Oc 39

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Occasional Paper - 39
THE TEA INDUSTRY IN INDIA :
A SURVEY
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Department of Economic Analysis and Research
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National Bank for Agriculture and Rural Development
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Mumbai
2005
DR. K.G. KARMAKAR
Execu t ive Dir ect or , NABARD, Mu mba i
DR. G.D. BANERJ EE
DGM/ OIC, Na ga la n d RO, NABARD
ii
Aut hors
Dr . K.G. Ka r ma ka r
Execu t ive Dir ect or , NABARD, Mu mba i
Dr . G.D. Ba n er jee
DGM/ OIC, Na ga la n d RO, NABARD
=| |`-||-| -| :|`--||`&|| || .||- ||| |`|||- -|&|| | ;, -|c|| || =|| |`-|( |`|--|.|- -|;| ;
Th e u s u a l d is cla imer a b ou t t h e r es p on s ib ilit y of t h e Na t ion a l Ba n k a s t o t h e
fa ct s cit ed a n d views expr es s ed in t h e pa per is implied.
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-| =|| -24, || -|||, || .|| . -| 8121, ||-:|-| -|| || --| | =|, ||-:| (| | ), -| | - 400 051, ,|-| ||||` -||
Published by the National Bank for Agriculture & Rural Development, Depar tment of
Economi c Anal ysi s & Research, 4th Fl oor, ' C' Wi ng, Pl ot No. C-24, G-Bl ock,
PB No. 8121, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051.
|-||c| .|||`-||-| |=|, ||c, -|| - 400 001 ,|-| -||`:| 1
Printed at Karnatak Orion Press, Fort, Mumbai - 400 001.
iii
TABLE OF CONTENTS
Page No.
Fore word xi i i
Ac knowle dge me nt xi v
Pa rt One : Evol ut i on of Tea Ind us t ry , Tea i n Ind i a a nd t he Worl d ,
Fea t ures of t he Ind i a n Tea Ind us t ry , Devel op ment of Tea Ind us t ry
d uri ng 1 8 5 0 -2 0 0 2 , Out l ook up t o 2 0 0 7
1. Evolut ion of Te a Indus t ry 1
i. His tory of Tea Leaf 1
ii. Beginning of Tea in India 1
iii. Birth of the Indian Tea Indus try 2
iv. Tea Trade 2
v. Formation of Tea As s ociation 2
vi. Tea Res earch 3
vii. International Tea Regulation Scheme 3
viii. International Tea Agreement Scheme 3
ix. Tea Control Act and its Amendment 3
x. Tea Board 3
2. Te a in India and t he World 4
i. Introduction 4
ii. Plantation Indus try 4
iii. Tea - Agriculture as w ell as Indus try 4
iv. India's place in the World Tea 5
a. Area under Tea - India and the World 5
b. Production of Tea - India and the World 6
c. Export of Tea - India and the World 7
v. Tea Indus try : Earner of Foreign Exchange 7
vi. Tea Indus try : Source of Employ ment 8
vii. Contribution of Tea Indus try to Total Revenue 9
viii. Tea as a Supporter of Allied Activities 9
3. Fe at ure s of Te a Indus t ry 10
i. Farming and Manufacturing 10
a. Withering 10
b. Rolling and Fermenting 10
c. Grading and Pack ing 11
ii. Geographical Locations , etc. 11
a. Area, Production and Yield of Tea 11
b. Zone-w is e Clas s ification of Tea etc., 11
c. Area-w is e Dis tribution 12
d. Age-w is e Clas s ification of States 12
iv
Page No.
iii. Primary Mark eting 12
iv. Exports 13
v. Internal Cons umption 15
vi. Major Taxes 16
vii. Labour 21
viii. Development Meas ures 22
4. De ve lopme nt of Te a Indus t ry during 1 8 5 0 -2 0 0 2 23
i. Pre-five Year Plan Period [1850 to 1950] 23
a. The period of Rapid Grow th [1850 to 1890] 23
b. The Period of Stability [1890 to 1918] 24
c. Inter War Period [1918 to 1939] 25
d. Period of Pros perity [1939 to 1950] 26
ii. Pos t Five Year Plan 26
a. Firs t Five Year Plan [1951-52 to 1955-56] 26
b. Second Five Year Plan [1956-57 to 1960-61] 27
c. Third Five Year Plan [1961-62 to 1965-66] 28
d. Annual Plans [1966-67 to 1968-69] 29
e. Fourth Five Year Plan [1969-70 to 1973-74] 30
f . Fifth Five Year Plan [1974-75 to 1978-79] 30
g. Sixth Five Year Plan [1980-81 to 1984-85] 32
h. Seventh Five Year Plan [1985-86 to 1989-90] 34
i. Eighth Five Year Plan [1991-92 to 1995-96] 36
j. Ninth Five Year Plan [1997-98 to 2001-2002] 37
k . Tenth Five Year Plan [2002-03 to 2006-2007] 38
l. Area, Production, Yield, Export from 1950-2002 38
Pa rt Two : Nomencl a t ure a nd Cl a s s i fi ca t i on, Fl ora Bi ol ogy a nd
Embry ol ogy , Pol l i na t i on, Art i fi ci a l Pol l i na t i on, Genet i cs , Devel op ment i n
Pl a nt Imp rovement , Cl i ma t i c Cond i t i ons for Tea Growi ng Di s t ri ct s i n Ind i a
5. Nome nc lat ure and Clas s ific at ion Norms for Te a 39
i. Nomenclature and Clas s ification 39
ii. Flora Biology and Embry ology 39
a. Pollination 39
b. Artificial Pollination/ Hand Cros s Pollination, 39
iii. Genetics 39
a. Cy tology 39
b. Inbreeding 40
c. Compatibility 40
d. Inheritance 40
6. De ve lopme nt in Plant Improve me nt 40
i. Mas s Selection 40
ii. Selection Criteria for Yield 40
v
Page No.
iii. Selection Criteria for Quality 40
a. Pubes cence 40
b. Colour of Leaf 41
c. Anatomical Character 41
iv. Clonal vs Seed Propagation 41
v. Selection Procedures / Criteria 41
7. Agroc limat ic Condit ions of Te a Growing Re gions in t he Nort h Eas t 41
Pa rt Three : Pl a nt i ng a nd Proces s i ng Technol ogy , Ma nuri ng,
Res ea rch & Devel op ment , Thrus t Area of Tea
8. Plant ing and Proc e s s ing Te c hnology -
t he c hanging t re nds ove r t he ye ars 43
i. Field Technology 43
ii. Manuring 43
9. Re s e arc h and De ve lopme nt 44
i. Fifties 44
ii. Sixties 44
iii. Seventies 44
iv. Eighties 44
v. Tock lai Experiment Station on R&D 44
a. Breeding and Selection 44
b. Tis s ue Culture 44
c. Prunning 44
d. Pluck ing 44
e. Tea Phy s iology 44
f . Microbiology 44
g. Nutrition 44
h. Pes t and Dis eas es 45
i. Tea Chemis try 45
j. Tea Manufacture 45
k . Health As pects of Tea 45
1 0 . Thrus t Are as in Te a Re s e arc h 45
i. Plant Environment 45
ii. Plant Nutrients 45
iii. Water Management 45
iv. Applied Phy s iology 45
v. Improvement of Tea Quality and Flavour 45
vi. Biological Control of Pes t Dis eas es 45
vii. Modernis ation and Automation of Tea Factories 45
viii. Alternative Us es of Tea 45
vi
Page No.
Pa rt Four : Ma rk et i ng s y s t ems , As p ect s of Tea Ma rk et s ,
Domes t i c Ma rk et , Exp ort Ma rk et s , Promot i on
1 1 . Te a Marke t ing - Signs of Mat urit y 47
1 2 . Los s of London Marke t 47
1 3 . Marke t ing Sys t e m of Te a 48
1 4 . Mode s of Dis pos al 49
1 5 . Marke t ing Mode ls of Te a 50
i. Direct Cons ignment to London Auction 50
ii. Direct Sale by Forw ard Contract to Overs eas Buy ers 50
iii. Cons ignment to Indian Auctions 50
iv. Direct Ex-factory Sale to Indian Buy er 50
v. Direct Sale by Forw ard Contract to Indian Buy ers 51
vi. Direct Mark eting (loos e tea) in Wholes ale Mark ets 51
vii. Self-pack eting and Export of Pack ets Overs eas 51
1 6 . Primary Marke t ing 51
1 7 . De ve lopme nt of Auc t ion Marke t s in t he World 52
1 8 . Auc t ion Ce nt re s Abroad 52
1 9 . Te a Auc t ion Fac ilit ie s 53
2 0 . Te a Auc t ion Sys t e m 53
2 1 . Advant age of Auc t ion Sale 54
2 2 . Tandon Commit t e e on Marke t ing 55
2 3 . Ex-garde n Sale 55
2 4 . Mini Auc t ion 56
2 5 . Auc t ion for Ble nde d and Pac ke t Te as 57
2 6 . Ne w Te a Auc t ion Rule s 58
i. Auction Day 59
ii. Catalogue 59
iii. Prompt Data 59
iv. Brok erage 60
v. Siz e of Lots 60
vi. Divis ion of Lots 60
vii. Withdraw al of Lots 60
viii. Sale Lot Outlets 61
ix. Warehous e Rent and Ins urance 61
x. Clos ing Catalogue 62
xi. Dis tribution of Samples 62
2 7 . Quant um of Sample s 62
2 8 . Bidding Rat e s 62
2 9 . Claims for Short age s , Non-de live ry, Damage d Te as 63
3 0 . Supe rvis ion 63
3 1 . Collaborat ion 63
3 2 . Te a Marke t Tre nd 64
3 3 . Produc t ion 64
vii
3 4 . Dome s t ic Marke t 65
3 5 . Export 65
3 6 . The Auc t ion Sys t e m 66
3 7 . Import of Te a 66
3 8 . Promot ion 66
3 9 . Qualit y 66
4 0 . Cult ure Produc t s 66
4 1 . Bulk Pac kaging 67
4 2 . Marke t ing of Indian Te a - Dome s t ic Vs Export 67
4 3 . Unre s t ric t e d Import of Te a 72
4 4 . Produc t ion vis -a-vis Cons umpt ion 73
4 5 . Import s for Re -e xport 74
4 6 . St andard of Qualit y 75
4 7 . Conc lus ion 75
Pa rt Fi ve : Ool ong a nd Ot her Tea s - Worl d Prod uct i on,
Worl d Exp ort s & Imp ort s , Prod ucers a nd Imp ort ers of Green Tea et c.
4 8 . Int roduc t ion 77
i. Dis tinct Quality 77
ii. Manufacturing Proces s 77
iii. Convers ion Ratio 78
4 9 . World Produc t ion 78
5 0 . World Export s 79
5 1 . World Import s 80
5 2 . Produc e rs of Gre e n Te a 81
5 3 . Proc e s s Chart of Indian Gre e n Te a 87
5 4 . Import e rs of Gre e n Te a - Cons ume r Pre fe re nc e s 88
5 5 . Oolong Te a - China, Taiwan 90
Pa rt Si x : Current Tea Trend s , FAO Project i ons , Domes t i c
Cons ump t i on, Imp ort s , Res ea rch & Devel op ment et c.
5 6 . Curre nt Te a Tre nds 91
5 7 . Food and Agric ult ure Organis at ion (FAO) Proje c t ions for 2 0 0 5 92
5 8 . De c line in t he rat e of Dome s t ic Cons umpt ion 92
5 9 . Import s 92
6 0 . Pre s e nt s t at us of Re s e arc h and De ve lopme nt in Te a 93
i. Highlights of Res earch & Development Contributions on Tea 93
ii. Approach to Xth Plan Period 94
6 1 . Ne w Propos als for Re s e arc h during Xt h Five Ye ar Plan 95
Pa rt Seven : Exp ort Ma rk et s a nd Comp et i t i venes s
6 2 . Int roduc t ion 97
Page No.
