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Dilmah Tea Warns of Challenging Times Ahead for Growers in 2026

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Dilhan C. Fernando, Chairman of Dilmah Tea, has highlighted the potential challenges that 2026 could present, not just for tea growers, but for humanity at large. The increasingly prevalent discount culture is driving a focus on low-cost production, pressuring growers to adopt unethical and unsustainable practices or abandon their efforts altogether.

This trend towards discounts obscures the true value of products and the welfare of workers, shifting consumer focus solely to price. This manipulated perception of value fosters an opaque value chain and the normalization of cheapness, leading to a disconnect from ethical considerations, even at the expense of consumer health.

For growers, this means a relentless race to the bottom, driven by profit motives, that threatens crucial elements like biodiversity, fertile soils, and overall food safety and security. The impact of this race is profound, potentially compromising fundamental aspects of our environment and society.

Climate change and inequality stand among the most critical threats to human existence. While solutions have been apparent for decades, they come with significant costs. These solutions include agricultural innovation, strengthening rural economies, addressing gender balance, health, welfare, reproductive health, education, nutrition, and housing. However, growers face a tragic irony: despite the global need for nutritious and healthy food and beverages, they are trapped in a cycle of discount-driven commodity pricing, making sustainability an increasingly elusive goal.

The funds required to make agriculture sustainable are available but are misallocated. Growers, whose produce is both their passion and a livelihood for millions, cannot compromise, yet they face relentless demands for cheaper teas. This situation results in an increase in low-quality teas, favored by buyers prioritizing profit over quality. Although their sales may perform well temporarily, driven by attractive packaging and compromise-funded marketing, it ultimately signals the decline of the tea industry.

This systemic dysfunction makes consumers unwitting participants in a dangerous reality that harms our precious produce and exacerbates significant risks to humanity, such as climate extremes, worsening inequality, and compromised food security, water, and air quality.

For tea producers unable to secure fair prices for their produce, the situation is even more dire. Neither the tea industry nor Sri Lanka can afford the necessary adaptations to continue offering the world this healthy herb. This scenario is reflective of the broader agricultural sector, where the existential threat begins with tea but swiftly extends to encompass all of humanity.


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