Ceylon Today Editorial

NEW look at Tea

20 January 2017

Plantation Industries Minister Navin Dissanayake speaking at a function in Colombo yesterday said that the Government of Sri Lanka (GoSL) will launch a US$ 50 million global tea promotion campaign, this year.

The occasion was to celebrate the 150th anniversary of the introduction of tea to Sri Lanka, by James Taylor, a Scotchman. He started a plantation in Loolecondera estate in Kandy on 19 acres of land in 1867, according to Wikipedia. This was on a then coffee plantation, said Sri Lanka Tea Board Chairman Rohan Pethiyagoda. Coffee was the plantation crop then, not tea.

But, since then, seemingly as a key foreign exchange (FX) earner, there has been no turning back for tea. According to Pethiyagoda, the tea industry benefits a million Sri Lankans. Tea is currently Sri Lanka's fourth largest FX earner, being led by remittances, garments and tourism, in that order. Not so long ago, i.e. prior to the opening up of the economy in 1977, tea was the island's number one FX earner.

But with a drought gripping the country, affecting supply, confirmed by Dissanayake and Pethiyagoda at this function, there is a question mark in regard to launching this promotional campaign at this time of the year. With Sri Lanka tea or 'Ceylon Tea' as this local beverage is branded and with supply seemingly unable to meet demand because of the drought, it may be folly to create more demand by undertaking a promotional campaign, now.

A man in the industry told this newspaper, the drought has not only affected Ceylon Tea supplies, but it was a global phenomenon, thereby causing a worldwide shortage of tea.

In economics, when demand is greater than supply, it's then ripe for supply to fetch the 'highest' price, which is seemingly happening now, compared to what existed when Dissanayake took office two years ago in 2015, when commodity prices, led by oil, were collapsing globally, a fact which the Minister admitted to. But the new problem now, in his own words, was, 'supply.'

One may argue, that first, the GoSL, or more appropriately the industry should fix the 'supply' problem and then think of promotions. On the other hand, if such a promotion leads to tea prices getting a premium over the so-called, current, 'premium' it already fetches, then a promotional campaign may be justifiable at this juncture.

Sri Lanka's main tea markets are the CIS States led by Russia and the Middle East (ME). Russia is the 'jewel in the crown' among the CIS States which formerly comprised the Soviet Union. Both of these regions/States, namely Russia and the ME are oil economies.

As Vish Govindsamy, CEO of Watawala Plantations, a tea producer and exporter told this newspaper in 2015 when commodity prices led by oil, had then collapsed, he said that the fortunes of tea are intrinsically linked to the fortunes of oil.

That is, when oil prices crash, other commodity prices, not least tea, also crash. Similarly, when oil prices rise, tea also rises.

Currently oil prices are looking up, led by the recovery of the global economy. But oil prices are not only dependent on the fortunes of the global economy. Its prices are also determined by the performance of the US dollar, the world's currency and also that of the shale oil industry.

Currently, the dollar is on an ascent due to the rise in US interest rates, creating demand for the greenback, back at its home country. A rising dollar hits oil prices, and, as a knock on effect, on tea as well. In simplistic terms, when one could export one unit for the price of a dollar previously, now, a stronger dollar may buy as much as two of such units. Therefore, it may be a case of increasing productivity and efficiency, to keep pace with a rising dollar so that a supplier is not left behind and not necessarily promotions.

Secondly, when oil prices increase, the nascent shale oil industry gets activated, therewith impacting on oil, and, as a result, oil dependent economies such as Russia and the ME as well, which is Ceylon Tea's main markets. So, it may be a case of back to square one for Ceylon Tea under these circumstances.

Dissanayake said that there is a need for new markets for Ceylon Tea. He said that the UK, once, a major market for Ceylon Tea, has, however, since lost out to CTC teas, a predominant player of which is Kenya, as opposed to Sri Lanka's orthodox tea production.

Probably, a better bet may be to convert from orthodox to CTC teas, or, as the Minister said, to find new or virginal markets. A possible shot may be the USA and the continent, avid coffee drinkers, a crop that Sri Lanka gave up for tea in the 1850s due to the crash of coffee, then, said Pethiyagoda.

Dissanayake also said that the industry will have to brace up to changes. This may well mean allowing tea imports for the purpose of blending and re-exporting, a move, strongly opposed to, by the industry.

Ceylon Today Editorial

Transitions cannot be shaped to please

21 January 2017

It is beginning to make those familiar rumblings once again with this present situation affecting the Sri Lankan cricket team that has come about from the South African Test debacle. It is not the first time such is taking place. Whenever the team performs poorly the rumbling begins. All teams around the world are facing similar runs with their performances in the game. Sri Lanka looked an unprepared team losing the Test series to home team South Africa 3-0, mostly due to their bad fielding.

It being home conditions for South Africa, they were not far from Sri Lanka's performance with their batting, three or four wickets falling for low totals was a common sight. If not for dropped catches Sri Lanka was moving with ease. Those dropped catches gave room for the home team to get runs on board enough to make it a demanding task for the new top order of the Sri Lankan batting line up.