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Page No.
6 3 . Compe t it or Analys is of 1 6 Spe c ific Marke t s 98
6 4 . Are a Produc t ion and Export of Te a of Diffe re nt Count rie s 99
Pa rt Ei ght : Cons t ra i nt s , Sugges t i ons a nd Remed i a l Mea s ures
6 5 . Cons t raint s 101
6 6 . Cos t of Produc t ion 101
6 7 . Conc e nt rat ion of Produc t ion Bas e 102
6 8 . Is s ue s Impac t ing Export Pe rformanc e 102
6 9 . India's Compe t it ive Pos it ion 103
7 0 . India's Te a Indus t ry - Supply Side Cons t raint s 104
7 1 . Sc he me s during t he X
t h
Five Ye ar Plan 105
i. Plantation Development Scheme 105
ii. Quality Upgradation and Product Divers ification Schemes 105
iii. Mark et Promotion Scheme 105
iv. Res earch and Development Scheme 106
v. Human Res ource Development Scheme 106
7 2 . De ve lopme nt of Small Te a Growe rs - Me as ure s during X
t h
Plan Pe riod 108
7 3 . Progre s s in Re c e nt Te c hnique s in Te a Cult ivat ion 108
7 4 . Produc t ion Targe t in X
t h
Plan 109
7 5 . FAO Proje c t ions in Blac k Te a 109
7 6 . Approac h t o X
t h
Five Ye ar Plan 110
7 7 . St rat e gie s for X
t h
Five Ye ar Plan Pe riod 111
7 8 . On t he Produc t ion Front 111
7 9 . On t he Produc t Front 112
8 0 . On t he Marke t ing Front 112
8 1 . On t he Infras t ruc t ure Front 113
8 2 . On Gove rnme nt Front 113
8 3 . Inve s t me nt ac t ivit ie s during Xt h Plan Pe riod 114
i. Propos ed Development Meas ures 114
ii. Quality Upgradation and Product Divers ification 114
iii. Rearch and Development 115
iv. Mark et Development 116
8 4 . Summary of Xt h Plan Out lay 116
Pa rt Ni ne : Pri ce St a bi l i s a t i on Fund , Pri ce St a bi l i s a t i on
Fund Account , Gui d el i nes
8 5 . Bac kground 119
8 6 . Obje c t ive s 119
8 7 . Durat ion of t he Sc he me 119
8 8 . Mode of int e rve nt ion 119
8 9 . Who c an part ic ipat e in t he Sc he me 119
9 0 . How t o be c ome a Me mbe r 119
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Page No.
9 1 . Ope ning and Maint e nanc e of Ac c ount s 120
9 2 . Calc ulat ion and Cont ribut ions from Govt . of India and Me mbe rs 120
9 3 . De fault e rs 121
9 4 . Ne w Me mbe rs hip - Illus t rat ions 121
9 5 . Pric e St abilis at ion Fund Ac c ount s 122
Pa rt Ten : Ma d huk a r Commi t t ee - Rep ort of t he Work i ng
Group s on Probl ems of Tea Ind us t ry
9 6 . Bac kground 125
9 7 . Sugge s t e d Solut ions bas e d on fe e d bac ks 125
9 8 . For Banks 126
i. Seas onal deficit on borrow al accounts 126
ii. Extens ion of period to liquidate the Work ing Account 126
iii. Releas e of need bas ed Work ing Capital 127
iv. Res chedulement of Exis ting Term Loan 127
v. Pos t Convers ion / Res tructuring and Res cheduling of Tea Accounts 127
vi. Treatment of Tea Advance as NPA 127
vii. Fres h Work ing Capital Term Loan 128
viii. Bank may allow a rate of Interes t 129
9 9 . For NABARD 129
1 0 0 . For Te a Board 129
1 0 1 . For Ce nt ral and St at e Gove rnme nt 130
1 0 2 . Small Te a Growe rs and Bought Le af Fac t orie s 131
1 0 3 . For Small Te a Growe rs and Bought Le af Fac t orie s 131
1 0 4 . Te a Borrowe rs 132
Pa rt El even : Pa ck a ge of Rel i ef Mea s ures for Tea Ind us t ry
1 0 5 . Int roduc t ion 133
1 0 6 . St at us of Te a Indus t ry in India 133
1 0 7 . Out look for t he Fut ure of Te a Indus t ry 134
1 0 8 . Approac h t o Re s t ruc t uring of Borrowe rs Ac c ount s 134
1 0 9 . Re c omme nde d Re lie f Me as ure s for various s e gme nt s of Te a Indus t ry 135
i. Small Tea Grow ers 135
ii. Bought leaf Factory 135
iii. Large Tea Grow ers and Manufacturers 135
1 1 0 . Conc lus ion 136
Pa rt Twel ve : Prod uct Di vers i fi ca t i on, Exp ort s of Pa ck et Tea s ,
Tea Ba gs , Ins t a nt Tea s
1 1 1 . Bac kground 139
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Page No.
1 1 2 . Export of Pac ke t Te a 140
1 1 3 . Dire c t ion - Re gion-wis e Pac ke t Te a Export 142
1 1 4 . Export of Te a Bags 142
1 1 5 . Dire c t ion of Te a Bag Export s 143
1 1 6 . Value Adde d Conc e pt 144
1 1 7 . Forms of Value Addit ion 144
1 1 8 . Sharing of Value Adde d Te a 144
1 1 9 . Ins t ant Te a - It s de ve lopme nt 146
1 2 0 . Export Marke t for Indian Te a 147
1 2 1 . Inc e nt ive s t o Value Adde d Te as 147
1 2 2 . Proble ms of Value Adde d Ins t ant Te a 149
1 2 3 . Long Te rm St rat e gy for Marke t ing of Value Adde d It e ms 149
1 2 4 . Pot e nt ial and Sc ope for Ins t ant Te as 151
1 2 5 . Te a Powde r 151
Pa rt Thi rt een : Sma l l Tea Growers - Probl ems a nd Pros p ect s
1 2 6 . Int roduc t ion 153
1 2 7 . Conc e pt of Small Te a Growe rs 153
1 2 8 . Soc io Ec onomic Profile of Se le c t e d Borrowe rs 154
1 2 9 . Fie ld Prac t ic e s And Cult ural Ope rat ions 154
i. Climate, s oil and Rainfall 154
ii. Variety of clones 154
iii. Land preparation and Planting 154
iv. Manuring and Fertilis ers 155
v. Shade 155
vi. Prunning 155
vii. Weed control 155
viii. Pes t Control 155
ix. Irrigation 155
x. Drainage 156
xi. Harves ting and Pos t Harves t Management 156
1 3 0 . Infras t ruc t ure Support 156
1 3 1 . Cre dit Flow 156
1 3 2 . Input s and Out put s 157
1 3 3 . Cos t of Cult ivat ion 157
1 3 4 . Marke t ing 157
1 3 5 . Proble ms of Small Te a Growe rs 157
xi
i. Unorganis ed Grow th 157
ii. Land Patta and Titles 158
iii. Technical Requirements 158
iv. Ecological Imbalance 158
v. Finance 158
vi. Mark eting 158
vii. Cas e in Handling 158
1 3 6 . Conc lus ions & Re c omme ndat ions 159
1 3 7 . Polic y Is s ue s 160
Page No.
xiii
FOREWORD
It h a s been a lon g jou r n ey for t h e Tea in du s t r y in In dia s in ce
t he 18
th
Cent u ry. Tea has had a longer his t ory in China where it
was res erved for t h e royal family an d wealt h y n obles . Th e growt h
of t h e in du s t r y h as been a fas cin at in g on e, wit h in n ovat ion s an d
t r emen dou s gr owt h wit h s ome pr oblem yea r s . As a pla n t a t ion
cr op wit h en or mou s pr ofit s , t ea h a s been a fa vou r ed cr op. Fr om
t h e kin gs t o t h e lowly pea s a n t , a ll h a ve been pa r t ia l t o t ea , in
differ en t fla vou r s a n d con coct ion s !.
As a h e a l t h y a n d s t i m u l a t i n g d r i n k t e a h a s i t s s h a r e of
admirers. Also, NABARD has had considerable int eract ion wit h t he
t ea in du s t r y wh ich h a s h a d a cces s t o ba n k cr edit s in ce lon g. A
bet t er u n der s t an din g of t h e cyclical n at u r e of t h e t ea in du s t r y is
r e q u i r e d fr om t h e b a n k e r s wh i l e t e a gr owe r s a n d t e a
ma n u fa ct u r er s n eed t o con cen t r a t e on in n ova t ion s in p r od u ct
developmen t a n d mor e s o, on impr ovemen t in qu a lit y. In dia h a s
t h e pot en t ia l t o be t h e ma r ket lea der in in n ova t ion s for t h e t ea
in du s t r y. Th e n eeds of t h e s ma ll t ea gr ower s a r e t o be given
gr ea t er fillip a s a ls o bet t er a ppr ecia t ion of t h eir r equ ir emen t s ,
especially as regards produ ct ion credit . A closer look is requ ired if
t h e In dia n Tea in du s t r y is t o be r evived s o t h a t it r ega in s it s
pr e-emin en t pos it ion . An d h en ce t h is in -dept h s u r vey of t h e t ea
in du s t r y.
10
t h
Sept ember 2005 Ranjana Kumar
Mu mba i Ch a ir per s on
NABARD
xiv
ACKNOWLEDGEMENT
A s u rvey which covers t he ent ire Tea Indu s t ry is a gigant ic t as k and
wou ld n ot h a ve been pos s ible wit h ou t t h e h elp of collea gu es a n d
fr ien ds wh os e s u gges t ion s h a ve en r ich ed t h e pr es en t a t ion .
For all t h e r is ks of omis s ion an d commis s ion , t h e au t h or s alon e ar e
r es pon s ible. We a r e gr a t efu l t o Smt . Ra n ja n a Ku ma r , Ch a ir per s on ,
NABARD for h avin g agreed t o writ e t h e Foreword t o t h is compilat ion
of exh a u s t ive da t a on t h e Tea in du s t r y in In dia .
10
t h
Sept ember 2005 Dr. K. G. Karmakar
Execu t ive Dir ect or
NABARD
&
Dr. G. D. Banerjee
DGM & OIC
Na ga la n d RO
NABARD
1
Pa rt One : Evol ut i on of Tea Ind us t ry , Tea i n Ind i a
a nd t he Worl d , Fea t ures of t he Ind i a n
Te a In d u s t r y , De v e l o p m e n t o f Te a
Ind us t r y d ur i ng 1 8 5 0 -2 0 0 2 , Out l ook
up t o 2 0 0 7
1 . Evolut ion of t he Te a Indus t ry
i . Hi s t ory of Tea Lea f Th e or igin of t h e t ea bu s h h a s been
con t es t ed by s ch ola r s . It is n a t ive t o cer t a in a r ea s r a n gin g
fr om t h e in t er ior of Sou t h er n Ch in a t o t h e bor der of As s a m.
Tea h a s on ly on e s pecies wh ich is ca lled Ca mellia Sin os is
[(L).O.Ku n t ze]. It ca me t o t h e ligh t in Fou r t h cen t u r y a n d by
a b ou t 6 5 0 A. D. d u r i n g t h e TSa n g d yn a s t y t h e gr owi n g
popu lar it y of t ea in du ced far mer s in mos t pr ovin ces in Ch in a
t o c u lt iva t e Te a a n d s u b s e qu e n t ly b e c a me a n a r t ic le of
commer ce. In t h e ea r ly yea r s of 7 8 0 A. D. , Lu Yu commis -
s ion ed t h e fir s t book on t ea en t it led Ch ach in g a t ea clas s ic.
