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Opinion

Plantation Workers : Proposed wage hike and related matters

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Dr Parakrama Waidyanatha

President Ranil Wickramasinghe’s pronouncement at a recent political meeting with the plantation workers, that their wages would be raised from Rs 1,000 per day to Rs 1,700, naturally more than delighted the workers. It was, however, clearly a vote catching exercise! The workers would have been even quite contended with a smaller increase of about Rs 200! By contrast, the plantation managers are shocked by the sudden decision without consulting them, and many say that with marginal profits they are making, it is impossible to agree to such a huge increase, and the repercussions of implementation of this decision could be catastrophic! Some companies even claim that they will have to cut back on operational costs by reducing labour employment. As also pointed out by Dr Pethiyagoda in his article, on the same matter, that appeared some day ago in The Island newspaper, such a wage increase decision should have been ideally made in consultation with the Wages Board of the Labour Department following a meeting of the worker representatives and plantation managers. However, there is no argument that the estate workers, many yet living in squalor and poverty, need better wages and living conditions. The potential for generating substantial profits from plantations is there, if plantation managers had done what was needed, and as seen from the information below, giving a livable wage should have been no problem!

A simple calculation shows that that with EPF, ETF and gratuity components the total daily wage increase should amount to about Rs 1167. An approximate calculation of operational costs for tea made by a colleague of mine, an expert in the tea industry, is given in the Table 1 shown here.

With the enactment of the Land Reforms Act of 1972 all foreign company owned plantations numbering to over 500 estates were nationalised and handed over to the state owned State Plantations Corporation (SPC) and Janata Estates Development Board (JEDB) for management. However, on realising that the management of plantations and returns were unsatisfactory, 450 estates were handed over to 22 plantation companies and the remaining 55 estates essentially in the mid country were retained by the JEDB and SPC, handing over 11 of them to the then newly established state –owned Elkaduwa Plantations Limited.

The mid country tea estates were historically running at a loss for a long period as a result of low prices obtained for their teas compared to the upcountry and low country teas. This had led to poor crop management resulting in heavy soil erosion and fertility losses leading to poor yields. Some plantations such as the Mobray Estate, Hindagala, Kandy District, were abandoned or fragmented and sold. Many holdings in the mid country which were diversified essentially into pepper and other spices are making substantial profits.

(See Table 1: General charges: salaries, vehicles and building upkeep, holiday pay, gratuity, head office costs. Field operations: fertiliser and application, weed management, pruning, etc.)

The more recent profit /loss information of the two state enterprises, SPC and JRDB was not available in the public domain. Published data were available online only up 2020 as shown in Table 2.

This means that the government had to dole out large sums to maintain the plantations. Regrettably both companies yet have large extents of old seedling tea as a result of their very low replanting rates which is even below the national average of 0.6%; the recommended rate being 2%. However, a news item in The Island newspaper of 21st Sept. 2022 reported a Rs.100 million profit forecast for the year by the Chairman/JEDB. Similarly, the SPC too is now apparently making marginal profits largely as a result of diversification into forestry and other investments. This should have been done decades ago! On the other hand, the Elkaduwa Plantations Limited which for many years was running at a loss has, in recent years, been making profit as a result of improved crop management, crop diversification and investments in tourism; and recently had a ceremony giving out the newly increased wages to employees.

It is very encouraging to note that the seven plantation companies that had ventured out into oil palm cultivation are making substantial profits of which Watawala which has the largest extent of oil palm is making nearly 75 % profit from it! In April 2021, the former President was driven by unprofessional advice against oil palm and moved to ban it. He even ordered uprooting the existing crop and also totally banned palm oil imports! However, palm oil import ban was lifted a few late later, but the policy to ban oil palm cultivation still exists. The decision was to expand coconut cultivation to meet the national oil demand, without realizing the serious limits to it. The Coconut Research Institute has shown that with global warming and increasing temperatures in the dry zone coconut growing areas in the dry months, such as in some parts of the northern districts, there is poor fruit set. These lands are ideal for expansion of cashew cultivation which yields huge profits.

One of the main objections to oil palm cultivation is that it consumes excessive water causing dryness in soil. However, this is a faulty observation , and as shown in Table 3 the soil water consumption of coconut and oil palm are comparable and much less than that of rubber or tea. .

