuance of RDD Nurseries and Private 99 Nurseries 2.19 Planting Incentives Paid to Small Holders 100

Rubber Production

2.20 Comparison of Production, Export & Consumption 102 Review: Rubber Production, Export & Consumption 104 2.21 Production by Different Type 2007-2018 105 2.22 Monthly Production by Type – 2018 106 Review: Raw Rubber Production by different types 108 2.23 Rubber Production by Type of Management 109 2.24 Cost of Production – Smallholding Sector 110 2.25 Cost of Production – Estate Sector 111 Review: Rubber Cost of Production - Smallholding & Estates 112

Rubber Prices

2.26 Colombo Auction Price by Type 114 2.27 Monthly Rubber Auction Prices – 2018 116 2.28 FOB prices on monthly Raw Rubber Exports – 2018 117 Review: Auction Prices & FOB Prices on Raw Rubber 118

Rubber Exports/Imports

2.29 Raw Rubber Export Quantity & Value 120 2.30 Monthly Export Quantity and Value – 2018 121

Review: Raw Rubber Export Earnings 123 2.31 Raw Rubber Exports by HS Code – 2018 124

Table Page

2.32 Raw Rubber Exports by Destination 125 Review: Raw Rubber Exports by Type & Destination 126 2.33 Rubber Imports by Type, 2007 – 2018 127 2.34 Raw Rubber Imports by HS Code – 2018 128 Review: Imports of Raw Rubber 129 2.35 Rubber Finished Products Import by HS Code – 2018 130 Review: Rubber Finished Product Import 131 2.36 Export Income from Product Categories 132 2.37 Rubber Finished Products Export by HS Code – 2018 134 Review: Rubber Finished Products Export 135 2.38 Monthly Cess Collection on Rubber 136 Review: Monthly Rubber Cess Collection 137

World Rubber Scenario

2.39 Extent of World Rubber Plantation 140 2.40 World Rubber Production 141 2.41 Key Rubber Indicators of ANRPC Countries – 2018 142 Review: World Rubber Extent & Production 143

3. COCONUT SECTOR (Area, Production, Price, Export & World Scenario)

3.1 Key indicators – Coconut 148 Review: Key Indicators of Coconut 149 3.2 Estimated Extent of Coconut Smallholding & Estates by District 152 Review: Total Coconut Land area by District 2014 153 3.3 No of Holdings and estimated extent of King Coconut by District 154 3.4(i) Issuance of Fertilizer and Seedlings 155 3.4(ii) Fertilizer: Annual use of products for Coconut Sector 156 3.5 Rainfall in Coconut triangle 157

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3.6 Average Yield 158 Review: Coconut Average Yield 159

Table Page

3.7 (i) Coconut Growing Incentives, 2003 -2009 160 3.7 (ii)(a)Distribution of plants by various programmes, 2012-2018 161 3.7(ii)(b)No. of Plants Distributed by District, 2016-2018 162 3.7(ii)(c)Distribution of inputs and seedlings under subsidy 163 3.7 (iii) Subsidy Payments, 2012 -2018 163 3.8 (i) Estimated Extent Planted under Table No: 3.7(ii) 164 3.8(ii) Total Re/New & under Planted Extent of Coconut 164 3.9 Coconut Conversion Table 166 3.10 Coconut Production and Domestic Consumption 167 3.11 Mid Year Population and Domestic Consumption 169 3.12 Production of DC, Copra, Coconut oil, Virgin Coconut Oil and Poonac 170 3.13 Cost of Production in Estate Sector 171 3.14 (i) Wholesale Prices of Fresh Nuts & Coconut Oil 174 3.14 (ii) Monthly Average Local Market Prices of DC, Coconut Oil, Poonac & Fresh Nuts 175 3.15 Quantities offered and Prices of Copra at CDA Auction 2012 -2018 176 3.16 Local Market Prices of Coir Fiber - 2017, 2018 177 3.17 Export Value of Different Products in (Rs Mn) 180 3.18 Export Value of Different Products in USD (’000) 181 3.19 Export of Coconut Products by Different type – 2017, 2018 182 Review: Export of Coconut by Different type 184 3.20 Export Quantity and Values by Category 185 3.21 Export of Shell Products – 2017, 2018 186 3.22 Monthly Export Quantity and Value by Category in 2018 187 3.23(i) & (ii) Imports of Fats Oil by Sri Lanka 188 Review: Imports of Oils and Fats to Sri Lanka 190 3.24 Vegetable Oils & Fats Imports by Sri Lanka 2018 191 3.25 Top 20 Importers of Sri Lankan Desiccated Coconut 192 3.26 Coir Fibre Exports, 2007 -2018 193 3.27 Monthly Export of Coir Fibre Pith - 2018 194

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Review: Coconut Coir Fibre Export 195 3.28 Distribution of World Coconut Planted Area 198 3.29 Country Wise world Coconut Production 199 Table Page

3.30 World Exports of Desicated Coconut 200 3.31 World Export of Coir and Coir Products 201 3.32 World Export of Shell Charcoal & Achieved Carbon by Selected Countries 202 3.33 Volume and of Exports of Tea, Rubber and Coconut 203

4. SUGAR SECTOR (Area, Production, Price, Import)

4.1 Key Indicators: Sugar 207 4.2 Sugarcane; Extent by District 2013/2014 Economic Census 208 4.3 Annual Sugar Production 209 4.4 Cost of Sugar Production 211 4.5 Movement of Sugar Import 212 4.6 Sugar Consumption 213 4.7 Annual Average Sugar Prices 214

5. CASHEW SECTOR (Area, Production, Export, Import)

5.1 Extent of Cashew Cultivation by District 217 5.2 Extent & Bearing Extent of Cashew 218 5.3 Cashew Production & Yield, 2006-2018 219 5.4 Cashew Kernel Production & Consumption 221 5.5 Quantity & Value of Cashew Exports 222 5.6 Quantity & Value of Imports 223

6. ESTATE SECTOR (RPCC & State Plantations) Extent & Employment

6.1 Status of RPCC & State Plantations - 2017, 2018 227 6.2 Land Utilization of RPCC & State Plantations, 2006 – 2018 228 Table Page

6.3 Staff, Labour Force & Wage for RPCC, State Plantations 229 Review: Extent & Labour Force in Estate Sector 230 6.4 Extent Cultivate in RPCC & State Plantations 231 6.5 Extent in Bearing in RPCC & State Plantations 232 Review: Extent Cultivate & Bearing in Estate Sector 233 6.6 Area Tea/Rubber Replanted & New Planted 234

Tea Extent & Production

6.7 Tea Extent in Estate Sector – 2018 235 6.8 Tea Production in Estate Sector – 2018 236 6.9 Tea Extent, Production & Yield in Estates, 2006 – 2018 238 Review: Tea Extent, Production & Productivity 239

Rubber Extent & Production

6.10 Rubber Extent in Estate Sector – 2018 240 6.11 Rubber Production in Estate Sector – 2018 241 6.12 Rubber Extent, Production & Yield in Estates, 2006 – 2018 243 Review: Rubber Extent, Production & Productivity 244

Coconut Extent & Production

6.13 Coconut Extent & Production in Estate Sector – 2018 245 6.14 Coconut Production & Yield in Estate Sector, 2006 – 2018 246 Review: Coconut Production in Estate Sector 247

Oil Palm Extent & Production 6.15 Oil Palm Extent & Production in Estates Sector 248 6.16 Oil Palm Industry 250 Review: Oil Palm Extent & Production in Estate Sector 251

Forestry Extent 6.17 Forestry Extent in Estate Sector – 2018 252

Page CHARTS

Chart 1 Average rainfall and sunshine – 2018 09 Chart 2 Tea – Total Production, 2007-2018 21 Chart 3 Tea – Yield, 2007-2018 33 Chart 4 Tea Colombo Auction Average Prices, 2007-2018 38 Chart 5 Tea Export income by Category-2018 49 Chart 6 Rainfall distribution on rubber growing areas 92 Chart 7 Rubber Total Production 103 Chart 8 Rubber Production by Different Types - 2018 107 Chart 9 Colombo Auction Average Prices RSS – 1 115 Chart 10 Rubber Export Values by Different Types - 2018 122 Chart 11 Coconut – Total Production 168 Chart 12 Annual Sugar Production 210 Chart 13 Sugar Imports, 2006 - 2018 212 Chart 14 Cashews – Production and Yield 2006 - 2018 220 Chart 15 Tea Production in Estate Sector -2018 237 Chart 16 Rubber Production in Estate Sector - 2018 242 Chart 17 Fresh fruit Production in Oil Palm Sector -2018 249

MAPS

Map 1 Extent of Tea Plantation by District XXI Map 2 Extent of Rubber Plantation by District 71 Map 3 Extent of Coconut Plantation by District 147

OVERVIEWS

Overview 1 Tea Area 03 Overview 2 Tea Production 18 Overview 3 Tea Prices 35 Overview 4 Tea Exports 45 Overview 5 Tea World 57 Overview 6 Rubber Area 75 Overview 7 Rubber Supply (Production) 101 Overview 8 Rubber Prices 113 Overview 9 Rubber Export & Import 119 Overview 10 Rubber World 139 Overview 11 Coconut Area 151 Overview 12 Coconut Production 165 Overview 13 Coconut Prices 173 Overview 14 Coconut Exports & Imports 179 Overview 15 Coconut World 197

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ABBREVIATIONS

ANRPC Association of Natural Rubber Producing Countries APCC Asian and Pacific Coconut Community CDA Coconut Development Authority CIF Value Cost, Insurance and Freight Value COP Cost of Production CRI Coconut Research Institute CTC Cut Tear & Curl; A Tea Manufacturing Method DC Desiccated Coconut DCS Department of Census & Statistics DRC Dry Rubber Content FOB Free on Board; Fob Price to calculate Export Value GDP Gross Domestic Product Ha Hectares HS Code Harmonized System code IFAD International Fund for Agricultural Development IRSG International Rubber Study Group ITC International Tea Committee JEDB Janatha Estate Development Board KTFL Kalubovitiyana Tea Factory Ltd Kg/ha Kilogram per hectare Mn kg Million Kilogram MT Metric Tons NFS National Fertilizer Secretariat NR Natural Rubber RDD Rubber Development Department RPCs Regional Plantation Companies RSS Ribbed Smoked Sheet Rs Sri Lankan Rupees RTD Ready To Drink SDR Special Drawing Rights SLSPC Sri Lanka State Plantation Corporation SLTB Sri Lanka Tea Board SPEnDP Small Holder Plantations Entrepreneurship Development Project TIEP Temporary Import for Export Purpose TRI Tea Research Institute TSF Tea Shakthi Fund TSHDA Tea Small Holdings Development Authority TSHFL Tea Small Holdings Factory Limited TSR Technically Specified Rubber; A method of Raw Rubber Processing

WEIGHTS AND MEASURES CONVERSION TABLE

Imperial to Metric Metric to Imperial 1Inch = 2.540 Centimeters 1 Centimetre = 0.3937 Inches 1 Feet = 0.3048 Meters 1Metre = 3.281 Feet 1Yard = 0.9144 Meters 1 Metre = 1.094 Yards 1 Mile = 1.609 Kilometers 1Kilometre = 0.62137 miles 1Acre = 0.4047 hectares 1Hectare = 2.471 Acres 1Pound = 453.6 Grams 1 Gram = 0.002205 Pounds 1 Ounce =28.35 Grams 1 Gram = 0.03527 Ounces 1 Pound = 0.4536 Killograms 1 Killogram = 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 Liters 1Litre = 0.219 Imperial Gallons

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EXCHANGE RATE

1 US DOLLAR = Sri Lankan Rupees

Annual Monthly Year/Month Year End Average Average - 2018 2005 100.50 102.12 2006 103.96 107.71 2007 110.62 108.72 2008 108.33 113.14 2009 114.94 114.38 2010 113.06 110.95 2011 110.57 113.90 2012 127.60 128.35 2013 129.11 130.83 2014 130.56 131.02 2015 135.94 143.45 2016 145.60 148.88 2017 152.46 153.15 2018 162.54 180.10 January 153.80 February 154.86 March 155.73 April 156.14 May 157.90 June 159.07 July 159.34 August 160.35 September 164.42 October 171.22 November 176.85 December 180.10

Source: Central Bank of Sri Lanka

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Distribution of Tea Extent by District - 2014

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Table No.1.1 KEY INDICATORS: TEA

Item Unit 2013 2014 2015 2016 2017 2018 1.Production Mn Kg 340.0 338.0 328.8 292.57 307.72 303.94 1.1 High grown ” 75.8 78.9 75.4 64.42 64.64 64.97 1.2 Medium grown ” 56.1 49.2 51.0 44.51 45.65 47.13 1.3 Low grown ” 208.1 209.9 202.4 183.64 197.42 191.84 2.Extent Total Extent ‘000 Ha 202.4 203.1 202.8 202.0** 201.1** 200.0 Extent in Bearing ‘000 Ha 193.5 194.6 194.2 193.0** 192.1** 1,90.6** 3.Yeild Kg/Ha 1,757.2 1,736.5 1,692.6 1,516.2 1,602.2 1,594.4 4.Replanting Ha 1,748.0 1,293.0 1,226.0 1,060.0 944.0 1,282.0 5.New Planting Ha 267.0 410.0 495.0 115.0 225.0 453.68 6.Prices 6.1 Colombo Auction Rs/Kg 444.42 461.86 402.14 468.62 617.91 580.71 6.2 Export f.o.b* ” 623.91 649.52 593.11 639.88 807.44 820.75 7.Cost of Production Rs/Kg 422.67 475.11 458.84 466.98 475.29 483.79 8.Exports* Mn Kg 319.70 327.34 306.94 288.78 288.98 282.36 9.Export Earnings* Rs Mn 199,440 212,588 182,046 184,778 233,338 231,750 US$ Mn 1,544.7 1,628.28 1,339.18 1,269.07 1,530.51 1,425.80 Source: Sri Lanka Tea Board 3 Tea Small Holdings Development Authority Department of Census & Statistics * Including re – exports **Provisional

Key Indicators of Tea

(Table No 1.1)

The national tea production was 303.94 Mn Kg in 2018. Compared to previous year the production has decreased by 3.78 Mn Kg. The High, and Medium grown have increased by 0.5%, 3.2% but the Low Grown has decresed by 2.8% respectively in 2018. The Low Grown production has contributed the major share for the national production.

Replanting and new planting were increased by 338 ha and 228.68 ha respectively, compared to the year 2017. Besides that there was a slight increase in the total extent and slight decrease in the extent in bearing in 2018 against the previous year. The average yield per hectare indicated a 0.5% decrease in the current year.

While the Colombo auction price (average) recorded a decrease upto Rs 580.71 per kg, the export FOB recorded 1.6% increase compared to the previous year (2017). The cost of production remain almost the same level with very slight increase of 2% compared to 2017.

In 2018, export earnings was reported a decrease of 0.7% in rupee terms of which absolute figures were Rs 1,588 Mn. The total export quantity has very slightly decreased by 6.62 mn kg compared to the previous year.

TEA AREA TEA AREA Overview - 2014 Overview - 2018

Extent in Hectares

Smallholdings Estates Total 2005 118,274 95,288 213,562 2018 122,448 77,553 200,001 Mature* 116,671 73,963 190,634 Immature* 5,777 3,590 9,367 *Estimated

Holdings of Tea

No. of smallholdings - 397,223 (2005)

Average holding size - < ½ ha – 51% of extent - > 5 ha – 16% of extent No. of estates - 293 in RPCs & 35 in States Size of holding - Mostly 20 ha & above

Tea Growing Districts - 14 Highest extent - Nuwara Eliya Lowest extent - Kurunegala

Replanting Extent & Rate to Cultivated Area: Past 5year average - 1,161 ha (0.6%) - 1,284 ha (0.6%) National Rate Prevailed for - Smallholdings - 1,027ha (0.8%) - Estates - 257 ha (0.3%)

Replanting Incentives: Subsidies to smallholders (2018) - Rs.423 Mn Plants infilled 5 year average - 461,997

Table No.1.2

EXTENT UNDER TEA BY STATUS OF CULTIVATION – 2013/14 Acres

Smallholding & Estate(both) Sectors

Disrtict Land Total Abandoned Prepared Extent of VP Seedling Nursery Extent for the Tea Cultivation Colombo 1,568 74 36 53 22 1,753 Gampaha 544 41 117 26 66 794 Kalutara 29,734 426 311 1,588 100 32,159 Kandy 37,609 15,054 10,787 17,429 179 81,058 Matale 5,708 3,060 1,273 3,697 35 13,773 Nuwara Eliya 78,132 38,411 10,142 8,711 1,246 136,643 Galle 65,135 440 2,431 3,338 187 71,531 Matara 55,106 2,442 1,825 4,943 589 64,905 Hambantota 1,492 125 13 72 11 1,714 Kurunegala 294 69 141 64 30 598 Badulla 30,853 32,964 12,367 18,951 911 96,046 Monaragala 551 478 453 390 10 1,882 Ratnapura 94,230 6,428 4,321 8,491 380 113,849 Kegalle 26,571 948 943 1,658 105 30,225

Total 427,527 100,958 45,160 69,412 3,873 646,930

Source: Department of Census and Statistics – Economic Census - 2013/14

Table No.1.3

TEA EXTENT BY OWNERSHIP Ha Small Holding Year Estate Sector Total Sector 2007 90,752 119,492 210,244 2008 92,108 119,768 211,876 2009 88,624 120,009 208,633 2010 84,119 120,500 204,619 2011 85,440 120,664 206,104 2012 82,065 120,955 203,020 2013 81,141 121,267 202,408 2014 81,684 121,429 203,113 2015 81,099 121,740 202,839 2016* 80,055 121,967 202,022 2017* 78,968 122,169 201,137 2018* 77,553 122,448 200,001

Source: Tea Small Holdings Development Authority Regional Plantation Companies (RPCs) State Plantations *Provisional

In terms of the definition of Smallholding sector, tea land consists of below 4 ha or 10 acres is come under the purview of the Tea Small Holding Authority while the Tea Commissioner in Sri Lanka Tea Board manages the smallholding sector in the range of 4 ha to 20 ha.

Since 2007 a gradual decrease of total tea extent was recorded upto 2018. The decline was approximately 4.9% between 2007 & 2018 while total extent declined by 0.6% in 2018 compared to 2017.

Estate sector tea extent ownership has sharply declined since 2007 onwards due to various factors. This has declined of an average rate of 1,020 ha per annum throughout. In 2018, extent of Estate Sector has increased by 1,415 ha. Vvvvvvvvvvvvvvvvvvv..……………………….

Table No.1.4

INCREASING TEA SMALLHOLDINGS & EXTENT BY DISTRICT

1983 Census 1994 Census 2005 Census District No of Extent No of Extent No of Extent Holdings (Ha) Holdings (Ha) Holdings (Ha) Colombo - - 13 14 491 236 Gampaha - - - - 9 2 Kalutara 1,843 881 8,494 2,566 38,263 7,587 Kandy 40,388 19,269 14,198 9,733 30,747 12,486 Matale 1,631 1,694 705 1,305 1,408 1,190 Nuwaraeliya 13,763 6,559 10,892 7,053 17,547 5,971 Galle 36,479 13,603 56,547 17,855 90,524 25,325 Matara 27,964 13,342 44,051 16,886 67,613 22,971 Hambantota 609 207 1,186 306 2,533 492 Kurunegala 224 124 135 42 151 99 Badulla 13,171 7,030 15,287 6,899 29,679 7,863 Monaragala - - 77 25 637 67 Ratnapura 17,713 9,818 49,161 17,789 97,984 28,232 Kegalle 6,080 3,242 5,906 2,446 19,637 5,753 Total 159,865 75,769 206,652 82,919 397,223 118,274

Source: Tea Smallholdings Development Authority

Table No.1.5 TEA SMALL HOLDINGS & EXTENT BY DISTRICT - 2005

Different Class Size of hectare District <1/2 ha 1/2- < 1 ha 1 - < 2 ha 2 - < 5 ha >5 ha Total Holding Ex.Ha Holding Ex.Ha Holding Ex.Ha Holding Ex.Ha Holding Ex.Ha Holding Ex.Ha Colombo 423 75 35 25 22 27 8 25 3 94 491 246 Gampaha 9 2 ------9 2 Kalutara 35,793 5,441 1,927 1,268 396 497 112 312 35 305 38,263 7,823 Kandy 25,457 5,329 3,345 2,258 1,094 1,407 559 1,599 292 5,465 30,747 16,058 Matale 1,011 229 166 121 81 106 78 231 72 985 1,408 1,672 Nuwaraeliya 15,270 2,936 1,663 1,082 302 387 177 536 135 2,264 17,547 7,205 Galle 79,432 15,361 8,296 5,640 1,840 2,372 743 2,121 213 1,933 90,524 27,427 Matara 58,470 12,140 6,835 4,647 1,296 1,654 720 2,116 292 4,860 67,613 25,417 Hambantota 2,373 426 141 91 14 17 5 12 - - 2,533 546 Kurunegala 111 30 23 15 8 10 5 15 4 110 151 180 Badulla 26,989 4,953 1,747 1,191 574 737 267 737 102 1,402 29,679 9,020 Monaragala 551 122 72 53 11 14 3 10 - - 637 199 Ratnapura 87,070 17,674 7,910 5,317 1,880 2,419 875 2,539 249 2,492 97,984 30,441 Kegalle 17,333 3,264 1,680 1,142 400 508 163 479 61 700 19,637 6,093 Total 350,292 67,982 33,840 22,850 7,918 10,155 3,715 10,732 1,458 20,610 397,223 132,329 % 88.2 51.4 8.5 17.3 2.0 7.7 0.9 8.1 0.4 15.6 100 100

Source: Tea Small Holdings Development Authority – Small Holder Tea Census -2005

Tea Small Holdings & Extent by District

(Table No. 1.4 & 1.5)

Three censuses conducted on smallholdings sector in terms of the tea extent had shown significant improvement. The cumulative figure of holdings and extent were rapidly increased during the 10 year period of 1994 to 2005, compared to the period of 1983 to 1994. The main contributory factor was commitment provided for the smallholders through government subsidy program and the extension work. Smallholdings extent has increased significant amount in the districts such as Ratnapura, Matara, Galle & Kalutara. During the past 20 year period, the total extent had declined in the Kandy, Matale & Nuwara Eliya districts due to various factors.

As shown in table 1.5, the total extent of 132,329 ha in the year 2005 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 Kalutara & Kegalle districts the abandoned tea lands were minimum in these districts in relation to other districts according to the census of 2005.

Table No.1.6

MONTHLY AVERAGE RAINFALL AND SUNSHINE HOURS PER DAY IN 2018 - THALAWAKELE

Average Tea Month Rainfall (mm) sunshine Production hrs/day (Mn kg) January 35.0 6.6 24.54 February 166.9 6.8 21.18 March 192.2 5.9 28.61 April 365.5 5.8 28.02 May 482.3 3.3 32.54 June 274.9 3.9 23.27 July 137.0 4.5 23.92 August 197.4 4.3 21.56 September 241.9 5.4 19.39 October 437.4 3.9 29.71 November 343.3 4.8 24.89 December 141.2 4.9 26.31 Source: Tea Research Institute Chart 1 Average Rainfall and Sunshine Hours per Day During 2018 (Thalawakele)

Monthly Average Rainfall and Sunshine in 2018

(Table No. 1.6)

Tea production mainly depends on weather and specially, intensity of the rain (210mm) and favorable sunshine hours per day (5hrs/day) act as catalyst shoot formation. On the other hand, timely fertilizer application, pruning, and plucking boost the yield compared to lesser care of field practices. In 2018, the tea production was 303.9 mn kg while the average tea production per month was 25.3 mn kg. Generally, the peak tea production starts at March and extends up to May in Sri Lanka.

Based on that situation in February 2018 production started with 21.18 mn kg. Tea production was gradually increased from February to May and declined from July to September. The highest production of the year was 32.54 mn kg in May while lowest recorded as 19.39 mn kg in September.

Table No.1.7

MONTHLY RAINFALL FIGURES IN TRI STATIONS IN 2018 (Unit: mm) Thala- Ratna- Kottawa Month Kandy Deniyaya Passara wakele pura (Galle) January 31.7 45.8 22.0 9.4 39.8 61.5 February 141.2 165.2 40.9 332.1 240.3 81.6 March 112.4 213.1 38.4 250.4 297.3 241.3 April 226.7 436.4 276.0 321.1 705.9 226.9 May 343.1 634.4 505.5 469.4 565.9 380.8 June 256.7 484.5 199.5 223.3 437.1 48.4 July 272.1 188.1 77.5 118.3 77.5 88.6 August 444.9 203.2 187.4 97.7 181.7 69.5 September 172.4 326.8 205.5 204.7 246.9 295

October 334.2 433.4 489.5 487 451.6 428.5 November 161.6 540.6 273.1 251.8 453.1 379.8 December 45.7 180.4 194.4 172.1 157.0 97.4 Source: Tea Research Institute

Table No.1.8(i)

FERTILIZER: ANNUAL USE OF PRODUCTS AND NUTRIENTS FOR TEA 2004-2014 Mn kg Products Nutrients Year SA Urea TSP IRP ERP MOP Kiez NPK Dol Other Total N P K Mg Total 2004 43.8 70.6 0.600 1.70 21.4 32.80 3.8 0 1.8 2.00 178.5 41.70 6.700 19.70 1.300 69.4 2005 37.0 75.7 0.060 0.80 21.8 34.50 3.4 0 2.0 2.50 177.8 42.60 6.300 20.80 1.200 70.9 2006 49.9 56.3 0 0 20.3 28.80 3.2 0.01 2.0 4.20 164.7 36.40 20.600 17.40 1.000 75.4 2007 41.5 57.8 0.140 0.80 18.9 28.80 2.9 0 2.0 4.20 157.0 35.40 19.200 17.40 0.800 72.8 2008 18.0 65.0 0.010 0.30 16.4 25.00 2.1 0 1.8 3.20 131.8 33.70 4.700 15.10 0.500 54.0 2009 10.3 112.5 1.160 0.70 23.2 34.40 1.7 0 1.0 2.80 187.8 53.90 7.300 20.60 0.500 82.3 2010 26.3 95.3 0.019 0.48 23.9 36.70 2.9 0 2.6 4.90 193.1 49.20 6.835 22.02 1.164 79.2 2011 25.1 91.0 0.018 0.46 22.9 35.03 2.8 0 2.6 4.70 184.6 47.03 6.549 21.00 1.140 75.7 2012 28.9 105.1 0.100 0.50 25.6 40.40 3.2 0 3.0 5.50 212.3 54.25 7.354 24.24 1.308 87.2 2013 27.7 100.4 0.250 0.90 24.8 36.90 4.1 0 2.1 6.55 203.7 51.88 7.311 22.14 1.362 82.7 2014 42.3 79.5 0.335 n.a 34.3 39.34 9.2 n.a n.a n.a 205.0(1) 24.36 13.889 23.60 2.200 64.0

Source: National Fertilizer Secretariat (1) Total of SA, Urea, TSP, ERP, MOP & Kiez n.a – data not available

SA = Sulphate of Ammonia MOP = Murate of Photash N = Nitrogen TSP = Triple Superphosphate KIEZ= Kiezarite P = Phosphrous IRP = Imported Rock Phosphate NPK = Nitrogen, Phosphrous, Potasium K = Potasium ERP = Eppawala Rock Phosphate DOL = Dolamaite Mg= Magnesium

Table No.1.8 (ii)

FERTILIZER: ANNUAL USE OF PRODUCTS FOR TEA SECTOR IN 2015-18

Quantity(Mt) Fertilizer 2015 2016 2017 2018 Straight 5,940.41 8,041.13 7,470.34 4,623.00 Urea Mixture 84,198.25 43,073.35 66,071.64 67,528.82 Straight 309.05 356.83 320.55 56.72 TSP Mixture 61.07 20.05 39.44 9.40 Straight 1,418.52 1,690.28 1,321.15 850.62 MOP Mixture 40,856.67 21,173.13 30,808.78 32,009.06 Straight 635.9 816.76 598.80 564.55 SA Mixture 37,589.72 21,908.36 26,565.85 24,472.62 Straight 111.7 284.12 483.79 204.09 Kieserite Mixture 5,828.17 5,385.92 8,580.06 8,255.42 Straight 533.6 348.65 396.28 538.04 ZnSo4 Mixture 105.8 7.78 8.80 21.89 Straight - 3.55 10.78 - CAN Mixture - - 123.58 - Straight 521.57 312.34 535.62 635.98 CES Mixtu re 104.26 40.61 52.91 101.07 Straight 293.95 46.69 83.80 53.72 DAP Mixture 262.68 52.22 147.54 87.02 Straight 32.01 4.08 36.88 24.80 SOP Mixture 84.95 39.62 50.30 394.40 Straight 6.02 8.11 52.84 15.80 Borate Mixture 25.2 1.87 5.11 2.74 Straight - - 104.15 12.4 SSP Mixture - - 0.09 0.05 Straight - - - - MAP Mixture - - - - Straight 588.08 536.49 1,153.63 462.78 ERP/HERP Mixture 28,971.65 15,079.03 20,401.31 22,036.95 Straight 2,984.02 2,407.47 2,746.19 2,240.92 DOLOMITE Mixture 393.35 180.60 348.51 383.88 NPK Straight 0.03 19.07 128.40 119.54 Mixtures Mixture 11.75 1.02 - - Straight 29.05 48.67 25.86 317.92 OTHERS Mixture 129.13 102.65 143.91 151.02 Straight 13,403.89 14,924.22 15,470.71 10,720.87 TOTAL Mixture 198,622.66 107,066.20 153,346.65 155,454.3 Grand Total 212,026.55 121,990.43 168,817.36 166,175.25

Source: National Fertilizer Secretariat 1

Table No.1.9

AREA REPLANTED AND NEW PLANTED TEA

Replanting New Planting Infilling (Hectare) (Hectare) (No. of Year Small Estate Small Estate Plants) holder Sector holder Sector Smallholder Sector (RPCs & Sector (RPCs & Sector State) State) 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 2013 1,220 528 263 4 497,592 2014 761 532 401 9 271,015 2015 806 420 475 20 308,950 2016 741 319 109 6 367,876 2017 748 196 202 23 564,145 2018 1,027 257 435 19 798,000

Source: Tea Small Holdings Development Authority Regional Plantation Companies (RPCs) State Plantations

Table No.1.10

TEA GROWING INCENTIVES FOR SMALLHOLDING SECTOR Rs Mn Infilling/ Replanting New Planting Crop Total Year Rehabilitation Rs Mn % Rs Mn % Rs Mn % Rs Mn 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 2013 351.87 86.77 42.14 10.46 11.24 2.77 405.52 2014 258.09 77.98 66.98 20.24 5.91 1.78 330.98 2015 420.07 75.74 128.12 23.10 6.43 1.16 554.62 2016 487.88 89.94 46.73 8.62 7.80 1.44 542.41 2017 460.59 85.93 63.71 11.89 11.70 2.18 536.00 2018 422.69 75.47 121.68 21.73 15.69 2.80 560.06

Source: Tea Small Holdings Development Authority

Area Replanted and New Planted for Tea and Incentives for Tea Smallholding Sector

(Table No: 1.9 & 1.10)

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 2011. Since 2006, financial incentives for new planting has not been provided as a result during this period only few new plantings were recorded as the past commitments. New planting was not reported at all during 2008 to 2010 period.

Table 1.9 provides the information of replanting, new planting and infilling of tea in both sectors. Fertilizer subsidy, Tea replanting subsidy up to Rs. 350,000 per hectare and new planting subsidy up to Rs. 250,000 per hectare were related to the rapid growth of small holders’ tea cultivation since 2011 to 2013. The number of tea plants given for rehabilitation was increased in 2011 to 2013 period. In the year 2018, extent of 1,284 ha and 454 ha replanted & new planted respectively. Some 798,000 plants of tea were provided under crop rehabilitation infilling scheme.

Table 1.10 highlights the value of three incentive schemes introduced for the development of tea cultivation. Key portion (89%) of incentive payments were incurred for replanting. During the period of 2007 to 2018 total investment in tea growing incentives for smallholding sector was increase to Rs 560.06 mn from Rs.177.17 mn by around 3 fold.

TEA PRODUCTION Overview - 2018

 In 4th Place next to China, India & Kenya

Total Production in million Kilogram – 303.9 mn Kg (303,944 mt)

 By Elevation:  Yield Kg per Hectare

High - 64.97 - 21% 1,594.4 Kg/ha – National Medium - 47.13 - 16% Low - 191.84 - 63%

 By Type:  By Sector:

Orthodox - 277.3 - 91 % Smallholder - 228.1 - 75% CTC - 24.0 - 8 % Non Smallholder - 75.9 - 25% Green Tea - 2.6 - 1%

 By Manufacturing Factory:  By Leaf Ownership:

Private - 199.3 - 65.6% Own leaf - 75.9 - 25 % RPCs - 98.8% - 32.5% Bought leaf - 228.05 - 75 % State - 5.8 - 2%

Top six production Districts Ratnapura - 22.4%, NuwaraEliya - 19.7%, Galle - 14.2%, Matara - 11.9%, Kandy - 11.8%, Badulla - 8.7%, Other (Kalutara, Kegalle, Matale…etc) - 11.3%.

Table No.1.11

MADE TEA PRODUCTION BY CATEGORY - TIME SERIES DATA, 2010 - 2018 Mn kg 2017 2018 Category 2010 2011 2012 2013 2014 2015 2016 Qty % Qty % (1) Elevationwise - High 79.1 78.2 73.7 75.8 78.9 75.4 64.4 64.64 21.01 64.97 21.38 - Medium 56.1 52.6 52.6 56.1 49.2 51.0 44.5 45.65 14.84 47.13 15.51 202.4 183.7 197.42 64.16 191.84 63.12 - Low 196.2 196.7 202.1 208.1 209.9 (2) By Type - Orthodox 309.7 301.9 302.1 314.0 314.5 306.4 271.9 283.25 92.05 277.33 91.24 - CTC 18.4 22.6 23.3 22.3 20.3 19.5 18.3 21.81 7.09 24.02 7.90 2.9 2.4 2.66 0.86 2.60 0.86 - Green Tea 3.3 3.0 3.0 3.7 3.2 (3) By Leaf Ownership 239.6 218.1 232.42 75.53 228.05 75.03 - Smallholders 230.1 229.0 234.2 245.4 247.5

(Bought leaf) 89.2 74.5 75.30 24.47 75.89 24.97 - Non Smallholders 101.3 98.5 94.2 94.6 90.5

(Own leaf) 87.0 72.9 73.21 23.79 73.54 24.20 -RPCs 88.9 96.9 94.4 90.2 91.1 2.2 1.6 2.09 0.68 2.35 0.77 -State 1.7 4.4 4.1 4.0 3.5 (4) By Manufacturer - Private Factories 183.1 185.8 200.6 207.3 210.3 205.0 189.7 202.95 65.95 199.33 65.58 - RPC Factories 136.1 134.1 119.9 125.3 122.7 118.1 99.3 100.15 32.54 98.84 32.52 5.7 3.6 4.63 1.5 5.77 1.90 -State Factories 12.2 7.6 7.9 7.4 5.0 Total Production 331.4 327.5 328.4 340.0 338.0 328.8 292.6 307.72 100.0 303.94 100.00 Note: Leaf ownership of state denotes own leaf from JEDB, SLSPC, Tea Shakthi and TRI

Manufacturer of private Factories includes Cooperative and TSHFL Factories. State manufacturer denotes the factories belong to JEDB, SLSPC, Tea Shakthi, TRI & Kalubowitiyana Ltd. Source: Sri Lanka Tea Board Table No.1.12

MONTHLY TEA PRODUCTION UNDER DIFFERENT CATEGORIES - 2018 Mn kg Total Category Jan Feb March April May June July Aug Sept Oct Nov Dec Qty % (1) Elevation - High 5.18 5.03 6.26 7.46 7.40 4.78 3.82 3.69 4.06 7.16 4.92 5.20 64.97 21.38 - Medium 3.28 3.19 4.09 4.87 5.36 3.63 3.59 3.02 3.25 5.08 3.84 3.94 47.13 15.51 - Low 16.09 12.96 18.26 15.68 19.77 14.85 16.52 14.86 12.08 17.48 16.13 17.17 191.84 63.12 (2) By Type - Orthodox 22.42 19.25 26.13 25.59 29.87 21.29 22.05 19.68 17.54 26.65 22.85 24.01 277.33 91.24 - CTC 1.96 1.74 2.18 2.17 2.41 1.75 1.71 1.70 1.66 2.81 1.86 2.08 24.02 7.90 - Green Tea 0.16 0.20 0.30 0.26 0.26 0.22 0.17 0.18 0.19 0.25 0.18 0.22 2.60 0.86 (3) By Leaf Ownership - Smallholders 18.48 15.39 21.54 19.62 24.13 17.66 19.15 17.12 14.55 21.38 18.96 20.08 228.05 75.03 (Bought leaf) - Non Smallholders 6.06 5.80 7.07 8.40 8.41 5.60 4.78 4.44 4.84 8.34 5.93 6.23 75.89 24.97 (Own leaf) - RPCs 5.90 5.64 6.86 8.07 8.11 5.42 4.64 4.30 4.68 8.07 5.78 6.07 73.54 24.20 - State 0.16 0.16 0.21 0.32 0.30 0.19 0.14 0.14 0.15 0.27 0.15 0.16 2.35 0.77 (4) By Manufacturer - Private Factories 16.24 13.42 18.67 16.67 20.92 15.44 16.81 15.24 12.68 18.43 16.72 18.08 199.33 65.58 - RPC Factories 7.91 7.38 9.37 10.77 10.96 7.37 6.68 5.92 6.34 10.66 7.71 7.78 98.84 32.52 - State Factories 0.39 0.39 0.57 0.58 0.65 0.45 0.43 0.40 0.37 0.63 0.46 0.45 5.77 1.90 Total Production of 24.54 21.18 28.61 28.02 32.54 23.27 23.92 21.56 19.39 29.71 24.89 26.31 303.94 100.00 each Category

Source: Sri Lanka Tea Board

Made Tea Production by Category

(Table No 1.11 & 1.12)

The elevation wise tea production in 2018 shows the contribution of the high, medium and low grown tea production that has maintained almost same pattern as in 2017. There is a continuous increasing trend in production of low grown tea, between 2010 and 2014. Other two categories have shown slight fluctuations during the same period. From 2015 to 2016 it has shown a decrease in the three elevations. In 2017, minor increase in the three elevations than the year 2016.

In 2018, low grown production decreased by 2.8%, while medium and high grown productions were slightly increased.

In general tea production of smallholders has shown a decrease in the current year (2018) also. In 2018, the State institutions green leaf ownership has increased from 2.09 mn kg to from 2.35 mn kg.

The production of state factories was increased by 1.14 mn kg in 2018 compared to 2017. The production of both private sector factories and RPC factories were decreased by 3.62 mn kg and 1.31 mn kg respectively in 2018.

The highest monthly tea production was in May (32.54 mn kg) while the lowest was recorded in September (19.39 mn kg).

Chart 2

Source: Sri Lanka Tea Boa rd

Table No.1.13

TEA PRODUCTION BY ELEVATION Mn kg High Medium Low Year % % % Total Grown Grown Grown 2007 72.5 24 54.4 18 177.7 58 304.6 2008 84.4 26 49.0 15 185.3 58 318.7 2009 73.0 25 44.8 15 173.3 60 291.1 2010 79.1 24 56.1 17 196.2 59 331.4 2011 78.2 24 52.6 16 196.7 60 327.5 2012 73.6 22 52.6 16 202.1 62 328.4 2013 75.8 22 56.1 17 208.1 61 340.0 2014 78.9 23 49.2 15 209.9 62 338.0 2015 75.4 23 51.0 15 202.4 62 328.8 2016 64.42 22 44.51 15 183.64 63 292.57 2017 64.6 21 45.7 15 197.4 64 307.7 2018 64.97 21 47.13 16 191.84 63 303.94

Source: Sri Lanka Tea Board

Table 1.13 highlights the tea production by elevation and there are three elevations in the tea growing area such as high grown (above 4,000 ft.), medium grown (2,000 – 4,000 ft.) and low grown (below 2,000ft). In the year 2007, elevation wise contribution of tea production was 24%,18% and 58% for high grown, mid grown and low grown respectively. However, in the year 2018 the contribution has changed as 21%,16% and 63% respectively. Low grown share increased from 58% to 63% due to the favorable weather, soil, good agricultural practices of the farmers etc. Compared to previous year, in 2018 the production share of low grown decreased by 2.82% while medium grown increased by 3.1% and High grown remained the same.