Th e fir s t pr in t ed r efer en ce by a Eu r opea n wr it er a bou t t h e
mys t e r i ou s Ch i n e s e d r i n k wa s d a t e d t o 1 5 5 9 A. D. Th e
k n owled ge of t ea t r a velled s lowly fr om Ea s t t o Wes t . Th e
Du t ch Mer ch a n t s es t a blis h ed a t r a din g ba s e a t Ben t on by
1 5 9 6 . Th e fi r s t c on s i gn m e n t of t e a fr om Ch i n a wa s
t r an s por t ed t o Ben t on in 1606 an d fr om t h er e it was s h ipped
t o-non-t ea-cons ciou s Eu rope. By t he mid-1650s , a qu ick bris k
t r a de in t ea wa s ma de wit h Holla n d. In Fr a n ce, t h e fu t u r e of
t ea wa s lin ked wit h t h e St er lin g Compa n y.
i i . Begi nni ng of Tea i n Ind i a The discovery of indigenou s t ea
in As s a m in 1823 led t o t h e or igin s of t h e t ea in du s t r y in
In dia . However , t h e Ca lcu t t a Agr icu lt u r a l Societ y differ s fr om
t h e a bove opin ion . It h a s con s is t en t ly h eld t h a t in t h e ea r ly
1 7 0 0 ' s , t h e s h ip s of t h e Ea s t In d ia Comp a n y fr equ en t ly
brou ght t he t ea plant s in t he cou nt ry by way of cu rios it y. Col.
Kyd, a r es iden t of Ca lcu t t a a n d a fa mou s bot a n is t , s a w t ea
pla n t s gr owin g in h is ga r den in 1780. Th is in for ma t ion wa s
s en t t o Sir J os eph Ban k an d in 1782 h is gar den was h an ded
over t o Bot a n ica l Ga r den of Ca lcu t t a . In 1788, Sir J os eph
Bank recorded t he exis t ence of indigenou s t ea growing wild in
Cooch beh a r a n d Ra n gpu r dis t r ict s of Ben ga l a n d s u gges t ed
t h e cu lt iva t ion of t h is p la n t . Th e wild t ea s of Cooch b eh a r
con fir med t h e fir s t dis cover y of in digen ou s t ea in In dia .
2
i i i . Bi r t h of Ind i a n Te a Ind us t r y Th e b ir t h of In d ia n t ea
in d u s t r y wa s ma r k ed b y t h e d is cover y of in d igen ou s t ea s
p l a n t i n As s a m i n 1 8 2 3 b y Rob e r t Bu s h . Th i s r e c e i ve d
momen t u m wh en t h e Ea s t In dia Compa n y in 1833 los t t h e
t e a t r a d i n g m on op ol y i n Ch i n a . In 1 8 3 5 , a s c i e n t i fi c
depu t a t ion wa s s en t t o As s a m t o r epor t on pr os pect s of t h e
t ea in du s t r y a n d t h e t ea m s a w t ea pla n t s in ma n y pa r t s in
t h e h ills bet ween As s a m a n d Bu r ma . In 1836, C. A. Br u ce
wa s ma de t h e Su per in t en den t of Tea For es t s . Amon g ot h er s ,
h e for med t h e Ben ga l Tea Comp a n y a t Ca lcu t t a wit h t h e
ob ject ive of p u r ch a s in g t h e p r od u ce fr om t h e Ea s t In d ia
Compa n ys t ea pla n t a t ion s in In dia . A s imila r Compa n y wa s
a ls o es t a blis h ed in t h e s a me yea r in Lon don wit h t h e s a me
object ives .
In 1839 t h e fir s t con s ign men t of t ea fr om In dia (eigh t ch es t s )
wa s s h ip p ed t o Lon d on a n d it wa s a u ct ion ed a t a p r ice
r a n gin g fr om s ix t o t h ir t y fou r s h illin gs per pou n d. In 1840,
t wo t h ir d s of exp er imen t a l t ea s wer e h a n d ed over t o n ew
compa n y. In 1852, t h e fir s t t ea compa n y in In dia pa id it s
fin a l d ivid en d s . Th e s econ d limit ed comp a n y in 1 8 5 9 wa s
formed in As s am called J orhat Company. Du ring 1862-67, t ea
c u l t i va t i on s t a r t e d i n Ch i t t a gon g a n d Ch ot t a Na gp u r .
Ult imat ely t ea cu lt ivat ion was commis s ion ed in man y dis t rict s
in In dia wh er ever t h er e was s ome h ope of a s u cces s .Wit h in a
few mon t h s , In dia a lon g wit h Sr i La n ka domin a t ed t h e wor ld
t ea t r a de/ ma r ket .
i v. Tea Tra d e In 1874 t h e lan d locat ed in t h e Eas t of Tees t a
r iver wa s explor ed wit h t h e for eign lia bilit y of gr owin g t ea
p l a n t s . By 1 8 7 6 a s m a n y a s 1 3 ga r d e n s h a d s t a r t e d
cu lt iva t in g t ea . In 1878 t h e fir s t t wo in dia n t ea ga r den s by
name Megalkat Tea Es t at e and Indian Tea Company Lt d. were
es t a blis h ed t h ou gh t h e Compa n y a ct u a lly r eceived a gr a n t of
741 acres on 19 March 1981. Th e firs t t ea au ct ion s t art ed on
Ma y 26, 1841 in Lon don u n der t h e pion eer in g lea der s h ip of
Lya l & Co. , Min cin g La n e, Lon don wa s t h e cen t r e of Wor ld
Tea a ct ivit ies pr ior t o Wor ld Wa r II. Th e fir s t t ea a u ct ion in
Ca lcu t t a in December 27, 1861 a n d t h e s econ d in Coch in in
1947 for Sou t h In dia n t ea s wer e h eld. Su bs equ en t ly, ma n y
t ea a u ct ion cen t r es wer e op en ed in Coon oor , Gu wa h a t i,
Amr it s a r , Siligu r i et c.
v. For ma t i on of Tea As s oci a t i on Th e Tea pla n t er s for med
an as s ociat ion n amed In dian Tea As s ociat ion (ITA) in 18 May
3
1881, wit h it s h ea dqu a r t er s a t Ca lcu t t a for pr omot in g t h eir
c om m on i n t e r e s t a n d ob j e c t i ve s . S u b s e q u e n t l y m a n y
associat ions were formed in variou s t ea regions of Nort h and
Sou t h In dia .
vi . Tea Res ea rch For great er in t eres t of t h e in du s t ry, t h e Tea
Res ea r ch As s ocia t ion wa s es t a b lis h ed in 1 9 6 4 a t Tock la i,
As s a m a n d wa s fu n ded join t ly by Cou n cil of Scien t ific a n d
In du s t r ia l Res ea r ch [CSIR] a n d Tea Boa r d of In dia . Su bs cr ip-
t ion s of memb er t ea es t a t es a n d ot h er a s s ocia t e memb er s
were called for t o carry ou t t he research work. Unit ed Plant ers
As s ociat ion of Sou t h In dia [UPASI] Tea Res earch In s t it u t e h ad
it s or igin in t h e yea r 1 9 2 6 a t Coimb a t or e Dis t r ict , Ta mil
Nadu .
vi i . Int erna t i ona l Tea Regul a t i on Scheme Du ring t he s econd
h alf of t h e 19
th
cen t u ry an d firs t h alf of t h e 20
th
cen t u ry, fou r
major s lu mps [1866, 1879, 1896-1904, an d 1920] t ook place.
To cou n t er a ct t h e s it u a t ion In dia , Sr i La n ka , Net h er la n ds a n d
Ea s t In d ies r ea ch ed a n a gr eemen t on volu n t a r y b a s is t o
cu rt ail t ea produ ct ion. The world economic depression resu lt ed
in decline in t ea cons u mpt ion and s t ocks cont inu ed t o pile u p
t ill 1932
vi i i . Int e r na t i ona l Te a Agr e e me nt Pr odu cin g cou n t r ies like
In dia, In don es ia an d Sr i Lan ka en t er ed in t o an agr eemen t on
Ap r il 0 1 , 1 9 3 3 for a p er iod of five yea r s t o b r in g a b ou t
b a la n ce b et ween s u p p ly a n d d ema n d for t ea in t h e wor ld
ma r ket . A s econ d a gr eemen t wa s s ign ed a n d ca me in t o for ce
for a fu r t h er per iod of five yea r s i. e. 01
s t
Apr il, 1938 t o 31
s t
Ma r ch , 1943. Th e a gr eemen t wa s ext en ded u pt o 31
s t
Ma r ch ,
1948. Fu rt her an int erim agreement was s igned in April, 1948
a n d con t in u ed t ill 31
s t
Ma r ch , 1950.
i x. Te a Cont r ol Ac t a nd i t s Ame nd me nt Th e In d ia n Tea
Con t r ol Act 1 9 3 3 wa s a men d ed in 1 9 3 8 a n d 1 9 4 3 , a n d
s u bs equ en t ly in 1950. Th e a dmin is t r a t ion of t h e Act in 1938
wa s ves t ed in a Commit t ee ca lled Tea Licen s in g Commit t ee
which consist ed of a Chairman appoint ed by t he Cent ral Govt .
a n d 14 ot h er member s of wh ich 10 wer e n omin a t ed by t h e
In du s t r y a n d 04 elect ed fr om t h e con s t it u en cies embodied in
t h e Act . Th e Commit t ee con t in u ed u pt o 31
s t
December 1949.
x. Te a Boa r d Bot h t h e Cen t r a l Tea Boa r d Act 1 9 4 9 a n d
In dia n Tea Con t r ol Act 1938 wer e r epla ced by t h e Tea Act
4
1 9 5 3 wh i c h c a me i n t o e ffe c t fr om 0 1
s t
Ap r i l 1 9 5 4 . Th e
fu n ct ion in g of t h e Cen t ral Tea Board an d In dian Tea licen s in g
commit t ee wer e en t r u s t ed wit h t h e Tea Boa r d wh ich wa s
r es pon s ible for pr omot in g developmen t of t ea in du s t r y u n der
t h e con t r ol of Cen t r a l Gover n men t .
2 . Tea in India and World
i . In t r o d u c t i o n Th e Pl a n t a t i on In d u s t r y, wh i c h wa s
developed over 150 yea r s , h a s a colon ia l or igin . It is n ow a
va lu a ble a s s et t o t h e n a t ion . Pla n t a t ion in du s t r y is a br a n ch
of a gr icu lt u r e in t h e b r oa d er s en s e. Th e or ga n iza t ion of
mod er n p la n t a t ion r ela t es mor e t o t h e fa ct or y t h a n t o t h e
farm. Generally, t here is a s pecializat ion in one crop, which is
p r od u ced on a la r ge s ca le for exp or t a n d for ma in t en a n ce
wor k. Th e ou t pu t is con t in u ou s t h r ou gh ou t t h e yea r . Th e
major plan t at ion cr ops like t ea, coffee, r u bber an d car damom
h a ve n ow developed t o a la r ge ext en t .
i i . Pl a nt a t i on Ind us t ry In In dia , pla n t a t ion s a ccou n t for 0.8
per cen t of t h e t ot a l cu lt iva ble la n d. Th ey a ls o con t r ibu t e 5
per cen t t o t h e n a t ion a l in come in a gr icu lt u r e. Bes ides t h ey
p r ovid e mor e emp loymen t p er r u p ee of in ves t men t in t h e
cou n t r y t h a n eit h er a gr icu lt u r e or in in d u s t r y. Pla n t a t ion
in du s t r y employs a la r ge a mou n t of la bou r for ce es pecia lly
women wor ker s wh ich a r e h igh es t compa r ed t o a n y in du s t r y.
Mor eover , t h is in d u s t r y h elp s in t h e d evelop men t of ot h er
in du s t r ies .