The approach of talking about a change in the captaincy just prior to the start of the shorter game series is not the way to go and we will see it as the series progresses, if the move was wise or not. This type of reasoning goes to show all is not well within the team. Mathews has explained it all and his approach has more sanity in it. All possibilities have to be looked into how the winning combination can be had within these selections to gain out of the T20s and ODIs. Depending on this outcome in the shorter versions and with clearer reasons only should all changes come into effect - not simply as threats.

The fact that Sri Lanka have found new pace bowling talent is no answer for their woes to go away. It is a good thing that Thilanga Sumathipala has decided at this moment to go around and gain knowledge of the games' situation in other areas. To look for the needs of infrastructure in the outstations in Sri Lanka is a good way to promote the game there.

Recently our cricket board chief has been telling the world they are going to build the latest venue in Jaffna. The venue at Sooriyawewa has not been used for some time now citing various reasons after spending colossal amounts to build it. They have suddenly discovered it to be an out of the way venue for cricket. As with most Test playing nations cricket has been associated with the same venues from almost the beginning. Not so in Sri Lanka where the game was mostly in hands of Colombo clubs that had the infrastructure needed some time ago, before we got into playing Test cricket.

It is a good thing to go ahead with improving the game in the North. Cricket has been played there for a long time, similarly to the rest of the country where it has been played in schools. The talent should be abundant and more players will emerge from these parts soon to fill some important areas. These things should have been identified a long time ago, and then Sri Lanka too would have had the privilege of getting a more organized way of team building.

The only cricketing nation without selection problems and rebuilding the team seems to be India. Their dynamic captain Virat Kohli has a backbone of steel and uses it whenever they need something strong. South Africa is on team rebuilding trying to gain as much as possible with their affirmative programme to get the best side possible with playing more black cricketers in their side. They have been quite successful up to the series with Sri Lanka on home turf. Others doing well on home turf have been the Australians and New Zealanders.

Along with England they too need more players with ability around whom they can get the rebuilding process get going more speedily. The rest of the cricket world playing Test cricket like Pakistan, Sri Lanka, Bangladesh and the West Indies are yet depleted. They still need to get more players and their cricket boards in better shape. With cricket boards in troubled waters the chances for it to give the confidence required to their players is minimized. Players need the best possible frame of mind to retain that confidence and troubled cricket boards cannot do that.

India's rise to their present status can be attributed to the standing of their board with the ICC. Cricket-wise they have been contributing to the ICC programme to take cricket where the ICC expects the game to be commercial. Being financially the strongest cricket board they have got the upper hand and uses it to their advantage thereby giving that back to their players who perform accordingly. All cricket playing nations have similar backgrounds with their game and some may be better advantaged having more experience in the Test arena.

Sri Lanka may never be able to become another India however much they try. It is the BCCI's financial position that helped to get India to where it is today with administering the international game. The game has been played in both countries for similar periods; India always had the advantage of having strong individuals who were interested in taking the game to a high level and as players, as a result, even representing England. So, India definitely had that advantage.

Daily News Editorial

Making America Great Again

21 January 2017

A new era dawned for the United States and the world yesterday when Donald Trump took oaths as the 45th President of the United States. This is the first time in contemporary history that the US has elected a President who has had no prior political or military experience. His victory at the election came as a surprise to the entire world. The billionaire real estate mogul and reality TV star came as a complete outsider to the Republican Party nominations fray and ultimately walked away with the coveted prize of the Presidency of the United States. This is a singular achievement by any yardstick, but most analysts believe that simmering voter disenchantment with the Washington status quo was one of the reasons that led to his victory. In other words, voters believed that a complete outsider with no Washington links could do a better job.

And being the President of the United States is no easy job. We have often heard the phrase “with great power comes great responsibility” and nowhere is it more applicable than to the US Presidency. Precisely because he is not a politician, Trump has spoken his mind on many issues, setting the Twitter sphere alight with statements on everything from foreign policy to US exports. However, he may find that actual governance in a different matter altogether because the US has to work in a global framework, especially when it comes to dealing with multilateral issues such as the Iran nuclear deal. The deal is holding and any unilateral action by Trump may affect the delicate nature of the agreement.

Another reason for Trump's victory was his populist and nationalist agenda which advocated tough controls on immigration and trade. He has vowed to build a wall along the border with Mexico, though the latter has outright refused to pay for it in whatever manner. Nevertheless President Trump has outlined plans to initially build it with US taxpayers’ money, which might not go down well with the populace. A wall with Mexico will fundamentally alter the American landscape literally and metaphorically.

As for trade, President Trump has threatened to pull the US out of the Trans Pacific Partnership, impose higher tariffs on goods from China and even Germany (a 35 percent import duty on German cars) and re-evaluate any other trade agreements not favourable to the US. He has urged companies such as Apple to make their products in the United States. His Twitter tirades on this issue has already resulted in Fird cancelling a plan to build a car plant in Mexico. But due to the complex nature of global manufacturing and trade, it might always not be possible to manufacture everything in the US itself. Higher prices precipitated by higher labour costs in the US may also drive up prices of US made goods in the world market, which will not augur well for the US in the long run.