As regards return on investment, oil palm is far ahead of the other plantation crops as shown in Table 3. The commodities prices may be higher now , but the relative picture is yet depicted in Table 3. (Source: Solidaridad: ‘Myths and Truths Of Oil Palm’ (2022)

The national annual vegetable oil demand is about 250,000 MT over 70% of which is met from palm oil imports, the local contribution from palm oil and coconut being only 6% and 10% respectively. In fact the seven or eight plantations that diversified into oil palm are making substantial profits. For example, the Watawala Plantations PLC, the leading palm oil producer, with over 3,000 hectares of this crop is gaining about 85% of the profit from it. Clearly, the SPC and JEDB and even other plantation companies should, diversify some of the lands into this crop, at least to produce the national vegetable oil requirement and save the associated foreign exchange. There is also growing interest especially among rubber smallholders to grow oil palm and it is reported that more than 500 of them have already ventured out to do so because of poor returns from the rubber. So oil palm could be the game – changer!

With the little diversification into forestry and other ventures, it is heartening to learn that SPC and JEDB are now making at least marginal profits. The Tea Research Institute’s calculations shown on Table 4 show that even growing Gliricidia which can be done at minimal cost would be more profitable than maintaining old seedling tea! Had these corporations ventured out into diversification earlier the losses could have been avoided. (See Table 4 Source: Tea Research Institute.)

The state- owned coconut based plantation companies, Kurunagela (KPL) and Chilaw are making huge profits not only because of good coconut prices but because of intercropping, crop diversification, cattle farming and other ventures. KPL which like the SPC and JEDB was running at a loss in 2005, with change in management, made huge strides in income generation over the years and has made over Rs 500 million net profit in 2023, a substantial share of it coming from investments in other ventures than coconut.

In conclusion, there is no argument that the workers should be amply paid, and this could be done with visionary resource management and good agricultural practices that could yield profits. Impressive vision and mission statements as also beautiful photos in annual reports are inadequate! The government should take immediate action to privatise state owned plantations as well as privatised poor performing ones and hand them to proven performers.



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Opinion

Significance of Tamil vote in 2024 general election

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Apart from the resounding victory by the NPP, the most significant election outcome is the remarkable change in the voting pattern of the Tamils in the North, the East, and the Central province not to mention Colombo that brought defeat to most of the Tamil political stalwarts like Sithatharan, Sumanthiran, Palani Thigambaram, Mano Ganeshan et al. This is the first time that such a change has happened in a general election where usually the ethnic political parties hold sway over minority votes. It is of vital importance for everybody including Tamil politicians, the present government, international community, hegemonic powers, ultra-nationalists and separatists to understand and correctly interpret this change in the Tamil political fabric.

The decisive factor that was apparent in the pre-election period was the need for a change which manifested in a weaker form at the presidential election that brought in a new president with 42% of the national vote with the majority of Tamils voting against the NPP candidate. In less than two months the whole picture had changed and a majority of Tamils who did not vote for the NPP at the presidential election took the unprecedented step of going against their own ethnic parties and voted for the NPP. Although it appears to be a sudden change of attitude obviously such changes on such a wide scale cannot happen overnight. The need for a system change must have been slowly and steadily growing in the minds of Tamils over a period of time, like it had in the Sinhalese. The latter was obviously weary of suffering under the governments of the two major political parties since independence. The former however had hitherto been loyal to their ethnic parties who pursued divisive communal politics appealing to the ultra-nationalist sentiments of the Tamils. What was the reason for the Tamils to change in this manner?

Presidential election may have shown the Tamils that the Sinhalese had decided to bring about a radical change. This would have been the cue for them to come out into the open and demonstrate the change that has been slowly taking place in their minds. The change that appeared to have taken place in less than two months was probably catalyzed in this manner.

Tamils suffered during the thirty-year war. It is probable that the new generation of Tamils have realised the futility of war and confrontation and decided to chart a different course and deviate from the main sociopolitical stream from the time of independence though there were times of convergence and cooperation albeit of short duration. Independence and universal franchise have driven a wedge between Sinhala and Tamil leaders which was rather unfortunate for they were together in the struggle for Independence. Tamil politicians enjoyed parity of political power and suddenly they realized that their privileged position was in danger due to universal franchise which would make them a minority in the parliament. They could not reconcile with the fact that they were representatives of a minority community. What is most unfortunate is that they could not see the opportunities that were there for them to play a vital role in the development of the whole country. The mistake the Tamil leaders committed at that time was to abandon the opportunity that was available to jointly participate in the central government and contribute to the development of not only the Tamils but also the whole country and instead choose the narrow parochial path of communal politics. This blunder has continued to plague the country and even caused the birth of terrorism and a bloody war.

