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Lanka’s crisis powers 22% spike in Indian tea exports

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Orthodox tea exports from India have increased by more than 22 percent during the first six months of the calendar year as its largest supplier, Sri Lanka, grapples with an economic crisis, Indian media reports say.

A report published by the Business Standard has said: “According to the latest data available on the Tea Board India website, tea exports from India, during January-June 2022, stood at 96.89 million kg, up by 10.43 million kg (mkg) over the same period last year. Much of the increase was from the orthodox segment, whose exports rose by 8.92 mkg to stand at 48.62 mkg. The increase in exports of CTC tea, on the other hand, was just about 0.80 mkg.The increase in orthodox exports is significant and it’s on the back of the deficit in Sri Lanka, said Kaushik Das, vice president, Icra.

“On an annual basis, Sri Lanka has seen a drop of about 19 percent in production. If this deficit remains, then we are looking at 60 mkg of lower production for the full year. And that is the total orthodox production in North India,” he pointed out.

Orthodox tea refers to loose-leaf tea, produced using traditional or orthodox methods such as plucking, withering, rolling, oxidation and drying. CTC tea is processed using the crush, tear and curl method.

Sri Lanka accounts for about 50 percent of global trade in orthodox teas. According to sources in the Tea Board, exports from India are expected to pick up further in the second and third quarters which will help meet the target of 240 mkg by the end of the year. In 2021, total tea exports from India stood at 196.54 mkg.

“The markets that have been vacated by Sri Lanka is where our teas are going at the moment. Going by the current trend, orthodox will see heightened demand,” the sources added.

The Tea Board, in fact, is planning to encourage more orthodox production by trying to incentivise it in its upcoming plans. Out of a total tea production of 1,344.40 mkg in 2021-22, orthodox production was 113.07 mkg.Data available on Tea Exporters Association Sri Lanka showed that January-July 2022, cumulative production totaled 153.03 mkg, recording a significant decrease of 35.07 mkg vis-à-vis 188.10 mkg during January-July 2021. It mentioned that the production is the lowest for the period since 1996.

India is reaping the benefits from the shortfall. Sri Lanka’s top five markets are: Iraq, UAE, Russia, Turkey and Iran. The major gains for India during January-June have come from UAE at about 9.1 mkg.

“UAE is mainly a re-exporting hub and much of the teas goes to Iran and CIS,” said Azam Monem, director, McLeod Russel India. “We will end the year with 10-15 per cent higher exports. We always exported to the UAE, which we will continue doing. Other major destinations for us will be the UK, US, Canada, and Germany,” he added.

Himanshu Shah, chairman M K Shah Exports, said that Iran had been very active this year resulting in almost 45-50 per cent higher prices of orthodox teas compared to last year.

“The January-June figures, however, don’t fully reflect the extent of buying as Iran mostly buys quality tea of second flush,” he said. The second flush comes to the auction towards the end of June.

“Exports to Russia will pick up in the third and fourth quarter,” Shah added.

The increase in exports to Iran during January-June was 1.39 mkg. “The demand for orthodox is booming. India has made inroads into Sri Lanka’s markets, the challenge is to retain the hold once the island nation returns to normal crop production,” said Anshuman Kanoria, chairman, Indian Tea Exporters Association.

In the last 2-3 weeks, however, orthodox prices have come off from its peak levels. “There is increased supply in the market and tea prices have gone up which is resulting in cash flow problems for exporters. Everyone has limited finance and that is a slight roadblock to increasing exports further,” Kanoria explained.The top two markets for Indian tea are Russia and Iran. Exports to Russia during January-June stood at 14.76 mkg as against 15.88 mkg in the same period of 2021.

Dipak Shah, chairman, South India Tea Exporters Association, said, in the last one month, buyers from Russia have been very active. “With the regular buyers, there is not much issue with payments though arrivals in Russia are still erratic. As of now, things are moving in the right direction.”



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Switzerland to vote on plan to cap population at 10 million

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A yes-vote poster paints the planned cap (L) as a way of protecting Switzerland, but opponents call it a "chaos initiative"[BBC]

Can a country put a fixed limit on its population? That is the question Switzerland will be answering on Sunday when voters go the polls to decide on a proposal to cap their population at 10 million, a move that has exposed divisions about immigration in the Alpine nation.

The move is backed by the right-wing Swiss People’s Party, which describes it as a “sustainability initiative” aimed at easing pressure on housing, public services and the environment. However some voters see this as the party’s latest anti-immigration move.

Dubbing it a “chaos initiative”, the government, other political parties, business leaders and trade unions argue it will deprive hospitals and hotels of much needed staff, and damage hard-won relations with the European Union, leaving non-EU member Switzerland isolated in a very risky world.

Switzerland’s population has grown rapidly since 2002, when it stood at 7.3 million. Now it is 9.1 million, 27% of whom are Swiss residents who were born abroad.

Switzerland’s system of direct democracy means all major decisions are taken via the ballot box. Campaigners simply have to gather 100,000 signatures to ensure a nationwide vote.

Many voters are concerned by overcrowded trains, expensive apartments and rising health costs.