Amon g t h e differ en t pla n t a t ion cr ops , t ea is con s ider ed t o be
t h e mos t imp or t a n t cr op in ou r cou n t r y. It is t h e s econ d
bigges t for eign exch a n ge ea r n er a n d is expor t ed t o a bou t 80
c ou n t r i e s . It a l s o c on t r i b u t e s a s i ze a b l e a mou n t t o t h e
n a t ion a l in come. Mor eover , it pr ovides dir ect ga in fu l employ-
men t t o a la r ge n u mb er of p eop le a n d h elp s in p r ovid in g
in direct employmen t in variou s s ect ors like road con s t ru ct ion ,
t r a n s p or t a t ion , b u ild in g of wa r e h ou s e s , ma n u fa c t u r e of
plywood t ea ch es t , a lu min iu m foil, t in pla t e, met a l fit t in gs ,
pa per , ca r d boa r d, fer t ilizer s , in s ect icides , pes t icides , coa l,
ir on , s t eel, et c. Apar t fr om it s con t r ibu t ion t o t h e econ omy of
In dia, t ea t oday pr ovides t o t h e common man a pleas an t an d
s t imu la t in g n on -a lcoh olic bever a ge.
i i i . Tea : Agri cul t ure a s wel l a s Ind us t ry Tea can be placed
b ot h u n d er a gr icu lt u r e a n d in d u s t r y. It is in d u s t r y in t h e
5
s en s e t h a t t ea is a pr oces s ed a n d ma n u fa ct u r ed commodit y,
wh i c h i s s u b j e c t t o e xc i s e d u t y a n d c e s s . It i s a l s o a n
a gr icu lt u r a l cr op b eca u s e it is gr own on la n d a n d t h u s
a gr icu lt u r a l in come t a x is a ls o levied on it . Mor eover , t ea
p la n t a t ion is gover n ed b y b ot h a gr icu lt u r a l a n d in d u s t r ia l
r u les a n d r egu la t ion s . Th e t ea cr op in volves bot h a gr icu lt u r a l
a n d i n d u s t r i a l op e r a t i on s . Agr i c u l t u r a l op e r a t i on s l i k e
cu lt iva t ion , p lu ck in g, ma n u r in g, ir r iga t ion , weed con t r ol,
dis ea s e con t r ol, pes t con t r ol, t r a n s por t a t ion of gr een lea f a n d
u proot ing are u ndert aken for growing t ea. The final produ ct of
t ea comes t h r ou gh va r iou s p r oces s in g a n d ma n u fa ct u r in g
s t a ges like wit h er in g, r ollin g, fer men t in g, dr yin g, weigh in g,
s or t in g, cu t t in g t h a t pla ce it u n der in du s t r y. Th u s t h e t ea
plant at ion, t hou gh a big agricu lt u ral ent erpris e, has als o s ome
charact erist ics of indu st ry. The est ablish-ment s and operat ions
of s u ch in d u s t r y r equ ir e ma s s ive in ves t men t of ca p it a l.
Moder n t ech n ica l equ ipmen t is a ls o n eces s a r y for pr oces s in g
t he produ ct . An ou t st anding feat u re of t he plant at ion economy
is t h a t a la r ge por t ion of t ea h a s been s old in t h e in t er n a l
ma r ket s fr om t h e ver y in cept ion of t h is in du s t r y. Th is h a s ,
t h er efor e, made it n eces s ar y t o h ave well-or gan is ed mar ket in g
s er vices . Th e r equ ir emen t of ca pit a l, t ech n ica l kn ow-h ow a n d
or ga n i ze d m a r k e t i n g s e r vi c e s e xp l a i n wh y, t h e u n i t of
pr odu ct ion of t ea h a s t a ken t h e s h a pe of a la r ge in du s t r ia l
es t a blis h men t .
i v. Ind i a s Pl a ce i n t he Worl d of Tea
a . Area und er Tea : Ind i a a nd t he Worl d Th e n u mber
of t e a p r od u c i n g c ou n t r i e s i n t h e wor l d h a s b e e n
in cr eas in g s in ce 1950 an d at pr es en t t h er e ar e mor e t h an
8 0 s u ch cou n t r ies . Amon g t h e p r in cip a l t ea p r od u cin g
cou n t r ies in t h e wor ld, In dia occu pies t h e fir s t pla ce in
t er ms of a r ea . In dia s a r ea u n der t ea pr es en t s a ppr ecia ble
in cr ea s e d u r in g t h e p er iod fr om 1 9 6 1 t o 2 0 0 2 a n d t h e
wor ld s t ea a r ea exh ib it ed a s ign ifica n t r is e. Wh ile t h e
wor ld t ea a r ea in cr ea s ed by 186 per cen t , In dia s r os e by
ju s t 54 per cen t . In dia s t ea a r ea a s per cen t a ge t o wor ld
t ea a r ea h a s declin ed over t h e yea r s fr om 34. 33 per cen t
t o 18.54 per cen t . In a bs olu t e t er ms , In dia s t ot a l a r ea in
1 9 6 1 wa s 3 3 1 t h ou s a n d h a . , wh ich in cr ea s ed t o 5 1 1
t h ou s a n d h a . in 2002. Simila r ly, t h e wor lds a r ea u n der
t ea was 964 t hou sand ha. in 1961 and 2756 t hou sand ha.
in 2002. Compa r a t ive pict u r e is s h own in Ta ble 1.
6
Table 1 : Indias s hare in World Tea Area during
1 9 6 1 -2 0 0 2 (Are a in t hous and he c t are )
World India Indias
Ye ar Are a Abs olut e Are a Abs olut e s hare as
inc re as e / de c re as e inc re as e / de c re as e pe rc e nt -
age world
area
1961 964 331 34.33
1971 1386 (+)422 357 (+)26 25.75
1981 2358 (+)972 384 (+)27 16.28
1991 2569 (+)211 420 (+)36 16.35
1997 2572 (+) 3 434 (+)14 16.87
1998 2597 (+) 25 474 (+)40 18.25
1999 2692 (+) 95 490 (+)16 18.20
2000 2668 (-) 24 507 (+)17 19.00
2001 2735 (+) 67 510 (+) 3 18.65
2002 2756 (+) 21 511 (+) 1 18.54
Source : Tea Statis tics , Tea Board, Kolk ata, various is s ues .
Note : (+) indicates increas e and (-) indicates decreas e in abs olute amount.
b. Pr o d u c t i o n o f Te a : In d i a a n d Wo r l d Wor l d
pr odu ct ion in cr ea s ed by 264 per cen t du r in g t h e per iod,
wh ile In dias produ ct ion en h an ced by 133 per cen t . In dias
pr odu ct ion t o wor ld pr odu ct ion h a s s u bs t a n t ia lly r edu ced
fr om 41. 60 per cen t t o 26. 65 per cen t . Aver a ge a n n u a l
rat e of growt h of t ea produ ct ion in In dia s t ood at 3.70 per
cen t wh ile it wa s 7 . 3 4 p er cen t for t h e Wor ld . In d ia s
s h a r e in t h e wor ld t ea pr odu ct ion is given in Ta ble 2.
Table 2 : Indias Share in World Tea Product ion
(Produc t ion in million kg. )
Ye ar World Ic re as e / India Abs olut e Indias s hare
de c re as e inc re as e / as pe rc e nt age
de c re as e of world
produc t i on
1961 851 354 41.60
1971 1348 (+) 497 435 (+) 81 32.27
1981 1884 (+) 536 560 (+) 125 29.72
1991 2639 (+) 755 754 (+) 194 28.57
1997 2799 (+) 160 810 (+) 56 28.94
1998 3058 (+) 250 874 (+) 64 28.58
1999 2971 (-) 87 826 (-) 48 27.80
2000 2989 (-) 18 846 (+) 20 28.30
2001 3091 (+) 102 854 (+) 9 27.62
2002 3099 (+) 8 826 (-) 28 26.65
7
c. Ex p or t of Te a : Ind i a a nd t h e Wor l d In dia is t h e
la r ges t expor t er of t ea in t h e wor ld. However , Sr i La n ka
has been closely following Indias foot st eps. Indias share in
world export expres s ed in t erms of percent age has declined
bet ween 1961 and 2002, bu t t here is only marginal decline
in a bs olu t e qu a n t u m of expor t s . Tea h a s r ema in ed, on a n
a ver a ge, a t 200 million kgs . du r in g t h e per iod. Th e ma in
reas on for fall of In dias s h are for t h e las t 40 years is t h at
a la r ge qu a n t u m of t ea h a s been r et a in ed for domes t ic
consu mpt ion. World export s increased by 158 per cent and
In dias export s redu ced by 2.43 per cen t du rin g t h e period
fr om 1 9 6 1 t o 2 0 0 2 . In d ia s s h a r e in t h e wor ld exp or t s
declin ed fr om 37. 18 t o 14. 04 per cen t du r in g t h e s a me
per iod (Ta ble - 3).
Table 3 : Indias s hare in World Te a Export s
(Export s i n mi lli on kg. )
Ye ar World Abs olut e India Abs olut e Indias
inc re as e / inc re as e / s hare as
de c re as e de c re as e pe rc e nt age
of world
e xport
1961 554 206 37.18
1971 667 (+)113 202 (-4) 30.28
1981 818 (+)115 241 (+)39 29.46
1991 1079 (+)261 212 (-29) 19.65
1997 1207 (+)128 203 (-) 9 16.82
1998 1308 (+)101 210 (+) 7 16.06
1999 1265 (-) 43 192 (-)18 15.18
2000 1334 (+) 69 207 (+)15 15.52
2001 1394 (+) 60 183 (-)24 13.13
2002 1432 (+) 38 201 (+)18 14.04
v. Tea Ind us t ry : Ea rner of Forei gn Excha nge A con s ider able
volu me of t ea is being export ed from India and t his has given t he
t ea in du s t r y a pla ce of impor t a n ce in t h e n a t ion a l econ omy of
India as an earner of foreign exchange. Table 4 s hows t he valu e
of exp or t s of t ea a s comp a r ed t o t ot a l va lu e of exp or t s of a ll
commodit ies .
8
Table 4 : Value of Export s of Te a t o Tot al Value of
Export s of All Commodit ie s
(Rs . in c rore )
Ye ar Value of Abs olut e Value of Abs olut e Share of t e a
e xport s change e xport s c hange t o value of
of all of t e a@ e xport s of
c ommo- all c om-
dit ie s * modit ie s
1961-62 661 122 18.46
1971-72 1608 (+) 947 184 (+) 62 11.44
1981-82 7808 (+) 6200 406 (+)222 5.20
1991-92 33452 (+)25644 1194 (+)788 3.57
1997-98 38752 (+) 5300 1945 (+)751 5.01
1998-99 39892 (+) 1140 2129 (+)184 5.33
1999-2000 41285 (+) 1393 1867 (+)262 4.52
2000-01 41875 (+) 590 1967 (+)100 4.70
2001-02 42453 (+) 578 2157 (+)190 5.08
vi . Tea Ind us t ry a s a Source of Empl oy ment Tea plant at ion
in d u s t r y n ot on ly occu p ies a ver y imp or t a n t r ole in t h e
nat ional economy as an earner of foreign exchange bu t it als o
provides gainfu l employment t o a large nu mber of people. This
i n d u s t r y, wh i c h i s l a r ge l y l a b ou r i n t e n s i ve p r ovi d e s
e mp l oyme n t t o a l a r ge n u mb e r of fe ma l e wor k e r s . Th e
in du s t r y a ccou n t ed for 20 per cen t a n d 10 per cen t of t h e
t ot al labou r for ce employed in t h e pr ivat e s ect or in 1961 an d
in 2002 r es pect ively. Th e r a t io of t ea la bou r t o t ot a l la bou r
employed in t he privat e s ect or has regis t ered a declining t rend
in r ecen t yea r s .