Table No.1.14 (i)

GEOGRAPHICAL DISTRIBUTION OF TEA PRODUCTION -2018 HIGH ELEVATION- TEA LANDS ABOVE 4000 FEET

Administrative Tea Production Elevation Agro-Climatic District District Kilograms High Nuwaraeliya Agarapatana 5,638,596 Bogawantalawa 5,592,467 Hatton/Dickoya 5,460,989 Kandy/Matale/Kurunegala 367,849 Kotmale 83,599 Mathurata 1,326,933 Nanuoya/Lindula/Talawakelle 8,136,454 Nuwaraeliya 3,179,740 Patana/ Kotagala 4,490,214 Pundaluoya 2,891,082 Pussellawa/Hewahata 1,320,055 Ramboda 1,947,092 Udapussellawa/ Halgranoya 2,269,070 Upcot/ Maskeliya 6,161,318

Sub total 48,865,456

High Badulla Bandarawela/Poonagalla 2,314,354 Demodara/Haliella/Badulla 3,677,214 Ella/Namunukula 203,427 Haputale 3,031,368 Koslanda/Haldummulla 2,768 Madulsima 2,213,162 Malwatte/ Welimada 2,177,550 Udapussellawa/Halgranoya 1,160,983 Sub total 14,780,825

High Kegalle Kegalle 472,567 Kandy Kandy/Matale/Kurunegala 328,490 Madulkelle/Knuckles/Ranga 522,606 Sub total 1,323,663 Total Production (High Grown) 64,969,944

Source: Sri Lanka Tea Board

Table No.1.14 (ii)

GEOGRAPHICAL DISTRIBUTION OF TEA PRODUCTION -2018 MEDIUM ELEVATION –TEA LANDS BETWEEN 2000-4000 FEET Tea Administrative Elevation Agro-Climatic District Production District Kilograms Medium Badulla Bandarawela/Poonagalla 824,827 Demodara/Haliella/Badulla 4,497,547 Ella/Namunukula 1,253,296 Haputale 470,316 Madulsima 430,768 Malwatte/Welimada 1,071,813 Passara/Lunugalla 3,002,366 Sub total 11,550,933 Medium Matale Hunnasgiriya/Matale/Yakdesa 382,766 Madulkelle/Knuckles/Rangala 715,899 Kandy/Matale/Kurunegalla - Sub total 1,098,665 Medium Kandy Gampola/Nawalapitiya/Dolosbage 10,442,336 Hunasgiriya/Matale/Yakdes 185,537 Kadugannawa 1,292,655 Kandy/Matale/Kurunegala 2,033,666 Kotmale 323,621 Madulkelle/Knuckles/Rangala 2,708,392 Nilambe/Hantane/Galaha 1,535,574 Pussellawa/Hewaheta 3,361,143 Sub total 21,882,925 Medium Nuwara Eliya Gampola/Nawalapitiya/Dolosbage 1,971,888 Hatton/Dickoya 1,503,015 Kotmale 380,338 Agarapathana 762,461 Maturata 243,315 Nanuoya/Lindula/Talawakele 604,241 Nuwara Eliya 313,493 Patana/Kotagala - Pundaluoya 630,768 Pussellawa/Hewaheta 1,593,163 Ramboda - Udapussellawa/Halgranoya 420,466 Watawala/Ginigathhena/Norton Bridge 1,750,987 Sub total 10,174,133 Medium Ratnapura Balangoda/Rakwana 1,776,198 Morawake 216,163 Ratnapura 81,639 Sub total 2,074,000 Kegalle Agarapahana 1,125 Sub total 1,125 Matara Deniyaya 349,201 Sub total 349,201 Total Production (Medium Grown) 47,130,981 Source: Sri Lanka Tea Board

Table No.1.14 (iii)

GEOGRAPHICAL DISTRIBUTION OF TEA PRODUCTION -2018 LOW ELEVATION –TEA LANDS BELOW 2,000 FEET

Administrative Tea Production Elevation Agro-Climatic District District Kilograms Low Colombo Kelani valley 809,728 Galle Galle 42,744,346 Kalutara 458,697 Hambantota Matara 119,262 Kalutara Kalutara 21,332,154 Galle 55,214 Kandy Gampola/Nawalapitiya/Dolosbage 5,434,243 Kadugannawa 4,878,272 Kandy/Matale/Kurunegala 2,166,726 Galle 501,929 Kegalle Kegalle 3,764,219 Kelani Valley 5,705,209 Ratnapura 788,563 Matale Hunnasgiriya/Matale/Yakdessa 338,039 Matara Deniyaya 13,993,380 Galle 575,056 Matara 14,931,376 Kalutara 93,970 Morawaka 5,683,333 Ratnapura 421,666 Nuwara Eliya Kelani Valley 827,540 Ratnapura Balangoda 4,686,541 Balangoda/Rakwana 5,760,146 Kegalle 1,683,751 Kelani Valley 1,434,142 Koslanda/Haldumulla 561,993 Kalutara 924,534 Ratnapura 51,169,281 Total Production (Low Grown) 191,843,309 Source: Sri Lanka Tea Board

Geographical Distribution of High, Medium & Low Elevation to Tea Production

(Table No: 1.14 (i), (ii) & (iii))

Tea production had been disseminated geographically in three elevations according to the altitude i.e high, medium and low elevation. In addition to that the tea production has been classified by agro - climatic districts and administrative districts as well. Though, there were physically demarcated boundaries, there was certain overlapping taken place under the given criteria.

As far as the geographical distribution of tea production was considered, the highest production of high grown tea recorded from the Nuwara - Eliya district, it was 75.2%(49 mn kg). Rest was from Badulla (22.75%), Kegalle, & Kandy districts. As the agro climatic regions, the highest tea production was reported from Nannoya/ Lindula/ Thalawakelle and it was over 8.1 mn Kg(12.5%). District wise production picture provided by the medium and low elevation are totally different from the high elevation of tea production. It spread in several district similarly and not centralized to a certain district.

Medium grown tea is concerned, Kandy district contributed 21.9 mn kg (46.43%), Badulla 11.6 mn kg (24.51%) and Nuwara – Eliya 10.2 mn kg (21.6%). Rest was from Ratnapura, Matale, Kegalle and Matara districts (7.5%). According to agro - climatic districts Gampola/ Nawalapitiya/ Dolosbage lead by the medium elevation tea production. This was nearly 12.4 mn kg, or 26.34% of medium grown total.

Majority of low elevation tea production has come from Ratnapura administrative district and in the year 2018, it was reported more than 66 mn kg or 34.4% of Low grown. Ratnapura agro - climatic district produced over 52.4 mn kg and followed by Galle agro - climatic district which produced over 43.9 mn kg(22.9%).

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, which belong to low elevation zone in Sri Lanka.

Table No.1.15

TEA PRODUCTION BY DIFFERENT TYPE Mn kg

Black Tea Green Year % Total Orthodox % CTC % Tea 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 2013 314.02 92 22.30 7 3.70 1 340.02 2014 314.50 93 20.33 6 3.20 1 338.03 2015 306.4 93 19.5 6 2.9 1 328.8 2016 271.9 93 18.3 6 2.4 1 292.6 2017 283.25 92 21.8 7 2.7 1 307.7 2018 277.33 91 24.02 8 2.6 1 303.9 Source: Sri Lanka Tea Board Note : Orthodox Category includes Bio, Instant & Reclaimed Teas

Until the year 2004, Sri Lanka produced two types of black tea, namely Orthodox and Cut Tear and Curl (CTC), the ratio was 94% and 6% respectively. Since the year 2004 the Green tea became popular and it was reported, 2.6 mn kg in 2018 and also it was 1% of total tea production. However, the demand for Sri Lankan black tea is significant despite the increasing trend for green tea in world tea market. However, the production of CTC tea in the domestic tea industry has shown an increase from 15.80 to 24.02 mn kg at the end of the decade.

Table No.1.16

MADE TEA PRODUCTION BY SECTOR Mn kg Small Estate Sector National Year Holder % % Production Sector RPCs State 2007 205.7 67.5 94.1 4.8 32.5 304.6 2008 214.8 67.4 98.3 5.6 32.6 318.7 2009 201.9 69.4 84.7 4.5 30.6 291.1 2010 230.1 69.4 96.9 4.4 30.6 331.4 2011 229.0 69.9 94.4 4.1 30.1 327.5 2012 234.2 71.0 90.2 4.0 29.0 328.4 2013 245.4 72.2 91.1 3.5 27.8 340.0 2014 247.5 73.2 88.9 1.7 26.8 338.0 2015 239.6 72.9 87.0 2.2 27.1 328.8 2016 218.1 74.5 72.9 1.6 25.5 292.6 2017 232.4 75.5 73.2 2.1 24.5 307.7 2018 228.1 75.0 73.5 2.4 25.0 303.9 Source: Sri Lanka Tea Board

In the year 2018, small holding sector and Estate sector have contributed 228.1 mn kg (75.1%) and 75.9 mn kg (25%) to the national production of 303.9 mn kg. Compared to the year 2017, the production of two sectors showed a slight fluctuation. However, in the year 2007, the contribution of the two sectors recorded 67.5% and 32.5% respectively to the total production. The ever highest performance was recorded in 2017 by the small holding sector while Estate sector recorded highest production in 2008.

Effective financial incentives, subsidized inputs for cultivation, extension services and fertilizer subsidy provided by the Government were the main attributing factors for the increased volume of production in the small holding sector. High cost of labour, low rate of replanting and new planting were some causes for the slow growth of the production in the Estate sector.

Table No.1.17 MONTHLY TEA PRODUCTION – 2018 COMPOSITION OF LEAF OWNERSHIP ‘000 Kilogram Total Institution Leaf Jan Feb Mar April May June July Aug Sept Oct Nov Dec Ownership Qty % Regional Plantation Own 5,901 5,638 6,859 8,074 8,108 5,418 4,635 4,302 4,683 8,070 5,782 6,070 73,540 74 companies (RPC)* Bought 2,012 1,738 2,513 2,692 2,855 1,951 2,047 1,617 1,657 2,585 1,931 1,705 25,303 26 Own 108 110 156 213 236 147 106 104 113 201 100 105 1,699 100 State- JEDB, SLSPC Bought 1 0.28 1 1 ------3 - Own ------State- Tea Shakthi Bought 123 141 216 203 222 167 184 159 128 238 218 196 2,197 100 State- Tea Research Own 29 26 25 33 30 18 13 17 20 34 18 25 287 41 Institute Bought 35 28 44 42 50 32 32 28 34 42 27 28 421 59 Private Tea Factories Own 818 561 751 454 731 417 437 495 300 552 621 374 6,510 3 (Individuals) Bought 14,765 12,310 17,133 15,536 19,353 14,400 15,706 14,138 11,888 17,164 15,467 17,003 184,865 97 Private- Tea Smallholding Own - - - 49 ------49 1 Factory Limited (TSHFL) Bought 344 287 425 321 448 317 350 311 274 369 325 366 4,136 99 Own 27 21 29 26 32 21 25 21 20 31 30 31 314 8 Private- Co operatives Bought 284 239 332 281 357 288 294 280 200 317 274 309 3,456 92 State - MPI Own 0.32 0.34 1 0.30 ------2 - 5 0.47 Kalubowitiyana Tea Bought 97 83 124 92 114 89 95 91 70 112 97 94 1,159 99.53 Factory LTD Total Production: 24,543 21,183 28,608 28,018 32,535 23,267 23,925 21,564 19,387 29,714 24,893 26,307 303,944 100 of which Own leaf 6,882 6,356 7,820 8,849 9,137 6,022 5,217 4,940 5,136 8,888 6,554 6,605 82,405 27 Bought leaf 17,661 14,827 20,788 19,169 23,398 17,245 18,708 16,624 14,252 20,826 18,339 19,702 221,540 73 Leaf Ownership: Small holders : Qty. 18,478 15,388 21,539 19,623 24,130 17,662 19,145 17,119 14,552 21,377 18,960 20,076 228,050 75 (Bought leaf) % 75 73 75 70 0 0 0 0 0 0 0 0 75 Non Small holders : Qty. 6,065 5,795 7,069 8,396 8,405 5,604 4,780 4,445 4,836 8,337 5,933 6,231 75,895 25 (Own leaf) % 25 27 25 30 26 24 20 21 25 28 24 24 25 * Elkaduwa PLC included Source: Sri Lanka Tea Board

Monthly Tea Production by Composition of Leaf Ownership – 2018

(Table No. 1.17)

Composition of leaf ownership of the tea production is concerned, the own leaf which belongs to the factory owners and bought leaf which is collected from outside lands. When the factory owned establishments do not have sufficient tea leaves for factories, they use outside lands leaves for regular operations. According to such situation, 73% of tea leaves supplied to the tea factories from outside lands and only 27% from their own. As the results, private factories have bought 185 mn kg in 2018, which is 97% of their use.

Out of these tea producers, the highest production of own leaf was brought by the Regional Plantation Companies (RPCs) which was 73.5 mn kg in 2018. Janatha Estate Development Board (JEDB) and Sri Lanka State Plantation Corporation (SLSPC) used their own leaf as majority for made tea production in 2018. RPCC factories were supplied 26% of the tea leaves from smallholders and balance 74% from their own leaves to the production in 2018.

Table No.1.18

MADE TEA PRODUCTION BY TYPE OF MANUFACTURER Mn kg State Fac. (JEDB,

RPC SLSPC, TSF, Private National Year % Factories TRI & Factories % Production % Kalubovitiya na factories) 2007 126.3 41.5 20.5 6.7 157.9 51.8 304.6 2008 131.0 41.1 19.9 6.3 167.8 52.6 318.7 2009 115.4 39.6 11.3 3.9 164.4 56.5 291.1 2010 136.2 41.1 12.2 3.7 183.1 55.2 331.4 2011 134.1 40.9 7.6 2.3 185.8 56.7 327.5 2012 119.9 37.0 7.9 2.0 200.6 61.0 328.4 2013 125.3 37.0 7.4 2.0 207.3 61.0 340.0 2014 122.7 36.3 5.0 1.5 210.3 62.2 338.0 2015 118.1 35.9 5.7 1.7 205.0 62.4 328.8 2016 99.3 33.9 3.6 1.2 189.7 64.8 292.6 2017 100.1 32.5 4.6 1.5 202.9 66.0 307.7 2018 98.84 32.5 5.8 1.9 199.3 65.6 303.9

Source: Sri Lanka Tea Board

Three types of manufacturers are engaged in production process of made tea such as RPC factories, State own factories and Private sector factories. In the year 2018, RPC factories which depend on 74% own leaf & 26% bought leaf showed a decline in share of production from 41.5% (2007) to 32.5% (2018).

Between 2007 and 2018 private factories, which many depend on the bought leaf, had increased the share of production from 51.8% to 65.6% comparatively. The share of State factories (JEDB, SLSPC, TSF, TRI & Kalubovitiyana Factory Ltd.) is around 1.9% in the current year which is a increase of 0.4% compared to 2017. On the other hand, performance of the RPCs and State factories had shown a continues declining trend towards the manufacturing of tea from 2007 to 2018.

Table No.1.19

TEA PRODUCTION, EXPORT & LOCAL CONSUMPTION Mn kg Exports Yield Local Year Production (without % % (kg/ha) Consumption re-exports) 2007 304.6 1,356.0 294.3 96.6 27.3 9.0 2008 318.7 1,421.0 301.2 94.5 27.6 8.7 2009 291.1 1,312.0 279.9 96.2 27.8 9.5 2010 331.4 1,478.0 305.8 96.2 27.9 8.4 2011 327.5 1,662.0 303.2 92.6 28.0 8.5 2012 328.4 1,663.0 306.0 93.0 27.8 8.5 2013 340.0 1,757.2 311.1 91.5 27.5 8.1 2014 338.0 1,736.5 317.9 94.0 27.5 8.1 2015 328.8 1,692.6 298.9 90.9 27.9 8.1 2016 292.6 1,516.2 280.9 96.0 28.1 9.6 2017 307.7 1,602.2 278.2 96.0 28.9 9.4 2018 303.9 1,594.4 271.8 96.3 n.a. - Source: Sri Lanka Tea Board International Tea Committee (ITC) Bulletin n.a. – not available

In the year 2018 tea production has decreased by 3.8 mn kg compared to previous year. The quantity exported from national tea production remained around 94% on an average term throughout the decade. This excludes the quantity which is used for blending with the imported tea for the purpose of re-export. In 2018, exported quantity (without re-exports) decreased by 6.4 mn kg compared to the year 2017.

On average terms around 9.4 % of the total tea production is used for local consumption in 2017. 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.

In 2018, the national tea yield per hectare has decreased (by 0.5%) compared to 2017.

Chart3

Table No.1.20

COST OF PRODUCTION OF MADE TEA

Cost of Production Year Rs/kg 2005/06 161.98 2006/07 210.75 2007/08 231.49 2008/09 269.00 2009/10 313.17 2010/11 355.02 2011/12 390.89 2012/13 422.70 2013/14 430.86r 2014/15 478.23r 2015/16 458.84 2016/17 466.98 2017/18 475.29 2018/19 483.79

Source: Sri Lanka Tea Board Department of Census and Statistics r - Revised data

Since 2005, cost of production per kg of made tea has rapidly increased due to the cost of green leaf, transportation cost for green leaf, power (electricity & Fuel), factory labour, packaging materials, machinery maintenance, etc up to 2014/15. Above given factors are negatively affected for the cost of production of the tea industry during that period. There was a decrease in COP by 3% in 2015/16. Since then, again COP gradually increased upto Rs. 483.79 in 2018/19.

TEA AREA TEA PRICES Overview - 2014 Overview - 2018

 Average Green Leaf Prices Realized to Smallholder Uva Western Uva Western Low

High High Medium Medium Grown Rs per Kg 77.55 86.09 77.59 74.83 87.78

 Colombo Auction Average Sale Price and Quantity Sold: High Medium Low All Grown Grown Grown Rs per Kg 563.93 514.56 600.76 579.66 Mn Kg 53.73 46.75 184.25 284.73

 Colombo Auction Average Sale Price by Factory Type JEDB/ Co- TS RPCs TSHFL TRI Private SLSPC operatives Fund Rs/Kg 574.17 427.57 612.92 631.03 525.68 628.72 591.02

 Major Auction Centers  Tea Export Prices (FOB) By category

Average Unit Price Average US$/Kg Rs/Kg Kolkata 2.46 Black Tea Cochin 1.81 -Bulk 736.03 Guwahati 2.13 -Packets 765.02 Chittagong 3.12 -Tea bags 1,473.11 Mombasa 2.43 -Instant tea 1,319.49 Jakarta - -Green Tea 1,698.62 Colombo 3.60 Average FOB 810.41 Malawi 1.84 (Without re- export)

Table No.1.21

GREEN LEAF PRICE TO SMALL HOLDERS BY ELEVATION -2018 Rs/Kg Uva Western Uva Western Low Month High High Medium Medium Grown January 85.57 95.98 82.19 83.10 95.97 February 86.21 96.69 83.45 83.04 93.57 March 86.39 88.84 86.13 80.88 91.88 April 81.35 82.54 84.49 77.91 92.57 May 77.84 80.63 79.06 76.26 91.36 June 69.54 73.78 71.72 68.92 84.81 July 73.10 80.18 73.17 67.36 81.16 August 77.55 89.78 70.62 68.45 78.32 September 73.27 89.60 70.47 68.48 79.29 October 78.84 93.64 77.46 78.47 86.39 November 75.10 81.95 80.13 73.03 89.96 December 72.31 86.89 78.31 72.36 86.56 Average 77.55 86.09 77.59 74.83 87.78 Source: Sri Lanka Tea Board

In the year 2018, the high and medium grown elevations were divided into four sub green leaves categories, as done in 2016. The highest prices paid to smallholders for green leaves in Uva High category was Rs 86.39 per kg in

March while lowest was recorded as Rs 69.54 in June. For western high category, the maximum price level was reported in February, as Rs.96.69. Usually, low grown tea green leaf was paid higher than the other categories. The highest average price was recorded for low grown tea leaves, and it was Rs. 87.78. The monthly highest, Rs.95.97 paid in January 2018.

Uva Medium started the year with the price of Rs.82.19 and reached its peak in March as Rs.86.13 and declined gradually upto Rs.70.47 in September. The lowest average price was reported by Western Medium as Rs.74.83. Out of all categories, highest monthly price was recorded by Western Medium as Rs.83.10 in January while lowest price recorded by Western Medium as Rs.67.36 in July. .

Table No.1.22

AVERAGE COLOMBO AUCTION PRICES OF TEA BY ELEVATION Rs/kg All Year High Medium Low Elevations 2007 253.41 245.72 299.35 279.52 2008 276.06 272.73 336.61 310.53 2009 320.93 315.86 389.11 360.67 2010 337.83 330.88 393.40 370.61 2011 329.95 319.77 381.27 359.89 2012 375.53 351.08 407.14 391.64 2013 402.98 398.65 469.91 444.42 2014 420.36 410.13 488.06 461.86 2015 388.38 362.57 416.32 402.14 2016 449.62 420.64 486.74 468.62 2017 601.18 562.75 637.20 617.91 2018 571.44 517.65 600.23 580.57

Source: Sri Lanka Tea Board

All elevation average sales prices were recorded as Rs 617.91 per kg in 2017. This was the highest average since 2007 to 2017. The average Colombo auction price recorded around 99% increase in the decade while all three elevations also recorded the highest ever price in 2017.

The average Colombo auction price in all three elevations were decresed by 6% in 2018 compare with the year 2017.

Chart

Table No.1.23

MONTHLY AVERAGE TEA PRICES & QUANTITY SOLD AT COLOMBO TEA AUCTION - 2018

High Medium Low All Month Grown Grown Grown Elevations Mn kg Rs/kg Mn kg Rs/kg Mn kg Rs/kg Mn kg Rs/kg January 5.16 635.26 4.71 565.72 20.34 656.99 30.22 639.05 February 4.18 639.24 3.33 568.32 15.01 640.14 22.53 629.35 March 4.28 596.24 3.26 560.21 13.70 628.75 21.24 611.68 April 3.56 555.60 2.58 546.41 11.23 634.51 17.38 605.26 May 6.86 537.80 5.43 524.83 19.34 625.68 31.62 589.30 June 5.75 487.58 4.69 474.08 16.39 580.61 26.83 542.05 July 5.54 523.86 5.25 469.92 19.07 556.49 29.85 535.22 August 3.37 575.65 3.57 470.08 14.29 535.59 21.23 530.92 September 3.05 565.07 3.01 465.84 13.90 541.38 19.96 533.63 October 4.33 603.68 4.06 534.29 15.23 590.74 23.62 583.40 November 4.25 536.60 3.75 509.84 14.12 615.06 22.11 582.15 December 3.40 549.47 3.10 501.65 11.62 592.32 18.13 568.76 Total Qty (Mnkg) And 53.73 563.96 46.75 514.56 184.25 600.76 284.73 579.66 Average Price (Rs/kg)

Source: Sri Lanka Tea Board

Table No.1.24

MONTHLY AVERAGE COLOMBO AUCTION PRICES OF TEA BY MANUFACTURER – 2018 Rs/kg Co- PRIVATE Tea JEDB/ MONTH RPCs TSHFL TRI AVERAGE operatives FACTORIES Shakthi SLSPC January 633.62 672.82 674.08 700.64 647.00 577.60 491.56 642.19 February 636.85 653.17 664.62 690.23 632.67 598.18 507.37 633.71 March 606.12 652.59 661.91 663.48 622.48 580.37 512.44 616.84 April 580.32 634.18 677.14 633.90 624.07 572.96 530.72 608.83 May 563.57 642.19 669.44 630.93 612.20 518.11 469.96 593.37 June 514.91 602.29 617.77 583.94 566.16 488.78 439.53 546.95 July 528.64 564.88 591.69 585.81 546.86 490.57 395.12 539.46 August 559.80 535.33 560.50 639.97 528.58 459.58 378.39 537.17 September 556.76 554.61 561.10 610.86 535.59 476.19 357.61 540.73 October 601.70 595.66 610.45 631.50 584.04 546.90 435.40 588.96 November 561.03 611.86 640.57 586.43 603.28 560.82 394.31 587.37 December 562.38 627.64 633.35 583.98 584.09 508.99 388.19 575.33 Average 574.17 612.92 631.03 628.72 591.02 525.68 427.57 584.50

Source: Sri Lanka Tea Board

Monthly Average Colombo Auction Prices of Tea by Manufacturer

(Table No 1.24)

In terms of the table no 1.24 Co-operative factories has recorded the highest average price in 2018 also. This was followed by TRI, TSHFL 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.156.93 per kg compared to national average of 2018. The auction prices of state owned factories (JEDB/SLSPC) and TS Fund factories were below the national average through out the year.

The type of manufacturers are concerned, Sri Lanka has tea manufacturers in terms of the supply chain of 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 to share the experience with other stake holders (RPC’S, Tea Sakthi, & JEDB /SLSPC) in the market for the better prices.

Table No.1.25

MONTHLY AUCTION PRICES OF TEA AT MAIN AUCTION CENTERS 2017 and 2018 US$/kg Kolkata Cochin Guwahati Chittagong Mombasa Jakarta Colombo Malawi Month 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 January 2.12 2.25 1.77 1.95 1.7 2.01 1.9 2.65 2.84 2.78 - - 3.99 4.18 1.67 1.81 February 1.76 1.87 2 1.93 1.6 1.66 1.65 2.28 2.86 2.82 - - 3.96 4.10 1.78 1.89

March 1.67 1.71 2.08 1.94 1.63 1.52 1.61 2.26 2.73 - - - 4.23 3.96 1.82 1.87

April 2.19 2.30 2.09 1.89 2.35 2.38 2.51 2.58 2.72 2.52 - - 4.28 3.89 1.77 1.85 May 2.59 2.64 1.84 1.77 2.13 2.20 2.27 2.59 2.75 2.46 - - 4.12 3.76 1.79 1.82 June 2.77 2.75 1.76 1.74 2.42 2.40 2.51 2.78 2.89 2.39 - - 3.92 3.44 1.89 1.86 July 2.82 2.76 1.71 1.71 2.37 2.38 2.66 3.15 2.81 2.33 - - 3.86 3.39 1.85 1.87 August 2.73 2.55 1.77 1.88 2.41 2.29 2.53 3.31 2.75 2.23 - - 3.98 3.35 1.92 1.96 September 2.63 2.38 1.74 1.89 2.35 2.08 2.65 3.42 2.86 2.23 - - 4.18 3.29 1.98 1.85 October 2.62 2.31 1.75 1.71 2.34 2.02 2.72 3.49 3.12 2.25 - - 4.23 3.44 2.15 1.80 November 2.6 2.35 1.75 1.74 2.24 2.05 2.75 3.56 2.83 2.19 - - 4.09 3.35 1.94 1.78 December 2.48 2.39 1.76 1.80 2.17 1.96 2.78 3.24 2.66 2.13 - - 4.07 3.19 1.83 1.73 Average 2.46 2.46 1.81 1.81 2.16 2.13 2.45 3.12 2.81 2.43 - - 4.07 3.60 1.84 1.84

Source: Sri Lanka Tea Board

Table No.1.26

TEA AVERAGE FOB PRICES BY CATEGORY (WITHOUT RE-EXPORT) Rs/kg Black Tea Instant Green Average Other Year Bulk Packeted Tea Tea Tea Price Tea Tea bags 2007 313.08 349.13 605.37 661.48 713.89 526.38 360.97 2008 378.53 415.86 722.13 898.98 810.18 597.38 429.76 2009 410.53 457.58 785.70 826.62 865.79 650.27 470.24 2010 437.15 475.24 792.91 803.38 891.11 781.59 494.59 2011 442.66 473.32 912.47 861.26 976.98 - 500.64 2012 495.29 516.16 1,084.01 884.50 1,112.46 - 552.26 2013 557.81 569.51 1,097.64 1,026.70 1,253.15 - 613.23 2014 579.44 598.42 1,099.24 1,102.23 1,213.04 - 640.19 2015 515.35 551.67 1,151.32 1,022.96 1,230.90 - 583.10 2016 551.37 591.25 1,199.13 1,215.57 1,386.60 - 627.44 2017 736.96 758.45 1,382.51 1,250.83 1,538.90 - 799.35 2018 736.03 765.02 1,473.11 1,319.49 1,698.62 - 810.41

Source: Sri Lanka Tea Board Note: Volume of “Other” category which was appeared previously absorbed in to main categories from 2011

TEA EXPORTS Overview - 2018

Quantity Unit Price Export Earnings (Mn Kg) (FOB Rs/Kg) (Rs mn) ($ mn) Export 271.80 810.41 220,252 1,355.06 Re export 10.59 1,086.00 11,499 70.74 Total 282.36 820.75 231,750 1,425.80

 Category wise Export(with re-exports) Bulk Tea 123.54 733.96 90,676 557.87 Packeted Tea 135.41 783.38 106,076 652.61 Tea Bags 23.41 1,494.93 34,999 215.33 Total/Average 282.36 821.00 231,750 1,425.80 Black Tea 275.26 800.67 220,395 1,355.94 TeaInstantstant Tea Tea 2.48 1,319.71 3,274 20.14 GreenTTeaGreen Tea 4.62 1,749.25 8,081 49.72 TotalExportsTea 282.36 820.75 231,750 1,425.80

 Major Destinations – in mn Kg (52% share) Iraq Turkey Russia Iran Libya 38.35 35.45 30.29 23.55 13.40

 Tea Imports (mn kg)  Tea Re-exports CTC 4.18 Quantity(mn kg) 10.59 Green Tea 2.06 kg Value (Rs mn) 11,499 Specialty White & 1.16 Decafinated

Total 7.40 Value Rs mn 2,771.28

 Tea Export Cess Collected: Rs. 2,230.77 mn (Bulk Rs.10/= & Value Added Rs. 4/= per Kg)

Table No.1.27

TEA EXPORT VOLUME & VALUE BY DIFFERENT CATEGORY (WITHOUT RE-EXPORT) Black Tea Instant Tea Green Tea Other Total Bulk Tea Packeted Tea Tea Bags Year Mn kg Rs mn Mn kg Rs mn Mn kg Rs mn Mn kg Rs mn Mn kg Rs mn Mn kg Rs mn Mn kg Rs mn 2007 179.8 56,317 72.7 25,392 22.0 13,313 1.5 988 3.5 2,470 14.7 7,737 294.3 106,217 2008 178.0 67,387 84.3 35,051 20.3 14,652 1.3 1,183 3.9 3,184 13.4 8,007 301.2 129,464 2009 164.6 67,554 75.5 34,542 18.7 14,686 1.4 1,125 3.9 3,370 15.9 10,337 280.0 131,613 2010 176.8 77,275 89.8 42,662 25.7 20,405 1.8 1,423 2.8 2,494 8.9 6,963 305.8 151,222 2011 125.0 55,316 149.9 70,611 23.9 21,778 1.9 1,630 2.5 2,442 - - 303.2 151,777 2012 129.5 64,137 152.0 78,457 20.6 22,334 1.6 1,372 2.4 2,715 - - 306.0 169,015 2013 129.3 72,118 153.8 87,602 23.2 25,477 2.0 2,003 2.9 3,604 - - 311.2 190,804 2014 125.9 72,943 161.3 96,583 25.5 27,988 2.2 2,424 2.9 3,569 - - 317.8 203,507 2015 131.8 67,920 143.3 79,071 19.2 22,139 2.1 2,170 2.4 2,993 - - 298.9 174,293 2016 124.4 68,585 132.4 78,286 19.6 23,530 2.0 2,443 2.5 3,388 - - 280.9 176,232 2017 123.4 90,966 132.4 100,442 17.81 24,619 2.1 2,651 2.4 3,697 - - 278.2 222,376 2018 120.3 88,524 129.4 98,977 17.28 25,454 2.5 3,272 2.4 4,026 - - 271.8 220,252

Source: Sri Lanka Tea Board Note: From 2011 onwards Tea export under “Other” category not exist as in previously since it was absorbed into main categories Bulk Tea: Quantity more than 10kg in a pack

Table No.1.28 TEA MONTHLY EXPORT VOLUME AND VALUE BY CATEGORY - 2018 (WITH RE-EXPORT)

Black Tea Bulk Tea Packeted Tea Tea Bags Instant Tea Green Tea Re-Exported Tea Total RTD*

Month Mn kg Rs mn Mn kg Rs mn Mn kg Rs mn Mn kg Rs mn Mn kg Rs mn Mn kg Rs mn Mn kg Rs mn Liters Rs mn

January 9.28 6,952.86 9.56 7,396.88 1.28 1,803.03 0.08 95.31 0.15 247.61 0.65 697.33 21.00 17,193.01 2,140.5 2.62

February 9.08 6,914.04 9.98 7,877.16 1.36 1,942.77 0.30 395.37 0.17 294.49 0.87 883.58 21.75 18,307.42 1,782 0.71

March 10.75 7,889.77 12.27 9,596.57 1.61 2,357.27 0.26 337.95 0.26 398.78 0.99 987.60 26.13 21,567.95 7,175.4 6.36

April 8.68 6,364.73 9.74 7,712.22 1.23 1,729.38 0.14 187.11 0.20 287.68 0.89 836.01 20.88 17,117.12 1,440 1.51

May 9.73 7,236.40 10.58 8,295.43 1.46 2,040.75 0.20 264.02 0.20 306.99 0.90 994.06 23.08 19,137.65 42 0.02

June 9.89 7,420.71 11.84 9,189.86 1.74 2,395.47 0.33 401.39 0.15 279.94 0.80 929.13 24.74 20,616.50 3,421 4.13

July 10.72 7,615.68 11.41 8,242.73 1.49 2,239.16 0.22 271.94 0.22 401.21 1.15 1,182.42 25.21 19,953.13 1,405.6 0.48

August 10.60 7,472.80 10.60 7,481.32 1.43 2,160.23 0.09 125.62 0.19 348.50 0.94 1,023.03 23.86 18,611.50 1,532 1.85

September 11.58 8,232.87 11.39 8,121.53 1.44 2,125.02 0.28 366.90 0.18 359.28 0.81 938.52 25.68 20,144.13 1,247.2 0.74

October 9.98 7,367.67 10.58 8,362.70 1.44 2,294.95 0.21 275.41 0.22 389.52 0.93 1,085.32 23.36 19,775.57 2,877.22 2.94

November 8.84 6,663.42 9.98 7,831.72 1.34 2,189.30 0.21 299.85 0.21 344.23 0.74 915.88 21.32 18,244.40 3,376 3.12

December 11.14 8,392.63 11.44 8,868.89 1.47 2,176.22 0.18 251.10 0.21 367.41 0.91 1,025.82 25.35 21,082.06 7,175.8 6.08

Total 120.27 88,523.59 129.38 98,977.01 17.28 25,453.54 2.48 3,271.97 2.37 4,025.64 10.59 11,498.69 282.36 231,750.45 33,614.72 30.55 *RTD includes both exports &re-exports Source: Sri Lanka Tea Board Bulk Tea: Quantity more than 10kg in a pack

Export Quantity and Value of Tea by Category

(Table No. 1.27 & 1.28)

Out of total tea exports around 98% was black tea, and rest is instant tea and green tea in 2018. The black tea were exported by three major types which were bulk tea, packeted tea and tea bags. Until 2010, bulk tea was the major type exported by both in volume and value, but now, the packeted tea has come forward.

From 2015 to 2018, the total quantity of exports had declined. That had taken place mainly due to the decrease of black tea. From 2017 to 2018, the total quantity of exports had declined by 2.3%.

As shown by the table no 1.28, the maximum tea export volume was reported in month of March in 2018. Minimum was in month of April. The maximum value of export was reported in March, while minimum recorded in April.

Maximum bulk tea export is taken place in September, and packeted tea in March. Highest tea bags quantity was exported in June. Instant tea export recorded quantity range of 0.08 - 0.33 mn kg throughout the year, and does not show much variation. Highest re-exported quantity was also reported in month of July.

Chart 5

Source: Sri Lanka Tea Board

Table No.1.29

SRI LANKA TEA EXPORT BY DESTINATION (Excluding Re- Exports) Mn kg COUNTRY 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 RUSSIA 48.7 45.4 42.4 44.4 49.1 47.2 45.7 43.55 36.10 34.08 32.79 30.29 IRAN 31.7 31.0 27.7 29.1 30.9 38.1 38.4 29.26 29.56 33.60 27.04 23.55 IRAQ 9.0 11.6 9.8 13.1 22.6 23.5 22.3 24.44 31.04 32.41 34.94 38.35 TURKEY 14.5 15.9 15.7 19.3 19.2 23.1 32.2 44.73 33.68 27.06 37.81 35.45 UAE 43.7 45.2 30.9 31.1 21.8 11.6 17.5 19.22 22.92 17.83 15.23 10.70 LIBYA 9.3 7.2 8.1 10.7 7.4 16.3 6.5 12.42 9.90 12.62 10.83 13.40 SYRIA 27.3 26.1 29.5 28.2 28.8 24.7 21.0 12.85 10.94 11.96 7.28 9.91 AZERBAIJAN 1.4 2.7 3.1 10.4 12.0 10.6 10.8 11.1 11.16 10.54 12.27 10.55 JAPAN 10.3 10.2 9.5 11.2 11.6 9.5 8.8 8.98 8.35 7.67 7.82 7.33 CHINA 0.8 0.9 0.8 1.4 2.4 3.0 4.1 4.8 7.20 7.46 9.47 9.16 CHILE 6.4 7.2 6.1 6.5 6.6 6.6 6.8 6.95 6.86 6.54 7.00 7.46 GERMANY 5.5 5.9 4.9 5.7 6.2 5.6 6.6 6.25 6.85 6.53 6.68 5.90 UKRAINE 7.4 7.7 6.9 7.7 8.1 8.0 5.3 6.36 3.97 4.63 3.76 3.34 HONGKONG 4.6 4.8 5.1 5.2 5.1 4.4 4.9 5.1 4.78 4.56 4.42 4.57 USA 3.0 2.7 2.8 3.2 3.4 3.0 3.7 4.51 3.78 4.52 4.04 4.64 SAUDI ARABIA 8.5 7.3 4.8 4.2 4.7 4.5 3.5 4.69 4.36 3.99 4.13 5.29 JORDAN 5.9 14.3 13.4 17.7 7.3 9.4 7.6 6.65 5.57 3.88 4.58 4.59 KUWAIT 2.5 7.5 10.1 11.6 9.1 7.3 16.0 12.1 8.68 3.49 2.36 2.16 LEBANON 1.8 1.8 2.3 2.2 2.1 2.1 2.8 3.4 2.45 3.45 4.09 3.53 TAIWAN 1.2 1.3 1.3 1.6 2.0 1.9 2.2 2.9 3.53 3.06 4.09 4.24 EGYPT 1.5 1.1 1.3 1.5 2.4 3.6 2.0 2.81 4.18 3.05 1.36 2.01 BELGIUM 0.2 0.04 0.1 1.0 3.0 2.0 2.0 2.0 2.0 2.83 2.54 3.42 NETHER LANDS 2.4 4.5 3.8 2.6 2.6 2.1 2.2 3.0 1.54 2.57 2.63 2.78

AUSTRALIA 3.0 3.2 3.0 3.2 2.7 2.7 2.6 2.9 2.34 2.37 2.67 2.12 POLAND 3.2 2.1 2.6 2.1 2.5 2.4 2.8 2.6 2.37 2.17 2.33 2.11

Table No.1.29 (contd)

Mn kg COUNTRY 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 SOUTH AFRICA 0.8 0.6 0.9 1.0 1.5 1.9 2.3 1.8 2.00 2.04 1.76 1.72 IRELAND(Republic) 1.3 0.2 1.3 1.3 - 1.5 - 2.1 1.99 1.82 1.94 2.17 ALBANIA - - 0.1 0.25 0.41 1.0 2.0 2.0 2.0 1.63 1.92 1.78 ISRAEL 1.8 2.0 1.6 1.4 1.5 - 1.5 2.0 1.42 1.38 1.36 1.34 FINLAND 6.4 2.1 1.9 0.6 0.3 - 1.2 2.2 1.14 1.21 0.98 0.40 INDIA 0.9 0.3 1.4 0.3 0.2 0.5 0.6 1.9 3.45 1.08 0.28 0.84 UK 3.1 2.4 2.2 1.8 1.3 1.7 0.8 1.06 1.15 0.96 1.21 0.95 ITALY 2.0 1.6 1.7 3.2 1.7 1.8 1.4 1.5 1.51 0.96 0.90 1.40 PAKISTAN 0.7 1.4 1.6 1.0 1.5 4.5 0.6 0.09 3.28 0.96 0.13 0.04 KYRGYSTAN 0.3 0.2 0.25 0.35 1.0 1.0 1.0 1.0 1.0 0.91 0.71 0.77 NEW ZEALAND 0.8 0.9 0.9 1.0 0.8 0.9 1.0 1.0 1.01 0.88 1.02 0.83 OTHERS 22.4 21.86 20.15 18.7 19.39 18.0 20.5 17.58 14.84 14.17 13.83 12.69 TOTAL 294.3 301.2 280.0 305.8 303.2 306.0 311.2 317.8 298.9 280.87 278.20 271.78 Source: Sri Lanka Tea Board

Sri Lanka Tea Exports by Destination

(Table No. 1.29)

Top thirty tea importing countries from Sri Lanka shared 93% of total exports of Sri Lankan own made tea in the year 2018, which exclude re export blended component of 10.59 mn kg. With a few exceptional cases the import quantity of each country presented is more than 1 mn kg. The balance 6% of export quantity was exported to other 100 odd tea consuming countries of which annual volume of exports between 10,000 kg and one million kg. Compared to previous year exports, a decrease of 2.3% was recorded in the current year.

