Tea is Sri Lanka's largest agricultural export crop accounting for almost 15% of the entire export income, thus making it a vital source of revenue. It is also the country's largest employer in the plantation sector occupying about 88% of the workforce in the entire plantation sector. 'Ceylon Tea' acclaimed as the best tea in the word, has its unique characteristics and holds a reputation running for more than a century. Tea became the principal crop in Sri Lanka in the 1870's as a replacement for coffee which was the island's main export crop. By 1869 the coffee industry had been devastated by the coffee blight. Tea was first experimentally grown by James Taylor, a Scottish planter in 1867 and commercially planted by him on Loolecondra Estate of which the extent of the land was only 19 acres in Deltota in the Uva area, which became the model for future development, not only from the point of view of cultivation but also by being a self-contained unit with its own factory. Soon the other planters followed, and using only elephants, brought large areas of thick jungle under tea cultivation which slowly changed the landscape of the central region of the Island. Tea Cultivation in Sri Lanka today is highly skilled, organized and scientific, producing some of the most sought after fragrant teas in the world. Sri Lanka produces tea throughout the year and the growing areas are mainly concentrated in the central highlands and southern inland areas. The area under tea in Sri Lanka was estimated to be 189,310 hectares according to the tea land survey conducted in 1994 / 95. Out of this, 82,708 hectares is managed by the private sector and 106,602 hectares by the state sector. Teas produced by the factories are broadly grouped under three categories according to the elevation of growth, namely Low grown teas from sea level up to 600 meters, Mid-grown teas from 600 to 1200 meters and High grown teas 1200 meters upwards. The high and mid-grown varieties are most reputed for their taste and aroma. The three types of teas produced in these areas are "Nuwara-Eliva", "Dimbula" and "Uva" and they are much sought after by blenders in many tea importing countries. The highest of the high grown "Nuwara-Fliya" is the champagne of Sri Lanka tea which has a delicate flavor. "Dimbulas" are preferred due to their bright color and flavor. "Dimbulas" and "Uvas" both contain unique seasonal characters. Low Growns mainly consist of leafy grades where the leaves are well twisted and could be graded into long particles. Tea is very much influenced by the climatic conditions, hence is always blended to reach a proper combination which is required to give a specific taste. The Tea industry in Sri Lanka experienced a few remarkable achievements during the recent past, some of which could be considered as milestones in the industry. As for production of tea, one of the prominent features was the continued growth of overall production from 1990, except the temporary setback in 1992 due to severe drought. Production reached a peak in 1999 recording a volume of 283.8 million kilograms, which was the 5th consecutive year in which the previous year's tea production record was shattered. Production during the period January to November 2000 registered a total of 278.5 million kilograms as against 258.4 million kilograms in the same period in 1999, reflecting an increase of 7.7% Available data indicates that Sri lanka's tea production should reach new record level of around 298-300 million kilograms for the year 2000. Secondly, an analysis of tea production data reveals a change in cropping patterns in that the production of the low-grown sector has contributed to a great extent to the upward trend. Currently, this sector has become the mainstay in Sri Lanka's tea industry although low-grown areas were opened up for tea much later. The low growns today comprise more than 50% of the entire tea production, its share being 148.9 million kilograms in 1999. Another salient feature has been a gradual growth in manufacture of CTC teas which has been mainly due to the assistance given by Sri Lanka Tea Board. Starting from around 5 million kilograms during early 90s the CTC sector has now reached upto a production of 18 to 19 million kilograms annually. The tea smallholders are today considered the most dynamic segment of the private sector in Sri Lanka's tea industry. Various Government policies taken at various times in regard to tea land distribution contributed to this growth. According to estimates, tea small holdings own 90,000 hectares of tea land and their contribution to the tea production has continually risen over the years. In regard to marketing, there