Starchina International Trade Company Ltd. of China will buy more than 4 million kilograms of Ceylon Tea annually in terms of an MOU and the import quantity is expected to increase by 10 percent to 15 per cent every year, a government press release said.

The release: The Memorandum of Understanding has been signed with Fujian Starchina International Trade Co. Ltd, a subsidiary of Fuzhou Benny Tea Industries Co. Ltd according to the vision of the government of Sri Lanka to “Promote Investments and Trade”. Minister of Plantations Industries Dr. Ramesh Parthirana and Sri Lanka Tea Board signed a MOU, with one of the largest tea companies in China. The MOU was signed by using Zoom technology in front of the ambassador Dr. Palitha T. B. Kohona of embassy of Sri Lanka in Beijing. The other participants were Jayampathy Molligoda, chairman of the Sri Lanka Tea Board, the Group Chairman of Benny Tea Industries Co. Ltd and the Sri Lanka Tea Board representatives in Beijing and the officials of “BEST Energy Co. Ltd” the local representation of Benny Tea Industries Co. Ltd.

This MOU was Initially recognized and approved by the Board Directors of Sri Lanka Tea Board, Plantation Ministry, Attorney Generals office of Sri Lanka, Ministry of Foreign affairs and finally the President and the Prime Minister, head of the Sri Lankan Cabinet.

Chinese market highlights.

• China retail market value: US$ 6 trillion

• Online penetration value: US$ 1.42 trillion

• Estimated foreign imported goods proportion of online: US$ 569 billion

• Internet users in China: 731 million

• Internet users of middle class consumers in China: 400 million (Year 2020 estimation)

• Mobile monthly active users: 620 million

• Mobile transaction on retail online sales: 90%

• Product/brand comments per day: 20 million

China tea market is rapidly growing and converting Green tea to Black tea with a substantial growth. By 2020, China’s Ceylon Tea imports registered 14.2 million kilograms, year-over-year increase by 20%. Sri Lanka average tea production registered 310 million kilograms per year and renowned as the best and cleanest orthodox teas in the world.

Starchina International Trade Company Limited will buy more than 4 million kilograms per year, and predicted to increase the import quantity by 10%-15% annually. Also improving to purchase value added Ceylon tea year by year starting from 60,000 kgs in the first year. The validity of this agreement for 15 years and the advantage is the buying company assures the quantity with an annual increase for the number of years through a legally bound agreement. Starchina International Trade Company Limited currently operating with over 3000, B 2 B clients and more than 180,000 Milk tea shop clients in China.

All Sri Lankan exporters will be enjoying “ZERO” cost to ge into this market as online platform charges, security deposits, annual renewal charges, logistics, operation and promotion fees depend on occasions and cases.

Special credentials of the agreement

• Starchina International Trade Company Limited offers to List Sri Lankan brands on a “PURE CEYLON TEA DEDICATED” O or O online.

• All these teas are marketed with “Original Sri Lankan Brand Names” to market not only in China but also cross border trading.

• All import being done following prevailing rules and regulations. Sri Lankan tea will be shipped tea complying with Sri Lanka rules and regulations to warehouse in Starchina International Trade Company Limited in Fuzhou, Fujian, China

• Starchina International Trade Company Limited will be buying teas from Sri Lankan tea companies under the supervision of Sri Lanka Tea Board on a pre agreed price to ensuring the present trading system.

• Payment will be done every month to the Sri Lankan tea suppliers. Star china International Trade Company Limited will settle all the dues as per the agreement made between the Sri Lankan suppliers. All sales information can be viewed by the respective Sri Lankan tea supplier to secure the transparency and high standards of business ethics, under the supervision of Sri Lanka Tea Board.

• Starchina International Trade Company Limited is responsible and accountable for all their purchases since all requirement parameters will be checked and purchased from the Sri Lankan suppliers and confirmed according to the Starchina International Trade Company Limited requirements.

• Starchina International Trade Company Limited will hold a variety of Ceylon tea promotion activities in China; participate in exhibitions in Beijing, Shanghai, Guangzhou and other places to help promote dedicated space to Pure Ceylon Tea and Sri Lankan Tea brands.

• Starchina International Trade Company Limited will be participating in the promotional campaigns conducted by Sri Lanka Tea Board and provides fullest support.

• Support on Sri Lanka Tea Factory modernization with technology transfer in aspects of tea plantations systems and tea value addition.

• Business diversification on “TEA TOURISM” involving in services sector by investing a hotel to promote tea culture to the tourist sector.

This is the first occasion that the Sri Lanka Tea Board in getting into signing for an agency (not an exclusive agency ship) agreement with any other country or a private company to increase Ceylon Tea exports. The said MOU and agreement will be uplifted to promote and increase of marketing of Ceylon tea in China in a greater way.