Table 5 : Rat io of Te a Labour t o Tot al Labour Employe d
(Numbe r in lakhs )
Ye ar Tot al numbe r of Numbe r of Share
labour e mploye d labour e mploye d
in privat e s e c t or in t e a@@
1961 50 10 19.8
1971 67 8 11.3
1981 73 8 11.0
1991 76 8 10.5
1997 79 8 10.1
1998 80 8 10.0
1999 79 8 10.1
2000 80 8 10.0
2001 81 8 10.0
2002 82 8 10.0
Source : @ Economic Survey , GoI, @@ Tea Statis tics , Tea Board, Kolk ata
9
vi i . Cont ri but i on of Tea i nd us t ry t o Tot a l Revenue Tea is a
commodit y wh ich is s u bject t o dir ect t a xa t ion in t h e for m of
excis e du t y, expor t du t y, a n d ces s . u n der Tea Act 1951. In
addit ion t o t h es e, variou s s t at e levies are als o impos ed on t h e
t ea in du s t r y a n d t h es e va r ied fr om St a t e t o St a t e. Reven u e
e a r n e d b y wa y of e xp or t d u t y, e xc i s e d u t y a n d c e s s i s
pr es en t ed in Ta ble-6 below :
Table 6 : Share of Te a Re ve nue by Tot al Re ve nue
(Rs . in c rore )
Ye ar Tot al Re ve nue e arne d Te a re ve nue
re ve nue * t hrough t e a@ in pe rc e nt -
age t o t ot al
Export dut y Ce nt ral re ve nue
e xc is e dut y Ce s s Tot al
1961-62 1037 9.83 10.78 20.61 1.98
1971-72 4027 34.35 34.35 0.85
1981-82 11573 63.51 4.45 67.96 0.50
1991-92 35960 70.56 10.88 81.44 0.19
1997-98 40857 0.06
1998-99 42015 115.98 26.07 142.04 0.33
1999-2000 43765 128.84 25.17 154.01 0.35
2000-01S 44978 141.27 25.06 166.33 0.36
2001-02 46123 162.52 25.34 187.86 0.40
* Source : Director General of Commercial Intelligence and Statis tics . Tea Statis tics , Various
is s ues , Tea Board, Kolk ata.
vi i i . Te a a s a S u p p o r t e r o f Al l i e d Ac t i v i t i e s Tea is t h e
main s t ay of plywood in du s t ry in ou r cou n t ry. Tea produ ced in
different regions is mos t ly packed in plywood ches t s for s ale at
t h e a u ct ion s a n d for expor t s . However , r ecen t ly va r iou s ot h er
alt er n at ives h ave been evolved in place of plywood ch es t s . Tea
h elped t h e coa l in du s t r y. Hu ge a mou n t of coa l is r equ ir ed for
r u n n in g t h e fa ct or ies . Of cou r s e, in r ecen t t imes , in s t ea d of
coa l, ga s is bein g u s ed. Fu r t h er , t ea in du s t r y fa cilit a t es t h e
fe r t i l i ze r i n d u s t r y a n d for e s t i n d u s t r y. It s u p p or t s t h e
i n d u s t r i e s e n ga ge d i n t h e m a n u fa c t u r e of p e s t i c i d e s ,
in s ect icides an d weedicides . It als o adds t o t h e developmen t of
variou s in du s t ries like iron , s t eel, cemen t , alu min iu m foils , t in
p la t es , met a l fit t in gs , p a p er , ca r d b oa r d s , t r a n s p or t a n d
wa r eh ou s in g.
10
3 . Fe at ure s of Te a Indus t ry
Th e es s en t ia l fea t u r es of t h e t ea in du s t r y in clu de (i) Fa r min g a n d
Ma n u fa ct u r in g, (ii) Geogr a p h ica l Loca t ion s , (iii) Ma r k et in g, (iv)
Expor t s , (v) In t er n a l Con s u mpt ion , (vi) Impos t s , (vii) La bou r a n d
(viii) Developmen t Mea s u r es .
i . Fa rmi ng a nd Ma nufa ct uri ng
It s t a r t s fr om pr epa r a t ion of s eedbed a n d goes on t o t h e
pa ckin g of t ea . Seedlin gs a r e gr own in t h e n u r s er y gen er a lly
for on e or t wo yea r s a n d a r e t r a n s pla n t ed in t h e fields . Th e
t r a n s p la n t ed you n g t ea p la n t s r equ ir e levellin g a n d d eep
hoeing u nder shade t rees. Proper growt h of t ea plant s demand
p la n t in g of s h a d e t r ees , t imely a p p lica t ion of ma n u r e a n d
fer t ilizer s , ma in t en a n ce of good d r a in a ge, con t r ol of p es t
at t acks and plant dis eas es . Bes ides , pru ning and plu cking are
e s s e n t ia l op e r a t ion s for in d u c in g ve ge t a t ive gr owt h a n d
en s u r in g con t in u ou s s u p p ly of gr een flu s h es a s well a s
impr ovin g qu a lit y of ma n u fa ct u r ed t ea .
a . Wi t heri ng Th e plu cked gr een lea ves a r e s pr ea d ou t in
r a ck s ma d e of wir emes h or h es s ia n clot h a r r a n ged in
wit h er ed s h a des . Th ey a r e kept for a per iod of 18 h ou r s
for a good wit h er . Du r in g t h is per iod t h ey loos e a good
d ea l of mois t u r e a n d b ecome p la cid for r ollin g wh ich
b r ea k s d own t h e lea f cells a n d r elea s e t h e ju ice, a n d
en gymes con t a in ed in t h em. Th e wit h er ed lea f is fed in t o
t h e r ollin g ma ch in e wh ich t wis t s t h e lea f a n d br ea ks t h e
leaf cells . Th e leaf ju ice oozes ou t an d becomes expos ed t o
t h e a t mos p h er e. A p r oces s of oxid a t ion [ca lled fer men -
t a t ion ] begin s wit h ch a n ge in colou r a n d r elea s e of it s
ch a r a ct er is t ic a r oma .
b. Rol l i ng a nd Fe r me nt i ng Th e r olled lea f lea ves t h e
roller in t he s hape of t wis t ed balls and are placed u nder roll
b r a k er s . Th e lea f is t a k en t o t h e fer men t in g r oom, t h e
at mos ph er e of wh ich is kept cool or h u mid. Somet imes t h is
is d on e wit h t h e h elp of wet s cr een s or s u it a b le wa t er
s ph er es . Th e t ime t aken for fer men t at ion wh ich depen ds on
va r iou s fa ct or s , ma y va r y fr om 20 min u t es t o 60 min u t es .
Ha vi n g r e c e i ve d d e s i r e d d e gr e e of fe r m e n t a t i on , t h e
fer men t ed lea ves a r e r emoved t o d r ier s wh ich con s is t of
l a r ge e n c l os e d c h a m b e r s h a vi n g t r a ys i n s i d e wh e r e
11
ferment ed leaves are pu t . The nat u re of drying and int ens it y
of h ea t a ffect s t h e qu a lit y of t ea .
c. Gr a d i n g a n d Pa c k i n g Th e ma n u fa ct u r ed t ea wh ich
comes ou t of t h e dr yer s is t h en s or t ed a n d gr a ded wit h t h e
h elp of s or t in g ma ch in er y wh ich con s is t s of mech a n ica lly
vibr a t ed s ieves or t a bles . Th e la r ger pa r t icles a r e oft en cu t
in t o s ma ller bit s wit h t h e h elp of cu t t in g ma ch in e befor e
gr adin g. Th e gr adin g of t ea on ly r efer s t o s ize of pr oces s leaf
n ot t o qu alit y or flavou r . Th e t wo main clas s ificat ion s in t h e
ma in gr a de a r e lea f gr a de a n d br oken gr a de. Br oken gr a des
inclu de small part icles resu lt ing from t he shift ing and sort ing
of t ea a n d lea f gr a d es con s is t of la r ge p a r t icles left a ft er
br oken gr a des a r e r emoved.
i i . Geogra p hi ca l Loca t i ons , et c.
In In dia, t ea gr owin g r egion s ar e locat ed in t h e mon s oon belt
comp r is in g As s a m, Wes t Ben ga l a n d t h e foot h ills of t h e
Himalayas in t h e Nor t h an d mois t s lopes an d t h e plat eau s of
t h e Wes t er n Gh a t s in t h e Sou t h . Th e clima t e a n d t h e s oil of
t h es e widely s epa r a t ed loca t ion s exh ibit wide va r ia t ion s , t h e
imp a ct of wh ich is n a t u r a lly n ot iced in wid e d iffer en ce in
pr odu ct ivit y a n d cu lt u r a l pr a ct ices .
a . Ar e a , Pr od uc t i on a nd Yi e l d of Te a Tea is ma in ly
pr odu ced in As s am, Wes t Ben gal, Tamil Nadu an d Ker ala
and also produ ced t o a small ext ent in Tripu ra, Karnat aka,
Himachal Prades h and Ut t ar Prades h. Tot al area u nder t ea
s t ood a t 331 t h ou s a n d h ect a r es of wh ich Nor t h Ea s t a n d
Ea s t er n In dia con t r ibu t e 77. 6 per cen t a n d Sou t h In dia
22. 4 per cen t in 2002. Bes ides , t ea is a ls o cu lt iva t ed in
Mizoram, Man ipu r, Oris s a, Aru n ach al Prades h , Megh alaya,
Ut t a r a n ch a l et c. Nu mber of t ea es t a t es , a r ea , pr odu ct ion
a n d yield of t ea a ccor din g t o s t a t es / dis t r ict s a r e given in
Annexure - I.
b. Zonewi s e Cl a s s i fi ca t i on of Tea et c. Tea u nit s and t ea
gr owin g r egion s a r e cla s s ified in t o r even u e u n it s a n d
zon es . At p r es en t t h er e a r e t wo zon es . Zon e I in clu d es
Dibr u ga r h , La kh impu r , Sh ibs a ga r , a n d Da r r a n g [exlu din g
Ba r s ola cir cle in Nor t h In dia ] wh ile Zon e II in clu des a ll
ot h er Nor t h In d ia n d is t r ict s exclu d in g Ba r s ola cir cle of
Da r r a n g a n d a ls o Sou t h In dia n dis t r ict s .
12
c. Ar e a -w i s e Di s t r i but i on Tea es t a t es a r e d is t r ib u t ed
accor din g t o t h e var iou s s ize gr ou ps . Nin et y eigh t per cen t
of t h e t ot a l t ea es t a t es belon g t o t h e s ize gr ou p of u pt o
10.12 h ect a r es a n d t h e r ema in in g 2 per cen t fa lls in t h e
s ize grou p of above 10.12 h ect ares . Ou t of t h is s ize grou p,
a s ma n y a s 200 t ea es t a t es h a ve a ver a ge s ize h oldin gs
bet ween 50 t o 100 h ect a r es wh ile a bou t 300 t ea es t a t es
h a ve h oldin g bet ween 100 t o 200 h ect a r es a n d 400 t ea
es t at es are in t he s ize grou p of above 200 t o 400 hect ares .