are several options for tea producer in Sri Lanka to dispose of their teas. The main avenue available for them is by offering the teas for sale at the Colombo Auction, which absorbs more than 95% of the total production. They are also permitted to offer individual invoices for private sale at a mutually agreed price or under 'Forward Contract' or under direct sales. Auctions are conducted weekly by the Colombo Tea Traders Association under the supervision of the Ceylon Chamber of Commerce. The Colombo tea auction ranks as the world's largest auction center with the quantity offered weekly ranging from 3 million to 6 million kilogram. The product range of tea exports from Sri Lanka has developed vastly. Bulk tea exports represent over 50% of total tea exports from Sri Lanka. In order to suit individual markets, bulk teas are exported in different blended forms. Exports of value added teas (packets, tea bags and instant tea) account for around 40% of total tea exports from Sri Lanka. Currently, Sri Lanka ranks as the world's largest tea exporter and 3rd largest tea producer having a share of around 22% of the global export market and approx. 10% of the global production. During the year 1999 exports from Sri Lanka, volumewise, registered, quantity of 263.9 million kilograms showing a marginal decrease from 265.3 million kilograms in 1998. Total export earnings for the year 1999 amounted to Sl Rs 42 billion as against Rs 48.2 billion in 1998. Tea exports from Sri Lanka during January to November 2000 as per available data amounted to 262.5 million kilograms compared to 248.8 million kilograms in the same period in 1999, reflecting an increase of 5.5%. The CIS countries occupied the number one position during the period with an export volume of 52.6 million kilograms. The UAE, currently the leading terminal market for "Ceylon Tea", was the 2nd largest importer with an offtake of 36.6 million kilograms, followed by Syria (19.7m kgs), Turkey (18.9), Iran (11.2) and Saudi Arabia (10.6). The Sri Lanka Tea Board adopts strict quality control on tea to ensure that all teas marketed or exported are in conformity with ISO 3720 Minimum Quality Standard. An Export Panel of Tea Tasters appointed by the Board examine all the offered tea samples and samples drawn from the unloaded consignments after import and preshipment samples at random at the point of exports to ascertain whether the teas fall under the permitted categories and are suitable for export. Monitoring of the scheme is carried out at various points very effectively to achieve the objectives of the scheme. This includes monitoring of pre-auction and preshipment teas with regard to the Minimum Quality Standard ISO 3720, moisture content and Cyanide/Arsenic Contamination, sampling of consignments prepared for shipment, quality certification for tea shipments to CIS countries as required by the Standards Organization of Russia and special investigations whereby surprise inspections are carried out at the warehouses of exporters and brokers and samples drawn for chemical analysis by the Government Analyst's Department and, if found unsuitable for human consumption, the teas are denatured. Furthermore, the Ceylon Tea brands which carry the Sri Lanka tea Board's lion logo not only denote the country of Origin, but also project the quality image of Sri Lanka Teas. Guidelines for franchise rights for use of the Board's logo on tea packs for the export market are being strictly enforced to ensure that exporters conform to the quality standards required for use of the lion logo. The quality of teas one would expect may differ from person to person, depending on their taste, aroma, color and strength etc. There are wide variations in the amount of chemical salts naturally dissolved in drinking water, and tea made with the same blend usually tastes different in soft or hard water areas. Generally, people get used to the effect of their local water on the tea they drink and choose a blend to suit their preferred taste. The Sri Lanka Tea Industry is also largely advised and assisted by the Tea Research Institute located at Talawakelle, which is the largest research center on tea in the world. The institute has contributed largely to the development of Sri Lanka's tea industry thrugh its research work and advisory services. The institute has also kept abreast of changing market trends by developing processes for the manufacture of tea-based products such as instant tea, scented tea, liquid tea, carbonated tea, etc. More formation on Sri Lanka tea, its marketing procedures, exporters etc. could be obtained from the Ceylon Tea Bureau, P.O. Box 5195, Dubai, UAE. Tel: 2227667 Fax: 2284486.