Judging by his controversial Twitter pronouncements, the world will eagerly watch the new President's foreign policy moves. He has repeatedly pledged to mend fences with Russia, which many within his own party have viewed with disdain. However, a thaw in relations between the two giants could be a good development in terms of global stability. It is no secret that Trump and Russian President Vladimir Putin admire each other and a personal rapport between the two men may turn out to just what the doctor ordered for maintaining world peace and combating terrorism.

Trump was the first incoming or sitting President in more than 40 years to directly speak to the leader of Taiwan, which has not been well received in China. Any break from the One China policy will have far reaching ramifications for the two countries and we hope that saner counsel will prevail on this issue. Trump's staunchly pro Israel policy has been equally controversial along with a plan to move the US embassy to Jerusalem. Many in Israel itself are wary of the move. The previous Barack Obama administration was a passionate advocate of the two state solution and again, President Trump will have to negotiate these waters carefully.

It is well known that Trump did not have a good rapport with the media before and after the election. He has accused them of siding with his opponent Hillary Clinton, calling the likes of CNN “fake news” outlets. Plans to send the White House press corps packing to another building has already stirred a hornet's nest. Trump apparently believes that he can get his message through to the public in a more effective manner through the social media.

Trump's Cabinet picks mostly follow his line, but some have expressed reservations about certain issues such as warming up to Russia. The actions of Secretary of State Rex Tillerson and Secretary of Defence General James “Mad Dog” Mattis will be closely watched by the world, but it is Trump's other two picks that have created a bigger controversy. Both his daughter Ivanka and son-in-law Jared Kushner will be intimately involved in the administration which may pose an ethical dilemma. The same applies to Trump's vast business empire and critics are already pointing out conflict of interest issues.

But President Trump seems to be unfazed by his detractors. His will certainly be a different style of Governance and upholding some of his pledges will not be easy. But there is every chance that he will get over the rhetoric and turn out to be a very practical and pragmatic leader. However, only time will tell whether he could Make America Great Again.

The Island Editorial

A laudable crusade

21 January 2017

 

Tiger terrorism has long ceased to trouble us. People are no longer blown to bits in buses and trains or chopped to death elsewhere. Let all deities be thanked for that! But, worryingly, there has emerged a different kind of terror which is difficult to neutralise. All efforts by successive governments to eradicate this winged Tiger menace have come a cropper. The Catholic Church has decided to go flat out to contain it.

A campaign is scheduled to begin against the Asian Tiger mosquitoes (Aedes Albopictus) responsible for spreading the dengue virus. Archbishop of Colombo Malcolm Cardinal Ranjith has asked his priests in the Archdiocese of Colombo to dedicate tomorrow (22) to fighting dengue. He has called for voluntary cleaning programmes in churches, schools and institute premises as well as within and outside houses to control the breeding of the dengue-carrying mosquitoes. He has also urged the Catholic priests to request the religious leaders of other communities to take part in the campaign to make it a success.

The Cardinal’s noble effort deserves public support. It is hoped that all religious and community leaders will heed his clarion call for action and help mobilise people in sufficient numbers to rid the country of dengue, which is spreading at an alarming rate. The campaign should be expanded to cover the entire country.

It is usually the ordinary people who get all the flak for not destroying mosquito breeding places. Most of them, no doubt, are responsible for the spread of dengue, but local councils are the biggest culprits. Most of the public drains are full of mosquito larvae, but no action is taken against those who helm the local government bodies. The situation has taken a turn for the worse as these institutions have been left without elected representatives for a long time. Officials currently running them are notorious for bureaucratic lethargy, apathy and callousness. They are not answerable to the people and, therefore, do not give a damn about public opinion. Hence, the need for holding local government polls without further delay!

This country has so many places of religious worship that, we believe, if each and every one of them is tasked with keeping an area within one mile radius clean all mosquito breeding places can be destroyed in next to no time.

If the help of public and private institutions and civil society organisations is also enlisted the task of combating dengue will be easier than thought. What is needed is for all religious, political and community leaders to come together and lead the people in the country’s war against dengue.

Political leaders brag that their parties have millions of members. In fact, they bus large crowds for their May Day rallies, which only help boost their XXL egos. Political parties also have a presence in all reaches of the country and are capable of mobilising support for various campaigns at the grass roots level. The question is why they do not do so for the sake of the country, struggling to tackle the dengue menace. If party leaders care to put their heads together in Parliament, where they deliberate on national issues, they surely can figure out how to mobilise their supporters to eliminate mosquito breeding places.

Time was when many thought it would never be possible to eradicate malaria, which used to snuff out thousands of lives in most parts of the country. Today, thankfully, the country has been officially declared malaria free. True, malaria is different from dengue. But, a determined national effort, sustained over a long period of time, is sure to yield the desired results.

The Cardinal has shown the way! It behoves others to follow.