These historical mistakes must have dawned on the new generation of Tamils who, like the Sinhalese want a change in their lives which could come with economic development rather than ultra-nationalist dogma. Further they may have realized the fact that Tamil ultra-nationalism was flawed, unjust, parochial and does not belong in the modern world. Communal barriers have to be breached to achieve connectivity, interaction and networking which are capable of opening new vistas in the modern electronic era. All communities who have made Sri Lanka their home must unite and develop their country. The absence of this unity may have been one of the reasons for the country to lag behind in economic development and finally end up being bankrupt which would have affected all communities alike. In this regard the Tamils have taken the first step and it is now up to the other communities to suitably respond.

The government must know that the Tamils have significantly contributed to their massive victory. The government must understand what these Tamils who have rejected their own political parties and leaders want. They, too, like the Sinhalese are affected by economic mismanagement and poverty. Their problems are same as those of the Sinhalese majority. All communities are in the same boat. Tamils have realised this truth and would want urgent attention to their immediate needs. Their nutrition, health and education should receive immediate and sufficient attention. Tamils have abandoned their own parties and embraced the governing party expecting urgent redress to their burning problems.

There is a lesson for the international community as well, especially for the imperialist western powers. The latter had made use of the lack of unity among the communities to destabilise the country in pursuance of their geo-political ambitions in the Indian Ocean region. The LTTE was a tool in their hands, and after the demise of its leader, other separatists moved in to fill the vacuum. The western powers must realise the futility of such policies in view of the radical changes taking place within the mind-set of the Tamils. Tamils may no longer see the Sinhalese as their oppressors and the Sinhalese may not harbour the fear that Tamils are demanding a separate country.

It is hoped that the time may come when the Tamils realise that the whole country belongs to all communities and it is their duty to participate in the development of the whole and not just the North and parts of the East. True Tamil national leaders may emerge who would want to share power at the centre rather than at the periphery and contribute to the governing of the whole country. It is hoped that this is the end of divisive communal politics and the beginning of a new era of unity and prosperity.

N. A. de S. Amaratunga

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Opinion

Revolutionary elections

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By Dr Upul Wijayawardhana

No doubt, it is the ‘election like no other’ in the ‘country like no other’ that would top the league of revolutionary elections, of which there were three, just this month. Much has been written about two; the one in Sri Lanka and the second in the US but the third, in the UK, had hardly any mention in Sri Lankan media, perhaps, because it was not a general election but the election of the leader of a major political party, which I would come to later.

The NPP/JVP deserves to be congratulated on its unprecedented, massive victory and it is hoped that the new government will succeed. All ‘communal’ parties, save a few, faced humiliating defeats. The NPP won 21 out of 22 districts, the only exception being Batticaloa. Its win in Jaffna sends a clear message to the communal parties, whose leaders have been taking the people of the North for a ride to further their own interests. Do hope the new government makes good use of this golden opportunity to bring about reconciliation.

It is not only the results in the North that gives hope but also from the South. It was gratifying for me to note that my home district Matara, which is predominantly Sinhala, has elected a Tamil MP as well as a Muslim MP. Not only that, out of the 6 NPP MPs elected, the Tamil MP got the second highest and the Muslim MP got the fourth highest preferential votes. A district once well known to elect on the basis of caste and creed, a concept encouraged if not engineered by the Communist Party, has gone a full circle, thanks to another Marxist party! Perhaps, this demonstrates that voters are no longer misled by man-made differences and are achieving a degree of political maturity, which bodes well for the future. Yet another ray of hope for true reconciliation!

As far as the US election is concerned, even the bitterest critic of Donald Trump has to concede that he achieved the impossible, not once but twice. On both occasions, it was not that Trump was selected by the Republican Party but he got the party to rally round him. In fact, Trump started life as a Democrat and was not a professional politician. He achieved fame as a sharp businessman and a TV personality and decided to be president. One man’s ambition succeeding is unprecedented in US history, as far as I am aware. Though Trump won the 2016 election on the collegiate vote, he was almost 300,000 behind Hilary Clinton in the popular vote. In the 2020 election which he lost to Biden, he polled 74,223,975 whereas Biden polled 81,283,501. In the 2024 election though his popular vote increased to only 76,768,490 votes (according to the last count, as counting in US elections is very prolonged), he had a landslide winning 312 collegiate votes. Kamala Harris polled only 74,194,538, staggering 7 million less than Biden. Do these results give credence to Trump’s accusations of vote rigging in the 2020 election, I do not know. When he was portrayed as a bitter loser, no one ever imagined that Trump would have a comeback. Multitude of court cases he faced made the prospect even dimmer. His dramatic win, perhaps, adds weight to his claim that some of these cases were politically motivated.