As far as the top 30 export destinations are concerned, in 2009 the year which world economic recession was severely affected total tea imports declined to 280 mn kg. However, since then upto 2014, the level of total exports from Sri Lanka was increased gradually upto 317.8 mn kg. Since then gradual decline is shown upto 2018.

Since 2007 to 2013, even in 2010 the top five tea export destinations of Sri Lanka were Russia, UAE, Syria, Turkey and Iran. However, in 2012 & 2013 Iraq came into this category replacing the status of UAE. In 2013 also these 5 countries continued their position in purchasing Ceylon Tea. Since 2014 Turkey, Russia, Iran, Iraq and UAE were the top 5 tea importing Countries from Sri Lanka. These top five importers along shared 49% of total tea exports from Sri Lanka at present. The improving export markets in the recent past are Iraq, Libya, Ukraine, Kuwait, Chile & Azerbaijan. However, the importers who reduced purchase of Sri Lankan tea in the past few years are UAE, UK, Pakistan, and Saudi Arabia. As well as 2015 and 2016, top five tea export destinations of Sri Lanka were Russia, Turkey, Iraq, Iran and UAE in 2018 also.

Table No.1.30

TEA IMPORTS AND RE- EXPORTS

Re-Exports Imports Value added Re-Exports Bulk Re-Exports Total Re-Exports Year Qty Value Total Qty Value Total Qty Value Total Qty Value Mn kg Rs Mn Mn kg Rs Mn Mn kg Rs Mn Mn kg Rs Mn 2007 13.7 4,210 n.a. n.a. n.a. n.a. 15.3 6,617 2008 14.8 7,730 n.a. n.a. n.a. n.a. 18.6 8,121 2009 10.0 2,980 n.a. n.a. n.a. n.a. 9.8 4,570 2010 12.2 3,768 n.a. n.a. n.a. n.a. 18.6 11,568 2011 11.4 3,770 12.2 9,673 7.2 3,405 19.4 13,077 2012 6.2 2,230 11.6 10,173 2.3 1,242 13.9 11,415 2013 5.0 1,913 7.8 8,163 0.7 473 8.5 8,636 2014 6.1 1,836 8.2 8,464 1.3 617 9.5 9,081 2015 4.9 1,772 7.0 7,267 1.0 485 8.0 7,752 2016 4.7 1,617 7.0 8,135 0.9 411 7.9 8,546 2017 7.7 2,964 8.0 9,360 2.8 1,603 10.79 10,963 2018 7.4 2,771 7.8 9,795 2.8 1,704 10.59 11,499 Source: Sri Lanka Tea Board n.a. – not available, the break down and total figure only.

Tea Imports and Re-Exports

(Table No.1.30)

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.

The quantity of tea imported for re-exportation has decreased by 0.2 mn kg in 2018, comparing with 2017. Therefore, the re-exportation also slightly decreased in 2018. But, from 2013 to 2017 the re-exportation has increased.

Both value added re-exports and Bulk re-exports have shown an increasing trend, and the majority of the imports are exported as value added re- export. The value of imported other origin teas peaked at Rs 7,730 mn, in 2008 and dropped continuously down to Rs 1,617 mn in 2016. But the value of the total re-exports shows a peak in 2011, that was Rs 13,077 mn. Although the value of imported other origin teas have reduced from 2008 to 2011 by Rs 3,960 mn, the value of re-exports has increased by Rs 4,956 mn.

In 2018, the value of tea imports is Rs 2,771 mn, and the value of re- exports is Rs. 11,499 mn. The imported value is just 24% by re-exports. But in 2008, this was 95%. This value has come down regularly.

Table No.1.31 TEA IMPORT FOR RE - EXPORT PURPOSE – COUNTRYWISE MT 2017 2018 Country CTC Green Speciality White Decaff- CTC Green Specialt White Decaffe- Total Total tea Tea Tea Tea einated Tea tea Tea y Tea Tea inated Tea USA - - 24.03 - - 24.03 - - 2.08 - - 2.08 China 36.45 1,794.80 690.10 10.68 1.50 2,533.53 22.00 1,982.00 219.29 16.80 - 2,239.75 Germany - 7.50 0.93 - 0.99 9.42 - 3.14 1.60 0.25 - 4.99 India 3,078.57 25.94 856.78 0.75 12.41 3,974.45 3,298.26 4.06 798.07 - 9.42 4,109.81 Ruwanda 3.98 - - - - 3.98 13.10 - - - - 13.10 Japan - 9.87 0.46 - - 10.33 - 3.51 97.99 - - 101.50 Kenya 914.95 - - - 3.00 917.95 814.23 - 15.70 - - 829.93 Malawi ------Nepal ------Taiwan - - 0.31 - - 0.31 - - 0.08 - - 0.08 Vietnam 25.30 106.20 - - - 131.50 - 65.50 - - - 65.50 United Kingdom - - 5.00 - 8.28 13.28 ------Myanmar 0.65 4.88 - - - 5.53 - 5.28 - - - 5.28 Uganda ------Netherland ------Switzerland ------Tanzania 0.94 - - - - 0.94 ------Hong kong ------Indonesia 54.35 - - - - 54.35 0.10 - - - - 0.10 South Korea ------0.16 - - 0.16 Ethiopia ------28.63 - - - - 28.63 Total 4,115.18 1,949.18 1,577.61 11.43 26.18 7,679.59 4,176.32 2,063.15 1,134.97 17.05 9.42 7,400.91

Source: Sri Lanka Tea Board

Table No.1.32

CESS COLLECTION FROM TEA EXPORTS

Export Cess Value of Exports Year Quantity Collection Rs Mn US $ Mn SDR Mn Mn kg Rs Mn 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 303.2 2,057.8 151,776.5 1,372.7 869.6 2012 306.0 2,051.4 169,015.0 1,324.5 865.1 2013 311.1 2,240.2 190,803.9 1,477.8 972.5 2014 317.8 2,283.0 203,506.7 1,558.7 1,025.9 2015 298.9 2,046.2 174,293.4 1,282.2 916.6 2016 280.9 1,993.9 176,232.2 1,210.4 870.8 2017 278.2 2,527.2 222,376.0 1,458.6 1,051.5 2018 271.8 2,230.8 220,251.8 1,355.1 958.1 Note: Excludes re- export quantity of which cess is not entitled. 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 2011, the cess rate for bulk tea which is considered to be above 10 kg packs of made tea was increased up to Rs 10/= per kg while remaining Rs.4/= per kg on all other value added categories. As a result cess income was almost doubled compared to previous year(2010).

Cess collections for 2018 was lower than 2017 by 11.7%. In 2018, the export quantity also decresed by 2.3%, the export earnings decreased by 1% compared to 2017.

TEA AREA

TEA WORLD Overview - 2014 Overview - 2018

 Tea Extent (Hectares) – 4,805,707 Asia Africa Other 4,334,747 379,650 91,310 Of which China 3,030,000 Kenya 234,300 Argentina 41,400 India 601,000 Uganda 45,000 Georgia 35,000 Sri Lanka 202,540 Rwanda 23,000 Vietnam 134,000 Tanzania 22,600 Indonesia 115,300 Malawi 18,700

 Tea Production (Thousand Metric Tons) – 5,897 Asia Africa Other 5,056 733 108 85.74% 12.43% 1.83%

 Production by Type (Thousand Metric Tons) – 5,265 Orthodox CTC Green Tea Total 1,222 2,079 1,964 Asia 91.57% 64.65% 99.85% Africa 0.41% 35.02% - Other 8% 0.35% 0.10%

 Export Quantity & Value – Top 4 Exporters Sri Lanka China India Kenya 000’ Mt 272 365 251 475 % to Total 15.2 20.4 14.1 26.6 Value $mn 1,356 1,780 743 1,390

 Tea Consumption (Kg per head/year) Higher end Lower end Moderate Turkey 3.04 France 0.21 Sri Lanka 1.35 Libya 2.80 Indonesia 0.36 Chile 1.11 Afghanistan 1.37 South Africa 0.35 China 1.48

Table No.1.33 DISTRIBUTION OF WORLD TEA PLANTED AREA- COUNTRYWISE EXTENT

Hectares

Country 2014 2015 2016 2017 2018

Asian Region China 2,649,840 2,791,390 2,902,700 2,948,500 3,030,000 India 566,660 566,660 577,480 590,000 601,000 Sri Lanka 187,935 188,000 202,839 202,540 202,540 Indonesia 118,899 114,892 117,268 116,500 115,300 Vietnam 131,000 134,000 134,000 134,000 134,000 Turkey 77,400 77,500 77,000 77,000 77.300 Japan 44,800 39,300 43,100 42,400 41,600 Bangladesh 56,000 56,846 59,000 59,000 59,300 Myanmar 78,700 79,000 80,000 80,000 81,000 Nepal 26,165 26,000 26,400 27,000 27,300 Taiwan 11,906 11,780 11,814 11,765 11,750 Iran 22,000 24,000 24,400 24,700 24,000 Other Asia (Korea & Malaysia) 6,880 6,800 6,830 6,850 6,880 Sub Total - Asia 3,978,185 4,116,168 4,262,831 4,320,255 4,334,747 African Region Kenya 203,006 209,426 218,538 232,742 234,300 Malawi 18,600 18,600 18,600 18,600 18,700 Rwanda 16,999 17,221 19,000 21,500 23,000 Tanzania 22,721 22,722 22,722 22,609 22,600 Uganda 33,700 36,000 37,500 43,940 45,000 Other Affrica (Eight Countries) 35,280 35,320 35,700 36,020 36,050 Sub Total - 330,306 339,289 352,060 375,411 379,650 Africa South America Argentina 40,730 40,750 41,000 41,000 41,400 Other (Brazil, Peru, Ecuador) 7,830 7,530 7,550 7,550 7,490 Sub Total - South America 48,560 48,280 48,550 48,550 48,890 CIS Region Georgia 34,000 34,000 34,000 34,000 35,000 Other (Azerbaijan, Russia) 2,420 2,430 2,450 2,420 2,460 Sub Total - CIS 36,420 36,430 36,450 36,420 37,460 Oceania Australia & Papua New Guinea 4,780 4,800 4,930 4,950 4,960 Total Extent 4,398,251 4,544,967 4,704,821 4,785,586 4,805,707 Source: International Tea Committee (ITC) Bulletin & Web Sites of the Tea Producing Countries Note: Tea planted extent given is as at end of the each year.

World Extent of Tea Planting

(Table No.1.33)

At present world tea extent is 4,805,707 ha which was 4,398,251 ha in 2014. Asian region dominates the tea planted area sharing about 90.2% of world tea extent. African continent shares about 7.9% while rest of the tea growing world, South America, CIS region and Oceania together contribute 1.9% of the world tea extent. Since the year 2014, tea extent increasing by 356,562 hectares or 9% in Asia, in African region extent increase recorded by only 49,344 hectare, which is 15% .

In Asia, the major five tea growers (China, India, Sri Lanka, Indonesia & Vietnam) possessed over 85% of the world tea extent and 94% of Asian region at present. This is due to a substantial extent enhasment under extensive new planting programe in China at the rate of around 118,000 ha annually. A segment status of tea extent is highlighted for rest of the Asian countries in the period from 2014 to 2018.

As a dominant tea grower, Kenya owned 62% of tea extent in Africa at present. Since 2014 Kenya expanded tea extent from 203,006 ha to 234,300 ha (15%) 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 from 2014 to 2018.

In South America, Argentina is the main tea grower which recorded almost same extent of tea land in the decade. In CIS region Georgia possesses 34,000 ha and 35,000 at present of tea extent. Tea land extent of other South American countries, other CIS countries and Oceania recorded insignificant quantity and no significant expansion. Currently world tea extent is dominated by 9 Asian countries (including top five growers) and Kenya with 4,576,340 hectares or 95% of world extent.

Table No.1.34

COUNTRYWISE WORLD TEA PRODUCTION Metric Tons Country 2014 2015 2016 2017 2018 Asia China 2,095,717 2,248,999 2,404,947 2,496,412 2,616,000 India 1,207,310 1,208,660 1,267,360 1,321,760 1,338,630 Sri Lanka 338,032 328,964 292,574 307,720 304,006 Indonesia 144,369 132,615 137,015 134,000 131,000 Vietnam 175,000 170,000 180,000 175,000 163,000 Turkey 246,458 258,541 253,312 255,404 252,000 Japan 81,330 76,400 77,100 78,800 81,500 Bangladesh 64,480 67,378 85,050 78,949 82,134 Myanmar 20,400 20,000 20,500 21,000 21,400 Nepal 23,187 23,000 23,000 24,200 24,800 Taiwan 15,200 14,405 13,018 13,443 13,300 Iran 13,600 13,000 20,700 21,400 21,000 Other (Korea & Malaysia) 6,800 6,900 6,900 7,100 7,300 Sub Total -Asia 4,431,883 4,568,862 4,781,476 4,935,188 5,056,070 Africa Kenya 445,105 399,211 473,011 439,858 492,999 Malawi 45,855 39,447 43,127 45,582 50,588 Rwanda 24,751 25,410 25,628 27,887 28,000 Tanzania 36,115 31,658 29,112 31,814 35,170 Uganda 65,373 58,588 55,736 53,887 71,567 Other (8 Countries) 51,283 53,609 54,350 54,830 54,700 Sub Total - Africa 668,482 607,923 680,964 653,858 733,024 South America Argentina 82,313 82,000 84,000 82,000 80,000 Other (Brazil,Ecuador,Peru) 9,800 9,300 9,800 9,180 9,050 Sub Total S. America 92,113 91,300 93,800 91,180 89,050

CIS Region

Georgia 4,600 4,600 4,800 5,000 5,400 Other (Azerbaijan, Russia) 3,790 3,890 4,000 4,020 4,230 Sub Total CIS 8,390 8,490 8,800 9,020 9,630 Oceania Australia & PNG 8,100 8,300 8,600 8,740 8,870 Grand Total 5,208,968 5,284,875 5,573,640 5,697,986 5,896,644

Source: International Tea Committee (ITC) Bulletin Web Sites of the Tea Producing Countries

Table No.1.35 WORLD TEA PRODUCTION BY TYPE OF MANUFACTURE Thousand Metric Tons 2017 2018

Black Tea Green Black Tea Green Country Total Total Orthodox CTC Tea Orthodox CTC Tea Asian Region China 227 - 1,679 1,906 262 - 1,722 1,984 India 111 1,190 20 1,321 110 1,209 20 1,339 Sri Lanka 282 22 3 307 278 23 3 304 Indonesia 95 11 28 134 94 10 27 131 Vietnam 66 12 97 175 64 9 90 163 Turkey 255 - - 255 252 - - 252 Japan - - 79 79 - - 81 81 Bangladesh 7 71 0 78 8 74 0 82 Myanmar 21 - - 21 21 - - 21 Nepal 6 18 - 24 6 19 - 25 Taiwan 1 - 13 14 1 - 13 14 Iran 21 - - 21 21 - - 21 Korea - - 5 5 - - 5 5 Malaysia 2 - - 2 2 - - 2 Sub Total -Asia 1,094 1,324 1,924 4,342 1,119 1,344 1,961 4,424 African Region Burundi - 11 - 11 - 11 - 11 Kenya 4 436 - 440 5 488 - 493 Malawi - 46 - 46 - 50 - 50 Rwanda - 28 - 28 - 28 - 28 Tanzania - 32 - 32 - 35 - 35 Uganda - 54 - 54 - 72 - 72 Zimbabwe - 16 - 16 - 15 - 15 Camaroon - 5 - 5 - 5 - 5 Other Africa - 23 - 23 - 24 - 24 Sub Total-Africa 4 651 - 655 5 728 - 733 CISAfrica 9 - 1 10 10 - 1 11 South America Argentina 80 - 2 82 80 - 2 82 Other 9 - 0 10 8 - 0 8 Sub Total South America 89 - 2 92 88 - 2 90 Papuwa New Guniea - 7 - 7 - 7 - 7 Others ------Grand Total 1,196 1,982 1,927 5,106 1,222 2,079 1,964 5,265 Source: International Tea Committee (ITC) Bulletin

World Tea Production

(Table No. 1.34 & 1.35)

In 2018, world tea production contributed a record level of 5.9 million metric tons for the first time in the history. This is a 13% growth compared to 2014 and 3.5% growth over the previous year. The share of tea production during 2014-18 has recorded within the range of 85% - 86% for Asia, 13% to 11% for Africa and 2.1% to 1.8% for rest of the world. Compared to 2017, total tea production increased by 198,658 metric tons which was caused mainly by an increase in tea production of 119,588 mt in China and India (16,870 mt). Since 2014, Bungladesh & Iran increased its productions by 27% and 54% respectively. Since 2014 to 2018, Taiwan and Sri Lanka decreased its productions by 12.5% & 10.1% respectively.

In 2018, major tea producing countries in Asia such as China, India, Sri Lanka, Indonesia, Vietnam and Turkey had shared 81.5% or 4.8 mn mt of the world tea production and 95% of Asian tea production. This indicates the positive trend throughout the decade. Tea production in China has increased rapidly with an annual growth of 6% resulting in more than 25% increase of the production since 2014 and owned by 44% of global share currently. Indian production growth rate was slightly below the growth rate of China. India owned global share by 23%.

Kenya dominates the African region producing 8.4% of world production and 67% of African share. Argentina which is the main producer in South America, produces 1.4% of world production in comparison to Sri Lanka where the share is remained 5.2% currently. It is significant fact that Kenya has increased its production by 10.8% since 2014 and has currently surpassed Sri Lanka which was similar status at beginning of the decade.

At present, the shares of three types of manufacturing of world tea production are Orthodox (23%), CTC (40%) and Green tea (37%). Asian region produces all three types showing Green tea (44%), CTC (30%) and Orthodox (25%) of Asian total in 2018. Also China, Vietnam, Japan & Indonesia 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 (99.3% of region total) and Kenya production alone is about 67% of African CTC or 488,000 mt in 2018. In South American region, Argentina produces Orthodox exclusively. Overall China dominates Green Tea manufacturing producing 88% of total Green Tea while 81.6% of total CTC is produced by India & Kenya. Orthodox type is concerned, five main producers (Sri Lanka, China, Indonesia, Turkey and Argentina) share 966,000 mt or 79% of global Orthodox total.

Table No.1.36 WORLD SELECTED TEA EXPORTERS SHOWING OF DESTINATION- 2018 Exporting Country – Quantity Export in Metric Tons Importing Country Sri Indon- India Vietnam Kenya Argentina Lanka esia United Kingdom 821 15,615 1,623 800 47,302 1,965 Germany 5,794 9,854 3,279 300 903 1,448 Greece 661 - - - - - Italy 1,385 - - - 5 - Netherlands 2,714 3,814 396 20 2,907 1,014 Poland 2,070 6,080 2,860 1,100 6,218 2,741 Russia & CIS 46,467 63,001 8,401 18,400 28,979 1,812 Canada 446 1,658 150 - 565 - USA 4,643 9,527 2,946 6,600 4,812 48,618 Chile 7,432 - 414 350 1,648 9,709 Kuwait 2,149 791 - - - - Saudi Arabia 5,224 4,571 435 2,200 5,253 - UAE 10,407 20,859 1,808 4,500 34,770 - Hongkong 4,568 286 236 - - - Iran 23,545 30,780 287 1,100 4,035 - Iraq 38,563 3,436 - 2,200 - - Japan 7,334 3,188 765 - 2,465 - Jordan 4,585 175 - - - - Lebonon 3,529 - - - - - Pakistan 36 15,812 4,136 12,000 177,770 - Syria 9,906 307 - - - - Turkey 35,448 1,741 250 400 2,429 - Egypt 2,007 11,611 200 440 73,756 - Libya 13,323 - - - - - Tunisia 5 3,601 - - - - Australia 2,049 2,429 1,744 - 8 - Malaysia 339 - 8,896 4,200 - 1,162 Afganistan - 756 763 14,500 10,294 - Indonisia - 937 - 9,000 - - Taiwan 4,150 - 1,596 18,000 - - Senegal ------Yeman 90 - - - 14,294 - Mali ------Nigeria - - - - 5,127 - Niger ------Sudan - - - - 22,554 - Algeria ------Togo ------Cameroon ------Morocco ------Sri Lanka - 3,998 0 - 972 - Kenya - 379 - - - - China 9,127 10,258 1,774 11,000 - 474 India 832 - 947 300 3,075 1,360 Total 249,649 225,464 43,906 107,410 450,141 70,303 Source: International Tea Committee (ITC) Bulletin

Table No.1.37 WORLD TEA EXPORTERS - QUANTITY AND VALUE

2016 2017 2018 Value Unit Value Unit Value Unit Quantity Quantity Quantity Country US$ Price US$ P rice US$ Price MT MT MT mn US$/kg mn US$/kg mn US$/kg Producers India 218,392 635 2.91 247,018 729 2.95 251,348 743 2.96 Bangladesh 539 2 3.42 2,568 5 1.83 644 1 2.17 Sri Lanka 280,874 1,211 4.31 278,195 1,459 5.24 271,777 1,356 4.99 Indonesia 51,464 113 2.20 54,194 114 2.11 49,030 108 2.21 China 328,692 1,485 4.52 355,258 1,610 4.53 364,700 1,780 4.88 Taiwan 5,758 68 11.89 8,336 95 11.40 8,788 97 11.04 Japan 4,251 109 25.58 4,745 130 27.37 5,221 142 27.27 Turkey 6,117 29 4.67 5,185 25 4.82 5,400 26 4.81 Vietnam 142,000 236 1.66 140,000 230 1.64 126,000 219 1.74 Kenya 480,330 1,190 2.48 415,715 1,250 3.01 474,862 1,390 2.93 Malawi 29,290 44 1.51 29,290 50 1.70 34,816 64 1.84 Rwanda 23,500 63 2.70 26,243 84 3.21 26,700 88 3.30 Tanzania 26,030 45 1.74 27,512 49 1.78 26,603 56 3.30 Uganada 50,186 83 1.66 47,009 101 2.15 60,878 110 1.81 Argentina 78,177 97 1.24 74,921 96 1.28 72,619 90 1.25 Brazil 367 3 8.05 297 3 8.94 227 1,992 8.78 Papua New 5,300 8 1.45 5,500 8 1.36 5,300 7 1.38 Guinea 1,731,267 1,721,986 1,784.913 Exported % of Global 31.1 30.2 30.3 Crop United Kingdom 20,921 142 6.77 19,432 138 7.09 18,679 141 7.53 France 4,562 54 11.79 3,438 61 17.68 3,195 63 19.75 Germany 25,282 232 9.19 24,904 245 9.82 22,430 252 11.22

Source: International Tea Committee (ITC) Bulletin & Web Sites of the Tea Producing Countries

World Tea Export Earnings

(Table No. 1.36 & 1.37)

In 2018, global tea export stood at 30.3% of global crop (production). Quantity of export increased marginally (62,927 mt). Major 7 tea producers (India, Sri Lanka, China, Indonesia, Vietnam, Kenya & Argentina) were the significant exporters as well sharing 84% of global export. Out of them shows an increasing trend of export while Sri Lanka, Vietnam, Argentina and Brazil recorded a declining trend. Due to heavy local consumption of tea produced by China & India export shares were 14% and 18.8% of production respectively. In contrast Argentina and Sri Lanka export accounted more than 91 - 89% of their production while this share for Indonesia and Vietnam was 37% & 77% 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 96.3% of its production share.

As presented in table 1.36 six 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 also remain as substantial supplier. Main tea supplier to Pakistan, Egypt & Afghanistan is Kenya at present. Taiwan & Afghanistan are the main destinations of Vietnam exports.

In 2018, apart from China & Kenya, Sri Lanka shares 15% of global tea export with third highest export ernings ($ 1.36 bn) and unit price at $ 4.99 per kg. Kenya had market share of 27% including teas from some other produces in Africa. While Indian tea exports share was 14% in 2018, China earned $ 1,780 million with a global export share of 20% and FOB unit price of $ 4.88 per kg. Indonesia, Vietnam & Argentina together share the 14% of global exports in 2018.

Non tea producers (UK, France & Germany) re-exported some imported teas with the higher unit price worth of $ 456 million in 2018. However, the highest unit price ($ 27.27 per kg) of tea export was reported for Japan in 2018 too. 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.

Table No.1.38

WORLD TEA CONSUMPTION IN SELECTED THIRTY COUNTRIES

Apparent Tea Imports for Consumption Country Consumption (MT) 2016-2018 Average Total Kg Per 2016 2017 2018 (1000 MT) Head Tea Producers China 22,736 29,831 35,530 2055.67 1.48 India 20,970 21,120 24,920 1036.00 0.82 Indonesia 22,095 14,679 14,922 94.00 0.36 Japan 29,420 30,430 31,200 103.87 0.82 Sri Lanka 13,000 13,000 11,000 28.96 1.35 Turkey 32,400 38,800 37,800 247.53 3.04 Iran 65,400 63,000 63,600 76.83 0.94 Taiwan 26,344 30,209 32,321 36.14 1.29 Kenya 8,290 8,802 10,988 35.11 0.73 Tea Consumers UK 107,233 108,341 107,862 107.81 1.62 France 12,176 13,990 14,987 13.72 0.21 Germany 32,229 28,589 28,250 29.69 0.36 Poland 35,465 38,097 36,192 36.59 0.96 Russia & CIS 246,700 251,200 248,800 248.90 0.85 Canada 17,647 17,356 16,356 17.12 0.46 USA 131,112 126,328 119,385 125.61 0.39 Chile 20,862 19,416 21,691 20.66 1.11 Afganistan 55,900 32,700 27,700 38.77 1.37 Iraq 39,300 40,600 47,000 42.30 1.12 Kuwait 5,300 6,700 5,500 - - Pakistan 173,750 175,011 191,773 180.18 0.85 Saudi Arabia 16,200 16,600 18,400 17.07 0.51 Syria 13,300 8,600 11,400 11.10 0.65 Egypt 88,463 96,802 93,762 93.02 0.96 Libya 15,000 18,000 18,200 17.07 2.80 Morocco 67,314 72,532 73.000 70.95 2.04 South Africa 22,544 21,676 15,937 20.05 0.35 Australia 10,700 10,800 11,000 10.83 0.43 Hong Kong 11,315 11,280 11,192 11.26 1.52 New Zealand 4,300 4,500 4,600 4.47 0.91 n.a.- data not available Source: International Tea Committee (ITC) Bulletin.

World Tea Consumption in Selected Countries

(Table No. 1.38)

During the period from 2016 to 2018 the two main tea producers; China and India reported an average local consumption of 79% and 77% 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. 1.48 & 0.82 kg per head per year. While Sri Lanka is not importing other origin teas for local consumption at all, Kenya imported 10,988 mt in 2018. 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 China 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 vice versa by changing any parameters.

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/CIS 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, Libya & Morocco. The highest consumption per head (3.04 kg) was recorded in Turkey while the lowest (0.21 kg) is highlighted in France among tea consuming nations.

Distribution of Rubber Extent by District - 2014

Table No.2.1 KEY INDICATORS: RUBBER

Item Unit 2013 2014 2015 2016 2017 2018 1. Production Mn kg 130.4 98.6 88.6 79.1 83.1 82.6 2. Area 2.1 Under Cultivation ‘000 Ha 132.9 133.1 132.8 132.7 130.3* 126.7* 2.2 Under tapping ,, 104.7 107.9 107.6 98.9 98.6* 96.8* 3. Yield Kg/ha 1,245 914 823 800 842.0 853.1 4. Replanting Ha 4,484 2,897 1,917 1,467 1,338 1,507 5. New planting Ha 3,629 1,561 825 615 677 1,029 6. Prices 6.1 Export f.o.b(Raw Rubber) Rs/Kg 389.81 362.82 342.03 294.33 343.60 363.9 6.2 Colombo Auction RSS 1 ,, 376.78 285.76 245.93 238.97 337.27 281.6 7. Cost of Production (COP) ,, 150.00 160.00 170.00 180.00 192.00 205.0 - for smallholding sector 8. Export of Raw Rubber Mn Kg 23.58 16.31 10.37 16.17 17.20 14.0 9. Domestic Consumption ,, 118.4 116.0 127.4 142.0 128.1 135.2 10.Exports Earnings 10.1 Raw Rubber Rs Mn 9,195 5,916 3,548 4,758 5,920.0 5,088.3 10.2 Semi Processed Rs Mn 4,733 3,912 1,836 766 641.5 629.8 10.3 End Products Rs/Mn 110,048 112,246 101,426 111,025 126,783.4 141,665.2 Total Exports Earnings Rs Mn 123,976 122,074 106,810 116,549 133,345.5 147,386.3 US$ Mn 960 935 785 800 875 898

Note : In Some Sources 10.2 & 10.3 treated as End Products * Provisional Source : Rubber Development Department : Sri Lanka Customs

Key Indicators of Rubber

(Table No. 2.1)

In terms of the data source on rubber production by Rubber Development Department (RDD) the production in year 2018 was 82.6 Mn kg. The rubber production depends on the reasons such as the growth of replanting area, as well as matured area, price fluctuations in the global market and weather conditions etc.

In 2018, the total extent of replanted and new planted were 1,507 Ha and 1,029 Ha respectively. The replanting extent was decreased gradually from 2013 to 2017.

In 2018, Colombo Auction price increased and FOB export price decreased compared to the previous year. As in usual trend cost of production of sheet rubber in smallholding sector was increased by Rs.13/= per kg in 2018 compared to previous year. Around 135.2 Mn kg of raw rubber reported as domestic consumption in rubber product manufacturing sector in 2018.

The quantity of raw rubber export in 2018 was decreased by 19% to 14.0 Mn kg from 17.20 Mn kg which was in previous year. The corresponding export earnings also decreased by Rs. 831.7 Mn with the decrease of both FOB price and volume. In 2018 Rs. 629.8 Mn earned by semi processed rubber exports. Total foreign exchange earning was USD 898 Mn recorded in 2018. Thus, total export earning of rubber reached at Rs 147.4 bn in 2018.

TEA AREA

RUBBER AREA Overview - 2014 Overview - 2018

 Extent in Hectares Smallholdings Estate Total 2005 68,109(59%) 47,941(41%) 116,050 2018 89,243(70%) 37,442(30%) 126,685 Mature (2018) 69,148 27,627 96,775 Immature (2018) 20,095 9,815 29,910

 Holdings of Rubber No of smallholdings - Mature 97,074 : Immature 30,018 Average holding size - <1 Acre – 50,078(39%) 1 - <2 Acres – 51,980(41%) No. of Estates (2018) - 148 in RPCs & 14 in State Size of holding - 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 Total 79,396 46,250

 Rubber Growing Districts - 18 of which 6 non traditional Non – traditional - Puttalam, Ampara, Monaragala Hambantota, Mulativu &Vavuniya. Extent of top 3 Districts (74%) in ha - Kegalle(37,165),Ratnapura(26,605), Kalutara(28,765).

 Replanting Extent & Rate(2018) : 1,507 ha: 1.2 %(National) Extent Smallholders 525 ha Estate 982 ha 78

Table No.2.2

RUBBER AREA BY OWNERSHIP 2007-2018 Ha Estate Small Holder Year Total Sector Sector 2007 49,867 69,676 119,543 2008 50,360 71,736 122,096 2009 48,968 75,332 124,300 2010 46,250 79,395 125,645 2011 48,516 79,604 128,120 2012 49,435 81,345 130,780 2013 47,821 85,083 132,904 2014 47,975 85,100 133,075 2015 46,991 85,808 132,799 2016 44,697 87,996 132,693 2017 41,103 89,246 130,349 2018 37,442 89,243 126,685 Source: Rubber Development Department Regional Plantation Companies (RPCs)

As per the records of RDD, the extent under smallholder sector ownership of rubber reported as 69,676 ha in 2007. Since 2007 to 2018, smallholder land ownership indicated a significant improvement with 28 % increase in extent cultivated. The census of rubber lands conducted by Rubber Development Department (RDD) in 2010 confirmed that 79,395 ha belong to the ownership of smallholders. This extent reached 89,243 ha in 2018 which is an increase of 9,848 ha from the extent reported in 2010. But in 2018, the extent reported as 89,243 Ha, and decreases by 3 Ha compare to the previous year. In the estate sector, however there was a decrease of 3,661 Ha in 2018 compared to the previous year. The total rubber extent in 2018 recorded as 126,685 Ha which is a decrease of 3,364 Ha compared to 2017.

Table No.2.3

RUBBER HOLDINGS & EXTENT BY DISTRICT 2013/14 ECONOMIC CENSUS Small Holding Estate Sector Total Sector District No of Extent No of Extent No of Extent Holdings (Acres) Holdings (Acres) Holdings (Acres) Colombo 3,923 6,026 103 9,954 4,026 15,980 Gampaha 3,583 6,597 55 1,531 3,638 8,128 Kalutara 20,334 27,142 302 32,644 20,636 59,786 Kandy 2,033 2,920 29 1,142 2,062 4,062 Matale 508 546 41 2,394 549 2,940 Nuwara Eliya 25 26 3 40 28 66 Galle 2,684 3,678 153 7,085 2,837 10,763 Matara 2,268 3,669 118 3,994 2,387 7,663 Hambantota 396 487 3 31 399 518 Vavuniya 39 29 2 22 41 51 Ampara 335 721 - - 335 721 Kurunegalla 1,284 2,095 54 5,920 1,338 8,015 Puttalam 18 38 1 5 19 43 Anuradhapura 36 51 2 100 38 151 Polonnaruwa 16 47 1 30 17 77 Badulla 426 614 53 3,343 479 3,957 Monaragalla 7,075 12,480 33 2,040 7,108 14,520 Ratnapura 12,663 20,145 435 34,381 13,098 54,526 Kegalle 22,908 35,218 354 49,919 23,262 85,137

Total 80,555 122,529 1,742 154,575 82,297 277,104

Source: Department of Census & Statistics Note: All Agricultural units with parcels less than 20 acres are identified as a “small holding”

Table No.2.4

RUBBER HOLDINGS & EXTENT BY DISTRICT - 2010 RDD CENSUS OF RUBBER LANDS

Size Class of <20 Size Class of >=20 Total Hectare Hectare District No of Extent No of Extent No of Extent Holdings (Ha) Holdings (Ha) Holdings (Ha) Colombo 6,774 4,159 20 2,161 6,794 6,320 Gampaha 5,916 3,548 6 287 5,922 3,835 Kalutara 33,556 17,804 153 10,961 33,709 28,765 Kandy 2,699 1,548 6 306 2,705 1,854 Matale 489 542 14 769 503 1,311 Nuwara Eliya 4 6 0 0 4 6 Galle 4,190 2,815 83 3,167 4,273 5,982 Matara 3,301 2,719 38 1,286 3,339 4,005 Hambantota 276 155 0 0 276 155 Kurunegalla 1,838 1,512 25 1,506 1,863 3,018 Puttalam 234 193 0 0 234 193 Badulla 368 352 28 1,274 396 1,626 Monaragalla 7,802 4,402 8 403 7,810 4,805 Ratnapura 21,028 14,048 138 12,557 21,166 26,605 Kegalle 38,473 21,316 193 15,849 38,666 37,165 Total 126,948 75,119 712 50,526 127,660 125,645

Source: Rubber Development Department. Note: This is the latest census conducted by the RDD

Distribution of Rubber Lands by District under 2010 & 2013/14 Censuses

(Table No. 2.3 & 2.4)

In Economic Census – 2013/14 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.

Table No.2.5

RUBBER EXTENT BY SIZE CLASS OF HOLDING – 2010 SMALLHOLDING SECTOR

Size Class of Number of % Share of Extent % Share Holding Holding Holding (Hectares) in Extent Less than ¼ 1,414 1.1 78 0.1 ¼Acre - < ½ Acre 9,616 7.6 1,216 1.5 ½ - < ¾ Acre 23,491 18.5 4,955 6.3 ¾ - < 1 Acre 15,557 12.2 4,920 6.2 1 - < 2Acre 51,980 40.9 24,299 30.6 2 - < 3Acre 14,552 11.4 12,642 15.9 3 - < 5 Acre 5,864 4.6 8,336 10.5 5 - < 10 Acre 2,891 2.3 7,435 9.4 10 - < 20 Acre 1,111 0.9 5,723 7.2 20 - < 50 Acre 472 0.4 5,514 6.9 50 Acres & above 144 0.1 4,277 5.4 Total 127,092 100.0 79,395 100.0

Source: Rubber Development Department: Census of Rubber Lands 2010 Note: This is the latest census conducted by the RDD

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.