Mor eover , a lit t le les s t h a n 4 0 0 t ea es t a t es h a ve s ize
h oldin g a bove 400 h ect a r es .
d . Ag e w i s e Cl a s s i f i c a t i on of S t a t e s Bu s h es a r e t h e
a s s et s of t h e t ea es t a t e- own er s a s t h ey p r ovid e gr een
lea ves wh ich a r e t h e ba s ic r a w ma t er ia l for ma de/ gr een
t ea . Th e compos it ion of a s s et s i. e. bu s h es a r e cla s s ified
in t o t h ree age grou ps viz. t en der [below 5 years ], econ omic
[5 - 5 0 yea r s ] a n d old [a b ove 5 0 yea r s ]. On a n a ver a ge,
30 per cen t of t h e t ot a l a r ea u n der t ea con t a in bu s h es
wh ich h a ve a t t a in ed t h e econ omic a ge gr ou p wh ile 65 per
cen t a r e old a ge bu s h es a n d on ly 5 per cen t a r e t en der
bu s hes . As abou t t wo-t hirds of t he t ot al area is covered by
ove r a ge b u s h e s , t h e r e i s a n e e d for r e h a b i l i t a t i on
p r ogr a mmes in t h e for m of n ew p la n t in g [ext en s ion /
r epla n t in g] et c.
i i i . Pri ma ry Ma rk et i ng
Te a b e i n g a p e r i s h a b l e c om m od i t y s h ou l d b e d i s p os e d
off qu ick ly a n d t h e econ omic via b ilit y of t h e t ea in d u s t r y
depen ds cr u cia lly on pr ofit a ble dis pos a l of pr odu ct s . Th er e
are variou s modes of dis pos al of t ea viz. i.e.au ct ion , exfact ory,
a n d for wa r d c on t r a c t . Ab ou t 7 6 p e r c e n t of t ot a l t e a is
d is p os ed off t h r ou gh a u ct ion s wh ile for wa r d con t r a ct a n d
e xga r d e n s a l e s c on s t i t u t e 6 p e r c e n t a n d 1 8 p e r c e n t
r es pect ively. Det a ils of Pr ima r y Ma r ket in g of In dia n Tea is
given in Ta ble-7.
13
Table 7 Primary Marke t ing of Indian Te a
1 9 9 9 2 0 0 0 2 0 0 1
YEAR Qt y. in % t o Tot al Qt y. in % t o Tot al Qt y. in % t o Tot al
Th. kgs Sale s Th. kgs Sale s Th. kgs Sale s
NORTH INDIA
Calcu t t a Au ct ion 87801 14.09 95926 14.97 94482 14.52
Gu wa h a t i Au ct ion 145072 23.28 159427 24.88 137794 21.18
Siligu r i Au ct ion 86789 13.93 79145 12.36 71791 11.03
Amr it s ar Au ct ion 556 0.09 388 0.06 319 0.05
Teaau ct ion ,com 80 0.01 340 0.05
Su b t ot a l Nor t h In dia 320218 51.39 334966 52.28 304726 46.83
Lon don Au ct ion
Tot a l Au ct ion 320218 51.38 334966 52.28 304726 46.83
Expor t u n der FC 32886 5.28 36032 5.62 34145 5.25
Ex-Ga r den Sa le 270155 43.34 269758 42.1 311936 47.92
Tot al Sale 623259 100 640756 100 650807 100.00
SOUTH INDIA
Coch in Au ct ion 59632 29.42 66132 32.08 58995 29.04
Coon oor Au ct ion 79285 39.12 70967 34.42 74555 36.71
Coimbat or e Au ct ion 20262 10 33274 16.14 25118 12.37
Calcu t t a Au ct ion 1371 0.68 2188 1.06 294 0.14
Su b t ot a l Sou t h In dia 160550 79.22 172561 83.7 158962 78.26
Lon don Au ct ion
Tot a l Au ct ion 160550 79.22 172561 83.7 158962 78.26
Expor t u n der FC 5543 2.73 6995 3.39 4850 2.39
Ex-Ga r den Sa le 36583 18.05 26610 12.91 39304 19.35
Tot al Sale 202676 100 206166 100 203116 100.00
ALL INDIA
In dia n Au ct ion 480768 58.32 507527 59.93 463688 54.30
Lon don Au ct ion
Tot a l Au ct ion 480768 58.21 507527 59.93 463688 54.30
Expor t u n der FC 38429 4.65 43027 5.08 38995 4.57
Ex-Ga r den Sa le 306738 37.14 296368 34.99 351240 4113.00
Tot al Sale 8 2 5 9 3 5 1 0 0 8 4 6 9 2 2 1 0 0 8 5 3 9 2 3 1 0 0 . 0 0
Source : Tea Statis tics 2000-2001 is s ued by Tea Board of India, Kolk ata
i v. Exp or t s In dia s expor t s of t ea du r in g t h e la s t 5 deca des
h a ve s h own a flu ct u a t in g t r en d. It is in t er es t in g t o n ot e t h a t
In dia s expor t s of t ea h a s been h over in g a r ou n d 200 m kg.
a n d is exp or t ed t o a b ou t 3 5 cou n t r ies in t h e Wor ld . Th e
qu ant it y export ed from India was redu ced t o 180 million kg in
2001 a s a ga in s t 204 million kg in 2000 bu t va lu e r ea lis a t ion
h a s n ot been r edu ced t o t h a t ext en t beca u s e of equ a l u n it
pr ice [Rs . 89.40 per kg].
Det ails of qu an t it y an d valu e of t ea export s from In dia du rin g
1954-55 t o 2001-02 is given below;-
14
Table 8 : Quant it y and Value of Te a Export s from India
[Exc luding Ins t ant Te a]
Ye ar Quant it y Value Unit Pric e Ye ar Quant it y Value Unit Pric e
Th. Kgs Th. Rs Rs . / Kg Th. Kgs Th. Rs Rs . / Kg
1954-55 208462 1482316 7.11 1954 203195 1307523 6.43
1955-56 183769 1096448 5.97 1955 166708 1136132 6.82
1956-57 233088 1451344 6.23 1956 237484 1428249 6.01
1957-58 191755 1436435 7.49 1957 200786 1233859 6.15
1958-59 217322 1296953 5.97 1958 229503 1365859 5.95
1959-60 215459 1290846 5.99 1959 213680 1260135 5.9
1960-61 196473 1222549 6.22 1960 193063 1199883 6.21
1961-62 205329 1221680 5.95 1961 206292 1242513 6.02
1962-63 220800 1296000 5.87 1962 211826 1235339 5.83
1963-64 209328 1231885 5.88 1963 223542 1323710 5.92
1964-65 212325 1246657 5.87 1964 210523 1249012 5.93
1965-66 197385 1148374 5.82 1965 199365 1149747 5.77
1966-67 190383 1562189 8.21 1966 179205 1565921 8.74
1967-68 203333 1801974 8.86 1967 213676 1890384 8.85
1968-69 200824 1565092 7.79 1968 208440 1664825 7.99
1969-70 174112 1245029 7.15 1969 168709 1205371 7.14
1970-71 199139 1842470 9.25 1970 202016 1487533 7.36
1971-72 214317 1609204 7.51 1971 202052 1536678 7.61
1972-73 193228 1472935 7.62 1972 198195 1511439 7.63
1973-74 190268 1448490 7.61 1973 188192 1427072 7.58
1974-75 225057 2235355 9.93 1974 210583 1927972 9.16
1975-76 211409 2382948 11.27 1975 218128 2446592 11.22
1976-77 242418 2954777 12.19 1976 233611 2731364 11.69
1977-78 221522 5637117 25.45 1977 229637 5416157 23.59
1978-79 177327 3591193 20.25 1978 176051 3628916 20.61
1979-80 208448 3768961 18.08 1979 199639 3618401 18.12
1980-81 231736 4352730 18.78 1980 224026 4290277 19.15
1981-82 224200 4068252 18.15 1981 241246 4342541 18
1982-83 194090 3694482 19.03 1982 189933 3555525 18.72
1983-84 202312 5575549 27.56 1983 208476 5168145 24.79
1984-85 217401 7713889 35.48 1984 217040 7404551 34.12
1985-86 214234 6479796 30.25 1985 214021 6952966 32.49
1986-87 196232 5794783 29.53 1986 203149 5808510 28.59
1987-88 201830 6277688 31.1 1987 201891 6392466 31.66
1988-89 204075 6352799 31.13 1988 200956 6126937 30.49
1989-90 210615 9047231 42.96 1989 211622 8400923 39.7
1990-91 198240 10620939 53.58 1990 209085 11041507 52.81
1991-92 215166 11964625 55.61 1991 201720 11203136 55.54
1992-93 178950 10316425 57.65 1992 173358 9717402 56.05
1993-94 153427 10398935 67.78 1993 173726 11325271 65.19
1994-95 150836 9635458 63.88 1994 149317 9652334 64.64
1995-96 166239 12184298 73.3 1995 167143 11908077 71.24
1996-97 167172 12568167 75.18 1996 160004 12070978 75.44
1997-98 208773 19453207 93.18 1997 200713 17218472 85.79
1998-99 203431 21288720 104.65 1998 207640 22383087 107.8
1999-2000 189837 18672822 98.36 1999 189092 19024369 100.61
2000-2001 200770 18066853 89.99 2000 204353 18270324 89.41
2001-2002 187407 16215897 86.53 2001 179857 16022060 89.08
Source: Tea Statis tics 2000-2001 is s ued by Tea Board of India, Kolk ata
15
v. Int er na l Cons ump t i on In t er n a l con s u mpt ion of t ea gr ew
a ppr ecia bly. It wa s 31 per cen t of t ot a l pr odu ct ion in 1947
which went u p t o 78 per cent of t he t ot al produ ct ion in 2004.
Th u s t h e t a s k b e for e t h e gove r n me n t is t o fix u p t r a d e
p r ior it ies . If t h e p r ior it y is t o ma k e a va ila b le t ea in t h e
domes t ic ma r ket , t h e expor t fr on t is n eglect ed. On t h e ot h er
h a n d , if t h e p r ior it y is t o en s u r e ma ximiza t ion of exp or t
ear n in gs , t h e t ea may n ot be available in t h e in t er n al mar ket
a t r ea s on a ble pr ices .
Th e r e a r e va r i ou s d e m ogr a p h i c , e c on om i c , s oc i a l a n d
ps ych ological fact or s t h at det er min e deman d for a commodit y
like t ea in a developin g econ omy like In dia . In come, pr ices of
t ea and it s s u bs t it u t es and complement s , change in cons u mer
t a s t e, pr efer en ces , popu la t ion , s ocia l s a t is fa ct ion , a n d h ea lt h
a s p ect s a r e s ome of t h e imp or t a n t fa ct or s in t h is r ega r d .
An ot h er fa ct or is u r b a n iza t ion , t h e p a ce of wh ich in t h e
d evelop in g cou n t r ies is ver y r a p id . Th e d et a ils of in t er n a l
con s u mpt ion a r e given below.
Table 9 : Es t imat e s of Int e rnal Cons umpt ion of Te a in India
Ye ar Int e rnal Ac t ual inc re as e Pe rc e nt age
Cons umpt ion or de c re as e [inc re as e or
{in million kg} {in million kg} de c re as e ]
1971 221
1980 340 125 56.56
1981 360 14 4.04
1982 372 12 3.33
1983 386 14 3.76
1984 400 14 3.62
1985 415 15 3.75
1986 431 16 3.85
1987 446 15 3.85
1988 462 16 3.42
1989 480 18 3.58
1990 500 20 5.65
1991 511 11 4. 1
1992 524 13 2.54
1993 537 13 2.48
1994 550 13 2.42
1995 562 12 2.18
1996 580 18 3. 2
1997 597 17 2.93
1998 615 18 3.01
1999 633 18 2.92
2000 653 20 3.14
2001 673 20 3.06
2002 693 20 2.97
Source : Various is s ues of tea Statis tics , Tea Board, Kolk ata
16
vi . Ma j or Ta x e s Tea is a ma jor s ou r ce of r even u e t o t h e
Na t ion a l Exch equ er . Th e ma jor impos t s a r e excis e du t y, ces s
on t ea a s well a s va r iou s Cen t r a l a n d St a t e t a xes like s a les
t a x, en t r y t a x, a gr icu lt u r e in come t a x et c. Pr es en t t a xes a n d
du t ies [Cent ral Levy and St at e Levy] on Tea in India are given
below.