The other important aspect of the US presidential election is that all polling organisations got their predictions totally wrong. Up to the last moment, it was too close to call they said, but as the counts proceeded, it was obvious that Trump has achieved the impossible again. However, the most important lesson for the rest of the world is that the US voting system is nothing worth emulating!

Whilst the USA is still waiting for the ‘glass ceiling’ to be broken, the UK has had three female prime ministers and recently elected another lady as the leader of a major political party.  Interestingly, it is the Conservative party that seems to be progressive, the Labour Party still waiting to elect a female leader, in spite of two having acted as leader!

Kemi Badenoch, who was elected as the leader by the members of the Conservative Party early this month, is the Leader of the Opposition and may well be next Prime Minister, if the Labour government continues to mess up, as it is doing now. She may well follow Margaret Thatcher, Theresa May and, of course, the disastrous Liz Truss.

Kemi Badenoch’s election is revolutionary in two more aspects. She is the first Black leader. male or female, of a major UK political party. Further, she is the first immigrant to be a leader of a major political party. Though the US constitution stipulates that only a person born in the US could hold the highest political position there is no such stipulation in the UK. If that was so, Boris Johnson would not have been PM, as he was born to British parents in New York, while his father was studying in Columbia University!

Kemi Badenoch’s family is from Nigeria, her father being a GP and her mother a professor of physiology. Theoretically, though she spent the first sixteen years of her life in Nigeria and USA where her mother lectured, she could be classed non-immigrant as her mother travelled to London from Lagos to have her in a private hospital in Wimbledon, to return shortly after the delivery of the baby. In fact, in her first speech in parliament Badenoch declared that “to all intents and purposes, I am a first-generation immigrant”. Whatever it may be, hats-off to the UK for achieving this degree of political maturity, which is hoped we would be able to emulate ultimately.

What a revolution would it be, if a Black immigrant lady became the Prime Minister of the UK!

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Opinion

Key to resilient plantation agriculture in Sri Lanka

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Sustainable soil health:

by Lalin I De Silva

With the escalating impacts of climate change, Sri Lanka’s plantation sector—spanning tea, rubber, coconut, spices, and oil palm—faces critical challenges in maintaining soil health. As fluctuating weather patterns affect nutrient availability and increase erosion, achieving sustainable crop productivity requires rethinking soil management. This article explores why a shift to adaptive soil practices is essential, discussing the role of nutrient management, organic matter enhancement, and precision techniques that can support a climate-resilient future for Sri Lankan planters.

Understanding Soil Health and Climate Adaptation

In Sri Lanka, where agriculture is deeply interwoven with economic stability and cultural heritage, soil is a foundational asset. Healthy soil not only sustains high yields but also contributes to carbon sequestration and water retention. However, climate change introduces frequent rainfall variability, which accelerates nutrient leaching, affects soil structure, and increases erosion risk—especially in sloped plantation areas common in tea production. Understanding the specific nutrient needs of each crop and adapting soil practices accordingly can help mitigate these adverse impacts.

Key Soil Nutrients and Their Importance

The macronutrients nitrogen (N), phosphorus (P), and potassium (K) play vital roles in crop health, but their optimal levels vary between plantation crops:

Nitrogen (N): Essential for foliage growth, nitrogen requirements are particularly high for tea, which thrives with approximately 20-25 mg/kg. For other crops like coconut and oil palm, nitrogen supports broader canopy development, which is important for resilience against drought.

Phosphorus (P): Phosphorus supports root development, critical in early plant growth and essential for strong, resilient crops. A good level for most plantation soils falls between 10-30 mg/kg, depending on soil type and crop. Coconut, which requires strong roots for water absorption, greatly benefits from adequate phosphorus levels.

Potassium (K): Often called the “quality nutrient,” potassium improves crop resilience and quality. For example, tea thrives with potassium levels of 120-150 mg/kg, while rubber and coconut need slightly higher levels to promote nutrient distribution across the plant structure, supporting resilience during dry spells.

