Planters’ Association Calls for Urgent Stabilization Amidst Global Crisis 📈

The Planters’ Association of Ceylon (PA) has issued an urgent warning regarding existential threats to the tea and rubber sectors driven by geopolitical instability in West Asia and rising internal costs. • Market Exposure & Risks Middle Eastern markets (Iran, Iraq, UAE, Saudi Arabia) account for 45% of annual tea exports. This represents US$ 680 Mn out of a total US$ 1.5 Bn in annual export revenue. Supply chain disruptions in the Strait of Hormuz and the Gulf region threaten both demand and essential input lines like fertilizer. • Cost of Production (COP) Dynamics Wages now constitute nearly 70% of the total COP. As of 1 January 2026, daily wages rose to Rs. 1,750, supported by a Government subsidy of Rs. 200 per worker. RPCs highlight that high production costs and lower productivity levels are straining financial sustainability. • Production Targets & Outlook National tea production target for 2026 is set at 300 million kg. Achieving this target is contingent on securing fertilizer stocks and managing the impacts of recent climate disruptions like Cyclone Ditwah. • Proposed Strategic Interventions Secure emergency fertilizer stocks and establish working capital support for smallholders. Strategic storage for unsold stocks and rapid market diversification to reduce Middle East dependency. Focus on the ICT/BPM and premium tea positioning to maintain margins. _Source: PA Statement (Provisional Data as of May 2026)_