Table No.2.6

RUBBER LAND BY SIZE CLASS OF HOLDING & BY DISTRICT SMALLHOLDING SECTOR – 2010

Less than 1 Acre 1< = 2 Acre 2< = 5 Acre 5< = 10 Acre 10<= 50 Acre Above 50Acre Total District Extent Extent Extent Extent Extent Extent Extent Holdings Holdings Holdings Holdings Holdings Holdings Holdings ha ha ha ha ha ha ha Colombo 3,094 662 2,328 1,130 1,027 1,113 220 554 105 700 6 150 6,780 4,309 Gampaha 2,242 508 2,326 1,123 1,156 1,231 140 362 52 324 2 55 5,918 3,603 Kalutara 15,361 3,403 13,423 6,257 3,840 3,955 572 1,471 360 2,718 42 1,254 33,598 19,058 Kandy 1,131 245 1,039 486 427 446 69 175 33 196 0 0 2,699 1,548 Matale 181 32 134 62 101 109 38 103 35 236 9 323 498 865 Nuwara Eliya 0 0 1 0 2 2 1 4 0 0 0 0 4 6 Galle 1,570 339 1,688 767 671 716 174 442 87 551 5 180 4,195 2,995 Matara 794 187 1,580 719 682 763 154 395 91 655 7 174 3,308 2,893 Hambantota 77 21 129 60 66 65 4 9 0 0 0 0 276 155 Kurunegalla 568 128 682 323 457 477 78 202 53 382 9 290 1,847 1,802 Puttalam 5 2 98 41 116 121 15 30 0 0 0 0 234 193 Badulla 46 9 203 82 88 76 13 34 18 151 8 310 376 662 Monaragalla 636 141 4,767 2,059 2,342 2,017 43 104 14 81 0 0 7,802 4,402 Ratnapura 7,977 1,836 8,396 3,910 3,531 3,735 734 1,898 390 2,669 24 687 21,052 14,735 Kegalla 16,396 3,657 15,186 7,280 5,910 6,152 636 1,653 345 2,574 32 853 38,505 22,169 Total 50,078 11,170 51,980 24,299 20,416 20,978 2,891 7,436 1,583 11,237 144 4,276 127,092 79,395

Source: Rubber Development Department : Census of Rubber lands 2010 Note: This is the latest census conducted by the RDD

Table No.2.7 IMMATURE & MATURE RUBBER AREA BY AGE GROUP & DISTRICT – 2010 SMALLHOLDING SECTOR Immature Rubber Land Mature Rubber Land Total Total 0< = 7 7< = 13 13< = 19 19< = 25 25< = 31 Over 31 District No of Mature No of Extent No of Years % Years Years Years Years years % Holdings Extent Holdings (Ha) Holdings Hectare Hectare Hectare Hectare Hectare Hectare (Ha) Colombo 636 15 1,089 376 796 1,095 870 537 3,674 85 5,691 4,310 6,780 Gampaha 625 17 1,167 232 573 1,047 689 437 2,978 83 4,751 3,603 5,918 Kalutara 3,005 16 5,789 1,147 3,419 5,177 3,425 2,885 16,053 84 27,809 19,058 33,598 Kandy 222 14 494 101 202 266 309 448 1,326 86 2,205 1,548 2,699 Matale 96 11 40 49 63 104 82 471 769 89 458 865 498 Nuwara eliya 6 - 4 0 0 0 0 0 0 - 0 6 4 Galle 349 12 521 74 337 743 782 710 2,646 88 3,674 2,995 4,195 Matara 321 11 465 209 400 829 536 598 2,572 89 2,843 2,893 3,308 Hambantota 88 57 153 23 11 13 10 9 66 43 123 154 276 Kurunegalla 425 24 508 92 276 282 210 518 1,378 76 1,339 1,803 1,847 Puttalam 183 95 227 6 4 0 0 0 10 5 7 193 234 Badulla 258 39 286 11 13 11 72 297 404 61 90 662 376 Monaragalla 3,713 84 6,627 279 227 109 35 39 689 16 1,175 4,402 7,802 Ratnapura 2,585 18 4,383 1,124 3,008 3,115 2,995 1,908 12,150 82 16,669 14,735 21,052 Kegalla 4,217 19 8,265 1,711 3,510 5,309 3,850 3,572 17,952 81 30,240 22,169 38,505 Total 16,729 21 30,018 5,434 12,839 18,100 13,865 12,429 62,667 79 97,074 79,396 127,092

Source : Rubber Development Department : Census of Rubber lands 2010, Note: This is the latest census conducted by the RDD

Table No.2.8 IMMATURE & MATURE RUBBER AREA BY AGE GROUP & DISTRICT – 2010

ESTATE SECTOR (RPCs & STATE) Immature Rubber Land Mature Rubber Land Total Total 0< = 7 7< = 13 13< = 19 19< = 25 25< = 31 Over 31 District No of Mature No of Extent No Years Years Years Years Years years % Holdings Extent % Holdings Hactare Holdings Hectare Hectare Hectare Hectare Hectare Hectare (Ha) Colombo 417 21 7 379 504 539 153 18 1,593 79 39 2,010 46 Gampaha 67 29 2 14 67 10 69 6 166 71 9 233 11 Kalutara 2,013 21 76 1,036 1,997 2,822 1,702 137 7,694 79 301 9,707 377 Kandy 103 34 6 33 71 46 53 0 203 66 14 306 20 Matale 170 38 2 0 0 19 0 257 276 62 7 446 9 Nuwara Eliya 0 - 0 0 0 0 0 0 0 - 0 0 0 Galle 533 18 34 442 475 1,050 433 55 2,455 82 155 2,988 189 Matara 193 17 15 144 273 220 222 60 919 83 73 1,112 88 Hambantota 0 - 0 0 0 0 0 0 0 - 0 0 0 Kurunegalla 348 29 11 115 178 361 214 0 868 71 44 1,216 55 Puttalam 0 - 0 0 0 0 0 0 0 - 0 0 0 Badulla 517 54 17 67 123 145 56 56 447 46 13 965 30 Monaragalla 41 10 8 134 227 0 0 0 361 90 8 402 16 Ratnapura 3,495 29 61 1,332 2,124 3,202 1,546 170 8,374 71 275 11,869 336 Kegalle 3,058 20 89 2,100 2,172 4,144 3,128 394 11,938 80 460 14,996 549 Total 10,955 24 328 5,796 8,211 12,558 7,576 1,153 35,294 76 1,398 46,250 1,726

Source: Rubber Development Department: Census of Rubber Lands 2010, Note: This is the latest census conducted by the RDD

Immature and Mature Rubber Extent by District

(Table No. 2.7 & 2.8)

As reveal in Census of Rubber Lands – 2010 table 2.7 highlighted that immature rubber extent of smallholding sector was 21% while remaining 79% as mature portion of the total extent of 79,396 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 mature 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.

Table No.2.9

CLONAL COMPOSITION OF SMALLHOLDING SECTOR RUBBER EXTENT – 2010

Mature Area Immature Area % Share No of No of No of Extent No of Of Clone Extent Hold- Trees Hold- (Hect- Trees Extent (Ha) ings ‘000 ings are) ‘000 by Clone PB 86 50,729 33,495 12,539 1,249 725 323 43.1 RRIC 100 30,350 19,295 7,817 2,283 1,126 519 25.7 RRIC 102 3,254 2,052 877 2,414 1,223 561 4.1 RRIC 121 5,223 3,870 1,624 22,993 13,213 6,028 21.5 RRISL 203 67 97 44 375 225 103 0.4 RRISL 2000 Series 6 4 2 77 42 19 0.1 Clonal Rubber 7,448 3,851 1,374 627 176 79 5.1 Total 97,077 62,664 24,277 30,018 16,730 7,632 100.0

Source: Rubber Development Department; Census of Rubber lands 2010 Note: This is the latest census conducted by the RDD

Table No.2.10

DISTRIBUTION OF SMALL HOLDINGS & EXTENT UNDER DIFFERENT CLONES BY DISTRICT – 2010

PB 86 RRIC 100 RRIC 102 RRIC 121 RRISL203 RRISL2000 Clonal Total District No of Extent No of Extent No of Extent No of Extent No of Extent No of Extent No of Extent No of Extent Holdings ha Holdings ha Holdings ha Holdings ha Holdings ha Holdings ha Holdings ha Holdings ha Colombo 3,628 2,275 1,656 1093 241 133 1,078 724 17 10 0 0 160 74 6,780 4,309 Gampaha 2,673 1,749 1,677 999 381 222 961 533 24 15 3 1 199 84 5,918 3,603 Kalutara 13,863 8,442 10,230 5,072 713 463 5,493 3,060 62 127 3 1 3,234 1,263 33,598 19,058 Kandy 1,173 720 514 286 94 41 467 223 18 7 2 1 431 270 2,699 1,548 Matale 123 271 84 113 6 2 29 58 1 2 0 0 255 419 498 865 Nuwaraeliya 0 0 0 0 0 0 3 4 1 2 0 0 0 0 4 6 Galle 2,271 1,515 958 865 98 63 442 304 6 3 1 1 419 245 4,195 2,995 Matara 1,618 1,598 1,003 786 117 98 381 317 5 4 0 0 184 90 3,308 2,893 Hambantota 42 27 63 35 2 1 167 91 0 0 0 0 2 1 276 155 Kurunegala 507 640 403 362 89 44 470 438 10 5 0 0 368 313 1,847 1,802 Puttalam 0 0 4 5 1 1 229 187 0 0 0 0 0 0 234 193 Badulla 74 350 16 6 36 15 250 291 0 0 0 0 0 0 376 662 Monaragalla 517 298 466 272 728 373 6,086 3,456 2 1 0 0 3 2 7,802 4,402 Ratnapura 7,124 5,406 6,736 4,826 762 499 4,894 3,340 45 24 17 7 1,474 633 21,052 14,735 Kegalla 18,365 10,929 8,823 5,071 2,400 1,320 7,266 4,057 251 122 57 35 1,343 635 38,505 22,169 Total 51,978 34,220 32,633 20,421 5,668 3,275 28,216 17,083 442 322 83 46 8,072 4,029 127,092 79,395

Source : Rubber Development Department : Census of Rubber Lands 2010 Note: This is the latest census conducted by the RDD

Table No.2.11

DISTRIBUTION OF RUBBER EXTENT UNDER DIFFERENT CLONES BY DISTRICT IN ESTATE SECTOR – 2010 Hectare RRIC RRIC RRIC RRISL Clonal Total PB 86 Other District 100 102 121 203 Mix Extent Extent Extent 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 Kalutara 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 Nuwara Eliya 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 Hambantota 0 0 0 0 0 0 0 0 Kurunegalla 318 122 16 347 58 276 80 1,217 Puttalam 0 0 0 0 0 0 0 0 Badulla 45 127 4 263 0 464 62 965 Monaragalla 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 Source: Rubber Development Department: Census of Rubber Lands 2010 Note: This is the latest census conducted by the RDD

Clonal Composition by District & Sector – Status in 2010

(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 7,670 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.

Rainfall Distribution in Rubber Growing Areas – 2018

Productivity of rubber plantations depends on good management practices. These management practices in a planting cycle are linked with the weather pattern, especially rainfall on which the planter has no control. Further, any changes in the seasonal pattern of rainfall may have adverse impacts on the application of recommended agronomic practices.

Rubber is grown in different agro-ecological regions with varying degrees of rainfall as depicted in Table No 2.12. The expected rainfall figures in areas where rubber is recently introduced are given in Table No 2.13. However, it was reported that for successful rubber cultivation, the annual rainfall should be above 1,750 mm. Further, total rainfall in any consecutive 6 months should not be below 500 mm. It is evident that the ideal situations are not found in all rubber growing areas (Table 2.12 & 2.13). Hence, proper moisture management strategies are of great importance where rainfall is a limiting factor for rubber cultivation. On the other hand, when the number of rainy days is high, it adversely affects harvesting of rubber and consequently reduces the productivity of rubber plantations.

Table No 2.12 EXPECTED RAINFALL AT 75% PROBABILITY IN DIFFERENT RUBBER GROWING AREAS

Agro -ecological 75% expected Rubber growing areas region rainfall*(mm) WL la >3200 mm Agalawatta, Awissawella,Ratnapura, Elpitiya WL lb >2800 mm Pugoda, Horana WL 2a >2400 mm Akuressa, Kalutara, Bandaragama, Kaburupitiya, Galle WL2b >2200 mm Rambukkana, Kegalle WL3 >1700 mm Gampaha, Divulapitiya, Pasyala IL 1a >1400 mm Kurunegala IL 1c >1300 mm Bibile, Moneragala, Wellawaya IL 2 >1600 mm Mahiyamgana, Padiyatalawa IL 3 >1100 mm Maho, Galewela WM 3b >1400 mm Matale IM 2b >1600 mm Badalkubura, Lunugala IM 1a >2000 mm Badulla

*Rainfall can be expected in 3 out of 4 years Source: Rubber Research Institute of Sri Lanka Table No. 2.13

EXPECTED RAINFALL AT 75% PROBABILITY IN AREAS WHERE RUBBER IS RECENTLY INTRODUCED OR UNDER EXPERIMENTAL STAGES

Agro – ecological 75% expected Agromet or rainfall station region rainfall *(mm) DL lb >900 Anuradhapura, Elayapattuwa, Medawachchiya, pawattikulam, Vavuniya DL 2b >1100 Ampara Tank DL 2a >1300 Uhana DL 1f >800 Akkarayan kulam DL 3 >800 Iranamadu Tank DL le >800 Muthuiyankadu Kulam *Rainfall can be expected in 3 out of 4 years Source: Rubber Research Institute of Sri Lanka

Rainfall experienced in 2018 in selected stations representing rubber growing areas on monthly basis is given in Table No.2.14.

The total rainfall exceeded 2,000 mm in Hanwella, Ratnapura, Agalawatte , Galle, Nittambuwa, Kurunegala and Matale while other areas in table no 2.14 were below. Number of wet days has exceeded 200 in Agalawatta and Ratnapura areas which are above average.

Table No. 2.14 MONTHLY DISTRIBUTION OF RAINFALL IN RUBBER GROWING AREAS - 2018 (mm) Locations Hanwella Ratna- Agala- Galle Kekana- Nittamb- Kurun- Monara- Uhana Matale Badulla Month WL 1a pura watta WL 2a dura uwa egala gala DL2a WM3b 1M 1a WL 1a WL 1a IL 1a WL 3 1L la 1L1c January 75.7 14.0 91.0 11.0 135.5 100.2 6.4 63.4 32.3 19.1 85.5 February 143.2 91.6 359.5 129.0 72.5 135.7 14.7 40.0 103.2 47.2 151.3 March 75.2 185.1 264.8 120.1 81.7 33.9 148.0 175.0 104.2 72.7 122.3 April 542.5 394.2 408.6 169.7 65.6 279.8 178.9 158.8 77.1 131.7 250.4 May 565.5 586.4 707.7 529.6 290.8 650.2 652.5 219.4 37.5 632.2 309.4 June 341.4 467.7 409.9 136.5 157.7 254.8 159.6 73.6 7.5 91.9 17.0 July 117.5 160.9 129.5 132.2 50.9 50.8 44.6 80.0 26.5 70.4 74.2 August 119.3 185.4 146.4 105.5 64.0 56.5 70.7 77.4 0.0 104.3 20.4 September 203.9 284.7 169.6 230.1 29.0 173.4 121.0 102.2 16.0 213.9 137.4 October 616.1 438.8 829.6 424.9 223.4 602.5 471.2 392.6 128.0 313.7 401.8 November 570.0 394.4 356.7 243.0 58.3 417.1 350.4 239.3 225.5 329.0 239.9 December 238.6 169.3 120.3 52.3 10.5 132.3 99.4 86.6 105.4 74.2 99.0 Total 3,608.9 3,372.5 3,993.6 2,283.9 1,239.9 2,887.2 2,317.4 1,708.3 863.2 2,100.3 1,908.6 Rainfall No.of Wet 164 219 230 170 104 169 152 103 60 160 167 days*

*Wet day is a day with a rainfall grater than or equal 0.3 mm. Source: Rubber Research Institute of Sri Lanka 94

Chart 6 RAINFALL DISTRIBUTION ON STANDARD WEEK BASIS IN DIFFERENT RUBBER GROWING AREAS

Ratnapura 1000 Hanwella 1000

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Table No. 2.15(i) FERTILIZER : ANNUAL USE OF PRODUCTS AND NUTRIENTS FOR RUBBER, 2004 – 2014 Mn Kg Products Nutrients Year SA TSP Urea IRP ERP MOP Kiez NPK Dol. Other Total N P K Mg Total 2004 0.4 0.08 3.5 0.1 2.7 1.7 0.3 0 0.30 0.20 9.3 1.70 0.80 1.10 0.10 3.7 2005 0.2 0 3.0 0.1 3.2 2.0 0.5 0 0.40 0 9.4 1.40 0.90 1.20 0.20 3.7 2006 0 0 3.1 0 4.9 2.7 0.5 0 0.80 1.00 13.0 1.50 5.00 1.60 0 8.1 2007 0.5 3.00 0.1 0.2 3.9 2.6 0.6 0 0.20 0.10 11.2 1.50 4.00 1.60 0.10 7.2 2008 0.5 3.00 0 0.3 3.5 2.1 0.6 0 0.01 0.10 10.1 1.50 1.10 1.20 0.10 3.9 2009 0.3 0.01 2.1 0.4 3.1 1.4 0.4 0 0.48 0.50 8.7 1.00 1.00 0.90 0.09 3.0 2010 0.4 0 2.7 0.5 4.0 1.8 0.5 0 0.70 0.20 10.8 1.32 1.26 1.08 0.25 3.9 2011 0.7 0.01 4.1 0.5 4.8 2.8 0.9 0 0.20 0.19 14.2 2.03 1.49 1.68 0.25 5.5 2012 0.8 0 4.5 0.5 5.1 3.0 0.9 0 0.25 0.45 15.5 2.23 1.57 1.80 0.26 5.9 2013 1.0 0.01 5.9 0.6 6.8 4.0 1.3 0 0.30 0.60 20.5 2.91 2.08 2.40 0.37 7.8 2014 0.7 0.18 2.7 n.a 6.2 2.6 n.a n.a n.a 0.20 12.6(1) 1.39 2.17 1.56 n.a 5.1(2) Source: National Fertilizer Secretariat (1)Total of SA, TSP, UREA, ERP & MOP (2) Total of nutrients (N,P & K) n.a. – data not available

SA = Sulphate of Ammonia MOP = Murate of Photash N = Nitrogen TSP = Triple superphosphate KIEZ = Kiezarite P = Phosphrous IRP = Imported Rock Phosphate NPK = Nitrogen, Phosphrous, Potasium K = Potasium ERP = Eppawala Rock Phosphate DOL = Dolamite Mg = Magnesium

Table No.2.15 (ii) FERTILIZER: ANNUAL USE OF PRODUCTS FOR RUBBER SECTOR IN 2015 - 2018

Quantity(Mt) Fertilizer 2015 2016 2017 2018 Straight 801.94 1,077.12 2,000.99 679.44 Urea Mixture 2,306.25 1,807.00 2,403.58 2,344.59 Straight 122.38 289.24 83.45 66.96 TSP Mixture 50.6 0.21 28.90 163.41 Straight 356.93 297.14 296.34 338.82 MOP Mixture 2,117.92 2,016.72 2,081.73 1,594.86 Straight 342.9 54.52 143.11 238.25 SA Mixture 392.38 563.85 784.87 239.66 Straight 109.2 77.79 129.10 137.66 Kieserite Mixture 272.66 471.71 306.77 222.03 Straight 1.13 2.05 - 0.31 ZnSo4 Mixture 0.06 0.02 - - Straight - - - - CAN Mixture - - 5.11 - Straight - 24.37 7.05 31.09 CES Mixture 5.79 13.78 1.12 5.94 Straight 8.72 26.24 0.06 10.00 DAP Mixture 4.99 3.79 10.09 28.23 Straight 12.25 0.04 - 0.10 SOP Mixture 5.18 1.36 1.45 5.16 Straight - 2.00 - 0.55 Borate Mixture 0.02 0.01 0.04 - Straight - - - - SSP Mixture - - - - Straight - - - - MAP Mixture - - - - Straight 269.84 160.67 147.87 144.86 ERP/HERP Mixture 3,789.15 2,470.64 2,898.75 2,303.58 Straight 277.42 245.36 233.26 13.67 DOLOMITE Mixture 6.53 8.75 91.02 11.33 NPK Straight - - - - Mixtures Mixture 1.1 - - 0.50 Mixtures Straight - 1.45 - 1.00 OTHERS Mixtures Mixture 0.1 20.75 19.25 - Straight 2,302.70 2,257.99 3,039.86 1,662.71 Total Mixture 8,952.75 7,378.58 8,632.22 6,919.29 Grand Total 11,255.44 9,636.57 11,672.08 8,582.00

Source: National Fertilizer Secretariat 97

Table No. 2.16

RUBBER AREA REPLANTED & NEW PLANTED Hectare Replanting New Planting Estate Estate Small Small Year Sector Sector Holding Total Holding Total (RPCs (RPCs Sector Sector & State) & State) 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 2013 2,784 1,700 4,484 912 2,717* 3,629 2014 1,554 1,343 2,897 133 1,428* 1,561 2015 1,303 614 1,917 56 769 825 2016 929 538 1,467 23 592 615 2017 551 787 1,338 4 673 677 2018 982 525 1,507 48 981 1,029 *Note : New Planting in small holding sector includes cultivated area, under IFAD Project

Source : Rubber Development Department Regional Plantation Companies (RPCs) IFAD SPEnDP Project.

Rubber Area Replanted & New Planted

(Table No. 2.16)

National Rubber replanting rate computed (replanted area of particular year divided by cultivated total extent of the year end) that should be around 3% or above as acceptable norm which indicates the average growth of the industry. The average of the decade was around 3,220.7 Ha per annum in Smallholding sector and Estate sector put together. The smallholders who received government subsidy through the RDD eligible to replant around 1,022 Ha an average 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.

Rubber new planting extent in Estate sector was very low in the decade (average of 327 ha per annum) and in 2017 new planted extent was 4 ha. In 2018, new planted extent was 48 ha. Since 2007 new planting in Smallholding sector was increased at annual average extent of 1,618 ha under the government subsidy scheme. Further new planting extent in Monaragala District was substantially increased under IFAD Credit program during the period from 2008 to 2014.

Table No. 2.17

PLANTS ISSUANCE AND TARGET OF RDD NURSERIES

RDD Nurseries Plant Plant District Target Target Nursery Production Issuance 2018 2019 2018 2018

Gampaha Welikadamulla 350,000 375,882 274,915 365,000

Egaloya 275,000 156,797 122,384 305,000 Kalutara Gurugoda 275,000 167,119 79,011 305,000

Ratnapura Karapincha 100,000 108,314 86,360 100,000

Monaragala Kumbukkana 425,000 379,208 321,076 425,000

Hambantota Middeniya 100,000 89,645 36,399 100,000

Ampara Padiyathalawa 125,000 50,215 36,417 100,000

Total 1,650,000 1,327,180 956,562 1,700,000

Source : Rubber Development Department

100

Table No. 2.18

ISSUANCE OF PLANTS FROM RUBBER NURSERIES

No. of Plants Issued Year RDD Private Total Nurseries Nurseries 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 1,435,169 1,869,415 2,484,413 2013 1,766,041 525,918 2,291,959 2014 1,389,212 1,446,895 2,836,107 2015 1,112,055 835,645 1,947,700 2016 1,037,263 904,870 1,942,133 2017 957,598 251,449 1,209,047 2018 1,327,180 307,408 1,634,588

Source: Rubber Development Department

101

Plants Issuance of RDD Nurseries and Private Nurseries (Table No. 2.17 & 2.18)

In 2018, rubber nursery plants issued by RDD from its seven nurseries was 956,562. The highest output is recorded in 2013. The private sector contribution on rubber nurseries increased compared to 2017. Both RDD and private nurseries issued 1.6 mn plants to the rubber sector in 2018. The plant production target of RDD nurseries for 2018 was 1.65 mn while the achievement recorded was 1.3 mn plants (80%).

RPCs managed their own nurseries to meet the planting material requirements to a great extent. Plant production of private sector and RDD nurseries are 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 monitoring 7 large scale nurseries in the island while private sector and the Regional Plantation Companies maintain about 200 and 90 nurseries respectively.

102

Table No.2.19

FIELD DEVELOPMENT INCENTIVE PAYMENTS FOR RUBBER SMALL HOLDING SECTOR Rs.Mn Smallholdings Year Replanting New Planting

2007 97.4 32.3

2008 92.9 102.0

2009 77.9 55.6

2010 121.5 128.5

2011 176.3 211.7

2012 162.0 125.4

2013 171.3 167.7

2014 219.1 213.3

2015 173.4 189.8

2016 193.0 179.9

2017 205.5 173.6

2018 143.2 110.6

Source: Rubber Development Department

103

TEA AREA RUBBER SUPPLY Overview - 2014 (Production) Overview - 2018

 Production in Metric Tons (mt) Sheet Crepes TSR Centrifuged Total & Other 2005 50,170 18,536 5,880 29,766 104,352 2018 41,280 14,510 766 26,005 82,560

 Sectorwise Production (mt) Smallholdings Estates(RPCs & State) 2005 69,252 (66%) 35,100 (34%) 2018 52,815 (64%) 29,745 (36%)

 Supply, Export & Consumption (mt) Supply Export Consumption out of Local supply 2005 104,400 31,700 72,700 2018 82,560 14,000 68,560

 2018 Monthly Production (mt) - 6,880 (Average) Highest Supply - 7,485 in November Lowest Supply - 6,274 in April

 Supply by Management (Mn Kg) Regional Plantation Companies (RPCs) - 28.8 (34.9%) Sate (JEDB, SLSPC, RRI, Elkaduwa, Kurunagalla etc.) - 0.9 (1.1%) Smallholders - 52.9 (64.0%)

 Yield (Kg/ ha) 2018 = Production/Tapped Area = 842 (National) Smallholdings - 764 Estates (RPCs & State) - 1,077

 In 2018 Cost of Production (Rs/Kg)

104

Smallholding Sector - 205.00 Estate Sector – 296.99

Table No.2.20

RUBBER PRODUCTION, EXPORTS AND CONSUMPTION 2007 -2018 Mn Kg Production Exports Domestic Consumption Year % Dry Rubber Latex Total Mn Kg Mn Kg Mn Kg % Mn Kg % Mn Kg 2007 117.6 51.4 44 42.4 57 31.5 43 73.9 2008 129.2 48.6 38 46.1 58 34.0 42 80.1 2009 136.9 56.0 41 48.0 57 36.9 43 84.9 2010 153.0 51.5 34 60.6 57 46.6 43 107.2 2011 158.2 42.6 27 71.8 56 56.4 44 128.2 2012 152.1 37.4 25 69.1 55 56.6 45 125.7 2013 130.4 23.6 18 65.1 55 53.3 45 118.4 2014 98.6 16.3 17 66.1 57 49.9 43 116.0 2015 88.6 10.4 12 71.3 56 56.1 44 127.4 2016 79.1 16.1 20 78.0 55 64.0 45 142.0 2017 83.1 17.2 21 71.1 57 56.9 43 128.0 2018 82.6 14.0 17 76.3 56 59.0 44 135.2 Source: Rubber Development Department

MONTHLY BREAK DOWN – 2018 Mn Kg Domestic Consumption Month Production Export Dry Latex Total Rubber January 6.7 1.6 6.7 5.3 12.0 February 6.9 1.8 5.2 3.9 9.2 March 7.2 1.7 5.2 3.8 9.0 April 6.3 1.0 5.0 5.2 10.2 May 6.5 1.0 5.3 4.7 10.0 June 6.6 1.0 5.0 4.8 9.7 July 6.5 0.7 7.5 5.6 13.1 August 6.8 1.1 7.0 4.9 11.9 September 7.4 1.0 7.2 5.2 12.4 October 6.9 1.1 9.7 6.7 16.4 November 7.5 1.1 6.7 4.6 11.3 December 7.3 0.9 5.8 4.2 10.0 Total 82.6 14.0 76.3 59.0 135.2 Source: Rubber Development Department 105

Chart 7

Source: Rubber Development Department 106

Rubber Production, Exports & Consumption

(Table No. 2.20)

The average monthly rubber production in 2018 was around 6.9 Mn kg. Lowest production was in April while the highest production was recorded in November. Rubber demand is created through raw rubber export market and domestic consumption for local manufacturing industry. From 2007onwards, export of raw rubber increased upto 2009 and since then declined drastically. The exports peaked in 2009 recording 56 Mn kg or 41% of the production. In 2018 volume of export decreased by 3.2 Mn kg compared to 2017 and ratio adjusted to 17% of production. The average ratio of export that prevailed for the decade is 24% of production. Rubber prices in global markets and government policy favorable for rubber product manufacturing industry are factors contributing to adjust the rubber demand ratio between exports and consumption.

The domestic raw rubber consumption recorded as 135.2 Mn kg for 2018. Dry rubber content, bulk of which goes for tyre sector was 56% of domestic consumption in 2018. The Letex component is used for the highest level of value addition such as surgical & examination gloves were 44% of total domestic consumption. Monthly consumption of rubber (Dry & Letex) in 2018 varied between 9.0 Mn kg and 16.4 Mn kg.

107

Table No.2.21

RUBBER PRODUCTION BY DIFFERENT TYPE Mt Centrifuged Sole Scrap Latex Year RSS TSR Latex & Total Crepe Crepe Crepe Other 2007 48,875 4,077 1,693 21,756 9,564 31,586 117,551 2008 55,011 3,937 2,711 21,043 10,968 35,573 129,243 2009 54,550 5,448 3,502 31,670 11,775 29,934 136,880 2010 59,248 6,711 1,842 52,504 8,341 24,341 152,987 2011 60,699 3,384 1,332 59,933 7,981 24,869 158,198 2012 59,242 1,902 1,280 36,550 8,672 44,403 152,050 2013 62,800 2,379 2,440 15,373 9,566 37,863 130,421 2014 48,539 2,410 1,022 11,832 7,615 27,155 98,573 2015 44,392 1,939 886 8,266 7,606 25,478 88,567 2016 39,754 1,575 791 12,618 3,865 20,497 79,100 2017 41,523 1,476 830 9,160 1,204 28,878 83,071 2018* 41,280 1,439 2,620 10,451 766 26,005 82,560 Source : Rubber Development Department * Provisional

108

Table No.2.22

MONTHLY PRODUCTION OF RAW RUBBER BY TYPE - 2018 MT Centrifuged RSS Sole Scrap Latex Month TSR Latex & Total Sheet Crepe Crepe Crepe Other January 3,350 102 67 1,209 99 1,872 6,700 February 3,453 111 69 1,110 56 2,107 6,906 March 3,588 135 72 1,097 62 2,222 7,177 April 3,137 114 63 814 46 2,100 6,274 May 3,263 99 65 960 54 2,085 6,526 June 3,289 113 66 603 97 2,410 6,578 July 3,255 118 65 495 33 2,544 6,510 August 3,389 205 407 717 98 1,964 6,779 September 3,688 123 443 751 21 2,351 7,376 October 3,464 91 416 915 58 1,984 6,928 November 3,743 127 449 940 130 2,096 7,485 December 3,660 101 439 840 11 2,269 7,319 Total 41,280 1,439 2,620 10,451 766 26,005 82,560 Source : Rubber Development Department

109

Chart 8

110

Source: Rubber Development Department

111

Raw Rubber Production – Different Types

(Table No. 2.21 & 2.22)

At present, RSS (50%), Latex crepe (13%), and Centrifuged latex & other (31%) contribute to 94% of total production. Total natural rubber production was decreased by 511 MT compared to 2017. RSS is the main production of smallholders while Latex crepe is mainly produced by RPCs and a few private owned factories. The share of latex crepe from total rubber production was averaged around 19% from the total production during 2007 to 2018. However, the unusual values recorded in 2010 and 2011 for latex crepe affected the average share percentage. Latex crepe production increased by 1,291 MT in 2018 compared to 2017. Annual production of centrifuged latex and other specialized product category showed decrease of 2,872 MT which is accounted for 10% in 2018.

In 2018, the contribution to total production by sole crepe, scrape crepe and TSR were 1.7%, 3.2% and 1%, respectively. These types are mainly produced by private sector companies and RPCs. Sole crepe production remained at 4.0 Mn kg per annum (an average) during 2007 to 2008 and a sudden hike was observed in 2009 and 2010. In 2012 a reduction of 44% was observed for this category compared to 2011. Yet, 2013 recorded an increase of 477 MT, of which 25%. Monthly production data (table 2.22) reveals that November and September recording higher production compared to other months in 2018.

112

Table No.2.23

RUBBER PRODUCTION BY TYPE OF MANAGEMENT Mn kg State (SLSPC, JEDB, Small Year RPCs % Elkaduwa PL, % % Total Holdings Kurunegala PL & RRI) 2007 37.8 32.1 0.3 0.3 79.5 67.6 117.6 2008 33.8 26.2 0.3 0.3 95.1 73.6 129.2 2009 32.5 23.7 0.3 0.2 104.1 76.1 136.9 2010 32.2 21.1 0.3 0.2 120.4 78.7 153.0 2011 30.7 19.4 0.9 0.6 126.6 80.0 158.2 2012 28.8 19.0 0.9 0.6 122.4 80.5 152.1 2013 29.3 22.5 0.9 0.7 100.2 76.8 130.4 2014 26.5 26.9 0.8 0.8 71.3 72.3 98.6 2015 26.1 29.4 0.8 0.9 61.7 69.7 88.6 2016 26.4 33.3 0.9 1.2 51.8 65.5 79.1 2017 24.7 29.7 0.9 1.1 57.5 69.2 83.1 2018 28.8 34.9 0.9 1.1 52.9 64.0 82.6

Source : Rubber Development Department, RPCs and JEDB

Since 2007 to current year (2018), RPCs contribution to production was at slight declining trend with some level with some fluctions while small holding sector contribution had fluctuated from 68% to 80%. 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. However, in 2014 production slightly declined to 800 mt. Smallholding sector growth in raw rubber production recorded 18% decline in 2013 against the previous year. Again in 2015 the decline trend continued and it was 13%. At present, sector wise raw rubber production ratio is 64:36 between small holdings and Estate sector.

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 mainly bought latex. In addition to that,

113 large quantity of field latex was supplied to latex based manufacturing plants by the farmers.

114

Table No.2.24

RUBBER COST OF PRODUCTION – SMALL HOLDING SECTOR Rs/Kg Item 2010 2011 2012 2013 2014 2015 2016 2017 2018 1.Cultivation Cost Labour 80.00 85.30 88.50 92.00 95.00 98.00 100.00 102.5 105.00 Materials 8.00 8.40 8.50 11.00 12.50 13.50 14.00 15.5 17.00 Maintenance 2.50 3.20 3.40 4.50 5.50 6.50 7.00 8.5 10.00 Sub Total 90.50 96.90 100.40 107.50 113.00 118.00 121.00 126.5 132.00 2.Processing Cost Labour 12.00 14.25 15.50 17.00 18.00 19.00 21.00 23.00 26.00 Materials 2.30 1.81 2.00 3.00 4.00 5.00 6.00 7.15 8.00 Sub Total 14.30 16.06 17.50 20.00 22.00 24.00 27.00 30.15 34.00 3.Marketing Cost 5.00 5.50 6.25 7.50 8.00 9.00 9.50 10.75 12.00 4.Other Charges & Maintenance 10.00 11.10 11.85 15.00 17.00 19.00 22.50 24.60 27.00 Grand Total 119.80 129.56 136.00 150.00 160.00 170.00 180.00 192.00 205.00

Source : Rubber Development Department

115

Table No.2.25

RUBBER COST OF PRODUCTION IN ESTATES - 20 ACRES AND ABOVE Rs/Kg Cost Item 2011/12 2012/13 2013/14r 2014/15r 2015/16r 2016/17r 2017/18* 2018/19

1. Maint. of Mature Rubber 37.23 41.27 37.37 48.30 32.96 33.62 52.29 54.08

2.Tapping & Collecting Cost 50.59 57.71 61.57 59.10 66.06 66.82 63.48 60.31

3.Maint.of Immature Rubber 43.32 45.45 49.27 48.44 51.35 51.54 42.02 52.53

4.Factory Cost 18.54 18.03 17.16 19.60 18.64 19.32 20.76 22.40

5.Estate Maintenance 13.79 16.50 14.18 21.70 15.60 16.37 18.42 20.72

6.General Charges 57.58 77.27 75.89 80.30 78.81 79.69 80.68 81.69

7.Marketing & Related Exp. 2.66 3.19 2.24 4.60 2.98 3.12 4.05 5.26

Total 223.69 259.43 257.68 282.04 266.41 270.48 281.70 296.99

Note: This estimate includes the transport cost from factory to Colombo also. Source : Department of Census and Statistics *Provisional r - Revised data

116

Rubber Cost of Production Small Holding & Estates

(Table No. 2.24 & 2.25)

As the previous year, in 2018 also the cost of production in Smallholding sector increased marginally by Rs 13.00(6.8%) per kg compared to the previous year. As shown in table no: 2.24 cost of all the components were slightly increased in 2018 compared to the previous year.

Based on a separate methodology adopted for the calculation of Estate sector cost of production was recorded an increase of Rs.15.29 per kg in 2018/19. In 2018/19 rubber COP of estate sector shows an increase of 5.4%.

117

RUBBER PRICES Overview - 2018

 Auction Price by Type(Average:Rs/kg) RSS-1 RSS-2 RSS-5 Scrap Latex Crepe(1XBR) Crepe(IX) 2005 141.17 138.66 133.75 124.68 152.70 2018 281.64 266.58 249.50 210.60 310.99

 2018 Monthly Highest January 378.40 June 317.50 320.00 275.00 August 230.00

Lowest February 206.00 192.86 April 238.00 September 259.10 279.00 October 228.50

 In 2018 Price Growth (%) Over 2017 RSS -1 Scrap Crepe(IXBR) Latex Crepe(IX) -16% -22% -12%

 FOB Export Price (Average – 2018) RSS Sole Crepe Latex Crepe TSR Centrifug Sheets ed Latex & other Rs/Kg 267.11 573.66 357.83 431.53 332.40 US$/Kg 1.63 3.49 2.18 2.63 2.03

 FOB US$/Kg Highest January 1.70 2.52 June 4.01 October 3.54 December 3.89 Lowest March 1.54 1.97 September 1.38 118

October 3.23 November 1.93

119

Table No.2.26

RUBBER: COLOMBO AUCTION PRICES BY DIFFERENT TYPES Rs/Kg Scrap Latex Year RSS1 RSS2 RSS3 RSS4 RSS5 Crepe Crepe (1XBR) (1X) 2007 233.69 229.20 226.62 222.60 219.29 206.96 236.82 2008 267.90 264.79 262.22 257.89 254.93 245.61 273.79 2009 202.79 198.62 194.76 190.25 183.82 176.28 208.62 2010 402.71 394.52 390.63 379.47 373.01 364.11 455.94 2011 513.05 504.56 492.45 486.12 470.92 461.83 575.65 2012 416.27 407.99 395.13 388.70 391.92 375.93 409.10 2013 376.78 369.00 360.70 337.30 341.79 309.04 397.33 2014 285.76 279.75 268.50 264.37 262.40 212.75 309.90 2015 245.93 241.02 235.18 224.16 236.52 187.74 299.17 2016 238.97 229.28 231.36 223.33 226.31 179.56 262.38 2017 337.27 330.48 324.50 309.57 295.79 269.51 351.64 2018 281.64 266.58 263.11 251.26 249.50 210.60 310.99

Source : Rubber Development Department

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 (average 25%) in 2011 for all types. However the auction prices for all types were turned down average 20% 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. Colombo auction price continued the down trend in 2014 as same as 2013. This decrease was recorded in 21% - 25% range for RSS grades, 31% for scrap crepe and 22% for latex crepe compared to 2013. In 2018 Colombo auction prices of RSS grades recorded decrease in 12% - 22% range.

120

Chart 9

Source: Rubber Development Department

121

Table No.2.27 AVERAGE MONTHLY PRICES OF RUBBER AUCTION BY TYPE – 2018 Rs/kg Month Item Feb- Sept- Oct- Nove- Dece- January March April May June July August Average ruary ember ober mber mber Latex Crepe 1X 378.40 301.75 338.67 318.07 348.80 345.17 353.25 339.47 237.00 228.50 276.20 266.60 310.99 1 357.70 297.50 331.71 313.00 335.75 333.00 336.86 337.56 231.20 279.67 227.29 261.00 303.52 2 360.57 290.10 316.17 283.71 297.78 279.43 285.50 262.25 238.50 221.00 182.07 223.07 270.01 3 347.75 297.19 298.13 272.14 283.33 259.13 238.71 237.78 224.75 216.50 212.15 219.15 258.89 4 221.56 198.88 200.75 211.71 230.00 224.19 217.60 232.83 219.82 215.11 209.52 217.46 216.62 Scrap Crepe 1XBr 214.22 192.86 193.80 203.00 212.28 216.50 213.63 230.00 217.26 214.86 208.67 210.08 210.60 2XBr 207.50 190.25 195.00 197.67 208.63 214.50 212.79 227.13 211.00 213.20 203.60 211.00 207.69 3XBr 209.89 191.67 190.08 196.50 207.06 215.25 211.83 231.86 214.92 214.14 206.89 208.47 208.21 4XBr 203.56 188.40 185.49 189.20 203.06 211.17 210.04 227.88 212.38 211.33 204.74 203.50 204.23 Flat Bark 200.13 182.50 179.00 180.42 185.00 200.67 202.50 228.00 Unq 207.00 156.20 196.00 192.49 Sheet RSS1 311.17 278.83 280.33 265.00 285.83 317.50 300.00 281.44 259.10 263.21 262.75 274.50 281.64 RSS2 308.33 206.00 271.50 248.00 288.00 320.00 280.00 Unq 253.00 260.00 235.50 262.00 266.58 RSS3 295.00 252.50 258.75 245.50 Unq 285.00 Unq Unq Unq 248.00 Unq 257.00 263.11 RSS4 259.50 240.00 240.25 236.00 263.00 284.33 Unq Unq 240.00 242.00 Unq Unq 250.64 RSS5 246.50 239.00 Unq 238.00 Unq 275.00 Unq Unq Unq Unq Unq Unq 249.63 Skim 181.00 178.67 186.67 189.00 201.25 216.45 216.33 220.47 214.00 210.55 191.98 177.30 198.64 Source : Forbes and Walker Commodity Brokers (Pvt) Ltd. Unq – unquoted

122

Table No. 2.28 FOB PRICES ON MONTHLY RAW RUBBER EXPORTS – 2018

Centrifuged Latex RSS Sole Crepe Scrap Crepe Latex Crepe TSR Month & Other Rs/kg US$/kg Rs/kg US$/kg Rs/kg US$/kg Rs/kg US$/kg Rs/kg US$/kg Rs/kg US$/kg January 278.48 1.70 560.97 3.42 - - 412.96 2.52 471.28 2.87 349.25 2.13 February 265.75 1.62 580.77 3.54 - - 401.08 2.44 410.42 2.50 254.54 1.55 March 252.87 1.54 565.28 3.44 - - 358.46 2.18 322.85 1.97 276.56 1.68 April 272.16 1.66 550.02 3.35 - - 339.61 2.07 418.49 2.55 354.18 2.16 May 266.76 1.63 602.55 3.67 - - 350.80 2.14 440.47 2.68 288.23 1.76 June 269.90 1.64 658.02 4.01 - - 339.73 2.07 337.65 2.06 265.10 1.62 July 264.20 1.61 572.08 3.49 - - 353.09 2.15 419.98 2.56 289.59 1.76 August 269.37 1.64 563.56 3.43 - - 363.72 2.22 351.78 2.14 277.80 1.69 September 262.57 1.60 574.34 3.50 - - 368.92 2.25 446.90 2.72 225.90 1.38 October 265.64 1.62 530.81 3.23 - - 348.67 2.12 561.14 3.42 581.63 3.54 November 263.96 1.61 592.85 3.61 - - 316.72 1.93 359.02 2.19 443.24 2.70 December 273.62 1.67 532.68 3.25 - - 340.26 2.07 638.43 3.89 382.75 2.33 Year Ave. 267.11 1.63 573.66 3.49 - - 357.83 2.18 431.53 2.63 332.40 2.03 Source : Rubber Development Department

123

Monthly Auction Price & FOB Price of Rubber – 2018

(Table No. 2.27 & 2.28)

In 2018, the highest price for sheet rubber (RSS1) at Colombo auction was recorded in June while the lowest price recorded in September. The deference between the highest (in January) and the lowest (in October) price for latex crepe 1X grade was Rs.149.90 per kg. Latex Crepe type was taken the highest average price recorded at the Colombo auction.

