Tea Smallholdings Sector in
Sri Lanka
MB Cyril
General Manager
Tea Small holdings Development
Authority
Outline
•
•
•
•
Current status of the sector
Smallholder profile
Community initiatives
Issues
Tea Smallholding
• Holding less than 10 Acres (4 Ha) where tea is
grown for the purpose of converting to made
tea
Distribution in the Island
Significance in the Economy
• Share a three quarter production in the
country that still the major FE earning
agricultural activity in terms of green leaf
• Supports livelihood of 400,000 families of a
total population of approx 2 Mn, nearly 10%
of the total population.
• Employs half a Mn people in rural Ag sector
Extent and Production
Extent
Production
28%
41%
59%
Smallholdings
Other
72%
Smallholdings
Other
Extent of Tea by Size of holding
4%
5%
11%
Less than 1/2 Ha
4%
51%
8%
1/2- < 1
1-< 2
2- <3
17%
3- < 5
5- < 10
10 and above
More than half of the total extent is in holdings less than 0.5 ha
Percentage of Holdings by Size
0.58%
0.36% 0.21%
1.99%
0.16%
8.52%
Less than 1/2 Ha
1/2- < 1
1-< 2
2- <3
88.19%
3- < 5
5- < 10
10 and above
Larger majority of the small holdings are of the size less than 0.5 ha
Expansion of the Smallholdings
140000
120000
100000
80000
60000
40000
20000
0
1933
Total
1933
26007
1969
1969
42034
1975
1975
45281
1980
1994
2006
1980
52085
1994
82969
2006
116492
2013
2013
121267
Production Trend in the Smallholdings
300
250
Production Kg Mn
200
150
100
50
0
Total
1985
82
1990
114
1995
140
2000
184
2005
206
2010
230
2013
244
Share Trend of Smallholder Production
Production Share
80
70
Percentage
60
50
40
30
20
10
0
1985
1990
1995
2000
2005
2010
2013
Expansion of Small Holdings
Census 1980
• Holdings
159,865
• Extent Ha
75,769
Census 1994
• Holdings
206,652
• Extent Ha
82,918
Census 2005
• Holdings
350,982
• Extent Ha
116,492
% Increase
• 120 %
• 54.5%
No of Small holders by status of ownership
Single ownership
• 64.9%
Joint ownership
• 7.1%
Govt Rented
• 12.4%
Private Rented
• 2.5%
Encroachment/Illicit
• 8.2%
Majority of smallholders enjoy single ownership over heir land
Disposal of Green Leaf
Direct to Factory
• 33.7%
Green leaf dealer/ Collector
• 51.8%
Tea Society
• 6.9%
Any other/ Unspecified
• 7.6%
Larger share of green leaf is handled by the collectors/ Dealers
Results of Sample Survey,2008
Characteristics of tea smallholders
• Tea is main source of income of 50% of smallholders
• 56% reside in the tea holding and 35% are not in the
holding but else where in the same village, another 6%
resides out side
• 86% possess permanent dwellings and 7% semi
permanent,3% reported to be temporary dwellings
• Only 5% have obtained bank loan facilities during
preceeding 5 Years,
Results of sample survey, 2008, Cont’d
Characteristics of smallholdings,
• 78% is under VP and 12% under seedling tea
• 92% of holdings are planted with cultivars of 1980s, TRI
2000 series
• Estimated average productivity was 1788Kgs made tea/
ha/yr
• 32% of the holdings are in mixed crops, 15% with other
minor export crops and 14% with coconut.
• 56% maintain rounds of a week or seven days and 26%,
8-10 intervals. another 16% maintain rounds more than
10 days owing to low yields
Social Organisation of small holders
• Voluntary organisation in 1969 as leaf collecting
societies
• Forming in to societies in 1989 and institutionalising
under the provisions of the Tea Smallholdings
Development Act, amendment in 1991
• Confer legality to these societies in 1997 under an
amendment of the above act
• Recognition by constitution, representation in
decision making in all tea related institutions.
Society hierarchy
Federation
of tea small
holder
societies
National level
District/ Regional
level (8)
Local level (1350)
Regional
Organization
Village
Society
Village
Society
Regional
Organization
Village
Society
Village
Society
Institutional/ Organizational
Relationship
Federation of Tea
Smallholder Societies.
Board of Management of
Tea Smallholdings
Development Authority
District/ Regional
Organization
Regional Office of the
TSHDA
Village Tea Smallholdings
Development Society
Tea Inspector/Extension
officer
Role/ Responsibilities of Smallholder
Societies
• Provision of Services to membership
Operating leaf collection,
Supplying Fertilizer, other welfare services
• Organizing Extension work in the field,
directly linked to Extension Delivery
Government Assistance
• Tea Planting Subsidies in Cash and Kind to
cover 25% of the cost
• Fertilizer Subsidy to cover 75% of cost
• Technology transfer through Extension
– Research and extension dialogue ( with the
research organization)
– Mechanization Initiatives
• Livelihood support for lowest category of
income.
Research Extension Linkages
• Regional Technical Extension Forum (RTE)
• TRI , TSHDA Linkage Meeting (National level)
• Experiment and Extension Forum(National
level)
• TOT for Extension Staff by TRI Scientists
• Joint Field Extension Services
Small holder position in the
value chain
Small
holder
produce
r
$ 2 -3/ Kg
Processin
g Unit
manufact
urer
Broker/
Auction
sales
$ 3- 4/ Kg
Tea Board Regulation
Buyer/
Trader/
Shipper
Importer/
Buyer/Tra
der
Retailer/
supermar
ket store
$20-30 /Kg
Issues
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•
•
•
Unsecured price structure
Narrowing margin of the production
Facing adverse weather conditions
Dearth of labour
Smallholder Model
Thank you