Tailoring Soil Practices for Plantation Resilience

Plantations must adopt region-specific soil management practices to meet crop needs while minimizing environmental impact. Here are some effective techniques for sustainable soil management:

Cover Crops and Erosion Control: By planting cover crops like legumes, farmers can reduce erosion while adding nitrogen to the soil naturally. Cover crops shield soil from heavy rain, reducing topsoil loss and adding organic matter as they decompose, which improves nutrient availability and soil structure over time.

Organic Matter Management: Increasing organic matter in the soil improves moisture retention and overall fertility. Applying compost, mulches, or green manure boosts organic carbon levels, which is particularly beneficial in tropical climates with high decomposition rates. Mulching, for instance, helps regulate soil temperature, retain moisture, and add essential nutrients as it decomposes.

Biochar Application: Biochar, a type of charcoal added to the soil, improves water retention, nutrient availability, and microbial health. In tea estates or high-rainfall areas, biochar acts as a stabilizer, helping the soil retain nutrients that might otherwise be washed away. Its porous structure holds onto moisture, benefiting root health during dry periods.

Precision Fertilisation

Implementing a targeted fertilisation approach ensures the soil receives just the nutrients it needs. Slow-release fertilisers and digital soil sensors reduce nutrient leaching, prevent over-application, and support a balanced nutrient profile. For example, the use of a portable spectrophotometer can measure soil nutrient levels, guiding adjustments that enhance productivity and reduce waste.

Carbon Sequestration Techniques: Practices like agroforestry and low-tillage farming promote carbon storage in the soil, contributing to climate resilience and soil fertility. By integrating trees with crops, agroforestry not only sequesters carbon but also protects against soil erosion and provides shade, which reduces crop stress during high temperatures.

Implementing Soil Testing and Monitoring

For Sri Lankan planters, regular soil testing and monitoring are essential to maintain optimal soil health. Digital tools such as portable pH meters, EC (Electrical Conductivity) meters, and NPK soil test kits provide valuable data on soil composition and health. By regularly testing for pH, organic carbon, and nutrient levels, planters can make informed decisions on crop nutrition and soil amendments. Mapping plantation areas using handheld GPS devices also aids in precision agriculture, allowing farmers to apply fertilizers and water only where necessary, minimizing environmental impact.

Promoting Soil Biodiversity and Microbial Health

Healthy soils host a diverse range of micro organisms, essential for nutrient cycling and disease suppression. Adopting organic inputs and minimising chemical usage help sustain beneficial bacteria, fungi, and earthworms, all of which improve soil structure and fertility. Mycorrhizal fungi, for instance, form symbiotic relationships with plant roots, enhancing phosphorus uptake and strengthening plants against drought stress. Encouraging these organisms through organic farming practices is a vital component of sustainable soil health.

Way Forward: Embracing a Soil-Centric Approach in Sri Lanka

Sri Lankan planters face unique challenges from climate change, but by adopting a soil-centric approach, they can maintain crop yields and enhance environmental resilience. Partnerships with agronomists and value chain consultants can assist in identifying effective practices suited to local soil types and climate conditions. Additionally, government support for sustainable farming incentives and education initiatives would empower farmers to adopt these practices.

Implementing soil-friendly practices at scale requires both knowledge-sharing and community cooperation. Initiatives like training programes in precision agriculture, digital tools for soil monitoring, and organic fertiliser subsidies could be valuable. By aligning these practices with Sri Lanka’s climate resilience goals, the plantation sector can enhance productivity sustainably.

Maintaining healthy soils is not only a matter of crop productivity; it is a defence strategy against the unpredictable impacts of climate change. Through sustainable soil management practices—such as increasing organic matter, precise nutrient application, and encouraging soil biodiversity—Sri Lanka’s planters can create resilient agricultural systems that support long-term economic stability. Embracing these practices will enable the plantation sector to flourish sustainably, preserving the environment while continuing to contribute to the nation’s economy. With a soil-centric approach, the future of Sri Lankan agriculture holds promise for both productivity and resilience in the face of climate change.

Lalin I De Silva is a value chain journalist of www.vivonta.lk, Senior Planter, Agricultural Advisor / Consultant, Secretary General of Ceylon Planters Society, Editor of Ceylon Planters Society Bulletin and freelance journalist.

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