The price margin was not significant between auction price & FOB price on RSS grades in certain months of the year. FOB price on Sole Crepe were the highest among all types exported. The highest average FOB price for Sole Crepe was US $ 4.01 per kg (in June 2018).

124

RUBBER EXPORT & IMPORT Overview - 2018

 Raw and Semi Processed Rubber Exports Earnings Type Quantity(Mt) Rs Mn $ Mn Raw Rubber Sheets(RSS) 1,367.5 363.7 2.24 Crepes 10,054.9 3,908.7 24.05 TSR 554.3 223.5 1.38 Centrifuged & 2,004.9 591.6 3.64 Other(Speciality Rubber) Semi Processed Reclaimed/Compounded & Scraps 5,868 630 3.88 Total 19,849.6 5,717.5 35.19

 Major Destinations for Raw Rubber

Pakistan Japan Germany China Italy Mt 3,053.69 1,577.92 1,466.61 864.53 819.07 $ Mn 5.14 4.28 3.55 2.16 1.68

 Raw Rubber Imports Import Cost(CIF) Quantity(Mt) Rs Mn $ Mn Sheets(RSS) 42,877.25 11,167.47 68.71 Centrifuged, TSR & 22,881.81 4,705.52 28.95 other(drc) Synthetic Rubber(SR) 62,691.29 18,693.85 115.01 Semi-Processed 35,900.93 4,798.04 29.52 Total 164,351.26 39,364.88 242.18

 Rubber Products Import at cost of Rs 20.7 Bn($ 127.47 Mn) 2.1 mn units of Tyres at Rs 11.05Bn Machinery/Vehicle Parts Rs 4.0 Bn

 Rubber Products Export Earnings Rs 141.7 Bn. ($ 871.6 Mn) Major Categories & Values  Solid Tyre (mn 20.4 units) Rs 57.0 Bn  New Pneumatic Tyre (mn 12.2 units) Rs 31.4 Bn  Golves (29,788 Mt) Rs 30.6 Bn. 125

 Cess from: Imports – Rs 2,267.02 mn Exports – Rs 62.47 mn

126

Table No 2.29

RAW RUBBER EXPORT QUANTITY & VALUE OF DIFFERENT TYPES

Centrifuged RSS Sheet Sole Crepe Scrap Crepe Latex Crepe TSR Total Year Latex & Other Mt Rs.Mn Mt Rs.Mn Mt Rs.Mn Mt Rs.Mn Mt Rs.Mn Mt Rs.Mn Mt Rs.Mn 2007 18,079 4,014 3,225 1,155 656 102 17,503 4,112 5,979 1,311 5,979 1,372 51,421 12,066 2008 17,257 4,583 3,283 1,077 506 98 15,335 4,255 4,986 1,391 7,251 2,131 48,618 13,535 2009 24,402 4,863 2,110 659 226 28 13,683 2,732 6,541 1,251 9,028 1,794 55,991 11,327 2010 20,914 7,563 2,152 1,085 71 14 18,472 6,927 2,844 1,023 7,050 2,644 51,503 19,256 2011 13,561 6,936 2,471 1,743 - - 20,904 11,101 3,655 1,822 2,014 1,209 42,605 22,811 2012 11,057 4,758 1,486 919 - - 17,645 7,187 4,582 1,609 2,607 1,252 37,377 15,726 2013 4,752 1,744 2,022 1,126 17 3 13,171 4,965 2,225 778 1,399 579 23,585 9,195 2014 1,966 587 2,296 1,234 17 5 9,860 3,313 913* 306 1,253 470 16,305 5,916 2015 903 217 1,847 926 13 1 6,888 2,136 417* 142* 305 126 10,373 3,548 2016 1,630 387 1,500 769 - - 10,515 2,974 1,140* 269 1,381 360 16,167 4,758 2017 2,940 931 1,406 765 - - 7,633 2,665 899 286 4,352 1,273 17,230 5,920 2018 1,368 364 1,328 761 - - 8,727 3,147 554 224 2,005 592 13,982 5,088

Source: Rubber Development Department *Includes Block Rubber also 127

Table No 2.30

MONTHLY EXPORT QUANTITY & VALUE OF RAW RUBBER – 2018

Centrifuged RSS Sole Crepe Scrap Crepe Latex Crepe TSR* Total Month Latex & Other Mt Rs.Mn Mt Rs.Mn Mt Rs.Mn Mt Rs.Mn Mt Rs.Mn Mt Rs.Mn Mt Rs.Mn January 220.5 61.4 97.3 54.6 - - 1,007.7 416.1 74.2 35.0 164.4 57.4 1,564.2 624.6 February 356.1 94.6 105.6 61.3 - - 924.7 370.9 42.0 17.2 344.6 87.7 1,773.0 631.8 March 271.3 68.6 129.0 72.9 - - 914.5 327.8 46.2 14.9 306.3 84.7 1,667.2 568.9 April 56.5 15.4 108.7 59.8 - - 678.2 230.3 34.4 14.4 127.7 45.2 1,005.5 365.1 May 55.5 14.8 52.0 31.3 - - 817.8 286.9 23.0 10.1 94.2 27.1 1,042.5 370.3 June 39.0 10.5 107.4 70.7 - - 502.6 170.8 72.5 24.5 302.3 80.1 1,023.8 356.6 July 57.0 15.1 112.0 64.1 - - 412.4 145.6 24.7 10.4 73.3 21.2 679,4 256.3 August 18.6 5.0 194.8 109.8 - - 597.2 217.2 72.9 25.7 266.0 73.9 1,149.5 431.5 September 38.2 10.0 117.1 67.2 - - 625.5 230.8 15.8 7.1 154.0 34.8 950.5 349.9 October 141.0 37.5 87.0 46.2 - - 762.8 266.0 43.3 24.3 51.0 29.7 1,085.2 403.6 November 37.5 9.9 121.2 71.8 - - 783.5 248.1 97.2 34.9 53.6 23.8 1,093.0 388.6 December 76.3 20.9 95.8 51.0 - - 700.0 238.2 8.0 5.1 67.6 25.9 947.7 341.1 Total 1,367. 363.7 1,328.0 760.8 - - 8,726.9 3,148.7 554.3 223.5 2,004.9 591.6 13,981.6 5,088.3 Source: Rubber Development5 Department *Includes Block Rubber also

128

Chart 10

Source:Rubber Development Department

129

Raw Rubber Export Earning of Different Type (Table No. 2.29 & 2.30)

During the period from 2007 to 2018, raw rubber exports highlighted an increasing trend till 2009 and reached the 55,991 Mt mark. Since then, raw rubber exports reported declining trend and the lowest ever (10,373 Mt) was recorded in 2015. The drop in exports quantity in 2015 compared to 2014 was nearly 36%. However, export earnings followed a declining trend since 2011 and recorded a drop of nearly 40% in 2015 compared to previous year. In 2018 there was an decrease of the value by 14% compared to 2017.

In 2018 contribution from latex crepe for the total export quantity and value remained 8,727 Mt and Rs 3,149 Mn respectively. Latex crepe exports peaked in 2011 at 20,904 Mt with an export value of Rs 11,101 Mn, and since then followed a declining trend upto 2015. Exports of RSS had a sharp decline since 2009, from 24,402 Mt to 1,368 Mt in 2018. In 2018, there was no Scrap Crepe exports recorded. TSR and Block Rubber exports decreased upto to 554 Mt in 2018 from 1,140 Mt recorded in 2016. Centrifuged latex and rubber speciality categories in 2017 recorded more than 3 fold increase compared to 2016. But in, 2018 recorded 2,005 Mt and 54% decrease compared to 2017.

Monthly exports of RSS in 2018 recorded low volumes in June, September and November. Latex crepe exports recorded high volumes in January, February and March. The highest Sole crepe volume was recorded in August while the lowest in May. The highest amount of TSR was exported in November with 97.2 Mt. Quantity of centrifuged latex exported was high in the first quarter. The total export values were highest in February while the lowest recorded in July.

130

Table No. 2.31 RAW RUBBER EXPORTS BY HS CODE – 2018 HS HS Performance Description Head Code Quantity Value Mt Rs.Mn. Natural Rubber (NR) 4001.10 Natural Rubber (NR) latex 1,600 392 40011010&90 Centrifuged & other latex 1,600 392

4001.21 Smoked Rubber Sheets (RSS) 1,368 364 40012110 RSS - 1 166 46 40012120 RSS - 2 0 0 40012130 RSS - 3 136 36 40012140 RSS - 4 516 136 40012150 RSS - 5 550 146 40012190 Other Smoked Sheets 4001.22 Technically Specified Natural Rubber 527 209 (TSNR) 40012200 TSNR 527 209 4001.29 Crepes 10,487 4,123 40012911 Sole Crepe 1,328 761 40012912 Pale Crepe 8,266 3,045 40012913 Brown Crepe 461 103 40012914 Scrap Crepe Speciality Rubber 40012920 Block Rubber 27 14 40012930 Low Nitrogen NR 32 11 40012940 Deproteinized Natural Rubber (DPNR) 4 2 40012950 MG Rubber 32 20 40012960 Other (SP Rubber) 299 151 40012970 Other Chemically modified form of rubber 0.1 0.1 40012990 Other NR 37.5 14.6 Natural Rubber Sub Total 13,981.6 5,088.3 40.02 Synthetic Rubber (SR) 2,887 3 Semi – Processed Rubber 40.03 40030000 Reclaimed Rubber 316 28 40.04 40040010-20 Scrap of unhardened rubber obtained from 263 8 rejected or wornout tyres & curing bags 40040090 Granules of waste, Parings, Scraps & Others 2,697 137 40.05 Compounded Rubber 400510 Compounded with carbon black or silica 0 0 400591 Plates, Sheets & Strip 57 25 40059900 Other Compounded 2,493 431 40.06 Other Forms of unvulcanized Rubber 0 0 400610 & 90 Strip & Other Types-Camel Back 42 1 Semi Processed - Sub Total 5,868 630 131

Grand Total 22,737 5,721 Source: Sri Lanka Customs – Data from Statistical Unit

132

Table No.2.32

RAW RUBBER EXPORTS BY DESTINATION

2015 2016 2017 2018 Country Quantity Value Quantity Value Quantity Value Quantity Value MT RsMn MT RsMn MT RsMn MT RsMn Pakistan 1,379.31 337.21 3,008.92 698.13 3,283.93 969.40 3,053.69 835.56 Germany 1,126.50 365.88 1,473.58 452.72 1,623.71 562.70 1,466.61 577.32 India 426.33 127.12 760.83 255.04 1,184.69 455.40 568.01 218.69 USA 478.21 179.53 882.09 289.54 466.15 192.18 706.76 281.23 Malaysia 577.00 111.60 2,595.09 531.55 1,572.28 433.39 456.04 112.31 Japan 1,636.32 597.13 1,524.88 559.62 1,662.11 656.50 1,577.92 696.24 Italy 640.87 179.36 1,059.78 286.52 1,077.80 336.92 819.07 273.42 UK 478.21 179.53 90.41 28.77 149.62 54.54 97.20 44.46 China 469.80 169.55 743.82 241.93 735.31 285.49 864.53 351.68 Spain 87.00 27.89 161.80 47.26 108.67 38.78 255.20 76.03 Turkey 169.00 34.51 118.00 23.24 213.51 56.27 83.89 21.41 South 394.31 186.94 636.26 288.03 184.81 64.39 94.75 48.81 Korea Singapore 32.00 12.81 51.15 22.47 52.12 22.85 73.20 35.36 Taiwan 49.08 18.97 88.95 37.15 82.98 36.72 125.21 58.34 South - - - - 442.40 212.49 421.78 217.34 Africa Hong Kong 311.48 152.10 84.61 37.67 47.00 16.56 34.20 14.32 France 364.70 129.30 428.80 130.98 104.95 40.78 332.50 133.52 Chile 17.00 6.57 - - 17.00 6.61 34.00 12.19 Netherlands 199.60 67.27 260.42 78.97 439.28 169.00 205.64 78.56 Belgium 133.85 45.63 169.88 52.47 175.00 67.08 37.20 14.41 Kenya - - 215.00 38.35 138.40 43.00 199.00 54.31 Sweden 192.00 63.83 176.83 53.11 176.40 64.70 208.91 79.14 Vietnam 1,028.52 497.84 617.44 297.43 635.26 341.40 596.19 336.02 Other 182.15 57.35 1,018.07 307.33 2,657.00 792.56 1,670.07 517.63 Total 10,373.22 3,547.92 16,166.59 4,758.29 17,230.38 5,919.71 13,981.56 5,088.30 Source : Rubber Development Department

133

Raw Rubber Exports by Type & Destination (Table No. 2.31 & 2.32)

Total quantity of raw rubber (including semi – processed types) exports were categorized under customs Harmonized System (HS) head 40.01 to 40.06 was 22,737 mt with corresponding export value of Rs. 5,721 Mn in 2018. Under HS head 40.01 all types (Centrifuged Latex, RSS, TSNR, Crepe, Other NR speciality grades) are direct supplies from estate plantations and smallholdings based on field Latex collected and subsequently processed in the factories or grass root level processing centers. Total quantity of Crepes exported was 10,487 Mt while realizing Rs. 4,123 Mn (72% of total) revenue earning in 2018. Other than Sole Crepe the type of Latex Crepe included both Pale Crepe & Brown Crepe. Crepe is the main product from RPC factories and a few private factories.

The volume of RSS grades, TSNR & Centrifuged Latex categories exported together was 3,495 Mt and with corresponding value of Rs. 965 Mn. Including Block Rubber other NR types (such as DPNR, MG, SP) were not significant comprising of total Rs.431.6 Mt and value of Rs. 212.7 Mn. Thus, total quantity exported as direct supply (under HS head 40.01) in 2018 was 13,981.6 Mt while total earnings realized was Rs.5,088.3 Mn.

In table 2.32 quantity of direct NR supply exported is presented sorted by destination. In 2015, Japan was the highest importer with 1,636 Mt of raw rubber. In 2016, Japan remains in the 3rd place while Pakistan was in 1st place. In 2017 & 2018 Pakistan was the highest importer. Since 2015, Germany, India, Japan, Italy, and Vietnam are the other significant natural rubber purchasing countries. In 2018, Pakistan, Japan, Germany, China and Italy were the top 5 raw rubber importing countries from Sri Lanka.

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 40.03 to 40.06 as given in table 2.31. 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 2018 Reclaimed, Granules and Compounded categories were exported 316 Mt, 2,697 Mt and 2,592 Mt respectively and earning cumulative export value of Rs.622 Mn.

134

Table No.2.33

RUBBER IMPORTS BY TYPE 2007 - 2018 Mt Natural Rubber Centrifu- Synthetic Year Sole Scrap Latex Sheet TSR ged Latex Total Rubber Crepe Crepe Crepe & Other

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 8,887 68 0 17 187 6,517 15,675 33,789 2013 7,790 18 17 0 188 1,886 9,899 35,888 2014 21,744 0 15 0 208 4,359 26,326 42,359

2015 38,182 0 0 0 892 15,302 54,377 71,699

2016 51,540 0 0 0 3,152 18,293 72,985 69,491

2017 43,727 0 0 0 2,102 15,972 61,801 65,782

2018 42,877 0 0 0 4,984 17,898 65,759 62,691

Source : Rubber Development Department Sri Lanka Customs

135

Table No.2.34 RAW RUBBER IMPORTS BY HS CODE – 2018

2018 HS HS Description Quantity Value Head Code Mt. Rs. Mn 40.01 Natural Rubber (NR) in Primary forms 4001 1010 to 90 Centrifuged NR latex & other Latex(drc –60%) 17,490.81 3,424.32 4001 21 Smoked Rubber Sheets (RSS) 4001 2110 RSS 1 937.90 266.44 4001 2120 RSS 2 4001 2130 RSS 3 13,614.63 3,558.87 4001 2140 RSS 4 4001 2150 RSS 5 4001 2190 Other RSS 28,324.72 7,342.16

4001 2200 Technically Specified Natural Rubber (TSNR) 4,520.33 1,080.16 4001 29 Crepes 4001 2911 Sole Crepe 4001 2912 & 13 Latex Crepe 0.01 0.01 4001 2914 Scrap Crepe 0.02 0.01 4001 2920 Block Rubber 463.68 110.45 4001 2930 Low Nitrogen Natural Rubber (LNNR) 110.00 14.20 4001 2970 Other chemically modified form of Rubber 0.02 0.00 4001 2990 Other NR 296.94 76.37 Natural Rubber Sub Total 65,759.04 15,872.99 40.02 Synthetic Rubber in Primary Forms 4002 1100 Latex of SBR/XSBR 441.68 117.78 4002 1900 Other – SBR & XSBR 18,320.79 4,994.20 4002 2000 Butadiene Rubber (BR) 5,256.04 1,484.16 4002 3100 Isobutene – Isoprene (butyl)Rubber (IIR) 590.63 192.48 4002 3900 Halosibutene – isoprene rubber (CIIR/BIIR) 43.23 15.94 4002 4100 Chlorobutadiene rubber (CR) - Latex 8,036.05 2,299.56 4002 4900 Chlorobutadiene rubber (CR) - Other 832.79 658.87 4002 5100 Acrylonitrile – butadiene rubber (NBR)Latex 17,257.64 4,254.51 4002 5900 NBR - other 231.53 101.37 4002 6000 Isoprene rubber (IR) 1,031.87 1,701.32 4002 7000 Ethylene propylene (EPDM) 437.37 161.73 4002 8000 Mixture with any product of NR 4002 9100 Latex of Other SR 9,834.84 2,544.46 4002 9900 Other – Synthetic Rubber (SR) 376.84 167.47 Synthetic Rubber Sub Total 62,691.29 18,693.85 Semi Processed Rubber 40.03 4003 0000 Reclaimed rubber 15,770.41 1,559.75 40.04 4004 0010 to 90 Granules, Scrap of tyre & waste & curing bags 6,838.53 442.07 40.05 Compounded rubber, unvulcanised 4005 1011 to 99 Compounded with carbon black or silica of NR 10,299.33 2,471.43 40.06 4006 10 to 90 Other forms of rubber & articles of unvulcanised 2,992.66 324.79 Semi - Processed Sub Total 35,900.93 4,798.04 Grand Total 164,351.26 39,364.88

Source : Sri Lanka Customs – Data from Statistical Unit

136

Imports of Raw Rubber (Table No. 2.33 & 2.34)

As one of the NR producing countries, Sri Lanka discourages the import of NR through high import Cess rate (5% to 15% 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 2018, Sri Lanka imported quantity of RSS sheet rubber was 42,877 Mt to overcome the scarcity of NR in certain months to meet the demand of rubber product manufacturers. Compared to RSS export of 1,367.5 Mt the import quantity is much greater than that. TSR (along with Block Rubber) was imported 4,984 Mt. However, Centrifuged latex (at drc) of 17,491 Mt was imported while the quantity of such export was as low as 1,600 Mt. Thus, in 2018 total import of NR under HS 40.01 was 65,759 Mt with the corresponding CIF value of Rs. 15,873.Mn.

Other than NR types, the main imported semi-product was Synthetic rubber related to HS head 40.02 and in 2018 the quantity imported was 62,691 Mt valued at Rs. 18,694 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 21,000 Mt and maximum 71,000 Mt on yearly basis. Compared to previous year, synthetic demand decreased in 2018 by 3,091 Mt.

Sri Lanka imports semi processed product types 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 35,901 Mt at CIF value of Rs. 4,798 Mn. In the mean time such types were also exported. In 2018, total of imported raw rubber quantity under three main categories were direct NR 65,759 Mt, synthetic 62,691 Mt, semi processed products 35,901 Mt totaling to 164,351.26 Mt with cumulative CIF value of Rs.39,365 Mn.

137

Table No.2.35 RUBBER FINISHED PRODUCTS IMPORT BY HS CODE - 2018

Performance HS HS Description Quantity Value Head Code Mt/No RsMn 40.07 40070000 Rubber Thread & Cord 923.2 438.1 40.08 Plates, Sheets, Strip, rods & Profile shapes 937.7 786.1 400811& 19 Products of cellular rubber 228.6 194.1 400821& 29 Products of non-cellular rubber 709.2 592.0 40.09 Tubes Pipe & hoses of Vulcanised Rubber 1,101.4 800.2 400911& 42 Various types of Products 1,101.4 800.2 40.10 Conveyer /transmission belts or 836.1 999.0 belting V belts & Other types 401011 to 39 V belts & Other Types 836.1 999.0 40.11 New pneumatic tyres of rubber (No) 1,838,577 10,506 40111000 Of a kind used on motor cars (No) 637,310 3,550.6 40112000 Of a kind used on buses & lorries (No) 366,756 4,802.0 40113000 Of a kind used on aircraft (No) 384 36.3 40114000 Of a kind used on motor cycles (No) 384,238 691.1 40115000 Of a kind used on bicycles (No) 374,168 193.2 401161 to 94 Other – Agr. Forestry, construct and industry 75,693 1,230.5 vehicle /machinery (No) 4011 9910 - 90 Of a kind used for auto tryshows (No) 28 2.4 40.12 Retreated & Solided tyre 223,850 545 401211to 20 Retreated tyre (No) 1,870 61.5 40129010 -90 Solid tyre (No) 221,980 483.5 40.13 Inner Tubes of rubber 2,629,229 1,522.6 40131000 Of Kind used on cars, buses & lorries (No) 725,969 585.0 40132000 Of Kind used on cars, bicycles (No) 319,996 77.9 40139000 Other used of vehicles (No) 1,583,264 859.7 40.14 Hygenic / pharmaceutical articles 95.0 135.9 401410 & 90 Contraceptives 95.0 135.9 40.15 Gloves of vulcanized, unhardened rubber 881.7 615.5 40151100 Surgical gloves 137.8 57.4 401519 & 90 Other – Industrial gloves 743.9 558.1 40.16 Other articles of vulcaised rubber 4,587.8 4,312.9 40161000 Of cellular rubber 127.1 134.5 40169100 Floor covering & mats 526.3 86.5 40169200 Erasers 473.2 92.2 40169310 - 90 Gaskets, Washers & oil seals 973.7 1,787.3 40169400 Boat or dock fenders 136.9 53.3 40169510 & 90 Air bags, steam bags and infalatable raticles 147.0 263.9 40169910-90 Being parts of textile, agriculture, dairy & 2,203.5 1,895.4 poultry machinery & equipments 40.17 Articles of hard rubber 117.7 58.5 40170010 & 90 Waste, scrap & ebonite … etc 117.7 58.5 Total Mt/Value 9,480.6 8,146.2 Total No (Units) /Value 4,691,656 12,573.4 Total Value 20,719.7 2018 Annual Average Exchange Rate, 1US$ - Rs.162.54 Source: Sri Lanka Customs – Data from Statistical Unit

138

Import of Rubber Finished Products

(Table No. 2.35)

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 2.35 such types of imports in terms of quantity and CIF value are presented for the year 2018. Sri Lanka imported different types in quantity of 9,480.6 Mt and total number of units 4.7 million with total CIF value of Rs. 20,719.7 Mn. Only tyres and tubes (HS 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 product was New Pneumatic tyres (HS 40.11) which accounted for 1.8 Mn units with corresponding value of Rs. 10,506 Mn or 51% 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. 4,312.9 Mn or 21% of total. Inner Tubes of rubber (HS 40.13), Belts (HS 40.10), Pipes/hoses (HS 40.09) were followed by CIF values Rs 1,522.6 Mn, Rs 999.0 Mn, 800.2 Mn respectively.

In 2018, Sri Lanka exported new pneumatic tyres more than 2-fold of such imports in value terms. In respect of solid tyre category compared to import value, export from Sri Lanka was more than 117 times. Similarly, gloves were exported 49-fold of import value of the same. As rubber product imports are subject to 5 % to 15% range of cess rate on CIF value in 2018 the Cess income collected was Rs 2,267.02 Mn.

139

Table No. 2.36 EXPORT INCOME FROM DIFFERENT PRODUCT CATEGORY OF RUBBER Rs Million Rubber Products 2012 2013 2014 2015 2016 2017 2018 (1) Rubber Thread & Cord 7.0 1.0 1.5 - 1.6 - - (2) Unhardend Rubber 2,258.0 2,533.0 2,440.0 2,684.2 2,443.7 2,953.2 3,351.7 - Plates, Sheets, Strips, rods & Profile shapes of Which: Products of Cellular Rubber 1,404.0 1,417.0 1,419.0 1,954.5 1,865.9 2,465.9 2,950.7 Products of non-cellular rubber 854.0 1,116.0 1,021.0 729.7 577.8 487.3 401.0 (3) Rubber Hoses Tubes, Pipes, & Hoses 20.0 41.0 42.0 30.3 75.6 93.6 198.5 (4) Rubber Belts V – Belts & Other type belting 26.0 2.0 3.0 2.3 1.9 7.3 2.8 (5) Tyres & Tubes 69,049.0 71,716.0 74,103.4 63,862.9 69,785.6 78,327.4 89,065.5 of Which: New Pneumatic tyres 26,463.0 26,385.0 27,054.5 22,299.9 22,836.9 27,613.7 31,445.9 Solid tyres 42,208.0 44,920.0 46,565.0 41,035.7 46,458.3 50,163.2 57,010.6 Tubes 378.0 411.0 483.8 527.3 490.4 550.5 609.0 Hydienic or pharmaceutical articles Sheath Contraceptives - - - - 206.5 156.1 139.1 (6) Apparel Clothing Accessories of 22,546.0 25,247.0 22,970.0 22,337.3 25,643.7 30,194.6 30,579.5 Which: Surgical gloves 5,731.0 8,262.0 5,599.0 5,338.2 7,190.7 9,158.1 8,601.9 Industrial gloves 16,815.0 16,985.0 17,371.0 16,999.1 18,453.0 21,036.6 21,977.6

140

Table No. 2. 36

EXPORT INCOME FROM DIFFERENT PRODUCT CATEGORIES OF RUBBER Rs Million Rubber Products 2012 2013 2014 2015 2016 2017 2018 (7) Artices of Hardened Rubber of Which: 9,773.0 10,329.0 12,458.0 12,295.3 12,858.9 15,049.4 18,326.4 - Floor covering & Mats 1,126.0 1,211.0 1,438.0 1,307.3 1,259.2 1,209.5 1,563.4 - Gasketes, Washers & other Seals 1,963.0 1,919.0 1,782.0 1,574.4 1,918.1 2,062.4 2,500.3 -Parts of machinery & equipments 6,684.0 7,175.0 9,238.0 9,413.6 9,681.6 11,777.4 14,262.6 (8) Footwear ------(9) Hygienic or pharmaceutical articles - - - - 206.5 156.1 - -Sheath contraceptives (10) Rubber Products Unclassified 242.0 179.0 228.0 214.2 7.3 1.8 1.7 (Scrap, Ebonite ……..etc) Total of Rubber Products 103,921.0 110,048 112,246 101,426.5 111,024.8 126,783.4 141,665.2 Raw Rubber Total 15,726.0 9,195.0 5,916 3,547.9 4,758.3 5,919.8 5,088.3 Semi Processed Rubber Total* 5,535 4,733 3,912 1,836.4 766.3 641.5 629.8 Synthetic Rubber Export ------3.0 Total Export Value 125,182.0 123,976.0 122,074 106,810.8 116,549.4 133,344.7 147,386.3 Source: Sri Lanka Customs Note: Since 2011, this table is improved incorporating disaggregated value in main products under product categories 2, 5, 6, & 7 to understand easily and compatible to similar other tables. *Semi Processed include Grnules, Reclaimed & Compounded rubber mainly.

141

Table No.2.37

RUBBER FINISHED PRODUCTS EXPORT BY HS CODE - 2018

Performance HS HS Code Description Quantity Value Head Mt/No Rs Mn 40.07 40070000 Rubber thread & cords 40.08 Strips & Profile Shapes 0.0 0.0 400811 & 19 Products of cellular Rubber 3,512.6 2,950.7 400821 & 29 Products of non cellular Rubber 1,004.3 401.0 40.09 400911 to 42 Tubes Pipes & houses of vulcanised 332.0 198.5 40.10 401011 to 39 Conveyor /Transmission belting (V – belts) 1.8 2.8 40.11 New Pneumatic tyres of Rubber (No) 12,165,487 31,446 40111000 Tyres on motor cars (No) 52,373 133.2 40112000 Tyres on buses & lorries (No) 205,850 2,248.6 40113000 Tyres on aircraft (No) 0.0 0.0 40114000 Tyres on motor cycles (No) 15,892 27.3 40115000 Tyres on bicycles (No) 9,794,534 3,571.8 401161 to 94 Tyres On industrial vehicles / machines 2,095,913 25,456.3 (No) 40119910 Tyres on Trishaws (No) 0 0.0 40119990 Other Types of Tyres(No) 925 8.7 40.12 Retreated & Soild Tyres of rubber (No) 20,397.910 57,010.6 401211 to 90 Retreated Tyres (No) 969 6.1 40129010 Solid Tyres (No) 3,209,295 41,697.2 40129090 Other Types of Solid Tyres (No) 17,187,646 15,307.3 40.13 Inner tubes of Rubber (No) 3,997,799 609.0 401310,20 & 90 Tubes on motor cars, bicycle & other (No) 3,997,799 609.0 40.14 Contraceptives (Mt) 173.6 139.1 40.15 Articles of apparel – Gloves ets (Mt) 29,787.7 30,579.5 40151100 Surgical gloves (Mt) 4,857.5 8,601.9 401519 & 90 Other Industrial gloves (Mt) 24,930.2 21,977.6 40.16 Other articles of vulcanized rubber(Mt) 35,071.6 18,326.4 40161000 Cellular Products (Mt) 4.1 9.0 40169100&9200 Floor covering, mats & Erasers(Mt) 4,978.7 1,563.4 40169310-90 & Gaskets, Washers,Seals…etc (Mt) 1,673.3 2,500.3 9400 40169910 to 90 Parts of textile, agriculture and other types 28,375.7 14,091.6 of machinery /equipments (Mt) 40169510 &90 Other miscellaneous items (Mt) 39.7 162.1 40.17 Articles of hard rubber (Mt) 52.5 1.7 40170010&90 Waste, Scrap & ebonite ..etc (Mt) 52.5 1.7 Sub Total Mt/value 69,936.0 52,599.7 Sub Total No (Unites/Value) 36,561,196 89,065.5 Total Value 141,665.2 Source: Sri Lanka Customs – Statistical unit

142

Rubber Finished Products Export

(Table No. 2.36 & 2.37)

In accordance with the table 2.36, since 2012 export value of rubber finished products increased gradually except in 2015 & 2016. In 2012 it was Rs.103.9 Bn. In 2015 the export earnings of finished products was recorded as Rs.101 billion. During the period from 2012 to 2018 total rubber product export earnings increased by Rs.38 billion or 36%.

In 2018, as highlighted in table no 2.37 the highest export earnings were realized by solid tyre export of Rs.57 billion with corresponding to 20.4 million units. This was followed by new pneumatic tyre export amounting to Rs.31.4 billion and 12.2 Mn units. Thus for tyre and tube sector alone export earning was Rs.89.06 billion or 63% of total earnings of the current year. Other than tyre sector Gloves export earned Rs.30.6 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. 18.3 Bn or 13% of total export value. Balance 2% of export earnings were realized from export of cellular and non-cellular rubber products (HS 40.08), Inner rubber tubes (HS 40.13) and contraceptive (HS 40.14).

Thus, in 2018 total export income of Rs.141.7 billion was earned exporting rubber finished products manufactured in local firms. Total units of tyres & tubes exported were 36.6 million while other products measured in metric tons were 69,936.

143

Table No. 2.38

RUBBER: MONTHLY CESS COLLECTION Rs.Mn 2017 2018 Month Imports Exports Local Total Imports Exports Local Total January 241.70 10.79 18.13 270.62 195.92 6.62 44.41 246.95 February 194.00 10.45 32.18 236.63 181.06 7.95 13.03 202.04 March 204.19 11.33 21.59 237.11 164.79 7.37 12.09 184.25 April 142.60 4.78 33.35 180.73 159.80 4.72 13.81 178.33 May 193.41 5.93 12.59 211.93 166.78 5.08 5.63 177.49 June 158.85 4.36 15.43 178.64 175.00 3.88 41.49 220.37 July 209.04 3.64 20.08 232.76 212.42 3.76 6.38 222.56 August 250.22 4.86 12.89 267.97 197.95 5.12 11.17 214.24 September 198.57 5.38 11.26 215.21 213.45 3.55 27.95 244.95 October 231.56 3.18 9.47 244.21 257.70 4.67 14.75 277.12 November 218.94 4.08 10.17 233.19 157.61 5.44 9.52 172.57 December 248.53 6.38 11.04 265.95 184.54 4.31 13.06 201.91 Total 2,491.61 75.16 208.18 2,774.95 2,267.02 62.47 213.29 2,542.78

Source: Sri Lanka Customs Rubber Development Department

144

Monthly Rubber Cess Collection

(Table No. 2.38)

As per table 2.38, compared to previous year (2017), the total cess collection on rubber and rubber products decreased by almost 8% in 2018. Import cess with ranging rate (5% - 10%) of CIF value on rubber and rubber product imports decreased by Rs. 224.6 Mn or 9% over the previous year as CIF imports value decreased. In 2018 collection of exports cess (only for raw rubber as excemption envisaged for product exports) has decreased by Rs 12.69 Mn compared to 2017.

Cess collection on local consumption of local rubber supply at a rate of Rs. 4 per kg fluctuated year by year as quantity also changed yearly. When this rate is applied to collected amount, the consumption figure out of locally produced rubber should tally if cess was collected without any arrears. However, reported local cess collection of Rs. 213 Mn in 2018, accounted for local consumption of raw rubber of only 53.32 Mn Kg wihch was under stated compared to actual consumption of locally produced rubber i.e. 68.6 Mn Kg leaving substantial gap. This needs to be clarified to determine the accuracy of both figures.

145

146

RUBBER WORLD Overview - 2018

 Rubber Extent (Thousand Hectares) – 14,321.3 Asia Africa America 12,866.0 (90%) 1,103.5 (8%) 351.8 (2%)

 Extent of ANRPC & Non – ANRPC (ha) ANRPC Member Countries - 12,866 (90%) Non – ANRPC Countries - 1,455.3 (10%)

 Extent of Major Growers (000 ha) - 11,301.6 (79%) Indonesia - 3,679.0 Thailand - 3,613.9 China - 1,176.0 Malaysia - 1,082.9 Vietnam - 966.8 India - 822.0

 Rubber Production (Thousand Metric Tons) – 13,863 ANRPC - 12,530.0 (90%) Non – ANRPC - 1,333.0 (10%)

Top Three Producers (‘000 mt) - 9,741 (70%) Thailand - 4,973 Indonesia - 3,630 Vietnam - 1,138

 ANRPC Performance - 2018 Production/Tapped Area = Yield 1,388 Kg/ha(Average) Top three (yield) Countries (Kg/ha)  Vietnam - 1,650  India - 1,568  Thailand - 1,473

Cumulative Status* of ANRPC Countries (000mt)*

‘000 MT  Consumption - 9,092.5  Export - 10,308.7  Import - 10,813.1

*ANRPC estimates

147

Table No. 2.39

EXTENT OF WORLD RUBBER PLANTATIONS ‘000 Ha Country Year Total Brazil 2015 222.0 Guatemala 2017 100.7 Mexico 2017 29.1 Cameroon 2015 68.0 Ivory Coast 2017 634.1 Gabon 2017 17.5 Ghana 2015 58.0 Liberia 1999 108.9 Nigeria 2011 182.0 Congo 1999 35.0 Bangladesh 2009 40.8 Cambodia 2018 436.7 China 2018 1,177.0 India 2018 822.0 Indonesia 2018 3,679.0 Malaysia 2018 1,082.9 Myanmar 2015 650.8 Papua N.G 2007 24.5 Philippines 2018 235.3 Sri Lanka 2018 136.3 Thailand 2018 3,613.9 Vietnam 2018 966.8 Total 14,321.3 Source: International Rubber Study Group (IRSG) Association of Natural Rubber Producing Countries (ANRPC)

148

Table No. 2.40 WORLD RUBBER PRODUCTION MnKg Country 2012 2013 2014 2015 2016 2017 2018 1 India 919 849 705 575 624 713 660 2 Indonesia 3,040 3,180 3,153 3,145 3,358 3,629 3,630 3 Malaysia 923 826 669 722 674 740 603 4 Philippines 111 111 113 100 91 102 106 5 Sri Lanka 152 130 99 89 79 83 83 6 Thailand 3,778 4,170 4,323 4,473 4,347 4,429 4,973 7 Vietnam 864 949 954 1,013 1,035 1,095 1,138 8 China 795 865 840 794 774 798 818 9 Cambodia 65 85 97 127 145 193 220 10 Bangladesh 18.8 19.3 19.9 18.4 18.8 21.0 23 11 Papua New Guinea 7.5 7.5 7.5 6.6 5.4 5.7 06 12 Myanmar 164.4 176.9 198.0 212.1 229.9 249.1 270 ANRPC Member Countries Total 10,837.7 11,368.7 11,178.4 11,275.1 11,381.1 12,057.8 12,530 Other Countries 13 Liberia 64 69 60 59 61 63 72 14 Brazil 172 173 185 193 190 202 185 13 Guatemala 95 94 91 91 87 100 102 14 Nigeria 56 57 58 51 52 53 56 15 Ivory Cost 254 275 317 351 468 604 624 16 Other 200 201 254 269 389 506 294 Non ANRPC Countries Total 841 869 970 1,014 1,247 1,528 1,333 World Total 11,678.7 12,237.7 12,148.4 12,289.1 12,628.1 13,585.8 13,863 Source: International Rubber Study Group (IRSG) Association of Natural Rubber Producing Countries (ANRPC) 149

Table No. 2.41

KEY RUBBER INDICATORS OF ANRPC MEMBERS – 2018

Indo- Mala- Philip- Thai- Viet- Item Unit Cambodia China India Sri Lanka nesia ysia pines land nam 1.Area Total Area ‘000 ha 436.7 1,177.0 822.0 3,679.0 1,082.9 235.3 136.3 3,613.9 966.8 Tapped Area ‘000 ha 201.9 765.0 448.0 3,127.4 415.0 162.0 106.7 3,111.2 689.5 2.NR Production ‘000 Mt 220 818 660 3,630 603 106 83 4,973 1,138 3.Average annual Kg/ha 1,090 1,070 1,473 1,161 1,450 710 774 1,568 1,650 Yield to Tapped area 4.Annual growth rate % 13.9 2.5 -7.4 0.0 -18.5 3.9 -0.6 12.3 3.9 of production 5.NR Consumption ‘000 Mt n.a. 5,670.0 1,220.1 633.8 541.7 39.9 135.0 627.0 225.0 6.NR Gross Export ‘000 Mt 217.5 27.6 3.8 2,954.2 1,120.9 110.5 16.6 4,300.5 1,500.1 7.NR Gross Import ‘000 Mt n.a. 5,409.8 601.2 60.9 1,014.8 16.5 76.1 1.5 583.1 8.Area New ‘000 ha 0.5 3.0 2.0 12.0 5.2 10.0 1.0 36.4 0.5 Planted Planted Replanted ‘000 ha 0.5 12.0 4.0 20.0 23.4 1.0 0.9 40.8 26.2 Source : Association of Natural Rubber Producing Countries (ANRPC) n.a – data not available

150

World Rubber Extent & Production

(Table No. 2.39, 2.40 & 2.41)

At present total extent of World rubber plantation stands at 14,321,300 hectares. Out of this extent 12,866,000 ha or 90 % belongs to 12 ANRPC member countries in Asia. The extent of rubber in rest of the World (non ANRPC countries in Asia, Africa & America) is about 1,455,300 hectares or 10% 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 (12,866,000 ha) of ANRPC countries, 72% or 9,026,700 ha was at matured (tapped area) stage from which NR production of 12,530,000 mt is realized at present. Thus, in 2018 average yield was recorded at 1,388 kg per hectare/ year while varying yield level range (710 – 1,650 kg per ha) is recorded for individual countries.

