Plantation Industries Minister Lakshman Kiriella has appointed a high powered task force to consider liberalisation of tea imports and the necessity or otherwise of various regulations governing the tea trade.

"The idea is to make Colombo into an international hub for tea trading. Some sections of the trade favour the import of orthodox teas for blending with local teas and export. Others oppose this vehemently saying this would damage the image of Ceylon tea which has been built up over more than 100 years," a leading tea trader said.

The deputy minister last week presided over the first meeting of the task force comprising representatives of the Ministry of Plantation Industries, the Ministry of Commerce, the Sri Lanka Tea Board and the private sector.

The minister is keen that the desired recommendations are made within three months so that the government can take decisions that can invigorate and energise the tea sector.

Among the matters to be examined by the task force are the necessity of existing regulations governing the tea trade. The task force has been told to identify regulations that are redundant and others that are necessary in the overall interest of the trade as a whole.

"The idea is to make the regulations buyer friendly," a trader said.

Opinion on whether orthodox teas should be imported into the country for blending with local teas for export is sharply divided. One school of thought argues that this will enable earning more foreign exchange while others fear it will hurt brands that have over the years won themselves markets on the quality of the product and the global reputation that Ceylon tea envoys.

The pro-import lobby argues that Ceylon tea is imported into other centres like Dubai, Singapore and even Russia and blended with teas of other origins. These blends compete with pure Sri Lanka tea in various markets. "So why shouldn’t we too get a slice of that pie?" asked a pro-import lobbyist.

"These are all matters that will have to be very carefully considered. What effect will it have on producer prices? Obviously, the importing of cheap orthodox teas can or will affect prices of similar teas produced here," a leading producer said.

Regulations relating to the tea industry are made by agencies such as the Sri Lanka Tea Board, Customs, the Tea Commissioner, etc.

The Dilmah brand of tea exported by the MJF group of companies is considered one of the best examples of brand development and marketing success of a Sri Lanka product.

MJF, with Ceylon Tea Services, a company quoted on the Colombo Stock Exchange, within the group umbrella, has won sizeable market share for its wholly-owned Dilmah brand in several countries. Dilmah recently paid the Sri Lanka Cricket Board a hefty fee to sponsor Sri Lanka cricket internationally.

While Dilmah is the lead exporter of tea bags from the country, other exporters too have developed their own brands of packeted and other teas and established their presence in many markets.

A well informed tea trader said that while some of the new entrants into the tea trade favour the import of orthodox teas to broaden the base of the trade, producer interests and established brands doing well are likely to oppose any moves to import teas here for blending and re-export.

"They have done so in the past and it stands to reason that they will do so now. It is up to the task force to carefully consider all the pros and cons and reach a decision that will best serve the national interest," an industry source said.