Ce nt ral Le vy
1. Tea Ces s
(a ) 3 0 p a i s e p e r k g on t e a p r od u c e d e xc e p t i n Da r j e e l i n g
Pla n t a t ion Dis t .
(b) 1 2 p a is e p er k g on t ea p r od u ced in Da r jeelin g Pla n t a t ion
dis t r ict .
2. Exc is e Dut y
(a ) Re . 1 p e r k g on t e a i m p os e d on 0 1 . 0 3 . 2 0 0 2 h a s b e e n
abolished w.e.f 01.03.2003. However, an addit ional excise du t y
of Re. 1 / - p er k g h a s b een in t r od u ced w. e. f. 0 1 . 0 3 . 2 0 0 3 for
developmen t pu r pos es .
(b) 16% ad valorem on Ins t ant Tea falling u nder heading 2101.20
3. Export Dut y N I L
4. Import Dut y
(a ) 100% a d va lor em on t ea s fa llin g u n der h ea din g 09.02
(b) 35% on In s t a n t Tea fa llin g u n der h ea din g 2101.20F
(c) 7.5% on t ea s impor t ed u n der In do Sr i La n ka FTA
(d) NIL - wh en imp or t ed for r e- exp or t u n d er Du t y Exemp t ion
Sch eme a n d/ or by EOU/ EPZ/ SEZ u n it s
5. Corporat i on Tax 35% plu s 2% s u r ch a r ge
6. Ce nt ral Sale s Tax
(a ) 2% on t ea s s old a t Kolka t a / Siligu r i/ Coon oor a n d Coimba t or e
Au ct ion s .
(b) NIL on t ea s s old a t Gu wa h a t i Au ct ion .
(c) 4% on ex-ga r den s a le a ga in s t For m - C
(d) 8% on t ea s s old t o u n r egis t er ed dea ler s .
17
St at e Le vy
(A) As s am :
1. As s am Sale s Tax
(a ) 2% on a ll t ea s s old t h r ou gh Gu wa h a t i Au ct ion , Or t h odox
t ea s a r e exempt ed.
(b) 8% on s a les ou t s ide a u ct ion bu t wit h in As s a m.
2. As s am Taxat ion on Specified Land (Amendment ) Act , 1994
(a ) 2 0 p a is a p er Kg on gr een lea f p r od u ced b y p r od u cer s
h a vin g t ea a r ea of 40 h ect a r es .
(b) 3 2 p a is a p er Kg on gr een lea f p r od u ced b y p r od u cer s
h a vin g t ea a r ea a bove 40 h ect a r es in Upper As s a m.
(c) 2 9 p a is a p er Kg on gr een lea f p r od u ced b y p r od u cer s
h avin g t ea area above 40 h ect ares in Cach ar/ Barak valley.
(d) Pr odu cer s h a vin g t ea a r ea u pt o 4 h ect a r es exempt ed.
3. Agric ult ural Inc ome Tax
Upt o Rs . 1 la kh - 40% a n d a bove Rs . 1 la kh - 45%
(B) Wes t Bengal
1 ) Sale s Tax (w. e . f. 0 1 . 0 1 . 2 0 0 0 )
a) Te a s old in Kolkat a or Siliguri Auc t ion
i) Tea s old t o r egis t er ed dea ler for expor t s : Nil
ii) Tea s old t o r egis t er ed dea ler for r e-s a le
in or igin a l for m : 1%
iii) Tea s old t o a n u n r egis t er ed dea ler : 8%
b) Te a s old ot he r t han in Kolkat a or Siliguri Auc t ion
i) Tea s old t o r egis t er ed dea ler for expor t s : Nil
ii) Tea s old t o r egis t er ed dea ler for r e-s a le
in or igin a l for m (For m 13 r equ ir ed) : 1%
iii) Tea s old t o a n u n r egis t er ed dea ler : 8%
18
2 ) Int e r-St at e Sale
i) Tea Pu r ch a s ed in Kolka t a or Siligu r i a u ct ion s
in cou r s e of In t er -St a t e t r a de : 2% CST
ii) Tea s old ex-ga r den in t h e cou r s e of
In t er -St a t e t r a de 4% CST
3 ) Purc has e Tax
Tea pu r ch a s ed for blen din g/ pa ckin g bu t dis pos ed of
ot h er wis e t h a n by wa y of s a le in Wes t Ben ga l : 1%
4 ) Wes t Bengal Rural Employment 12 pais e per kg of green
and Product ion Ces s . leaf produ ced for es t at es
(w.e.f. 01.04.1981) pr odu cin g over 2.5 la kh
kgs of gr een lea f.
5 ) Wes t Bengal Primary Educat ion 4 pa is e per kg of gr een
Ce s s . leaf produ ced for es t at es
(w.e.f. 01.04.1981) pr odu cin g over 2.5 la kh
kgs of gr een lea f.
6 ) Agric ult ure Inc ome Tax 4 5 % b r ou gh t d own t o
30% w.e.f 01.04.2003.
C) Tamil Nadu
1. Sale s Tax
(a ) 4% on s a le t h r ou gh Au ct ion
(b) 8% on s a le t h r ou gh ot h er t h a n Au ct ion
In fr a s t r u ct u r e Su r ch a r ge 5% on Sa les Ta x
2. Int er-St at e Sale 2% on t eas s old in Au ct ion for in t er-s t at e
s a le
(a ) Upt o Rs . 25,000 45%
(b) Above Rs . 25,000 t o Rs . 1 La kh 50%
(c) Above Rs . 1 La kh t o Rs . 3 La kh s 55%
(d) Above Rs . 3 La kh s t o Rs . 10 La kh s 60%
(e) Above Rs . 10 La kh s 65%
19
D) Kerala
1. Sale s Tax (i) Un br a n ded ................ 8%
(ii) Br a n ded ................ 8%
Addit ional Sale s Tax ................ 15%
2. Int e r-St at e Sal e . . . . . 2% on t ea s s old in Au ct ion for in t er -
s t a t e s a le
(a ) Upt o Rs . 25,000 45%
(b) Above Rs . 25,000 t o Rs . 1 La kh 50%
(c) Above Rs . 1 La kh t o Rs . 3 La kh s 55%
(d) Above Rs . 3 La kh s t o Rs . 10 La kh s - 60%
(e) Above Rs . 10 La kh s - 65%
4. Plant at i on Tax [w.e.f. 01.04.2000]
i) Fir s t 5 h ect a r es Nil
ii) Next 3 h ect a r es Rs . 350 per h ect a r e
iii) Next 3 h ect a r es Rs . 500 per h ect a r e
iv) Next 3 h ect a r es Rs . 900 per h ect a r e
v) Upt o 500 h ect a r es Rs . 1500 per h ect a r e.
E) Karnat aka
1. Sale s Tax (i) Un br a n ded ....... 8% - 12%
(ii) Br a n ded .......... 15%
2. Turn Ove r Tax
(a ) Above Rs . 5 la kh s bu t les s t h a n Rs . 5 cr or es - 1%
(b) Above Rs . 5 cr or es bu t les s t h a n Rs . 10 cr or es - 2%
(c) Above Rs . 10 cr or es - 3%
3. Infras t ruc t ure De ve lopme nt Tax 5% on Ta x pa ya ble
20
(a ) Upt o Rs . 1 la kh 30%
(b) Above Rs . 1 lakh t o Rs . 5 lakh Rs . 30,000 plu s 40% of
t h e a mou n t by wh ich t ot a l in come exceeds Rs . 1 la kh
(c) Wh er e t h e t ot a l in come exceeds Rs 5 la kh Rs 190, 00
plu s 40% of t h e a mou n t by wh ich t ot a l in come exceeds
Rs . 5 la kh s .
Source - Various is s ues of Tea Statis tics
Taxe s le vie d in ot he r produc ing St at e s , non-t e a produc ing
St at e s / Union Te rrit orie s
St at e Ce nt ral Sale s St at e Sale s Ot he r Taxe s
Tax Tax
An dh r a Pr a des h 4% 10% CST wit h ou t For m C 10%
Bih a r N.A. 10% Addit ion a l t a x 1%. CST
wit h ou t For m C 10%
Delh i 2% 5.5%
Goa , Da ma n , Diu N.A. 4%
(w.e.f.30.5.95)
Gu ja r a t 4% 8% 12% pa cka ges below 20 kgs ,
8% for pa cka ges a bove 20 kgs
+ Su r ch a r ge 10%, Oct r oi 1%
Ha r ya n a 4% 8% CST wit h ou t For m C 10%
Hima ch a l Pr a des h 4% 7%
Ma dh ya Pr a des h N.A. 8% On loos e t ea a n d 10% on
t ea in Pa cket s
Ma h a r a s h t r a 4% 8% Su r ch a r ge 10%
Megh a la ya 4% 7% Su r ch a r ge 1%
Mizor a m NIL NIL
Na ga la n d 4% 6%
Or is s a 4% 12% En t r y t a x 1%, CST wit h ou t
For m C 12%
Pon dich er y 3% 3%
Pu n ja b 2% 4%
Ra ja s t h a n 4% 4%
Tr ipu r a 4% 8%
Ut t a r Pr a des h 4% 6% Sin gle poin t a n d a ddit ion a l
t a x 2%
Sikkim 4% 8%
Source : Various is s ues of tea Statis tics , Tea Board, Kolk ata
21
vi i . La b o u r Te a p l a n t a t i on i n t h e c ou n t r y p r ovi d e s
emp loymen t op p or t u n it ies t o t h e r u r a l p oor livin g in t h e
r emot es t a r ea s . It is a h igh ly la bou r in t en s ive in du s t r y a n d
en gages maximu m employment per hou s ehold. Labou rers are
emp loyed in t h e t ea in d u s t r y b ot h in field s a n d fa ct or y
op e r a t ion s . Th e y a r e ma in ly r e s id e n t a n d a ls o ou t s id e
wor ker s . Res iden t wor ker s a r e t h e per ma n en t la bou r er s of
t he est at e whereas ou t side workers are t emporary and casu al
la b ou r er s . Bot h r es id en t a n d ou t s id e wor k er s a r e a ga in
divided in t o male, female, ch ildren an d adoles cen t depen din g
u p on t h e n a t u r e of t h e wor k in volved . Pr od u ct ivit y a n d
la bou r per h ect a r e is given below.
Table 1 0 Produc t ivit y and Labour pe r He c t are during 2 0 0 0
(a) Nort h India
St at e Dis t rict No. of Area Prod. Es t . Avg. Lab. Prodn. Prodn.
Es t at es in ha. i n Daily per per per lab.