Despite total world rubber production increased since 2012to 2018 at an average annual growth of 19% & the growth of ANRPC member countries alone averaged to 16% during this period. With regard to ANRPC member countries Thailand, Indonesia, Vietnam, China, Malaysia and India, are the major producers ranked in order for the period between 2012 and 2018. Among non ANRPC countries major share of rubber production comes from Ivory Coast and Brazil throughout. Total production of this group of countries increased from 841 mn kg in 2012 to 1,333 mn kg in 2018 by 59%.

Key rubber indicators as given in table 2.41 highlighted that the highest yield was recorded for Vietnam (1,650 kg/ha) followed by Thailand & India in 2018. In ANRPC group the NR consumption out of ANRPC production was 74% 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 2018. Total area replanted in ANRPC countries stood at the rate of 0.9% while new planted area was 0.5% of total rubber extent in 2018.

151

152

153

154

Distribution of Coconut Extent by District - 2014

155

Table No.3.1 KEY INDICATORS: COCONUT Item Unit 2011 2012 2013 2014 2015 2016 2017 2018 1.Total Nut Production Mn Nuts 2,808 2,940 2,513 2,870 3,056 3,011 2,450 2,623 Desicated Coconut Mn Kg 47 42 29 50 42 51 30 25 Coconut Oil Mn Kg 53 82 45 45 53 49 13 11 Virgin Coconut Oil Mn Kg n.a. 1.7 2.2 7.5 14 16 14 12 Copra Mn Kg 77 125 67 66 76 68 13 12 Domestic nut Consumption Mn Nuts 2,327 2,481 2,067 2,104 2,288 2,119 1,700 1,794 2.Total Extent ‘000 Ha 395* 395* 395* 444r* 455r** 466** 471** 479*** 3.Average FOB for DC Value per Nut Rs 39.12 27.50 34.83 43.53 44.74 40.10 51.13 49.41 4.Fertilizer issued ‘000 MT 14 n.a n.a 37 57 35 50 53 5.Cost of Production Rs/’000Nuts 10,273 11,634 13,578 15,126 16,388 16,687 18,841 18,325 6.Replanting Ha 214 486 646 1,570 1,125 605 1,008 636 7.New planting Ha 14,639 33,259 33,983 30,771 13,720 9,240 15,135 10,074 8.Total Export earnings Rs Mn 47,306 46,667 47,952 72,880 75,259 84,702 91,198 94,723 US$ Mn 428 366 372 558 554 582 598 583 of which: Kernel products Rs Mn 21,030 16,688 17,381 37,192 41,667 46,219 47,615 47,979 US$ Mn 190 131 136 285 307 317 312 295 Non Kernel Products Rs Mn 26,276 29,979 30,571 35,688 33,592 38,483 43,583 46,744 US$ Mn 238 235 236 273 247 265 286 288 Source: Coconut Development Authority * Extent Based on Agriculture Census 2002(up to 2013) and thereafter on ……….Coconut Cultivation Board Economic Cencus 2013/14 of DCS Department of Census & Statistics (DCS) ** Estimated , *** Based on seedling distribution by CCB in year 2018. n.a.- data not available 156

Key Indicators for Coconut

(Table No. 3.1)

In 2018, coconut production recorded as 2,623 Mn nuts, which is a increase of 7% compared to previous year. The Main Kernel products; DC, Coconut Oil and Copra decreased compared to 2016 comparatively along with the drastical decline of nut production. In 2018, these Kernel products decrease compared with the year 2017.

In 2018, domestic nut consumption has increased by 94 Mn nuts. Average export FOB value per nut use for DC recorded a decrease of 3.4% compared to year 2017.

In 2018, approximately 2.7% decrease has recorded in the cost of production per nut. The extent in hectares replanted and new planted decreased by 36.9% and 33.4% respectively. In 2018, total export earnings recorded Rs 94.7 billion with increase of earning from Kernel Products by 0.8% and non – Kernel Products by 7%. Export earnings from coconut products, in US dollar terms registered $583 mn in 2018, of which is a decrease of 2.5% compared to 2017.

157

158

Coconut Area Overview - 2018

 Extent according to the Agriculture Census – 2013/14 (in Hectares)

Small holding Estate Total 2014 371,244 72,294 443,538

 Distribution of Coconut Extent - 2014 Smallholding Sector Systematic Cultivation - 104,074 ha Scattered Extent - 267,170 ha Estate Sector - 72,294 ha King Coconut - 34,063 ha  Coconut Growing Districts District with Highest Extent - Kurunagala District with Lowest Extent - Nuwara Eliya

 Re/New/Under Planting - Past 5 years average Re Planting - 989 ha New Planting - 15,788 ha Under Planting - 6,110 ha

 Coconut Sector Subsidies in 2018 Plants distributed - 2,435,579 Financial Subsidies (1) Irrigation - Rs 17.46 Mn (2) Coconut land rehabilitation - Rs 96.19 Mn (3) Cattle shed Subsidy - Rs 3.85 Mn (4) Intercrop Subsidy - Rs 18.56 Mn (5) Special fertilizer subsidy - Rs 4.09 Mn

159

Table No.3.2 DISTRIBUTION OF COCONUT SMALL HOLDINGS AND ESTATES BY DISTRICTS – 2013/14 Acres

2014 2002 Changes in District Total SmalHolding Estate Total SmallHolding Estate 2014Compared Extent Sector Sector Extent Sector Sector to 2002 Colombo 21,748 20,210 1,538 18,019 16,959 1,060 3,729 Gampaha 133,551 115,957 17,595 106,575 91,352 15,223 26,975 Kalutara 23,131 21,865 1,266 27,864 26,396 1,468 -4,733 Kandy 11,032 9,770 1,262 19,491 17,848 1,643 -8,460 Matale 32,769 28,495 4,274 25,450 20,552 4,898 7,320 Nuwara -Eliya 1,346 1,332 14 2,577 2,555 22 -1,231 Galle 18,120 15,811 2,309 30,995 28,835 2,160 -12,874 Matara 17,532 14,774 2,757 35,578 32,907 2,671 -18,046 Hambantota 44,269 42,381 1,888 51,232 48,089 3,143 -6,963 Jaffna 8,934 8,762 172 8,535 8,535 - 399 Kilinochchi 4,353 3,006 1,347 6,114 6,084 30 -1,760 Mannar 2,441 2,286 155 2,249 2,249 - 192 Vavuniya 5,745 5,726 19 1,920 1,920 - 3,825 Mulativu 4,721 3,758 963 6,563 6,563 - -1,842 Batticaloa 7,868 7,185 684 8,740 8,152 588 -872 Ampara 6,017 5,517 500 12,571 12,452 119 -6,553 Trincomalee 5,246 5,243 3 5,209 5,209 - 37 Kurunegala 419,312 329,556 89,756 330,058 236,358 93,700 89,254 Puttalam 186,053 141,062 44,991 113,893 71,470 42,423 72,160 Anuradhapura 27,790 27,189 601 34,926 34,227 699 -7,136 Polonnaruwa 7,267 5,019 2,247 16,408 14,369 2,039 -9,141 Badulla 5,070 4,665 405 6,709 6,627 82 -1,639 Monaragala 26,310 25,678 632 26,442 25,995 447 -133 Ratnapura 42,892 41,528 1,364 39,460 37,713 1,747 3,432 Kegalle 32,465 30,570 1,896 38,081 35,941 2,140 -5,616 Sri Lanka 1,095,983 917,345 178,638 975,659 799,357 176,302 120,326 Source: Economic Census - 2013/14, Department of Census and Statistics

160

Total Coconut Land Area District wise in 2014

(Table No. 3.2)

Top five coconut growing districts in 2014 were Kurunegala, Puttalam, Gampaha, Hambantota and Ratnapura Contributing 75% of total extent. The ratio between total extent of small holdings and estates in 84:16 respectively. Five administrative districts which dominate the extent of small holdings are Kurunegala, Gampaha, Puttalam, Hambantota, and Ratnapura with a share of 73%. However, concerning the coconut estates, only Kuarunegala, Puttalam and Gampaha districts registred a significant extent (85%). Three districts: Kurunegala, Puttalam and Gampaha are significant in both categories of small holdings and estates totaling to 299,035 ha or 67% of total extent of lands.

161

Table No.3.3

NUMBER OF KING COCONUT TREES AND ESTIMATED EXTENT BY DISTRICT AND SECTOR 2014

Acres Small Holdings Total Below Above Number Estimated Estate District ¼ acre ¼ acre of Extent* Sector Scattered Trees Colombo 144,853 63,928 1,309 210,090 3,001 Gampaha 187,215 141,697 4,604 333,516 4,765 Kalutara 104,255 97,957 1,324 203,536 2,908 Kandy 33,262 40,104 401 73,767 1,054 Matale 10,769 29,121 1,836 41,726 596 Nuwara Eliya 1,783 2,934 18 4,735 68 Galle 67,642 109,049 1,177 177,868 2,541 Matara 52,574 120,295 3,548 176,417 2,520 Hambantota 27,954 78,275 478 106,707 1,524 Jaffna 35,208 20,681 15 55,904 799 Kilinochchi 937 5,173 75 6,185 88 Mannar 5,137 3,484 - 8,621 123 Vavuniya 7,086 12,555 25 19,666 281 Mullativu 1,095 4,575 49 5,719 82 Batticaloa 18,494 4,922 187 23,603 337 Ampara 26,970 21,098 95 48,163 688 Trincomalee 12,238 8,907 - 21,145 302 Kurunegala 52,107 192,812 11,977 256,896 3,670 Puttalam 32,650 48,633 3,812 85,095 1,216 Anuradhapura 21,872 116,030 486 138,388 1,977 Polonnaruwa 12,125 52,340 242 64,707 924 Badulla 6,156 16,965 50 23,171 331 Monaragala 7,220 48,086 441 55,747 796 Ratnapura 31,889 90,983 1,789 124,661 1,781 Kegalle 39,674 77,323 1,402 118,399 1,691 Sri Lanka 941,165 1,407,927 35,340 2,384,432 34,063 Source: Economic Census – 2013/14 of DCS

162

Table No.3.4(i)

ISSUANCE OF FERTILIZER & SEEDLINGS

Fertilizer Issue Seedling Issues Year (MT) (In Thousands) 2007 40,646 2,051 2008 29,131 1,670 2009 25,201 2,415 2010 5,456 2,432 2011 14,316 3,702 2012 Not Available 6,882 2013 Not Available 5,291 2014 37,266 5,852 2015 56,927 3,789 2016 35,081 2,624 2017 46,065 3,999 2018 52,804 3,435 Source : National Fertilizer Secretariat Coconut Cultivation Board National Livestock Development Board Kurunegala Plantation Limited

163

Table No.3.4(ii) FERTILIZER: ANNUAL USE OF PRODUCTS FOR COCONUT SECTOR IN 2015 to 2018 Quantity(Mt) Fertilizer 2015 2016 2017 2018 Straight 6,197.54 7,582.78 10,936.27 6,573.09 Urea Mixture 10,466.35 4,064.10 6,581.21 9,753.78 Straight 2,778.70 2,145.34 1,887.59 816.09 TSP Mixture 822.82 223.57 524.28 1,123.74 Straight 3,737.51 3,337.31 2,977.52 2,993.25 MOP Mixture 19,407.38 8,159.48 12,190.44 17,944.29 Straight 947.21 519.56 881.86 828.52 SA Mixture 525.6 1,276.68 2,478.69 1,272.58 Straight 48.56 91.71 225.28 109.67 Kieserite Mixture 48.72 143.52 266.74 211.53 Straight 3.48 0.50 - 3.76 ZnSo4 Mixture 17.98 6.42 7.83 11.92 Straight - - 14.05 6.25 CAN Mixture 0.01 - - - Straight 2.48 9.85 11.05 22.10 CES Mixture 0.17 - 0.06 - Straight 5.46 18.34 38.41 1.55 DAP Mixture 75.27 6.14 0.74 1.03 Straight 0.2 17.30 1.53 34.10 SOP Mixture 0.89 - - - Straight 0.51 1.23 7.01 0.28 Borate Mixture 12.86 3.55 5.48 6.43 Straight - - 119.75 45.45 SSP Mixture - 0.58 6.60 15.50 Straight - - - - MAP Mixture - - - - Straight 333.83 401.75 658.91 413.53 ERP/HERP Mixture 9,338.33 5,154.44 7,137.85 8,422.29413.53 Straight 1,965.66 1,611.93 2,379.24 2,102.80 DOLOMITE Mixture 100.19 249.88 488.94 143.25 NPK Straight 21.29 9.71 134.40 122.99 Mixtures Mixture 12.01 0.07 - 7.00 Straight 5.19 31.74 18.29 58.84 Others Mixture 50.79 33.10 66.54 30.01 Straight 16,047.60 15,779.04 20,447.86 14,132.28 Total Mixture 40,879.37 19,321.52 29,591.95 38,943.35 Grand Total 56,926.97 35,100.57 50,039.81 53,075.63

164

Source: National Fertilizer Secretariat

Table No.3.5

COCONUT: RAINFALL IN COCONUT TRIANGLE

Annual Average Drought Year Rainfall (mm) Months 2007 1,619 3.00 2008 2,020 2.33 2009 1,489 3.33 2010 2,265 3.00 2011 1,763 1.00 2012 1,363 5.00 2013 1,589 3.00 2014 2,237 2.66 2015 2,026 3.66 2016 1,426 6.33 2017 1,498 4.00 2018 1,674 5.00 Drought months have been defined as months with rainfall below 50.0 mm Source : Department of Meteorology

165

Table No.3.6

AVERAGE YIELD

Yield Year (Nuts per Ha) 2007 7,266 2008 7,368 2009 6,995 2010 5,868 2011 7,891r 2012 7,820r 2013 6,559r 2014 7,404r 2015 7,765 2016 7,670 2017 6,769 2018 5,914 Source: 2006 - 2009 : Coconut Development Authority 2010 - 2017 : Estimated r - revised

166

Coconut Average Yield

(Table No. 3.6)

Average yield of nuts per hectare mainly depends on rainfall in previous year and application of fertilizer. In 2007 average yield recorded as 7,266 nuts per hectare. In the year 2008 yield reached to 7,368 nuts per hectare and declined to 5,868 nuts per hectare two years later. In 2011, national yield reached to the highest level after 2008. During the decade average yield was recorded as 7,065 nuts per hectare. In 2018, the average yield was declined by 12.6% compared to the previous year.

167

Table No. 3.7(i)

COCONUT GROWING INCENTIVES, 2003-2009

Rehabilitation Intercropping New Planting Re/Under Planting Programme Incentive Incentive Incentive Area Incentive Year Area Area New Area Payments Payments Payments Re/Under Payments Intercropped Planted (Acres) Made Made Made Planted Made (Acres) (Acres) (Rs Mn) (Rs Mn) (Rs Mn) (Acres) (Rs Mn) 2003 - - - - 2,712 45.4 3,027 37.1 2004 - - - - 1,192 16.7 1,681 19.0 2005 - - - - 9,348 41.7 8,635 42.5 109.08 109.08 2006 6,018 13.6 226 0.3 10,133 9,551 (Np+Rp) (Np+Rp) 2007 6,090 15.0 790 0.4 7,303 10.0 6,247 2.1 2008 6,747 30.2 1,398 3.3 9,100 75.0 6,098 50.2 2009 5,471 26.0 754 3.2 10,848 70.7 1,439 9.4

Np – New Planting Rp – Replanting Source: Coconut Cultivation Board

168

Table No. 3.7(ii)(a)

NO OF PLANTS DISTRIBUTED BY VARIOUS PROGRAMMES UNDER COCONUT CULTIVATION BOARD

No of Coconut Plants Distributed Programme 2012 2013 2014 2015 2016 2017 2018@ Home Garden 2,774,336 2,162,094 1,708,113 511,025 415,533 950,288 465,642 (Divineguma/Wevilisaviya/Devimagata Kapruka) Tea with coconut programme - - - - 71,688 62,493 44,470 Kaprukai Sipnanai 343,861 357,744 334,795 200,674 193,505 139,600 46,784 Re/New/Under Planting Programme 1,284,886 1,513,203 1,427,896 1,201,082 1,143,592 1,433,338 1,040,605 Kaprukai Parapurai Home Garden - 1,247 119,717 79,882 48,084 29,769 63,490 Programme Puja Bumi 25,887 7,605 8,755 - - - - Rehabilitation(infilling) 236,631 307,372 392,156 332,316R 240,390 401,921 198,998 Kapruka Purawara Programme 1,602,158 2,116,569 1,785,356 1,072,974 276,098 - - Urban Coocnut Cultivation Programme - 1,000 11,749 14,042R 7,923 30,192 - King coconut planting under Re/New/Under - - - 4,332 7,126 2,163 6,422 Planting Programme Plants Sold 566,553 350,141 451,095 326,630 218,588 453,278 604,917 Less than ¼ Acres - - - - - 302,932 - Others ------19,884 Total 6,834,312 6,817,155 6,239,632 3,742,957R 2,622,527 3,805,974 2,471,328 Source : Coconut Cultivation Board ; @ - Provisional R - revised

169

Table No. 3.7(ii)(b)

NO OF PLANTS DISTRIBUTED DISTRICT WISE UNDER COCONUT CULTIVATION BOARD

District No of Coconut Plants Distributed 2016 2017 2018 Colombo 34,842 48,738 45,550 Gampaha 153,364 258,295 168,264 Kalutara 69,449 77,345 45,549 Kandy 63,624 91,144 34,111 Matale 78,409 100,177 62,537 Nuwara-Eliya 29,223 15,268 17,055 Galle 69,289 104,885 57,542 Matara 23,658 31,830 22,142 Hambantota 73,054 151,541 110,410 Jaffna 77,652 85,677 56,873 Mannar 20,093 31,632 29,053 Vauniya 66,399 74,597 29,053 Mullativu 37,253 98,099 56,873 Kilinochchi 65,507 87,496 56,873 Batticaloa 94,762 132,870 81,180 Ampara 113,551 127,748 86,513 Trincomalee 74,194 119,470 71,796 Kurunegalla 523,584 1,123,650 644,250 Puttlam 183,096 273,729 282,476 Chilaw 205,482 Anuradhapura 87,067 150,990 90,283 Polonnaruwa 85,879 105,831 66,411 Badulla 34,164 49,979 47,177 Monaragalla 98,471 134,805 110,080 Ratnapura 67,998 123,780 62,796 Kegalle 88,632 129,233 80,848 Plants sold 218,588 19,884 others 92 Total 2,622,527 3,843,658 2,435,579

Source : Coconut Cultivation Board

170

Table No. 3.7(ii)(c) DISTRIBUTION OF INPUTS AND SEEDLINGS UNDER SUBSIDY RsMn Value of inputs and seedlings distributed under subsidy Programme 2012 2013 2014 2015 2016 2017 2018

Seedlings 406.94 431.57 432.41 365.09 255.73 344.65 309.63

Inputs for pest & diseases Management - - - - 3.56 5.67 6.76

Total 406.94 431.57 432.41 365.09 259.29 350.32 316.39

Table 3.7(iii) SUBSIDY PAYMENTS 2012-2018 RsMn Programme 2012 2013 2014 2015 2016 2017 2018@ Irrigation Subsidy 1.69 4.02 9.09 14.31 13.96 14.09 17.46 Rehabilitation subsidy ------96.19 Cattle Shed Subsidy 2.50 3.97 9.24 13.13 9.21 7.21 3.85 Organic fertilizer application subsidy - 8.68 48.39 49.73* 495.00** - Intercrop subsidy ------18.56 Special fertilizer subsidy ------4.09 Total 4.19 16.67 66.72 77.17 518.17 21.30 140.15 171

Source : Coconut Cultivation Board ; @ - Provisional * RsMn 49.73 was given to approved applications of year 2014 **Special fertilizer subsidy for coconut smallholdering sector (<2ha)

Table No.3.8(i)

ESTIMATED EXTENT OF NEW/REPLANTED & UNDER PLANTED, UNDER THE PROGRAMMES OF TABLE No: 3.7(ii) Ha Programme 2012 2013 2014 2015 2016 2017 2018@ Replanting 486 646 497 412 218 1,108 444 New Planting 4,017 5,642 5,715 4,932 5,113 16,528 7,626 Under Planting 3,556 3,280 2,811 2,400 1,947 7,402 3,685 Source : Coconut Cultivation Board; @-Provisional

Table No.3.8 (ii) TOTAL EXTENT OF NEW/RE PLANTED & UNDER PLANTED FOR SRI LANKA (WITH SUBSIDY & OTHERS) Ha Programme 2012 2013 2014 2015 2016 2017 2018@

172

Replanting 486 646 1,570 1,125 605 1,008 636 New Planting 33,259 33,983 30,771 13,720 9,240 15,135 10,074 Under Planting 5,791 3,280 4,226 8,875 4,757 7,820 4,870 Source : Coconut Cultivation Board ; @ - Provisional

173

Coconut Production Overview - 2018

 Total Nuts production – 2,623 Million Nuts

 Main Coconut Products (in Metric tons) Year Desiccated Copra Coconut Virgin Poonac Coconut Oil Coconut Oil 2007 42,982 117,490 84,788 - 42,394 2018 24,625 11,727 10,913 12,377 5,457

 In 2018 Production Growth (%) Over 2009(Decade) Desiccated Copra Coconut Poonac Coconut Oil -35% -90% -86% -86%

 In 2018/19 Cost of Production in Estate Sector (Rs/1000 nuts) -18,325

 Highest Performance in the decade (2009-2018) year Production (Mt) Desiccated coconut - 2016 51,117 Copra - 2012 124,798 Coconut Oil - 2012 81,859 Virgin Coconut Oil - 2016 16,067 Poonac - 2012 40,930

 In 2018 Exported Kernel Products and Domestic Consumption

* Export of Kernel Products (Mn Nuts Equivalent) - 779 * Domestic Consumption (Mn Nuts) - 1,847

174

Table No.3.9 Coconut Conversion Table

I. Kernel Products Coconut Copra DC Coconut VirginC’ Item (Number) (MT) (MT) Oil(MT) Oil (MT) 1 MT Copra 5,500 1.000 0.611 0.579 0.401 1MT Desiccated 9,000 1.636 1.000 0.947 0.657 Coconut 1MT Coconut Oil 9,500 1.727 1.056 1.000 0.693 1MT Virgin 13,700 2.491 1.522 1.442 1.000 Coconut Oil 1000 Coconuts 1,000 0.182 0.111 0.105 0.073 1MT Coconut 9,000 1.636 1.000 0.947 0.657 Cream 1MT Coconut Milk 4,000 0.727 0.444 0.421 0.292 1MT Coconut Milk 16,000 2.909 1.778 1.684 1.168 Powder

II.Coconut Shell Products Shell Shell Activated Item No.of Shells Flour(MT) Charcoal(MT) Carbon(MT) 1 MT Shells 6,000 0.762 0.333 0.111 1 MT Shell Flour 7,875 1.000 0.438 0.146 1 MT Charcoal 18,000 2.286 1.000 0.333 1 MT Activated 54,000 - 3.000 1.000 Carbon

III. Coir Fibre Husk Mattress Bristle Item (Nos.) Fibre(MT) Fibre(MT) 1MT Coir Fibre 7,875 0.67 0.33 1MT Mattress Fibre 11,815 - - 1MT Bristle Fibre 23,625 - - Source : Coconut Development Authority

175

Table No. 3.10

COCONUT: PRODUCTION, AND DOMESTIC CONSUMPTION

Export of Total Exports Kernel Domestic C’nut Surplus as a Year Products Consumption Production % of (Mn Nuts (Mn. Nuts) (Mn. Nuts) Production Equivalent) 2007 2,869 418 2,451 14.6 2008 2,909 472 2,437 16.2 2009 2,762 493 2,269 17.9 2010 2,317 361 1,956 14.0 2011 2,808 481 2,327 17.1 2012 2,940 459 2,481 15.6 2013 2,513 446 2,067 17.8 2014 2,870 766 2,104 26.7 2015 3,056 768 2,288 25.1 2016 3,011 892 2,119 29.6 2017 2,450 750 1,700 30.6 2018 2,623 779 1,847 29.7 Source : Coconut Development Authority

2018 Conversion Rates

1Mt Copra = 5,500 Nuts 1Mt Desicated Coconut = 9,000 Nuts 1Mt Coconut Oil = 9,500 Nuts Source: Coconut Development Authority

In 2018, total nut production increased by 7.1% to 2,623 Mn nuts compared to 2017. Therefore, export of Kernel Products increased by 3.8% and domestic consumption also increased by 8.6%. In this decade the domestic consumption of nuts out of the total production has remained in the range of 69% to 85%. The nut equivalent used for kernel production, mainly for export purpose has remained in the range of 15% to 30% in the same,period,with-fluctuation,annually,taken,place.

176

Coconut: Total Production, 2006-2018 Chart 11

177

Table No. 3.11

MID YEAR POPULATION AND DOMESTIC CONSUMPTION

Mid year Domestic Population Consumption Year In Sri Lanka of Coconut (Mn) (Mn nuts) 2007 20.01 2,451 2008 20.20 2,437 2009 20.40 2,269 2010 20.67 1,956 2011 20.89 2,327 2012 20.42 2,481 2013 20.58 2,067 2014 20.77 2,104 2015 20.97* 2,288 2016 21.20* 2,119 2017 21.44* 1,700 2018 21.67* 1,847

Source: Coconut Development Authority * Provisional

178

Table No. 3.12

PRODUCTION OF DESICCATED COCONUT, COPRA, COCONUT OIL, VIRGIN COCONUT OIL AND POONAC (MT) Virgin Desiccated Coconut Year Copra Coconut Poonac Coconut Oil Oil 2007 42,982 117,490 84,788 - 42,394 2008 38,414 103,830 59,018 - 29,509 2009 38,125 122,999 75,495 - 37,748 2010 28,850 101,040 65,133 - 32,567 2011 46,620 77,098 53,093 - 26,547 2012 41,645 124,798 81,859 1,696 40,930 2013 29,200 66,859 45,208 2,166 22,604 2014 50,367 65,613 45,268 7,503 22,634 2015 41,795 76,278 52,790 13,765 26,395 2016 51,117 67,685 48,805 16,067 24,403 2017 29,557 13,299 12,784 14,243 6,392 2018 24,625 11,727 10,913 12,377 5,457 Source : Coconut Development Authority

In 2012, Copra, Coconut Oil and Poonac recorded the highest production for the decade. Besides that, DC and Virgin coconut oil recorded the highest production in 2016 for the decade. Compared to the previous year, production of all the categories in the above table showed a drastic decline in 2017, and decreased further in 2018 compared to 2017.

179

Table No.3.13

COCONUT: COST OF PRODUCTION IN ESTATE SECTOR (20 Acres & above)

Coconut Year (Rs/1000 nuts) 2005/06 5,435.83 2006/07 6,123.71 2007/08 8,794.56 2008/09 9,165.86 2009/10 9,492.49 2010/11 10,273.08 2011/12 11,634.38 2012/13 13,577.54 2013/14 13,789.03r 2014/15 15,252.69r 2015/16 16,388.08 2016/17 16,686.71 2017/18 18,840.72 2018/19 18,325.18

Source: Coconut Development Authority Department of Census & Statistics r - Revised data

180

181

Coconut Prices Overview - 2018

 Average Retail Prices of Fresh Nuts in 2018 large size – 92.50 (in March) Highest (Rs/Nut) - Small size – 74.00 (in January) Large size – 69.00 (in December) Lowest (Rs/Nut) - Small size – 48.50 (in December)

 Average Price of Copra at CDA Auction in 2018 Average Market Price(Rs/250 Kgs) Milling Superior M.S. No: No: 01 02 & 03 Highest (in May) 61,333.33 (in March) 59,661.02 Lowest (in November) 42,500.00 (in November) 41,000.00

 Average Price of Desiccated Coconut Highest (Rs/Kg) – 532.95 (in February) Lowest (Rs/Kg) – 257.63 (in Novemer)

 Average Wholesale Prices of Coconut Oil Highest (Rs/Mt) – 405,000 (in January) Lowest (Rs/Mt) – 328,281 (in December)

 Average Wholesale Prices of Poonac Highest (Rs/Mt) – 60,300 (in March) Lowest (Rs/Mt) – 41,703 (in December)

 Transacted Annual Average Wholesale Price and Price Growth DC Coconut Oil Poonac 2017 440.56 376,597 49,700 2018 378.22 364,589 53,204 Growth -14% -3.2% 7%

182

Table No:3.14(i)

ANNUAL AVERAGE WHOLESALE PRICES OF FRESH NUTS & COCONUT OIL

Fresh Coconut Coconut Oil Year Wholesale Prices Wholesale Prices (Rs/‘000 Nuts) ( Rs/MT) 2007 15,683 151,032 2008 22,108 215,050 2009 16,282 166,909 2010 23,410 217,516 2011 29,012 262,084 2012 21,595 212,419 2013 29,589 252,318 2014 31,514 266,852 2015 33,876 265,524 2016 32,127 264,892 2017 62,713 376,597 Large size – 68,292 2018 364,589 Small size – 53,068

Source : Coconut Development Authority

183

Table No:3.14(ii)

MONTHLY AVERAGE WHOLESALE LOCAL MARKET PRICE OF DESICCATED COCONUT, COCONUT OIL, POONAC, AVERAGE WHOLESALE & RETAIL LOCAL MARKET PRICES OF FRESH COCONUTS 2017 & 2018

Desiccated Poonac Coconut Oil Fresh Coconut Fresh Coconut Coconut Wholesale Wholesale wholesale Prices Retail Prices (Rs/ Transacted Prices (Rs/MT) (Rs/‘000 Nuts ** Nuts)** Month Prices (Rs/Kg) (Rs/MT) 2018 2018 2017 2018 2017 2018 2017 2018 2017 Large Small 2017 Large Small Size Size Size Size January 352.94 525.54 331,759 405,000 39,762 59,547 50,000 79,000 68,700 55.45 89.80 74.00 February 389.70 532.95 362,369 404,078 42,028 58,632 53,438 83,125 71,500 59.69 90.00 68.13 March 392.32 506.88 369,565 404,375 42,500 60,300 57,938 83,130 69,630 62.04 92.50 73.13 April 418.77 451.46 387,708 384,230 43,708 58,076 59,495 74,375 59,500 69.00 89.38 65.63 May 426.66 462.52 396,528 376,429 45,139 57,381 58,450 77,500 61,870 69.25 90.00 67.50 June 405.35 393.07 383,750 371,973 49,950 58,079 55,500 73,870 56,870 66.88 88.12 65.62 July 411.37 342.92 358,333 362,857 49,643 54,857 52,005 63,500 38,000 62.19 77.00 53.00 August 454.57 275.54 380,795 340,000 56,136 49,932 57,800 56,875 40,000 67.75 71.88 48.75 September 487.43 271.12 384,605 329,737 55,552 49,263 69,120 60,000 45,000 75.93 71.25 54.38 October 501.25 260.42 379,875 333,636 56,875 47,205 74,250 59,000 45,000 81.50 71.50 53.50 November 519.85 257.63 388,214 334,474 57,500 43,474 82,813 58,130 43,750 89.69 72.50 53.13 December 526.49 258.61 395,395 328,281 57,605 41,703 81,745 51,000 37,000 89.06 69.00 48.50 Average 440.56 378.22 376,597 364,589 49,700 53,204 62,713 68,292 53,068 70.70 81.08 60.44

** Source : Hector Kobbekaduwa Agrarian Research and Training Institute

184

Table No.3.15

QUANTITIES OFFERED AND PRICES OF COPRA AT CDA AUCTION 2012 - 2018 & MONTHLY IN 2018

Sold(kg) Average Market Price (Rs/250 kgs) Offered Year/Month Milling M.S. Milling M.S. (Kg) Superior No.1 No.2&3 Superior No.1 No.2 & 3 2012 601,664 157,938 393,090 29,557.00 28,407.00 2013 437,942 141,213 293,118 37,520.02 35,958.30 2014 552,172 208,886 310,509 43,406.31 38,814.70 2015 293,085 103,002 159,557 41,034.91 37,516.54 2016 221,391 91,275 118,391 38,088.33 37,059.93 2017 228,954 118,003 107,370 55,953.06 54,768.17 2018 157,061 60,179 68,529 53,869.63 50,961.76 January 20,765 8,562 12,203 59,331.80 58,727.75 February 5,015 2,345 1,370 60,100.00 59,328.47 March 9,492 2,142 7,350 60,247.15 59,661.02 April 18,807 5,395 3,412 59,379.65 54,448.64 May 25,575 5,917 7,600 61,333.33 54,000.00 June 21,142 11,144 9,998 55,206.20 53,383.69 July 13,022 6,591 6,431 54,487.26 52,270.56 August 14,652 5,392 6,269 49,000.00 49,000.00 September 13,321 7,671 5,650 45,980.58 44,676.99 Octomber 5,080 3,180 1,900 45,000.00 43,500.00 November 5,104 1,250 1,850 42,500.00 41,000.00 December 5,086 590 4,496 - 41,543.99

Source : Coconut Development Authority

185

Table No. 3.16

LOCAL MARKET PRICES OF COIR FIBRE - 2017/2018 MONTHLY AVERAGE

Mattress Fibre Bristle Fibre 1Tie Bristle Fibre 2 Tie FAQ/Superior Ordinary Hackled Month Rs./50 Kgs Rs./50kgs Rs./50kg 2017 2018 2017 2018 2017 2018 January 725 - 925 1,450-1,550 4,000 5,500 5,530 8,750 February 641 - 862 1,472-1,639 3,895 5,500 5,487 8,750 March 647 - 872 1,618-1,793 3,875 6,213 5,625 9,438 April 650 - 875 1,635-1,829 3,875 6,327 5,625 9,423 May 739 - 931 1,650-1,875 4,153 6,250 5,792 8,036 June 850 - 1,000 1,674-2,005 4,500 6,013 6,000 8,829 July 902 - 1,079 1,743-2,062 4,500 6,310 6,000 9,500 August 1,134 - 1,323 1,800-2,100 4,591 6,000 6,045 9,000 September 1,350 - 1,575 1,800-2,100 5,000 6,000 6,447 9,000 October 1,390 – 1,555 1,800-2,100 5,200 6,000 7,900 9,000 November 1,433 -1,550 1,800-2,100 5,250 6,000 8,250 9,000 December 1,450 – 1,550 1,800-2,100 5,250 6,000 8,250 9,000 Average 921.92 1,812.25 4,507.37 6,009.34 6,412.59 8,977.10

Source : Coconut Development Authority

186

187

Export and Import Overview - 2018

 Total Export Earnings in the decade (2009-2018) Export Earnings(Rs Mn) 2009 2018 Growth Kernal Products 11,974 47,979 Over 4 fold Non Kernal Products 17,107 46,744 Over 2 fold Total 29,081 94,723 Over 3 fold

 Category wise Export (In Rs Mn) Export Earnings Products 2017 2018 Change % Kernal Products 47,615 47,979 0.8 Fibre Products 4,560 4,560 0.0 Shell Products 12,693 15,795 24.4 Finished Products(Fibre) 26,020 26,049 0.1 Other Products 310 340 9.7 Total 91,198 94,723 3.9

 Export Performance of selected coconut products(in quantity)in the decade

DC Coconut Virgin Copra Fresh Nuts Year (Mt) Oil Coconut (Mt) and (Mt) Oil (Mt) Seeds(‘000) 2009 38,651 1,937 - 8,592 59,199 2018 25,556 4,606 12,006 629 1,433 Growth -34% 138% - -93% -98%

188

 Table No.3.17

EXPORT VALUE OF DIFFERENT PRODUCTS Rs Mn Fibre Kernal Fibre Shell Other by Year Finished Total Products & Yarn Products Products Products 2007 11,270 3,080 7,038 2,613 95 24,096 2008 13,667 3,392 8,222 2,692 118 28,093 2009 11,974 5,502 8,163 3,310 131 29,081 2010 11,103 4,909 10,787 5,563 71 32,433 2011 21,048 5,495 12,899 7,697 167 47,306 2012 16,720 5,703 14,726 9,269 248 46,666 2013 17,599 4,775 15,737 9,652 189 47,952 2014 37,192 6,543 18,271 10,657 217 72,880 2015 41,667 4,675 18,514 10,236 167 75,259 2016 46,219 4,478 23,046 10,757 201 84,702 2017 47,615 4,560 26,020 12,693 310 91,198 2018 47,979 4,560 26,049 15,795 340 94,723

Source : Coconut Development Authority

In 2018 the ratio of export income from Kernel to non-Kernel product was 51% and 49% respectively. Kernal products export earning reached its peak in the current year (2018). Fibre & Yarn category is fluctuation in between Rs 6,543 Mn & Rs 4,478 Mn from 2009 to 2018. In 2018, Fiber Finished products category is on an increasing trend in the decade. Further, this category has recorded increase of 3-fold in the decade. The Export earnings from Shell product recorded Rs 15.8 billion in 2018. Since 2006 the total export earning has increased year by year continuously and reached the peak in 2018 with the value of Rs. 95 billion.