The latest opinion polls indicate this could be a very close vote.

They suggest voters are inching towards a no vote by a wafer thin margin, with 52% opposed – but polls remain divided, with 45% saying they are in favour of the proposal and a significant number of voters still undecided.

[BBC]

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Court orders former Atamasthanadhipathi to provide blood sample for DNA testing

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Anuradhapura Chief Magistrate, Siyapath Sasindu Wickramaratne, on Friday (12) ordered former Atamasthanadhipathi Pallegama Hemarathana Thera, who stands accused in a case involving the alleged serious sexual abuse of a minor girl, to provide a blood sample for DNA testing.

Accordingly, the court directed the suspect monk to appear before the Government Analyst’s Department on June 16 and provide a blood sample to the Government Analyst.

The order was issued after considering a further report submitted to court by the Nittambuwa Police.

Police informed the court that, pursuant to an earlier court order, certain case material had been forwarded to the Government Analyst on May 4, 2026, for DNA examination.

According to police, the material consisted of clothing allegedly stained with blood, which had been buried and concealed by the girl and later recovered during investigations.

Police further informed the court that the Government Analyst’s report had confirmed the presence of DNA evidence on the clothing.

Investigators told court that it was necessary to obtain a biological sample from the suspect monk in order to compare it with the DNA evidence recovered from the garments.

Police therefore requested an order compelling the suspect to provide a blood sample so that it could be determined whether the DNA evidence found on the girl’s clothing matched that of the suspect.

Having considered the submissions, the Magistrate ordered the suspect monk to provide the blood sample. The court also directed the Government Analyst to submit the report of the subsequent DNA examination.Pallegama Hemarathana Thera was previously remanded in connection with the case and was later released on stringent bail conditions.

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High fuel prices spark outrage in transport sector, services halved

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(Asiatimes) From this week, those using private buses in Sri Lanka may face severe transport disruption, as operators in the sector have decided to cut services by 50%. Among the reasons for the protest are mounting losses, rising fuel costs and the government’s failure to grant fare concessions. At a press conference held on 7 June, Gemunu Wijeratne, president of the Sri Lanka Private Bus Owners’ Association, explained that “the authorities have not responded positively to requests for a review of bus fares and support measures regarding fuel”.

Meanwhile, around 25% of private transport vehicles have already voluntarily ceased operations due to financial difficulties. According to the majority of owners, “the decision comes after ongoing disputes with the authorities regarding fare adjustments and financial relief, which have not been met to date, despite numerous requests made over a long period”. Commuters, especially in Colombo and the surrounding areas, risk facing delays and overcrowding as the reduced fleet operates under the new directive.

According to Wijeratne, “the association will continue to provide a reduced service until the government approves a revised bus fare, in line with the rise in fuel prices”. The alternative for the government, he continues, is to provide “a direct subsidy to operators, as recent fuel price increases have placed considerable pressure on daily transport operators”.

During peak hours such as the morning, school finishing times and the evening rush hour, only essential services will be guaranteed. During these times, instead of four journeys, only three will be made. Overall, operations will be reduced to around 50%. “The government,” the chairman clarifies, “must take responsibility for this situation, as the majority of students and employees use private buses for their daily commutes, particularly to and from Colombo to various parts of the country.”

Operators in the sector point out that although they requested a temporary exemption to guarantee bus services for one month, neither the National Transport Commission nor the Minister of Transport responded positively. The annual fare review is due to be implemented during the first week of July, adding that they have the “legal authority” to “apply the revised fares”. On 5 June, Wijeratne continues, “we held discussions that were unsuccessful. Diesel prices are expected to rise by the end of this month. In view of all this, we are proceeding with the fare review. This year’s fare adjustment will be difficult for the public to bear, as all costs have risen by around 20–25%”.

The president of the Association of Private Bus Owners concludes by noting that “we cannot continue to operate at a loss. For this reason, we have asked the authorities for some concessions on diesel within the regulatory framework, but these measures have not been implemented. We have therefore decided to step up our industrial action. This week we will intensify our action by changing timetables and limiting operations. The decision was taken – he notes – due to the lack of a positive response to the request for a fare review following the recent rise in fuel prices”.

Recently, the Ceylon Petroleum Corporation (CPC) increased fuel prices in accordance with its monthly pricing formula. Among the changes, the price of a litre of petrol was increased by 15 rupees, rendering the current tariff structures unsustainable. To grasp the scale of the emergency and understand the impact on the population, AsiaNews spoke to Akalanka Punchihewa, Senuli Amrasekara and Dunesh Mayadunne, commuters from various parts of the country who travel to the capital every day for work. “We struggle,” they confirm, “to get to work from Kandy, Kurunegala and Galle. The recent decision by private bus operators is a severe blow, as we have to spend several hours in long queues just to get on a bus. The service provided by buses run by the Sri Lanka Transport Board (SLTB) is inferior to that of private buses. And we cannot,” the commuters conclude, “afford to travel to work by car or motorbike, as we are unable to bear the increased cost of fuel.”

by Arundathie Abeysinghe

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