Sri Lanka’s Bogawantalawa Tea diversifies into palm oil
ECONOMYNEXT – Sri Lanka’s Bogawantalawa Tea Estates says it is diversifying into production of palm oil, good prices for which till recently had helped regional plantations companies compensate for losses in tea and rubber.
The company said it plans to cultivate oil palm on some of its estates in the lower elevations of the Sabaragamuwa region of the island.
“Preliminary work pertaining to oil palm planting adhering to all environmental considerations has already commenced in the low country estates coming under the purview of the company,” D.J Ambani, the firm’s chairman, said.
“We have been able to progress up to the second stage of establishing of nursery plants and the company is now in a position to undertake planting larger extents in Anhettigama and some divisions of Maliboda and Noori estates,” he told shareholders in the firm’s annual report.
Most plantations firms have been badly hit by the prolonged global slump in commodity prices but those with a mix of crop have been able to bear the downturn better.
Till recently profit from palm oil had helped some firms make up for losses in tea and rubber although more recently palm oil prices have also dipped. (Colombo/September 2 2015)