189

Table No.3.18

EXPORT VALUE OF DIFFERENT PRODUCTS – (USD ‘000)

Fibre Kernal Fibre Shell Other by Year Finished Total Products & Yarn Products Products Products 2007 93,949 28,821 63,879 23,464 930 211,043 2008 126,163 31,315 75,904 24,858 1,094 259,334 2009 104,179 47,874 71,015 28,806 1,138 253,012 2010 98,207 43,416 95,405 49,206 632 286,866 2011 190,360 49,694 116,655 69,615 1,512 427,836 2012 131,037 44,696 115,406 72,641 1,944 365,724 2013 136,354 36,992 121,929 74,781 1,466 371,522 2014 284,862 50,119 139,944 81,622 1,663 558,210 2015 306,518 34,388 136,194 75,303 1,228 553,630 2016 317,436 30,758 158,278 73,882 1,383 581,737 2017 312,316 29,911 170,669 83,256 2,036 598,187 2018 295,180 28,058 160,259 97,174 2,093 582,764

Source : Coconut Development Authority

190

Table No.3.19

EXPORT OF COCONUT PRODUCTS BY DIFFERENT TYPES – 2017 & 2018 Volume Value (Rs ‘000) Product Unit 2017 2018 Change (%) 2017 2018 Change (%) KERNEL PRODUCTS 1. Coconut Oil Mt 6,310 4,606 -27 3,815,560 3,019,962 -21 2.Virgin Coconut Oil Mt 13,816 12,006 -13 10,590,287 9,528,191 -10 3. Desiccated Coconut Mt 29,418 25,556 -13 13,537,637 11,365,260 -16 4. Copra Mt 501 629 26 171,446 241,687 41 5. Fresh Nuts ('000)Nuts 10,232 1,433 - 831,938 110,737 - 6. King Coconut Nos 5,155,971 5,894,634 14 459,700 528,852 15 7. Poonac Mt 3,503 3,192 -9 143,345 145,541 2 8. Oil Cake Mt 303 349 15 66,170 81,544 23 9. Coconut Cream Mt 6,446 9,782 52 2,760,284 4,487,064 63 10. Coconut Milk Mt 32,867 33,878 3 8,227,856 9,922,015 21 11. Coconut Milk Powder Mt 6,234 6,989 12 4,723,153 6,017,578 27 12. Defatted Coconut Mt 5,652 5,788 2 1,281,852 1,286,876 0.4 13.Coconut Water Mt 3,945 5,047 28 686,256 723,196 5 14.Coconut based Arrack Liters 36,128 36,899 2 21,940 22,842 4 15.Vinegar Liters 41,534 62,521 51 10,915 23,184 112 16.Coconut Fatty Acid Mt 101 160 58 15,944 19,503 22 17.Coconut Butter Mt 67 54 -19 42,966 52,567 22 18.Coconut Flour Mt 1,180 1,670 42 227,662 402,052 77 SUB TOTAL KERNEL PRODUCTS 47,614,911 47,978,651 1 FIBRE PRODUCTS 1. Mattress Fibre Mt 16,836 31,050 84 898,568 1,561,104 74 2. Bristle Fibre Mt 24,068 2,025 -92 1,221,933 558,636 -54 3. Twisted Fibre Mt 53,933 41,051 -24 2,439,582 2,440,759 0.05 SUB TOTAL FIBRE PRODUCTS 94,837 74,126 -22 4,560,083 4,560,499 0.01

191

Volume Value (Rs ‘000) Product Unit 2017 2018 Change (%) 2017 2018 Change (%) SHELL PRODUCTS 1. Coconut Shell Charcoal Mt 9,254 4,437 -52 705,853 376,863 -47 2. Coconut Shell & Shell Flour Mt 320 767 140 24,983 52,868 112 3. Coconut Shell Activated Carbon Mt 39,591 38,566 -3 11,962,120 15,364,942 28 SUB TOTAL SHELL PRODUCTS 49,165 43,770 -11 12,692,956 15,794,673 24

FINISHED PRODUCTS (FIBRE) 1. Coir Yarn Mt 1,729 1,404 -19 170,019 190,926 12 2. Coir Twine Mt 8,480 8,529 1 1,277,001 1,512,450 18 3.Coir Brooms & Brushes) (Other than Tawashi) Pcs 25,602,409 15,811,776 -38 4,101,124 1,689,654 -59 4. Tawashi Brushes Pcs 21,835,274 22,170,910 2 555,239 603,083 9 5. Coir Fibre Pith Mt 202,720 155,778 -23 10,776,880 9,558,987 -11 6. Husk Chips Mt 19,080 16,368 -14 1,367,047 1,274,672 -7 7. Rubberized Coir Pads & Mettress for bedding Pcs 532,037 1,182,744 122 170,267 235,578 38 8. Coir Mats & Rugs M2 281,290 431,158 53 285,702 405,279 42 9. Coir Mattings M2 656 5,207 694 1,597 3,871 142 10.Geo Coir Textiles Mt 4,544 3,886 -14 723,837 694,302 -4 11.Moulded Coir Products for use in Horticulture Mt 75,619 106,861 41 6,591,033 9,879,739 50 SUB TOTAL FINISHED PRODUCTS 26,019,746 26,048,541 0.1

OTHER PRODUCTS 1. Coconut Ekels Mt 7,939 7,414 -7 310,365 340,257 10 2. Coconut Wood Mt 0.081 0.009 -89 64 0.865 -99 SUB TOTAL OTHER PRODUCTS 7,939 7,414 -7 310,429 340,258 10 TOTAL VALUE OF ALL PRODUCTS 91,198,125 94,722,622 4 Source: Coconut Development Authority, Sri Lanka Customs

192

Export of Coconut by Different Types

(Table No. 3.19)

In 2018, export volume of coconut oil, virgin coconut oil, desiccated coconut, fresh nuts, poonac and coconut butter decreased while other categories under the kernel product category have increased. In respect of non-kernel products, export volume of Mattress fibre, coconut shell & shell flour, coir twine, Tawashi Brushes, rubberized coir pads & mettress for bedding, coir mats & rugs, coir mattings, moulded coir products for use in Horiculture recorded an increase in 2018 compared to the previous year.

The export income of kernel products recorded a Rs. 48 bn with 0.8% growth compared to 2017. This was the ever highest export earning which is more than 3 fold compared to 2009 (at the beginning of the decade).

Among Kernel products DC, Virgin Coconut Oil and Coconut Milk contributed 64% to Kernel Product export income. There is no fluctuation in export earnings of fibre product in 2018 compared to 2017. The finished products (fibre) export earnings increased by 0.1% in 2018 compared to the previous year.

193

Table No.3.20

EXPORT QUANTITY BY CATEGORY

(1) (2) (3) (4) (5) (6) (7) Desic- Coconut Virgin Copra Coconut Fresh Total cated Oil Coconut (MT) Cream,Milk Coconut Mn.Nuts Year Coconut (MT) Oil &Milk & Seed Equiv- (MT) (MT) Powder Nuts(‘000 alent (MT) Nuts) 2008 36,264 1,520 - 13,314 - 38,246 399 2009 38,651 1,937 - 8,592 - 59,199 417 2010 28,348 2,262 n.a 1,036 - 38,915 285 2011 45,761 1,931 n.a 2,185 - 7,916 393 2012 40,224 2,499 1,645 653 - 19,150 358 2013 28,202 3,821 2,101 71 - 21,458 275 2014 51,132 11,254 7,278 4,776 - 33,076 554 2015 36,131 8,679 13,353 489 30,473 13,204 768 2016 49,200 7,094 15,585 1,184 40,942 30,433 892 2017 29,418 6,310 13,816 501 45,547 10,232 750 2018 25,556 4,606 12,006 629 50,649 1,433 779 Note: (7 = Nut equivalent of 1+2+3+4+6) Source : Coconut Development Authority

In 2018, the export volume of Virgin Coconut Oil decreased by 13% while Coconut Oil decreased by 27%. Out of all categories in the above table copra and coconut cream, milk & milk powder showed an increase by 25% and 11% respectively. In the decade, export volume of coconut oil increased by 4 fold. Other than copra and coconut cream, milk & milk powder, the export volume of all the other product categories in the above table were declined.

194

Table No. 3.21

EXPORT OF SHELL PRODUCTS BY CATEGORY

(1) (2) (3) (4) Total Coconut Coconut Coconut Total of Export Shell Shell & Shell (1)(2)(3) value of Year Charcoal Shell Activated in Mn Shell

(MT) Flour Carbon Shell Products (MT) (MT) Equivalent (Rs Mn)

2007 3,059 1,514 17,880 1,234 2,613.02 2008 2,947 1,014 17,388 1,196 2,692.91 2009 3,550 587 17,455 1,209 3,310.97 2010 2,873 768 28,782 1,003 5,563.30 2011 4,957 546 31,359 1,062 7,697.28 2012 6,919 698 30,271 1,184 9,268.97 2013 6,359 438 36,629 1,491 9,651.90 2014 8,736 486 37,230 1,187 10,656.56 2015 8,853 369 31,747 895 10,236.46 2016 5,142 418 34,987 652 10,757.19 2017 9,254 320 39,591 1,443 12,692.96 2018 4,437 767 38,566 664 15,794.67

Source : Coconut Development Authority

In 2009, export earnings from Shell products were Rs 3.3 billion or 19% of the total non-Kernel export value. Compared to previous year, in 2018 the quantity decreased by 4,817 Mt for Charcoal while the Shell flour increased by 447 Mt. In respect of activated Carbon the quantity decreased was 1,025 Mt. In the decade Shell products export earnings the highest recorded Rs 15.8 bn in current (2018). In 2018, export earning of Shell Charcoal and Activated Carbon were decreased compare to the previous year, while shell flour category has increased compare to 2017.

195

Table No. 3.22

MONTHLY EXPORT QUANTITY AND VALUE BY CATEGORY IN 2018

Desiccated Coconut Coconut Oil Virgin Coconut Oil Copra Fresh Coconut Month Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value (MT) (US$ ‘000) (MT) (US$ ‘000) (MT) (US$ ‘000) (MT) (US$ ‘000) (Nos.’000) (US$ ‘000) January 928 3,386.49 329 1,545.10 872 4,741.66 22 56.83 - - February 1,122 3,899.40 321 1,516.98 819 4,581.24 0.6 26.34 - - March 1,830 6,614.39 491 2,277.38 1,114 6,004.02 32 93.11 - - April 1,482 4,863.44 267 1,231.20 855 4,671.39 47 137.35 - - May 1,594 5,328.13 415 1,655.22 963 4,711.15 53 179.31 - - June 2,163 7,034.42 338 1,494.61 989 4,826.64 10 21.03 - - July 2,216 6,710.13 311 1,399.60 1,061 5,589.30 11 33.15 - - August 3,009 7,909.32 534 1,941.01 1,074 5,128.42 65 132.12 - - September 2,359 5,556.88 465 1,505.11 1,086 5,165.62 72 182.25 134 66.44 October 2,709 6,234.17 449 1,513.56 1,374 5,700.89 111 212.68 137 68.27 November 2,876 5,630.09 329 1,280.13 866 3,530.61 97 161.85 230 95.91 December 3,268 6,533.34 357 1,300.09 933 4,168.10 108 220.94 932 395.13 Total 25,556 69,700.21 4,606 18,659.99 12,006 58,819.05 629 1,456.96 1,433 625.75

Source : Coconut Development Authority

196

Table No. 3.23(i)

IMPORTS OF FATS AND OILS BY SRI LANKA (Palm Stearin, Palm Kernel & Stearin, Palm Olein & Crude Palm Oil)

Palm Stearin Palm Kernel Palm Olein Crude Palm Oil Volume Average Volume Average Volume Average Volume Average Year (MT) CIF (MT) CIF (MT) CIF (MT) CIF Value Value Value Value US$/MT US$/MT US$/MT US$/MT 2007 25,257 645 4,663 891 57,245 733 123,131 706 2008 23,100 993 14,035 806 73,561 1,064 30,114 868 2009 2,822 778 1,582 672 26,083 761 20,750 640 2010 5,500 1,032 925 788 53,519 923 15,299 850 2011 10,713 1,284 37 2,603 105,528 1,206 19,300 1,012 2012 6,252 1,239 3,029 864 44,878 1,067 12,593 918 2013 8,299 1,041 45,437 876 37,044 909 44,615 876 2014 8,862 976 5,049 994 26,778 922 106,348 843 2015 8,870 795 3,048 966 31,184 726 121,706 667 2016 7,176 758 1,234 926 21,592 735 61,380 656 2017 4,450 856 5,362 1,251 24,057 842 3,380 734 2018 3,077 780 2,198 1,287 27,708 748 13,196 650

Source: Sri Lanka Customs, Coconut Development Authority

197

Table No. 3.23(ii)

IMPORTS OF FATS AND OILS BY SRI LANKA (Tallow, Coconut Oil, Soya Oil & Sunflower Oil & Others) Soya Oil & Tallow Coconut Oil Others Sunflower Oil Average Average Average Year Average Volume Volume CIF Volume CIF Volume CIF CIF Value (MT) (MT) Value (MT) Value (MT) Value (US$/MT) (US$/MT) (US$/MT) (US$/MT) 2007 4,597 626 335 883 5,566 679 30,018 790 2008 4,830 942 788 1,503 541 1,871 26,745 1,130 2009 4,529 701 805 901 536 1,148 42,933 892 2010 3,155 949 2,080 1,171 685 1,472 13,179 1,172 2011 2,305 1,275 3,062 1,882 1,021 1,778 14,701 1,581 2012 826 1,225 2,165 1,022 969 1,784 13,670 1,432 2013 - - 5,659 953 1,066 1,685 14,537 1,256 2014 - - 1,025 1,395 1,166 1,349 13,569 1,340 2015 - - 3,165 1,267 1,650 1,263 14,478 1,145 2016 - - 2,231 1,555 1,732 1,254 12,847 1,180 2017 1,144 556 4,341 2,031 3,528 1,102 19,910 1,332 2018 804 646 9,922 1,689 2,508 1,105 18,143 1,167

Source : Sri Lanka Customs, Coconut Development Authority

198

Import of Oils & Fats to Sri Lanka

(Table No. 3.23(i) & 3.23 (ii))

Edible oil production within the country has not been sufficient during the past two decades. The maximum annual production of edible oil (coconut oil) was 84,000 Mt in 2007 against annual edible oil requirement of 175,000 Mt. As a result, in 2008 imported quantity of all types of edible oil accounted to 138,000 Mt. This included Palm Stearin and Kernel type quantity of 37,000 Mt which partially could be utilize for industrial purposes. Further in 2008 some 30,000 Mt of Crude Palm oil was imported for re- export purpose after refining. Total quantity of Palm Oil alone imported in 2008 for consumption and industrial purpose was estimated as much as 150,000 mt with CIF value of Rs 13 billion.

The annual quantity of the category of Palm Kernel Palm Oil imported during the decade was an average of 6,790 Mt. In 2018 this type decresed by 59% to 2,198 Mt compared to 2017. The Palm Olein which is almost similar to coconut oil, import has increased in 2018, to 27,708 Mt by 15%. Imported Crude Palm Oil quantity was increased by more than 3 fold to 13,196 Mt, in 2018 compared to 2017. There was an import of 1,144 Mt of Tallow in 2017 after 2012. The importation of coconut oil was 9,922 Mt which was an increase of 129% in 2018 compared to previous year. Soya and Sunflower oil the comparatively expensive edible oil category was imported in small quantities annually. The other category which is on average imported 15,000 Mt annually since 2010 include derivatives from Palm Oil and other specialities. In 2018, under the Palm Olein category crude Palm Olein is the largest quantity imported. The quantity is 173,749 Mt (69 % of total) and valued Rs 18.4 bn (60% of total value).

199

200

Table No. 3.24

VEGETABLE OILS & FATS IMPORTS to SRI LANKA – 2018 (By HS Code) Performance HS Code Description Quantity(Kg) Value(Rs) 1513.11.11/19/21/ Coconut Oil 7,615,377 1,658,903,617 29/19.10/19.20 15119090 Palm Olein 27,707,739 3,368,416,868 15119030 Crude Palm Olein 173,748,709 18,393,825,345 151321 Palm Kernal 499,742 112,787,043 151329 ,, 1,698,452 347,161,818 Palm Kernal – Sub Total 2,198,194 459,948,861 15119010 Palm Stearin 309,220 39,476,261 15119020 ,, 2,767,559 350,411,370 Palm Stearin – Sub Total 3,076,779 389,887,631 150710 Soya Bean oil 8,078 1,663,134 150790 ,, 266,236 51,046,423 1512.19/11 Sun Flower 2,234,039 397,789,022 Soya & Sun Flower – Sub Total 2,508,353 450,498,579 151110 Crude Palm Oil 13,196,804 1,394,494,165 150210 Tallow 804,401 84,440,340 150910 Olive Oil 82,125 73,655,359 150990 ,, 161,017 83,513,260 Olive Oil – Sub Total 243,142 157,168,619 151519 Lin Seed Oil 35,346 10,252,288 151529 Maize Oil 393,466 80,049,659 151530 Custer Oil 262,756 61,482,665 151550 Seasami Oil 620,924 133,844,423 1515.9090/10 Tung Oil 553,067 85,251,605 151620 Vegetable Fats & Oil 1,621,239 304,756,778 1515.11 233 151,049 Vegetable Fats & Oil-Sub Total 1,621,472 304,907,827 151790 Margarine/Spread 10,820,334 2,073,908,257 1517.10.30 3,222,670 442,601,549 1517.10.90 108,218 37,758,628 Margarine/Spread-Sub Total 14,151,222 2,554,268,434 151610 Animal Fats & Oil 43,554 8,027,976 150890 Ground Nut Oil 1,527 849,172 150810 ,, - - Ground Nut Oil -Sub Total 1,527 849,172 151419/99 Rape Oil/Colza & Mustard oil 216,249 45,955,623 38231910 Fatty Acid (coconut) - - Grand Total 251,305,420 30,708,124,580 Source : Coconut Development Authority

201

Table No. 3.25

DESICATED COCONUT EXPORTS BY DESTINATION

Quantity(MT) Country 2017 2018 U.S.A 5,233 4,107 Canada 2,233 1,647 Saudi Arabia 2,158 914 Iraq 2,023 2,014 Iran 1,919 1,026 Germany 1,694 1,559 Spain 1,336 1,445 Pakistan 1,271 1,167 Egypt 1,192 1,225 Kuwait 1,153 25 France 854 541 Australia 783 424 Turkey 763 364 Portugal 745 873 Jordan 646 256 Japan 531 1,274 Brazil 522 379 Netherlands 488 439 Oman 387 109 Belgium 368 319 Others 3,119 5,449 Total 29,418 25,556

Source: Coconut Development Authority

202

Table No. 3.26

COIR FIBRE EXPORT BY DIFFERENT CATEGORY

Mattress Total Bristle Twisted Coir Coir Fibre in Total Exports Year Fibre* Fibre** Yarn Twine bales (Mt) Earning (Mt) (Mt) (Mt) (Mt) (Mt) (RsMn) 2007 54,264 7,683 22,863 1,737 3,352 89,899 3,079.51 2008 52,112 5,162 28,860 1,761 3,630 91,525 3,392.38 2009 83,915 8,344 51,456 2,042 5,304 151,061 5,502.57 2010 83,665 6,349 36,894 1,055 5,176 133,139 5,469.12 2011 78,174 9,450 26,808 767 5,417 120,616 6,364.20 2012 57,924 8,160 45,119 1,025 7,148 119,376 6,740.49 2013 53,142 10,251 41,406 2,002 5,728 112,529 5,673.60 2014 36,320 16,409 74,744 2,205 8,222 137,900 7,935.52 2015 18,090 11,612 62,584 2,617 5,960 100,863 5,838.55 2016 18,647 15,525 60,698 1,169 7,349 103,388 5,791.40 2017 16,836 24,068 53,933 1,729 8,480 105,046 6,007.10 2018 31,050 2,025 41,051 1,404 8,529 84,059 6,263.88

* Bristle 1,2,3 Tie grades ** Includes Mechine & Hand Twisted Fibre Source: Coconut Development Authority

203

Table No. 3.27

MONTHLY EXPORT OF COIR FIBRE PITH - 2018

Average Volume FOB Value Month FOB Value (MT) (US$ ‘000) (US$/MT) January 16,079 5,516.24 343 February 16,910 9,898.92 585 March 19,623 6,914.10 352 April 13,248 4,900.13 370 May 16,843 5,912.60 351 June 13,848 5,249.52 379 July 15,468 5,996.29 388 August 17,273 6,701.27 388 September 16,091 6,335.49 394 October 4,686 1,464.02 312 November 2,516 611.83 243 December 3,193 758.85 238 Total/Average 155,778 60,259.25 387

Source: Coconut Development Authority

204

Coconut Coir Fibre Export

(Table No. 3.26 & 3.27)

In 2018, export value from five different coir products was 13% of total non kernel export earnings (Rs. 6.3 billion). Compared to previous year, export earnings increased by Rs. 257 Mn or 4.3% of this category. Out of the categories mentioned in the above table Bristle Fibre exports recorded more than 4 fold increase in 2008 to 2017 decade. But in 2018, this Bristle Fiber exports decreased by 91.6% compared with 2017.

Mattress fibre export quantity was increased by 84.4% in 2018 compared to previous year. Since 2007 Twisted fibre export improved gradually and peaked in 2014 with more than three fold enhancement. Coir Yarn export decreased in 2018 by 19%. Coir Fibre Pith recorded USD 60.3 Mn in 2018 with its highest export quantity in March.

205

206

COCONUT WORLD OVERVIEW-2017

 W orld Coconut Extent (Thousand Hectares) – 12,080

 E xtent of APCC and Non – APCC (‘000 ha)

APCC Member Countries - 10,789 (89.3%) Non – APCC Countries - 1,291 (10.7%)

 T op Six Growers (‘000ha) Top Six Producers (Nuts Mn)

Philippines 3,612 India 23,904 Indonesia 3,544 Indonesia 14,356 India 2,082 Philippines 14,049 Sri Lanka 440 Sri Lanka 2,450 Papua New Guinea 221 Brazil 2,343 Brazil 216 Papua New Guinea 1,483

 World Coconut Production - 68,833 Million Nuts  Production of APCC and Non - APCC (Mn Nuts) APCC Member Countries - 60,896 Mn Nuts (88.5%) Non- APCC Countries - 7,937 Mn Nuts (11.5%)

 Exports of Desiccated Coconut - 382,783 Mt APCC Member Countries - 278,790 Mt (73%) Non- APCC Countries - 103,993 Mt (27%)

 Top Three Exporters of Desicated Coconut(Mt)

Philippines 102,330 27% Indinesia 98,038 26% Sri Lanka 29,418 8% 207

Note:Availability of Source Data by 2017 APCC:Asia Pacific Coconut Community

208

Table No. 3.28 DISTRIBUTION OF WORLD COCONUT PLANTED AREA IN SELECTED COUNTRIES (‘000Ha) Country 2011 2012 2013 2014 2015 2016 2017 APCC Countries F.S.Micronesia 17 18 18 18 18 18 18 Fiji 60 65 60 60 64 64 64 India 1,896 2,071 2,137 2,141 1,975 2,088 2,082 Indonesia 3,768 3,782 3,654 3,610 3,571 3,441 3,544 Jamaica 16 16 16 16 16 16 16 Kiribati 19 19 20 20 20 23 23 Kenya 82 60r 65 70 77 77 79 Malaysia 106 101 88 88 82 85 83 Marshall Island 8 8 8 8 8 8 8 Papua New Guinea 221 221 221 221 221 221 221 Philippines 3,562 3,574 3,551 3,502 3,517 3,565 3,612 Samoa 104 97 99 99 99 99 99 Solomon Island 38 38 38 38 38 38 38 Sri Lanka 395 395 395 440 440 440 440 Thailand 216 214 209 208 192r 186r 179 Tonga 34 33.8 34 31 31 26 26 Vanuatu 96 92 92 92 92 92 92 Vietnam 155 157 158 158 162 165 165 Non APCC Countries Tanzania 134r 134r 131 128 128 128 128 Brazil 273 279 279 251 250 234 216

Source: Coconut Development of Authority, APCC member countries and FAO. n.a- data not available r - revised

209

Table No.3.29 FRESH NUT PRODUCTION IN SELECTED COUNTRIES Mn Nuts Country 2011 2012 2013 2014 2015 2016 2017 APCC Countries F.S. Micronesia 40 40 45 59 59 60 60 Fiji 160 180r 148 200 165 159 159 India 16,943 23,351 22,680 21,665 20,440 22,167 23,904 Indonesia 15,249 16,060 15,563 15,330 14,804 13,934 14,356 Jamaica 96 96 96 99 99 100 126 Kiribati 131 58 56 55 44 198 198 Kenya 181 185 246 259 265 254 268 Malaysia 577 624 625r 595r 506r 505 518 Marshall Island 30 33 37 25 27 38 38 Papua New Guinea 1,101 1,495 1,495r 1,483 1,483 1,483 1,483 Philippines 15,245 15,864 15,354 14,696 14,735 13,825 14,049 Samoa 267 262 267 267 267 267 267 Solomon Island 100 100 100 100 100 100 100 Sri Lanka 2,707 2,940 2,513 2,870 3,056 3,011 2,450 Thailand 845 806 808r 800 723r 708r 666 Tonga 86 82 82 75 72 56 56 Vanuatu 450 447 494 415 378 699 699 Vietnam 940 1,226 1,235 1,246 1,434 1,471 1,499 Non APCC Countries Brazil 3,450 2,932 2,890 2,919 2,894 2,649 2,343 Mexico 1,385 1,092 1,064 1,119 1,116 1,157 1,159

Source: Coconut Statistical Year Book – 2017, ICC r – Revised

210

Table No.3.30

COUNTRY WISE EXPORTS OF DESICCATED COCONUT IN SELECTED COUNTRIES Mt Country 2011 2012 2013 2014 2015 2016 2017 APCC Countries India 4,190 5,173 3,004 5,166 3,244 3,443 14,563 Indonesia 51,665 61,311r 75,932 86,797 85,615 78,960 98,038 Malaysia 8,194 7,762 7,137 9,800 11,246 12,197 17,952 Philippines 111,869 98,877r 130,670 109,069 69,548 92,101 102,330 Sri Lanka 45,761 40,224 28,202 51,132 36,131 49,206 29,418 Samoa 560 2,747 41r 13r - -r 29 Thailand 3,941 3,063 1,839 3,441 2,311 1,338 1,213 Vietnam 35,000 23,452 14,568 40,302 25,139 16,079 15,247

Non APCC Countries Ivory Coast 22,634 26,937 13,298 30,583 37,177 33,108 18,137 Belgium - Lux 11,723 11,767 13,632 13,207r 11,511r 12,318r 4,134 Netherlands 15,006 13,565 14,352 13,875r 15,612r 14,261r 15,769

Source: Coconut Statistical Year Book – 2017, ICC r – Revised

211

Table No.3.31

COUNTRY WISE EXPORTS OF COIR & COIR PRODUCTS IN SELECTED COUNTRIES Mt Country 2011 2012 2013 2014 2015 2016 2017 ICC Countries India 75,733 71,592 75,652 81,738 74,225 84,255 85,510 Coir Yarn 5,572 4,479r 4,360 4,187 4,013 4,611 3,406 Coir Mattings 1,434 1,461 2,834 2,270 1,550 1,389 1,307 Coir Mats 63,510 61,139 63,384 69,132 62,471 71,103 72,530 Coir Rope 754 405 468 632 525 392 541 Rugs & Carpets 418 78 68 114 363 184 250 Rubberized Coir 393 390 283 993 955 616 1,208 Others 3,652 3,640 4,255 4,410 4,348 5,960 6,268 Indonesia 46,173 43,089 24,109 31,972 36,171 28,525 31,136 Malaysia - 13,963 14,027 11,877 2,399 2,802 1,038 Philippines 6,037 8,201 29,407 27,834 12,287 15,769 46,837 Sri Lanka 120,616 119,376 112,529 137,900 100,863 103,388 105,046 Mattress Fibre 78,174 57,924 53,142 36,320 18,090 18,647 16,836 Bristle Fibre 9,450 8,160 10,251 16,409 11,612 15,525 24,068 Coir Yarn 767 1,025 2,002 2,205 2,617 1,169 1,729 Twisted Fibre 26,808 45,119 41,406 74,744 62,584 60,698 53,933 Coir Twine 5,417 7,148 5,728 8,222 5,960 7,349 8,480 Thailand r 301 555 13,198 3,847 3,263 2,498 N.A

Source : Coconut Statistical Year Book – 2017, ICC r – Revised

212

Table No.3.32

COUNTRY WISE EXPORTS OF SHELL CHARCOAL & ACTIVATED CARBON IN SELECTED COUNTRIES Mt Country 2011 2012 2013 2014 2015 2016 2017 Shell Charcoal Philippines 49,323 47,926 92,505 77,328 60,373 25,362 40,030 Sri Lanka 4,957 6,916 6,359 8,736 8,853 5,142 9,254 Indonesia 230,456 180,671 178,500 249,682 106,389 273,111 311,270 India 15,862 26,236 31,600 24,773 75,840 16,761 39,071 Activated Carbon Philippines 22,586 128,246 62,362 60,060 54,561 61,788 70,351 Sri Lanka 31,359 30,271 36,629 37,230 31,747 34,987 39,591 Indonesia* 13,548 25,225 20,208 21,724 25,713 22,634 20,076 Malaysia 19,994 16,066 16,222 15,197 15,311 13,051 15,612 Thailand 9,044 5,475r 6,170r 8,822r 8,261 8,827 10,847 India 36,481 38,500r 67,720 96,561 54,345 71,673 85,396

Source : Coconut Statistical Year Book – 2017, ICC r – Revised *- includes wood /coal based activated carbon

213

Table No. 3.33

VOLUME & VALUE OF EXPORTS OF TEA, RUBBER AND COCONUT Tea(1) Rubber Coconut Semi processed Other Raw Rubber Kernel Products Year Volume Value & End Total Products Total Mn kg RsMn Products RsMn RsMn Volume Value Value Volume Value Value Mn kg RsMn RsMn Mn.Nuts RsMn RsMn 2006 327 91,667 47 9,674 46,864* 56,538 563 9,142 10,519 19,661 2007 312 113,565 52 12,089 53,582* 65,671 542 11,270 12,826 24,096 2008 320 137,606 49 13,538 58,782* 72,320 472 13,667 14,426 28,094 2009 290 136,194 56 11,327 44,300* 55,627 493 11,974 17,107 29,081 2010 328 162,793 52 19,580 63,644* 83,224 361 11,096 21,337 32,433 2011 323 164,869 43 22,811 97,833 120,644 481 21,030 26,276 47,306 2012 320 180,429 37 15,726 109,456 125,182 459 16,688 29,978 46,666 2013 320 199,446 24 9,194 114,782 123,976 446 17,381 30,571 47,952 2014 327 212,588 16 5,916 116,158 122,074 766 37,192 35,688 72,880 2015 307 182,054 10 3,548 103,263 106,811 768 41,667 33,592 75,259 2016 289 184,778 16 4,758 111,791 116,549 892 46,219 38,483 84,702 2017 289 233,338 17 5,920 127,425 133,345 750 47,615 43,583 91,198 2018 **282 **231,750 **14 **5,088 142,298 147,386 776 47,979 46,744 94,723

Source: Sri Lanka Tea Board (1)Including Re - exports Rubber Development Department * Only End Products ** Provisional Coconut Development Authority n.a. – data not available

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T a b l e

4 .

217

KEY INDICATORS: SUGAR

Item Unit 2012 2013 2014 2015 2016 2017(a) 2018(b)

1. Total Area Under Ha 9,208 11,801 12,608 12,135 11,784 11,156 11,228 cane(with ratoons)(c ) 2. Area Harvested (c ) Ha 7,034 9,329 11,045 9,005 11,676 9,943 9,229 3. Cane Harvested (c ) Mn kg 348 534 576 572 653 591 567 4. Private Cane purchased Mn kg 112 144 204 190 315 301 181 5. Quantity of Cane crashed Mn kg 432 644 657 750 798 747 720 6. Average Yield(c) Mt/Ha 54 67 75 89 58 56 61 7. Sugar Production Mn kg 36 53 52 56 61 56 51 (without sweeping) 8. Sugar recovery rate(d) % 8.2 8.2 8.0 7.5 7.7 7.4 7.1 (a) Revised (b) Provisional (c )Includes nucleus estates and the allottees. (d) Recovery Rate = Sugar produced x 100 Quantity of cane crashed Source: Central Bank of Sri Lanka : Annual Report

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Table No. 4.2

SUGARCANE: EXTENT BY DISTRICT– 2013/14 Acres Small Holding District Estate Sector Total Sector Colombo 5 - 5 Gampaha 37 - 37 Kalutara 35 - 35 Kandy 21 - 21 Matale 10 10 Nuwara Eliya 6 6 Galle 36 36 Matara 12 - 12 Hambantota 36 - 36 Jaffna 2 - 2 Mannar - - - Vavuniya - - - Mullaittivu 5 - 5 Kilinochchi 35 - 35 Batticaloa - - - Ampara 4,658 393 5,051 Trincomalee 1 23 24 Kurunegala 45 - 45 Puttalam 83 - 83 Anuradhapura 54 - 54 Polonnaruwa 12 - 12 Badulla 209 2 211 Monaragala 18,296 4,323 22,619 Ratnapura 178 140 318 Kegalle 59 - 59 Grand Total 23,835 4,881 28,716

Source: Economic Census – 2013/14

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Table No. 4.3 ANNUAL SUGAR PRODUCTION Mt

Gal-Oya Lanka Sugar Company (Pvt) Ltd Total Year Plantations Production Sevanagala Pelawatte (Pvt) Ltd. 2006 18,609 37,410 - 56,019 2007 12,184 17,360 - 29,544 2008 10,978 28,400 - 39,378 2009 8,718 23,450 - 32,168 2010 8,602 22,734 - 31,336 2011 6,015 28,860 - 34,875 2012 9,631 22,712 3,316 35,659 2013 14,190 28,358 10,513 53,061 2014 14,417 17,964 19,937 52,318 2015 14,377 27,612 13,994 55,983 2016 17,234 34,188 10,626 62,048 2017 15,198 27,643 12,711 55,552 2018(a) 14,709 28,061 8,495 51,265

Source: Economic and Social Statistics of Sri Lanka 2018; Central Bank of Sri Lanka (a) provisional 220

Chart 12

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Table No. 4.4

COST OF SUGAR PRODUCTION Rs/kg Lanka Sugar Company (Pvt) Ltd Gal-Oya Year Plantations Sevanagala Pelawatte (Pvt) Ltd. 2006 41.00 44.00 - 2007 48.00 44.56 - 2008 58.32 83.66 - 2009 63.00 96.36 - 2010 65.00 93.80 - 2011 n.a. 82.00 - 2012 68.00 112.00 91.00 2013 98.00 104.00 98.15 2014 104.76 161.62 102.52 2015 99.09 132.39 134.62 2016 107.41 130.00 124.45 2017 119.00 157.62 114.00 2018(a) 117.00 150.14 139.00

Source: Economic and Social Statistics of Sri Lanka 2018; Central Bank of Sri Lanka (a) provisional

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Table No.4.5 MOVEMENT OF SUGAR IMPORT Sugar Import Price Value Year Import (C.I.F), (Rs.Mn) (‘000Mt.) Rs/Mt 2006 525 23,256 44,297 2007 478 16,753 35,067 2008 571 21,988 38,533 2009 466 25,045 53,717 2010 548 41,077 74,987 2011 606 47,091 77,764 2012 569 43,872 77,149 2013 548 37,187 67,904 2014 520 33,332 64,142 2015 624 34,164 54,753 2016 651 49,919 76,660 2017 498 39,041 78,402 2018(a) 645 40,045 62,117 Source: Economic and Social Statistics of Sri Lanka 2018; Central Bank of Sri Lanka (a) provisional

Chart 13

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Sugar Import 2006 -

2018

Table No.4.6

SUGAR CONSUMPTION

Mid Year Year Per Capita(kg) Population(‘000) 2006 27.89 19.90 2007 25.29 20.01 2008 30.11 20.20 2009 24.18 20.40 2010 28.04 20.67 2011 30.71 20.89 2012 29.84 20.42 2013 29.34 20.58 2014 27.66 20.77 2015 32.43 20.97* 2016 33.64 21.20* 2017 25.81 21.44* 224

2018 32.12 21.67*

Source: Economic and Social Statistics of Sri Lanka 2018; Central Bank of Sri Lanka, Department of Census and Statistics * Provisional

Table No.4.7

ANNUAL AVERAGE SUGAR PRICES

Rs/Kg

Item Sugar (White)

2006 60.20 2007 54.30 2008 63.19 2009 78.61 2010 93.79 2011 97.37 2012 100.63 2013 102.37 2014 101.95 2015 86.92 2016 100.14

225

2017 106.73 2018 107.74 Source: Economic and Social Statistics of Sri Lanka 2018; Central Bank of Sri Lanka

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Table No. 5.1

TOTAL EXTENT UNDER CASHEW CULTIVATION BY DISTRICT Hectares 2016 2017 2018 District Total Bearing Total Bearing Total Bearing Extent Extent Extent Extent Extent Extent Puttalam 14,911 11,184 15,329 11,497 15,623 11,717 Kurunegala 11,516 8,637 11,569 8,677 11,793 8,845 Matale 2,303 1,727 2,384 1,788 2,474 1,855 Polonnaruwa 1,567 1,175 1,636 1,227 1,768 1,326 Kandy 635 477 701 526 725 544 Badulla 2,115 1,586 2,143 1,607 2,232 1,674 Ampara 2,724 2,043 2,915 2,186 3,178 2,383 Monaragala 2,335 1,752 2,457 1,843 2,583 1,937 Hambantota 2,360 1,770 2,465 1,849 2,583 1,937 Ratnapura 640 480 659 494 682 512 Anuradapura 6,890 5,168 7,084 5,313 7,288 5,466 Batticaloa 2,851 2,138 3,029 2,272 3,169 2,376 Mannar 680 510 783 587 975 731 Vauniya 905 679 1,019 764 1,158 868 Trincomalee 1,769 1,326 1,879 1,409 1,972 1,479 Gampaha 1,282 961 1,282 962 1,291 968 Kilinochchi 1,165 873 1,238 928 1,496 1,123 Other Districts 1,088 816 2,200 1,650 2,616 1,963 Total 57,736 43,302 60,772 45,579 63,606 47,704

Source : Sri Lanka Cashew Corporation

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Table No. 5.2

CASHEW TOTAL EXTENT & BEARING EXTENT, 2006 – 2018 Hectares Total Bearing Year Extent Extent 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

2013 48,200 36,150

2014 52,472 39,354

2015 55,307 41,480

2016 57,736 43,302

2017 60,772 45,579

2018 63,606 47,704

Source : Sri Lanka Cashew Corporation

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Table No. 5.3

CASHEW PRODUCTION AND YIELD, 2006 – 2018

Production Average Yield Year (MT) (Kg/Ha)

2006 9,721 324

2007 11,655 371

2008 5,000 146*

2009 12,000 320

2010 8,000 239

2011 6,000 222*

2012 10,000 312

2013 10,360 286

2014 12,000 305

2015 8,000 193

2016 9,000 208

2017 8,000 175*

2018 8,014 168*

*Severe yield drop due to unexpected rains. Source : Sri Lanka Cashew Corporation

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Chart

Source : Sri Lanka Cashew Corporation

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Table No. 5.4

CASHEW: KERNEL PRODUCTION AND DOMESTIC CONSUMPTION Metric Tons

Kernal Domestic Year Production Consumption

2006 1,944 1,744

2007 2,331 2,213

2008 1,000* 791

2009 2,400 2,199

2010 1,600* 1,325

2011 1,200* 886

2012 2,000 1,854

2013 2,072 2,021

2014 2,400 2,271

2015 1,600 1,494

2016 1,800 1,742

2017 1,600* 1,702#

2018 1,602* 2,017#

*Yield drop has affected to kernel production. Source: Sri Lanka Cashew Corporation #Import of Raw cashew during the off season has included to domestic m consumption.

