Everybody, Regional Plantation Companies (RPCC), Tea Small Holders Development Authority (TSHDA), had a bad year last year. Except, perhaps, the Private Tea Factory Owners Association, (PTFOA). Prices were good. The industry should have recorded profitable fallout consequences, and overall repercussions should have been that the industry had surplus funds. This did not happen.

What did happen was global recession was blamed for minus influences that affected the tea industry here and it did not really recover.

However as the year progressed smallholders made some money. Their cost of production was approximately Rs.40 per kilo, but with good prices at Colombo auctions their sales were about Rs. 65 per kilo. Their net gain was about Rs 25 per kilo, which was good, a brokering source said.

PTFOA President Pani Dias said generally his association was in a viable position, but just so. He said: "As you would recall we had a huge problem last year, but with global finances normalized repercussions and market conditions good we did see some recovery, but only just so.

This does not mean we have turned round, but the short take is that most of us have broken even. 2010, however will be completely different.

This year our members will run at good profit. Prices will last, every likelihood future substantial increases will most definitely result in an overall profit position.

"Government subsidies on fertilizer too being increased have prompted small holders to fertilise their fields. Not immediately, but when rains come."

Within context, considering Tea Board Chairman Lalith Hettiarachchi, informing us last week (As exclusively reported by us), crop projections are expected to top 310 million kilos, and positive hype alround, expectations are that it is going to be a good year.

Planters Association of Ceylon Chairman GDV Perera, said: "Not so fast. There would be many pit falls, not least threat for increased wages. Subject to this happening, we are now working on strategies, but too premature to give details of what we have been talking of."

Meanwhile, with fertilliser subsidies being increased small holder origins too would record substantial returns.

However, RPCC will need some time to work to a new model of employment and search redeemable strategies that could be employed to promote an atmosphere of corporation.

The low grown market did not fare quite that well last week, but some 1.6 million kilos from high elevations did see excellent prices returns .

Brokers said this trend will continue. And short term returns would not be so bad.

Tea circles said last year was disastrous and hopefully never to be repeated.