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Table No.5.5

CASHEW: QUANTITY & VALUE OF EXPORTS

Quantity Value Year (MT) Rs Mn

2005 279.5 178.4

2006 170.0 129.0

2007 117.5 101.4

2008 208.9 154.6

2009 201.1 133.8

2010 275.0 246.4

2011 314.4 309.9

2012 145.7 170.3

2013 51.0 77.0

2014 129.4 185.8

2015 105.66 174.06

2016 57.64 99.98

2017 59.04 143.51

2018 60.81 144.62

Source: Sri Lanka Customs

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Table No. 5.6

CASHEW: QUANTITY & VALUE OF IMPORTS

Raw Cashew Cashew Kernel Year Quantity Value Quantity Value (Mt) (Rs Mn) (Mt) (Rs Mn) 2006 200.34 16.74 215.10 46.99

2007 104.35 5.71 83.86 19.51

2008 245.67 26.44 88.25 46.23

2009 923.39 96.63 249.78 112.83

2010 178.63 13.87 263.78 170.09

2011 1,204.94 158.0 356.28 213.74

2012 952.92 141.35 124.46 56.64

2013 16.33 2.14 159.60 83.48

2014 755.89 111.98 311.57 167.43

2015 2,490.83 507.44 564.95 356.64

2016 1,622.62 370.40 263.12 154.00

2017 2,108.82 636.17 160.82 113.91

2018 2,378.02 747.58 156.00 170.00

Source : Sri Lanka Customs

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T a b l e

N o . 6 . 1

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Table No.6.1 REGIONAL PLANTATION COMPANIES (RPCs) AND STATE PLANTATIONS, 2017-2018

No of Estates Extent Cultivated(Ha) Extent Bearing(Ha) Staff Labour RPCC & State Agency 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 1 Hapugastenna 19 19 9,283 9,252 5,433 5,577 533 532 6,201 7,216 2 Watawala 19 16 9,039 9,024 6,931 4,349 520 561 8,204 7,919 3 Balangoda 22 22 8,848 7,582 5,465 5,407 486 439 7,467 6,583 4 Kahawatte 16 16 9,131 9,474 5,123 5,335 508 499 5,357 4,804 5 Bogawantalawa 28 26 11,641 10,891 7,731 7,001 610 562 10,760 9,784 6 Malwatte Valley 22 22 6,207 4,974 6,069 4,537 261 235 6,792 5,375 7 Maskeliya 18 18 7,251 7,249 5,554 5,557 626 648 10,908 10,469 8 Agalawatte 15 16 6,914 7,239 5,479 5,981 351 438 5,240 4,993 9 Talawakelle 17 16 4,990 4,762 3,956 3,967 456 415 6,680 6,290 10 Kelani Valley 26 26 9,162 9,346 6,033 6,178 579 569 9,009 8,325 11 Horana 16 15 5,500 4,899 3,724 3,448 350 326 5,229 5,769 12 Agarapatana 20 21 7,516 6,597 6,330 6,338 628 614 10,488 9,701 13 Maturata 19 19 7,607 7,000 5,342 5,153 385 380 5,415 4,066 14 Elpitiya 13 13 5,763 6,174 3,991 4,164 344 356 5,535 5,137 15 Madulsima 12 12 6,211 5,454 3,593 3,585 321 358 6,277 6,331 16 Kegalle 17 17 6,340 6,016 4,888 4,310 235 388 4,972 4,800 17 Pussellawa 24 24 11,611 7,472 5,813 5,813 570 494 8,735 6,341 18 Kotagala 21 21 7,676 6,176 5,782 5,625 557 639 7,377 6,469 19 Namunukula 19 19 8,408 8,375 5,487 5,490 357 389 4,974 4,465 20 Udapussellawa 11 11 4,257 4,203 3,488 3,434 333 323 4,604 4,803 Chilaw Pl Ltd 6 6 3,818 3,807 3,675 2,929 203 197 637 628 Kurunegala Pl Ltd 8 7 4,383 4,379 3,641 3,673 225 221 838 828 LtdElkaduwa Pl Ltd 10 10 2,454 2,624 2,044 1,996 130 130 1,372 1,349 JEDB 17 17 6,024 5,745 4,344 3,507 335 329 4,195 3,921 SLSPC 13 13 6,341 6,208 2,689 2,776 199 162 3,180 3,156 Total 428 422 176,375 164,922 122,605 116,127 10,102 10,204 150,446 139,522 Source :- RPCs & State Plantations

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Table No.6.2 LAND UTILIZATION IN REGIONAL PLANTATION COMPANIES AND JEDB, SLSPC No. of Estates Land Extent in Hectare Year Extent Cultivated Extent in Bearing RPCC JEDB SLSPC RPCC JEDB SLSPC RPCC JEDB SLSPC 2006 409 16 11 166,137 6,820 6,624 122,691 4,667 4,011 2007 388 17 12 156,765 6,300 6,585 118,559 4,799 4,059 2008 401 17 12 165,785 6,215 6,567 123,060 4,787 3,997 2009 401 17 12 165,242 6,236 6,614 121,580 4,811 3,075 2010 400 17 12 164,659 6,087 3,710 121,001 4,311 3,620 State Plantations RPCs State Plantations RPCs State Plantations RPCs RPCs Plantations RPCs Plantations RPCs 2011 374 57 159,635 State25,002 Plantations 112,900 State19,708 Plantations 2012 370 57 153,270 21,845 108,743 16,764 2013 371 56 159,199 22,089 108,363 17,131 2014 376 55 159,915 23,657 109,752 16,943 2015 375 57 159,851 23,334 109,486 17,338 2016 375 57 156,822 23,469 108,542 16,523 2017 374 54 153,355 23,020 106,212 16,393 2018 369 53 142,1 58 22,764 101,247 14,880

Source:-RPCs & State Plantations Note: Chilaw Pl Ltd., Kurunegala Pl Ltd.,Elkaduwa Pl Ltd., JEDB & SLSPC come under State Plantations

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Table No.6.3 STAFF, LABOUR FORCE AND WAGE RATE FOR RPCC, JEDB and SLSPC, 2006 – 2018 Labour Wage Rates for Male and Staff Labour force Female Pertaining on Tea & Rubber Year (Rs) Daily Price RPCC JEDB SLSPC RPCC JEDB SLSPC Incentive Total Wage Share 2006 12,811 430 404 231,845 6,684 6,515 170.00 20.00 70.00 260.00 2007 12,129 416 363 218,130 6,402 6,152 200.00 20.00 70.00 290.00 2008 12,288 393 331 217,035 6,055 5,607 285.00 30.00 90.00 405.00 2009 12,162 375 317 200,439 5,693 5,564 285.00 30.00 90.00 405.00 2010 12,446 375 256 202,204 5,810 4,812 285.00 30.00 90.00 405.00 RPCC State Plantation RPCC State Plantation 2011 10,838 1,246 192,881 14,354 380.00 30.00 105.00 515.00 2012 11,177 1,153 180,168 13,244 380.00 30.00 105.00 515.00 2013 10,757 1,094 171,943 13,222 450.00 30.00 140.00 620.00 2014 10,621 1,152 168,008 12,863 450.00 30.00 140.00 620.00 2015 10,131 1,140 160,557 11,715 450.00 30.00 140.00 620.00 2016 9,759 1,041 149,970 11,587 500.00 30.00 200.00 730.00 2017 9,010 1,092 140,224 10,222 500.00 30.00 200.00 730.00 2018 9,165 1,039 129,640 9,882 500.00 30.00 200.00 730.00

Source:- RPCs & State Plantations Note: Chilaw Pl Ltd., Kurunegala Pl Ltd., Elkaduwa Pl Ltd., JEDB & SLSPC come under State Plantations

241

Crop Extent & Strength of Labour Force in Estate Sector

(Table No. 6.1, 6.2 & 6.3)

In the management point of view, Estate Sector comprises of 20 Regional Plantation Companies (RPCC) & several State Institutions namely state owned plantations of Chilaw, Kurunegala, Elkaduwa, Janatha Estate Development Board (JEDB), Sri Lanka State Plantation Corporation (SLSPC),Coconut Cultivation Board (CCB) and TRI, RRI, CRI 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. At present, RPCs possessed about 369 estates while numbers of estates owned by JEDB & SLSPC were 17 and 13 respectively. Throughout, 23 estates belonged to Chilaw, Kurunegala & Elkaduwa Plantations while TRI & RRI managed 2 & 4 estates respectively affiliated to their research stations. As per disaggregated data given in table 6.2 the extent cultivated in RPCC & State Plantations reported a decrease of 14,659 ha at present compared to 2006. The extent bearing (matured or being harvested) of RPCC & State Plantations decreased by 15,242 ha from 2006 to 2017. Compared to previous year, in 2018 extent cultivated declined by 11,453 ha and extent bearing also decreased by 6,478 ha. 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 RPCC the number of staff declined over the decade from 12,162 to 9,165 in 2018. In 2018 also the number of staff increased compared to the year 2017. As per disaggregated data provided in table 6.3, labour force in RPCC gradually declined from 231,845 in 2006 to 129,640 in 2018 by 44% which is a remarkable amount. The labour wage rate (total) which prevailed at Rs. 260.00 in 2006 increased up to Rs.730 in 2017 about 3 fold has created an issue on long term sustainability of the industry.

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Table No. 6.4 EXTENT CULTIVATED IN RPCC AND STATE PLANTATIONS 2017 AND 2018 Hectares RPCC & State Tea Rubber Coconut Oil Palm Forestry Other Crops Agency 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 1. Hapugastenna 4,076 4,029 2,158 2,259 31 18 - - 2,093 2,192 360 431 2. Watawala 4,309 4,129 - 171 - - 3,596 3,472 1,279 1,455 67 81 3. Balangoda 4,150 4,113 2,498 2,222 - - - - 1,974 1,020 199 202 4. Kahawatte 3,488 3,473 2,214 2,202 37 37 - - 2,313 2,462 277 283 5. Bogawantalawa 3,755 3,664 5,112 4,116 468 469 912 1,315 1,258 1,076 122 129 6. Malwatte Valley 4,581 4,510 1,626 273 ------191 7. Maskeliya 5,729 5,643 120 41 - - - - 1,526 1,564 51 65 8. Agalawatte 1,229 1,456 3,648 3,879 9 - 1,312 1,415 501 389 67 559 9. Talawakelle 4,004 3,999 250 230 - - - - 716 533 60 - 10. Kelani Valley 3,448 3,499 4,396 4,284 - 93 - - 1,261 1,261 57 155 11. Horana 2,097 2,021 1,758 1,421 67 107 183 237 584 604 75 70 12. Agarapatana 6,881 6,597 96 - - - - - 1,085 - 13 - 13. Maturata 4,705 4,543 552 487 125 128 - - 1,164 1,560 645 282 14. Elpitiya 2,045 2,235 1,029 875 36 37 1,767 1,931 836 932 52 159 15. Madulsima 3,679 3,713 137 83 - - - - 2,313 2,344 83 41 16. Kegalle 1,324 1,329 4,079 3,822 455 436 - - 278 390 143 23 17.Pussellawa 2,324 2,324 4,581 4,581 111 111 - - 1,630 1,630 - - 18.Kotagala 2,605 2,590 3,352 3,107 - - 526 526 1,154 971 39 37 19.Namunukula 2,145 2,111 1,739 1,381 293 303 2,231 2,237 951 877 155 - 20.Udapussellawa 3,297 3,223 79 74 165 165 - - 685 685 32 57 Chilaw Pl Ltd - - - 0 3,818 3,807 - - 12 10 882 66 Kurunegala Pl Ltd - - 234 223 3,998 4,003 - - - - 360 589 Elkaduwa Pl Ltd 1,206 1,206 329 276 366 325 - - 235 235 317 489 JEDB 3,818 3,015 712 712 85 - - - 1,626 1,626 52 30 SLSPC 3,869 3,982 73 73 ------TRI 199 143 - 12 4 4 ------RRI 5 6 331 640 - - - - 2 - 4 4 CCB & CRI - - - - 1,979 1,993 ------Total 78,968 77,553 41,103 37,442 12,047 12,035 10,527 11,132 25,476 23,816 4,112 3,942 Source:-RPCs & State Plantations

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Table No. 6.5 EXTENT IN BEARING OF RPCC & STATE PLANTATIONS 2017 & 2018 Hectares RPCC & State Tea Rubber Coconut Oil Palm Other Crops Agency 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 1. Hapugastenna 3,818 3,764 1,436 1,531 - - - - 179 282 2. Watawala 4,227 4,122 - 158 - - 2,656 - 48 69 3. Balangoda 4,128 4,093 1,142 1,087 - - - - 195 227 4. Kahawatte 3,269 3,294 1,667 1,853 37 37 - - 150 151 5. Bogawantalawa 3,565 3,423 3,733 3,241 409 337 - - 24 - 6. Malwatte Valley 4,563 4,510 1,439 - - - - - 67 27 7. Maskeliya 5,554 5,557 ------8. Agalawatte 1,220 1,268 2,959 2,966 9 - 1,240 1,239 - 507 9. Talawakelle 3,811 3,799 145 168 ------10. Kelani Valley 3,332 3,354 2,701 2,740 - 49 - - - 36 11. Horana 2,067 2,005 1,473 1,254 29 29 96 109 59 51 12. Agarapatana 6,326 6,338 ------4 - 13. Maturata 4,702 4,518 398 355 125 125 - - 117 155 14. Elpitiya 1,947 2,140 826 721 25 25 1,161 1,196 32 82 15. Madulsima 3,574 3,572 5 9 - - - - 14 4 16. Kegalle 1,289 1,060 3,008 2,815 454 435 - - 137 - 17. Pussellawa 2,237 2,237 3,493 3,493 83 83 - - - - 18. Kotagala 2,573 2,545 2,846 2,714 - - 327 332 36 34 19. Namunukula 2,102 2,098 1,295 1,165 256 266 1,704 1,839 130 122 20. Udapussellawa 3,264 3,200 31 31 165 165 - - 28 39 Chilaw Pl Ltd - - - - 2,858 2,881 - - 817 48 Kurunegala Pl Ltd - - 173 173 3,108 3,125 - - 360 375 Elkaduwa Pl Ltd 1,206 1,206 276 217 315 292 - - 247 282 JEDB 3,806 3,003 504 504 34 - - - - - SLSPC 2,624 2,709 65 68 ------TRI 181 143 ------RRI 5 6 263 367 - - - - 1 - CCB & CRI - - - - 1,516 1,559 - - - - Total 75,390 73,963 29,878 27,627 9,423 9,407 7,184 4,714 2,645 2,491 Source:-RPCs & State Plantations

244

Extent Cultivated & Extent in Bearing in Estate Sector (Table No. 6.4 & 6.5)

As per disaggregated data given in the two tables, cultivated and bearing (matured) extent under each RPCC and State Plantation Agencies is assessed in respect of main crops for current year and 2017. Both of tea cultivated extent and exnt bearing have declined by 1,415 ha and 1,427 ha respectively. Howerer, matured extend to tea cultivated extent was at high rate i.e. 95% for both 2017 and 2018, which is within the acceptable norms.

Both cultivated and tapping extent in rubber was declined by 3,661 ha and 2,251 ha respectively. In 2018, the percentage of mature extent to the cultivated extent was 74%. Compared to maturity rate in tea (around 95%) the immature share of rubber is substantial and it affects production level and yield parameter.

In 2018, the extent under forestry (timber, fuel wood and forest reserve) stood at 3rd place next to tea and rubber reporting 23,816 ha under estate sector. In previous year the extent reported was 25,476 ha. For “Other Crops” category in estate sector, extent cultivated in 2018 was 3,942 ha while it was 4,112 ha in 2017. The percentage prevailing for bearing (mature) extent to cultivated extent in respect of all crops except forestry is over 60% at present (2018).

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Table No. 6.6

TEA & RUBBER REPLANTED & NEWPLANTED AREA BY RPCC, JEDB& SLSPC Hectares Extent New Planted Extent Replanted Tea Extent Replanted Rubber Extent New Planted Tea Year Rubber RPCC JEDB SLSPC RPCC JEDB SLSPC RPCC JEDB SLSPC RPCC JEDB SLSPC 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 - - State State State State RPCC RPCC RPCC RPCC Plantations Plantations Plantations Plantations 2011 977 102 1,882 45 - - 761 - 2012 813 82 2,087 39 10 6 1,086 - 2013 445 83 2,740 44 - 4 887 25 2014 455 77 1,484 70 2 7 133 - 2015 347 73 1,257 46 14 6 56 - 2016 255 64 926 3 2 4 23 - 2017 136 60 551 0 16 7 4 - 2018 197 60 964 18 12 7 48 - Source:- RPCs & State Plantations Note: Chilaw Pl Ltd, Kurunegala Pl Ltd, Elkaduwa Pl Ltd, JEDB & SLSPC come under State Plantations

246

Table No.6.7 TEA EXTENT IN ESTATE SECTOR - 2018 RPCC & STATE PLANTATION Hectares RPCC & No.of Extent Bearing Extent Immature Replanting New Planting Nursery State Agency Estates Cultivate Seedling VP Total Extent Extent Extent Extent RPCC 1 Hapugastenna 18 4,029 1,605 2,159 3,764 265 19 - 16 2 Watawala 15 4,129 1,577 2,545 4,122 8 4 - 12 3 Balangoda 18 4,113 2,219 1,874 4,093 20 - - 20 4 Kahawatte 16 3,473 1,227 2,067 3,294 179 2 - 20 5 Bogawantalawa 11 3,664 1,119 2,303 3,423 242 40 1 17 6 Malwatte Valley 16 4,510 2,957 1,553 4,510 - 3 - 13 7 Maskeliya 18 5,643 2,351 3,207 5,557 86 - - 22 8 Agalawatte 9 1,456 389 880 1,268 188 66 - 7 9 Talawakelle 16 3,999 1,228 2,571 3,799 200 2 - 21 10 Kelani Valley 23 3,499 1,119 2,235 3,354 145 - - 17 11 Horana 9 2,021 570 1,435 2,005 15 - - 6 12 Agarapatana 21 6,597 3,969 2,369 6,338 259 6 11 12 13 Maturata 19 4,543 2,736 1,782 4,518 26 6 - 17 14 Elpitiya 11 2,235 874 1,266 2,140 95 9 - 13 15 Madulsima 12 3,713 1,891 1,680 3,572 141 - - 8 16 Kegalle 7 1,329 568 492 1,060 269 38 - 4 17 Pussellawa 15 2,324 594 1,643 2,237 87 - - 24 18 Kotagala 15 2,590 179 2,367 2,545 44 - - 15 19 Namunukula 14 2,111 1,330 768 2,098 13 - - 9 20 Udapussellawa 10 3,223 1,746 1,453 3,200 24 4 - 8 RPCC Total 293 69,202 30,248 36,650 66,897 2,305 197 12 281 State Agency - Elkaduwa Pl Ltd 6 1,206 731 475 1,206 - - - 4 JEDB 15 3,015 1,775 1,228 3,003 12 - - 10 SLSPC 12 3,982 1,185 1,523 2,709 1,273 60 - 11 TRI 2 143 2 141 143 - - 7 2 RRI - 6 - 6 6 - - - - State Total 35 8,351 3,693 3,373 7,066 1,285 60 7 27 Total 328 77,553 33,940 40,023 73,963 3,590 257 19 308 Source: RPCC & State Plantations

247

Table No.6.8

TEA PRODUCTION IN ESTATE SECTOR – 2018 (RPCC & STATE PLANTATIONS)

Mature Production (MT) Estate Company Level RPCs & State Extent Estate Bought Yeild NSA COP Agency Total (hectare) Leaf Leaf Kg/ha Rs/Kg Rs/Kg 1.Hapugastenna 3,764 3,359 2,010 5,369 892 511.20 610.43 2.Watawala 4,122 5,326 2,484 7,810 1,292 541.52 533.19 3.Balangoda 4,093 3,083 1,142 4,224 753 516.50 584.51 4.Kahawatte 3,294 2,686 1,764 4,450 815 586.19 563.04 5.Bogawantalawa 3,423 4,966 473 5,440 1,451 545.24 561.37 6.Malwatte Valley 4,510 6,918 931 7,849 1,534 555.84 478.48 7.Maskeliya 5,557 7,471 160 7,631 1,344 552.20 483.54 8.Agalawatte 1,268 1,062 1,170 2,232 837 544.38 541.74 9.Talawakelle 3,799 5,260 758 6,018 1,385 641.35 578.88 10.Kelani Valley 3,354 3,986 968 4,954 1,189 633.40 613.00 11.Horana 2,005 2,611 144 2,754 1,302 558.18 537.67 12.Agarapatana 6,338 6,478 2,226 8,704 1,022 540.39 554.00 13.Maturata 4,518 2,742 531 3,273 607 505.72 509.03 14.Elpitiya 2,140 3,237 1,348 4,585 1,512 546.71 466.53 15.Madulsima 3,572 3,036 1,109 4,146 850 530.78 685.47 16.Kegalle 1,060 902 955 1,857 851 532.00 542.00 17.Pussellawa 2,237 2,917 2,066 4,983 1,304 431.82 452.05 18.Kotagala 2,545 4,302 706 5,008 1,690 514.30 546.04 19.Namunukula 2,098 1,357 1,101 2,458 647 503.61 599.37 20.Udapussellawa 3,200 3,255 354 3,608 1,017 502.42 555.67 SubTotal /Average 66,897 74,954 22,398 97,353 1,120 543.27 545.09 STATE AGENCY Elkaduwa Pl Ltd 1,206 - - - - 86.69 102.81 JEDB 3,003 1,450 - 1,450 483 388.90 622.64 SLSPC 2,709 - - - - 396.18 496.18 TRI 143 287 421 709 2,010 591.10 597.83 RRI 6 22 - 22 3,714 85.10 81.36 Sub Total/Average 7,066 1,759 421 2,180 558 450.76 608.40 GRAND TOTAL 73,963 76,713 22,819 99,533 1,037 541.24 546.48 Source: Regional Plantation Companies (RPCC) & State Agencies Note: Tea manufacturing is not processed by Elkaduwa Plantation although green leaf producing.

248

Chart 15

Source: RPCs & State Agencies

249

Table No.6.9 TEA EXTENT, PRODUCTION & YEILD IN ESTATE SECTOR (RPCC & STATE)

Extent Cultivated Extent Bearing Tea Production Average Tea Yeild (Ha) (Ha) (Mn.Kg) (Estate Level) Year (Kg/Ha) State State State State RPCC RPCC RPCC RPCC JEDB SLSPC JEDB SLSPC JEDB SLSPC JEDB SLSPC 2006 89,334 4,261 3,992 78,572 4,209 3,949 135.3 2.4 2.7 1,312 565 670 2007 82,513 4,177 4,062 70,346 4,137 4,025 123.6 2.4 2.5 1,283 581 669 2008 84,181 3,930 3,997 73,862 4,147 3,997 129.7 2.7 2.8 1,357 686 769 2009 80,833 4,173 3,618 72,955 4,146 3,523 109.9 2.2 2.1 1,506 517 591 2010 76,534 4,001 3,584 72,741 3,949 3,495 126.5 2.3 2.0 1,284 587 583 State State RPCC State Plantations RPCC State Plantations RPCC RPCC Plantations Plantations 2011 75,927 9,513 71,198 9,327 122.9 5.9 1,726 586 2012 72,684 9,381 69,747 8,269 118.8 7.2 1,264 865 2013 71,757 9,384 68,909 8,102 123.9 7.9 1,289 929 2014 72,177 9,507 69,739 8,277 118.0 5.5 1,248 558 2015 71,796 9,303 69,283 8,462 113.9 4.0 1,239 516 2016 70,891 9,164 68,599 7,876 95.4 3.3 1,025 456 2017 69,871 9,097 67,568 7,822 95.9 3.6 1,056 492 2018 69,202 8,351 66,897 7,066 97.4 2.2 1,120 558 Source: Regional Plantation Companies (RPCC) & State Plantations

250

Note: Chilaw Pl Ltd, Kurunegala Pl Ltd, Elkaduwa Pl Ltd, JEDB & SLSPC come under State Plantations

251

Tea Extent, Production & Productivity – Estate Sector

(Table No. 6.7, 6.8 & 6.9)

The Estate sector (RPCC & State Plantations), 95% of tea extent is matured (bearing) area out of cultivated tea lands at present. The percentages of maturity in RPCs and State Plantations are 97% and 85% respectively. Total mature extent consists of 33,940 ha (46%) seedling teas & 40,023 ha (54%) VP teas. Seedling tea extent is much higher (52%) for State Plantations compared to RPCC. Out of immature tea extent of 3,590 ha in state sector, state plantations share 36% or 1,285 ha which is substantial. In 2018, 197 ha or 0.3 % was replanted in RPCs while new planting was only 12 ha. In estate sector the extent of tea nurseries which were maintained was 308 ha as per the table No.6.7.

In 2018, estate leaf (Own Leaf) production of RPCs recorded was 74.95 mn kg and corresponding average yield level calculated was 1,120 kg per hectare. The yield for State Institutions remained as low as 558 kg per hectare and thus overall for estate sector it was 1,037 kg per hectare calculated on 73,963 ha of mature extent. RPCC tea production was not only based on own leaf but also on a fairly high volume of bought leaf (23% of total) mainly from smallholders. In State Plantations it was 19% only.

As per table 6.8 mature extent for RPCs was slightly decreased by 1% in 2018. The yield calculated for own (estate) leaf increased in 2018. In addition to JEDB & SLSPC two State agencies i.e. Elkaduwa Pl. Ltd and TRI are included as State agencies in the years 2015 & 2016. Further overall Estate Sector tea yield (1,037 kg/ha) is far below the national tea yield remaining at present.

252

Table No.6.10

RUBBER EXTENT IN ESTATE SECTOR – 2018 (RPCC & STATE PLANTATIONS) Hectares Mature Imma- Aban- RPCC & State No.of Extent Re New Nursary (Tapping) ture dond Agency Estates Cultivate Planting Planting Extent Extent Extent Extent RPCC 148 35,507 26,298 9,209 964 48 184 2,983 1 Hapugastenna 15 2,259 1,531 728 39 - 6 - 2 Watawala 2 171 158 13 - - - - 3 Balangoda 10 2,222 1,087 1,135 - - 26 - 4 Kahawatte 8 2,202 1,853 349 - - 12 494 5 Bogawantalawa 15 4,116 3,241 875 70 - 4 5 6 Malwatte Valley 6 273 - 273 - - - - 7 Maskeliya 2 41 - 41 - - - - 8 Agalawatte 12 3,879 2,966 913 212 - 16 631 9 Talawakelle 2 230 168 63 - - - - 10 Kelani Valley 11 4,284 2,740 1,544 80 - 24 - 11 Horana 6 1,421 1,254 167 - - 14 - 12 Agarapatana 1 ------13 Maturata 3 487 355 132 - - - - 14 Elpitiya 7 875 721 154 7 - 4 - 15 Madulsima - 83 9 74 - - 3 - 16 Kegalle 10 3,822 2,815 1,007 234 48 26 402 17Pussellawa 15 4,581 3,493 1,088 75 - 20 - 18Kotagala 11 3,107 2,714 393 - - 16 1,451 19Namunukula 11 1,381 1,165 216 246 - 13 - 20Udapussellawa 1 74 31 43 - - - -

STATE AGENCY 14 1,935 1,329 607 18 - 84 1,508 Kurunegalla Pl Ltd 4 223 173 50 5 - - 0 Elkaduwa Pl Ltd 2 276 217 59 NIL NIL 1 65 JEDB 2 712 504 208 - - 1 1,413 SLSPC 1 73 68 5 - - - 16 TRI 1 12 - 12 - - - - RRI 4 640 367 273 13 - 82 14

TOTAL 162 37,442 27,627 9,815 982 48 268 4,491

Source: Regional Plantation Companies (RPCC) & State Plantations

253

Table No. 6.11 RUBBER PRODUCTION BY ESTATE ECTOR – 2018 (RPCC& STATE PLANTATIONS) Production (Mt) Company Level RPCs Mature Yield Latex Scrap & COP NSA & State Agency Extent(Ha) Crepe RSS Centrifuged Total (Kg/Ha) (drc) Skim (Rs/Kg) (Rs/Kg) RPCC 26,298 16,359 6,463 859 2,116 3,041 28,837 1 Hapugastenna 1,531 1,177 - - - 62 1,239 810 355.05 242.00 2 Watawala 158 5 - - - - 5 32 153.79 238.17 3 Balangoda 1,087 807 - 38 - 73 917 844 401.38 271.46 4 Kahawatte 1,853 277 684 - - 100 1,061 573 331.88 269.94 5 Bogawantalawa 3,241 3,113 651 - - 344 4,108 1,268 266.06 254.85 6 Malwatte Valley ------7 Maskeliya ------8 Agalawatte 2,966 4,346 1,127 464 - 1,193 7,128 2,403 291.39 270.50 9 Talawakelle 168 52 - - - - 52 313 580.47 254.45 10 Kelani Valley 2,740 1,140 216 44 1,179 297 2,877 1,050 361.82 300.60 11 Horana 1,254 747 - - - 52 799 637 450.68 255.36 12 Maturata 355 89 - 161 - - 250 704 352.04 239.49 13 Elpitiya 721 314 278 6 - 38 637 883 404.43 336.67 14 Madulsima 9 4 - - - - 4 419 328.17 236.71 15 Kegalle 2,815 1,251 397 - 765 371 2,784 989 542.00 309.00 16 Pussellawa 3,493 2,668 920 79 - 421 4,087 1,170 290.71 230.18 17 Kotagala 1,165 104 1,609 30 171 - 1,914 705 438.90 265.23 18 Namunukula 1,295 241 582 37 - 89 949 815 326.53 273.62 19 Udapussellawa 31 24 - - - 1 25 819 162.02 223.47 Average 932 345.40 268.51 STATE AGENCY 1,329 535 45 198 - 97 908 Kurunegala Pl Ltd 173 105 - - - 8 113 652 340.48 240.13 Elkaduwa.Ltd Pl Ltd 276 99 - - - - 99 456 446.56 262.03 JEDB 504 331 - - - 88 420 833 281.49 247.12 SLSPC 68 - - - - - 33 489 420.59 240.18 RRI 367 - 45 198 - - 243 663 270.92 250.17 Average 683 309.06 248.44 Grand Total 27,627 16,893 6,508 1,057 2,116 3,138 29,745 1,077 344.29 267.89 Source: Regional Plantation Companies (RPCC) & State Plantations

254

Chart 16

Metric Tones

RPCs & State Agencies

Source: Regional Plantation Companies (RPCC) & State Plantations

255

Table No. 6.12 RUBBER EXENT, PRODUCTION & YEILD IN ESTATE SECTOR (RPCC & STATE) Extent Cultivate Extent in Bearing Rubber Average Rubber Yeild (Ha) (Ha) Production(Mn Kg) (Kg/Ha) Year State State State State RPCC RPCC RPCC RPCC JEDB SLSPC JEDB SLSPC JEDB SLSPC JEDB SLSPC 2006 48,538 1,822 - 36,349 447 - 38.24 0.31 - 833 704 - 2007 47,948 1,822 97 36,005 416 67 39.68 0.31 - 1,048 755 244 2008 48,473 1,822 65 35,303 396 65 35.85 0.28 - 958 708 889 2009 47,030 1,873 65 33,950 396 65 32.47 0.21 0.05 919 542 824 2010 45,213 555 67 33,561 362 65 32.20 0.28 0.05 884 777 772 State RPCC State Plantation RPCC State Plantation RPCC RPCC State Plantation Plantation 2011 46,943 1,573 32,691 1,157 30.68 0.93 939 806 2012 47,844 1,591 31,764 1,164 28.83 0.86 908 735 2013 46,213 1,608 31,605 1,213 29.57 0.87 936 715 2014 46,330 1,645 31,968 1,224 26.55 0.83 831 676 2015 45,343 1,648 31,178 1,213 26.07 0.81 836 668 2016 43,000 1,697 30,372 1,264 26.37 0.91 868 722 2017 39,424 1,679 28,597 1,281 24.68 0.87 863 681 2018 35,507 1,935 26,298 1,329 28.84 0.91 932 683

Source: Regional Plantation Companies (RPCC) & State Plantation Note: Kurunegala Pl Ltd, Elkaduwa Pl Ltd, JEDB, SLSPC, & RRI come under State Plantations

256

Rubber Extent, Production & Productivity – Estate Sector

(Table No. 6.10, 6.11 & 6.12)

Out of cultivated rubber lands in the estate sector (37,442 ha), 27,627 ha of extent is in bearing at present. Mature share was 74% in RPCC while it was 69% for state agencies. In respect of some RPCC immature rubber extent reported was at a high rate. In 2018, replanted rubber extent was 964 ha with 2.7% replanting rate in RPCC. New planting extent was revealed as 48 ha, while maintaining 184 ha nursery extent ensuring sufficient planting materials for RPCC re/new planting programs. However, in Estate Sector abandoned extent still remained at 8.4% of the total extent cultivated though abandoned land being cultivated extensively throughout.

In 2018, total rubber production in Estate Sector recorded was 29,745 mt and this includes a small quantity of production from bought latex. The yield of RPCC was calculated as 932 kg per hectare while for state institutions it was as low as 683 kg per hectare. Among rubber production types in RPCC, Latex volume was 57% of total. While reporting RSS production as 859 mt, the production of Crepe and Centrifuged types together was quite substantial i.e. 8,579 mt (30% of total).

The table 6.12 shows decline of tapping extent of RPCC from the year 2011 to 2017 while the same of State Agencies slighty increased. 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 RPCC increase to 932 kg per hectare in 2018 while combined state institutions recorded 0.3% higher than the reported yield of the previous year.

257

Table No. 6.13

COCONUT EXTENT & PRODUCTION IN ESTATE SECTOR – 2018 (RPCs & STATE PLANTATIONS)

Extent Extent in Total Crop Average RPCC & State COP NSA Cultivated Bearing (‘000 Yield Agency (Rs/Nut) (Rs/Nut) (Ha) (Ha) Nuts) (Nuts/Ha) RPCC 1,904 1,551 5,631 3,632 32.48 43.32 1 Hapugastenna 18 - - - - - 2 Kahawatte 37 37 19 514 30.06 41.15 3Bogawantalawa 469 337 1,936 5,471 34.99 34.62 4 Kelani Vally 93 49 - - - - 5 Horana 107 29 155 5,325 - - 6 Maturata 128 125 267 2,134 22.47 42.02 7 Elpitiya 37 25 44 1,745 16.11 44.86 8 Kegalle 436 435 1,245 2,862 21.00 52.00 9 Pussellawa 111 83 281 3,400 44.33 41.82 10 Namunukula 303 266 822 3,090 40.02 46.01 11Udapussellawa 165 165 862 5,240 42.18 56.41

STATE AGENCY 10,131 7,856 29,182 3,714 29.40 39.69 Chilaw Pl Ltd 3,806 2,881 8,132 2,823 36.22 35.82 Kurunegala Pl Ltd 4,003 3,125 12,554 4,018 24.07 41.48 Elkaduwa Pl Ltd 325 292 920 3,153 33.02 35.24 CRI 811 779 2,784 3,575 40.88 42.13 CCB 1,182 780 4,792 6,141 24.46 41.01 TRI 4 - n.a n.a n.a n.a

Total/Average 12,035 9,407 34,813 3,753 29.90 40.28 Source: Regional Plantation Companies (RPCC) & State Plantations

n.a – Data is not available

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Table No. 6.14

COCONUT EXTENT & PRODUCTION IN ESTATE SECTOR 2006 – 2018

Extent Extent in Total Nut Yield COP NSA Margin Year Cultivated Bearing Production Nuts/Ha (Rs/Nut) (Rs/Nut) (Rs/Nut) (Ha) (Ha) (Mn Nuts) Nuts)‘000 2006 10,979 9,553 Nuts 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 2013 10,736 8,744 28 3,236 21.76 29.93 8.17 2014 11,476 8,534 36 4,258 16.95 30.20 13.25 2015 12,824 10,374 45 4,295 18.25 30.31 12.06 2016 12,176 9,405 54 5,689 18.65 25.32 6.67 2017 12,047 9,423 36 3,873 26.35 43.15 16.80 2018 12,035 9,407 35 3,753 29.90 40.28 10.38 Source: Regional Plantation Companies (RPCC) & State Plantations

259

Coconut Extent & Production in Estate Sector

(Table No. 6.13 & 6.14)

At present in terms of total coconut extent and total nut production in the country Estate sector share is around 2.5% and 1.3% respectively which is negligible compared with small holding sector. Coconut extent cultivated reported static nature in the estate sector. As a result average annual coconut production has remained as low as 34.8 million nuts. The yield remains between 3,236 to 5,689 nuts per hectare from 2006 to 2018. Coconut extent and production is concerned, two state agencies i.e. Chilaw Plantation Ltd and Kurunegala Plantation Ltd play a prominent role in the estate sector. These state institutions owned extent cultivated & matured 65% & 64% of total in the estate sector respectively. Further these two institutions are responsible for 59% of total production of coconut in estate sector.

Out of 11 RPCC of which coconut cultivation is maintained even in a reluctant manner, a few companies (Bogawantalawa, Kegalle, Namunukula & Udapussellawa) produced 14% of total estate sector production in 2018. Average yield per hectare in RPCC were 3,632 nuts per ha while state agencies recorded 3,714 nuts/ha in 2018. Average COP was Rs. 29.90 per nut while NSA reported Rs.40.28 per nut leaving a profit margin of Rs.10.38 per nut recorded.

260

Table No. 6.15

OIL PALM EXTENT & PRODUCTION IN ESTATE SECTOR Total Mature Immature Fresh Fruit New Re- Name of Year Extent Extent Extent Production(FFB) Planting Planting RPC/Agency (Ha) (Ha) (Ha) (Mt) (Ha) (Ha) Namunukula 2018 2,237 1,839 398 21,128 365 398 2017 2,231 1,704 527 22,072 203 0 Agalawatte 2018 1,415 1,239 176 8,293 - 99 2017 1,312 1,240 72 7,173 - - Elpitiya 2018 1,931 1,196 735 16,695 359 214 2017 1,767 1,161 606 15,524 - 145 Watawala 2018 3,472 2,692 780 44,532 171 - 2017 3,596 2,656 940 41,000 240 - Kotagala 2018 526 332 194 2,357 - - 2017 526 327 199 1,196 - - Bogawantalawa 2018 1,315 - 1,315 - - 106 2017 912 - 912 - 99 - Horana 2018 237 108 128 553 - 31 2017 183 96 87 301 75 - Total 2018 11,132 7,406 3,726 93,558 895 847 2017 10,527 7,184 3,343 87,266 618 145 Source: Regional Plantation Companies (RPCC)

261

Chart 17

Source: Regional Plantation Companies (RPCC) 262

Table No. 6.16

PRESENT STATUS OF EDIBLE OIL INDUSTRY

Unit 2014 2015 2016 2017 2018

Import of Palm Oil Palm Olein Mt 26,778 31,184 21,592 24,057 27,708 Crude Palm Oil Mt 106,348 121,706 61,380 3,380 13,196 Palm Kernel Mt 5,049 3,048 1,234 5,362 2,198 Oil Palm Cultivation Total Extent Ha 8,407 8,866 9,410 10,527 11,132 Mature Extent Ha 5,436 6,043 6,694 7,184 7,406 Immature Extent Ha 2,963 2,823 2,716 3,343 3,726 New Planting Ha 185 218 104 618 895 Re Planting Ha 139 455 581 145 847 Edible Oil Industry Local Palm Oil Production Mt 16,931* 18,096* 20,260 21,817 23,389 (Crude & Kernal) Local Coconut Oil Mt 45,268 52,790 48,805 12,784 10,913 Production Total Edible Oil 160,000 160,000 160,000 160,000 160,000 requirement Mt Source: RPCC: Namunukula, Agalawatte, Elpitiya, Watawala, Kotagala, Bogawantalawa & Horana. Coconut Development Authority *Estimated

263

Oil Palm Cultivation & Palm Oil Industry

(Table No. 6.15 & 6.16)

At present Oil palm cultivation is confined mainly to RPCC. In 2008, oil palm cultivated extent with 4 RPCC (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. 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. In 2014, mature extent was 5,436 ha.

In the current year (2018), total cultivated extent was 11,132 ha which is a 605 ha increase while mature extent increased by 222 from previous year. In 2018 mature extent (7,406ha) is substantial, 66.5% of extent cultivated.

As presented in table 6.16 country demand for edible oil (including palm oil and coconut oil mainly) is around 160,000 mt per annum for human consumption. As local coconut oil production is limited to varying range of 7% to 50% the balance requirement needs to be provided through palm oil. In 2018, imported palm oil quantity was around 43,102 mt while locally produced coconut oil quantity was 10,913 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 93,558 mt in 2018. The FFB were processed in two extraction plants owned by producing RPCC and realized 25% of output as crude palm oil and Kernel oil. In 2018 produced quantity was 23,389 mt which is 7.2 % higher than previous year. Extracted palm oil is refined and graded in few refineries located around Colombo for value addition before exporting or sending to local market depending on prevailing price structure.

264

Table No. 6.17

FORESTRY EXTENT IN ESTATE SECTOR – 2018 Hectares Fuel RPCC & State Timber Reserved Immature New Re Wood Agencies Extent Forest Extent Planting Planting Extent RPCC 7,491 8,001 5,392 2,607 119 178 1 Hapugastenna 191 1,172 829 43 14 8 2 Watawala 383 696 - 582 10 - 3 Balangoda - - - - 10 - 4 Kahawatte 743 690 565 464 - - 5 Bogawantalawa 314 554 929 142 26 6 6 Maskeliya 515 571 441 - - - 7 Agalawatte 389 - - - - - 8 Talawakelle - 392 - 141 - 7.5 9 Kelani Valley 941 320 - - - - 10 Horana - 554 50 20 - 20 11 Malwatte Valley - 738 738 - - - 12 Maturata 869 77 333 281 35 28 13 Elpitiya 866 28 172 38 - 38 14 Madulsima - 1,618 647 74 - - 15 Kegalle 91 165 19 4 - - 16 Pussellawa 1,160 274 197 635 - - 17 Kotagala 890 - 82 93 23 70 18 Namunukula - - - 74 - - 19 Udapussellawa 140 152 393 16 1 2 STATE AGENCY 552 976 0 74 - 4 Chilaw Pl Ltd 10 - - 10 - - Elkaduwa Pl Ltd 119 147 - 47 - 4 JEDB 423 829 - 17 - - SLSPC ------Total 8,043 8,977 5,392 2,681 119 182 Source: Regional Plantation Companies (RPCC) & State Plantations

265