Th, Kg Labour ha. ha. (kg)
As s am Darran g 829 41037 77030 114629 2.79 1877 672
Goalpar a 249 3460 6297 9508 2.75 1820 662
Kamr u p 54 3442 4302 8918 2.59 1250 482
Dibru garh 21388 93076 163426 197145 2.12 1756 829
Lakh impu r 326 4815 9068 14056 2.92 1883 645
Nowgon g 213 7994 11788 18910 2.37 1475 623
Sibs agar (a) 15735 74807 119978 156825 2.1 1604 765
Kar bi An glon g 143 1869 1945 4512 2.41 1041 431
N. Ca ch a r 8 4004 6179 10320 2.58 1543 599
Cach ar 206 32008 49206 67708 2.12 1537 727
Tot al As s am 3 9 1 5 1 2 6 6 5 2 4 4 9 2 1 9 6 0 2 5 3 1 2 . 2 6 1 6 8 6 7 4 6
Wes t Bengal Da r jeelin g 85 17228 9281 51515 2.99 539 180
Ter a i (b) 910 20548 43291 38420 1.87 2107 1127
Dooars (c) 545 69703 128964 163524 2.35 1850 789
Tot al W. Be ngal 1 5 4 0 1 0 7 4 7 9 1 8 1 5 3 6 2 5 3 4 5 9 2 . 3 6 1 6 8 9 7 1 6
Ot hers Tr ipu r a 292 6623 6431 12105 1.83 971 531
Bih ar 244 1350 538 50 0.04 399 10760
Ut t a r Pr a des h 11 1068 264 387 0.36 247 682
Man ipu r 39 907 96 504 0.56 106 190
Sikkim 74 296 105 392 1.32 355 268
Ar u n a ch a l
Pr ades h 50 2176 993 2086 0.96 456 476
Nagalan d 94 1214 43 228 0.19 35 189
22
Or is s a 1 214 105 279 1.3 491 376
Himach al
Pr ades h 3679 2325 1247 1033 0.44 536 1207
Megh a la ya 15 351 140 239 0.68 399 586
Mizor am 12 391 39 107 0.27 100 364
Ot he rs Tot al 4 5 1 1 1 6 9 1 5 1 0 0 0 1 1 7 4 1 0 1 . 0 3 5 9 1 5 7 4
Nort h India Tot al 4 5 2 0 2 3 9 0 9 0 6 6 4 0 7 5 6 8 7 3 4 0 0 2 . 2 3 1 6 3 9 7 3 4
(b) Sout h India
Tamil Nadu Coimbat or e 52 11764 32831 25281 2.15 2791 1299
Kan yaku mar i 7 434 137 167 0.38 316 820
Madu r ai 6 973 2660 3078 3.16 2734 864
Nilgir is 60549 60427 95194 225440 3.73 1575 422
Tir u n elveli 4 800 990 1814 2.27 1238 546
Tamil Nadu 6 0 6 1 8 7 4 3 9 8 1 3 1 8 1 2 2 5 5 7 8 0 3 . 4 4 1 7 7 2 5 1 5
Kerala Wyn aad 86 5657 12307 12706 2.25 2176 969
Idu kki(d) 4969 26750 51406 58399 2.18 1922 880
Kot t aym 954 840 308 1109 1.32 367 278
Palgh at 33 850 2267 1958 2.3 2667 1158
Qu ilon 104 1348 364 546 0.41 270 667
Tr ich u r 1 530 1896 1539 2.9 3577 1232
Tr iva n dr u m 6 965 399 829 0.86 413 481
Ke rala 6 1 5 3 3 6 9 4 0 6 8 9 4 7 7 7 0 8 6 2 . 0 9 1 8 6 6 8 9 4
Karnat aka Coor g 7 299 687 647 2.16 2298 1062
Ch ickman galu r 29 1428 3521 2531 1.77 2466 1391
Has s an 1 395 1199 611 1.55 3035 1962
Karnat aka 3 7 2 1 2 2 5 4 0 7 3 7 8 9 1 . 7 9 2 5 4 8 1 4 2 7
Sout h India 66808 113460 206166 336655 2.97 1817 612
Tot al All India 112010 504366 846922 1210055 2.4 1679 700
Source : Various is s ues of Tea Statis tics , Tea Board, Kolk ata
(a) Including Mik ir Hills & North Cachar upto 1989 (b) Including Wes t Dinajpur (c) Including Cooch
Behar, (d) Including Ernak ulam
vi i i . De v e l o p m e n t Me a s u r e s To in c r e a s e p r od u c t ion a n d
impr ove qu alit y of t ea, t h er e is a n eed t o adopt var iou s s h or t
t erm and mediu m t erm meas u res . Fu rt her, t ea cu lt ivat ion has
t o b e ext en d ed on a wid er s ca le t o n on - t r a d it ion a l a r ea s
k e e p i n g i n vi e w t h e c l i m a t e s u i t a b i l i t y. Th e e xi s t i n g
ma n u fa ct u r in g ca pa cit y h a s t o be a u gmen t ed for s cien t ific
processing in large est at es. Addit ional provisions may be made
for in n ova t ion a n d mod er n iza t ion of t ea fa ct or ies a n d for
St at e Dis t rict No. of Area Prod. Es t . Avg. Lab. Prodn. Prodn.
Es t at es in ha. i n Daily per per per lab.
Th, Kg Labour ha. ha. (kg)
23
con s t r u ct ion of n ew la bou r h ou s es a n d a n cilla r y bu ildin gs .
Th ou gh t h e major part of t h e in creas e in ou t pu t of t ea comes
fr om t h e la r ge s t e s t a t e s , s oc io- e c on omic c on s id e r a t ion s
n eces s it a t e s pecia l effor t s t o impr ove pr odu ct ivit y a n d in come
of t h e exis t in g la r ge n u mber of s ma ll ga r den u n it s wh ich a r e
common ly ca lled fa mily ga r den s . Th e en t r epr en eu r s of t h e
fa mily ga r d en s a r e r equ ir ed t o b e p r ovid ed wit h fu r t h er
t ech n ical an d fin an cial s u ppor t s on a clu s t er appr oach bas is .
Be s i d e s , c on s t r u c t i on of m od e r n t e a fa c t or i e s i n t h e
coop er a t ive s ect or s , es t a b lis h men t of clon a l mu lt ip lica t ion
cen t r e, for s u pply of impr oved pla n t in g ma t er ia ls , s et t in g u p
demon s t r at ion plot s , ar e s ome of t h e act ivit ies wh ich r equ ir e
t o be s t r en gt h en ed in t h e in t er es t s of s ma ll t ea pla n t er s .
For effect ive a pplica t ion of fin din gs of t ea r es ea r ch , it wou ld
b e n e c e s s a r y t o or ga n i s e a d d i t i on a l s u i t a b l e c ou r s e i n
t ech n ical t r ain in g ver y fr equ en t ly for per s on s employed in t h e
t ea in du s t r y a s well a s for t h os e wh o opt for a ca r eer in t ea
pa r t icu la r ly in n on -t r a dit ion a l a r ea s .
4 . De ve lopme nt of Te a Indus t ry During 1 8 5 0 -2 0 0 2
Developmen t of t ea in du s t r y in In dia ca n be gr ou ped u n der t wo
major per iods . 1. pr e-Five Year Plan per iod [1850-1950] an d 2. Five
Yea r pla n s [1952-2007].
I. Pre -Fi ve Ye ar Pl an Pe ri od [1 8 5 0 -1 9 5 0 ] Th e pr e-Five Yea r
Pla n per iod ma y a ga in be s u b-divided in t o fou r per iods like (a )
per iod of r a pid gr owt h 1850-1890, (b) per iod of s t a bilit y 1890-
1918 (c) in t er wa r per iod 1918-1939 a n d (d) per iod of pr os per it y
1939-1950.
a . The Peri od of Ra p i d Growt h [1 8 5 0 t o 1 8 9 0 ] The growt h
of t he indu st ry was remarkable du ring t his period. Area u nder
t ea wa s on ly 7 5 0 h ect a r es in 1 8 5 2 wh ile it wa s 1 , 5 2 , 0 0 0
h ect a r es in 1890 s h owin g a n a n n u a l a ver a ge gr owt h r a t e of
504 per cen t Simila r ly, pr odu ct ion wa s 97, 000 kg in 1850
a n d 57 million kg in 1890 a ccou n t in g for a n a ver a ge a n n u a l
gr owt h r a t e of 1466 per cen t . Yield wa s 138 kg per h ect a r e
wh ich in cr ea s ed t o 373 kg per h ect a r e. Th e det a ils a r e given
below:
24
It e ms Ye ar Avg.
annual
1 8 5 0 1 8 9 0 growt h
rat e
Ar ea u n der cu lt iva t ion [in Th . h a .] 0.75 152 504
Pr odu ct ion [in million kgs ] 0. 1 57 1466
Aver a ge yield [kg/ h a .] 130 373 5
Source - Various is s ues of Tea Statis tics , Tea Board, Kolk ata
Th e va r iou s fa ct or s r es pon s ible for s u ch pr ogr es s wer e Govt ..
gr a n t s on ea s y t er ms a n d con dit ion s t o t h e pla n t er s , lea s in g
of land t o t he plant ers at a nominal rent , low inves t ment cos t
per acre of lan d varyin g bet ween Rs .40 an d Rs .70, emergen ce
of pr iva t e en t r epr en eu r s in cu lt iva t ion of t ea , a va ila bilit y of
labou r in t h e ear ly year s , for mat ion of In dian Tea As s ociat ion
on Ma y 1 8 , 1 8 8 1 , s p r e a d of t e a c u l t i va t i on i n Govt . .
plant at ion, int rodu ct ion of improved met hod of manu fact u re in
1 8 7 0 [Me c h a n i c a l Rol l e r i n 1 8 7 0 , Dr ye r i n 1 8 7 7 a n d
mech a n ica l p a ck a gin g] for ma t ion of Ca lcu t t a Tea Br ok er s
As s ocia t ioin in 1 8 7 9 , op er a t ion of a d a ily p a d d le s t ea mer
s er vice bet ween Ca lcu t t a a n d Gu wa h a t i in 1883, open in g of
t h e fi r s t r a i l wa y l i n e i n As s a m [J or h a t Pr ovi n c i a l a n d
Dibu r s a dia ] in 1885 a n d es t a blis h men t of t h e Ca lcu t t a Tea
Tr a der s As s ocia t ion .
b. The Peri od of St a bi l i t y [1 8 9 0 t o 1 9 1 8 ] Th e t ea in du s t r y
wit n es s ed a ll r ou n d developmen t bet ween 1890 a n d 1918.
Ar ea in cr ea s ed fr om 152 t h ou s a n d h ect a r es t o 275 t h ou s a n d
h ect a r es [a ver a ge a n n u a l gr owt h r a t e 2 . 9 p er cen t ] wh ile
p r od u ct ion en h a n ced fr om 5 7 m k g t o 1 7 3 m k g [a ver a ge
a n n u a l gr owt h r a t e 7. 3 per cen t ] a n d yields wa s en h a n ced
fr om 3 7 3 k g p er h ect a r e t o 6 9 2 k g p er h ect a r e s h owin g
a ver a ge a n n u a l gr owt h r a t e of 2.5 per cen t .
Det a ils of a r ea , pr odu ct ion , yield du r in g per iods of (i) r a pid
gr owt h a n d (ii) in s t a bilit y a r e s h own below;
It e ms Ye ar % in- Avg.
c re as e annual
ove r growt h
1 8 9 0 1 9 1 8 1 8 9 0 rat e
Ar ea u n der cu lt iva t ion [in Th .h a .] 152 275 80.90 2.90
Pr odu ct ion [in million kgs ] 57 173 203.50 7.30
Aver a ge yield [kg/ h a .] 373 692 68.61 2.50
25
Th e fa ct or s wh ich a cceler a t ed t h e gr owt h of t h e in d u s t r y
d u r in g t h e p er iod wer e ma in ly d evelop men t of t ea in t o a n
indu s t ry in Sou t h India t owards t he end of 1895, format ion of
Un i t e d Pl a n t e r s As s oc i a t i on s of S ou t h In d i a [UPAS I] a t
Coon n oor in 1 8 9 4 a n d ot h er As s ocia t ion s in As s a m a n d
Ben ga l; a ppoin t men t of Dr . Ma n n a s t h e Scien t ific Officer in
t h e labor at or y of t h e In dian Mu s eu m in Calcu t t a t o car r y ou t
Scient ific Research enact ment of Tea Cess Act in 1903 by t he
Govt . . of In d ia t o r a is e fu n d s for t ea p r op a ga n d a a b r oa d ,
imposit ion of a levy of 28 paise per 100 kg of t ea const ru ct ion
of As s am-Ben gal met r e gau ge r ailway lin e in 1910, s et t in g u p
of Scien t ific Depa r t men t in 1909 by UPASI u n der t a kin g t ea
r es ear ch exclu s ively in 1924, s h ift in g of r es ear ch s t at ion fr om
As s a m t o Tockla i in 1911 impor t a n ce of developin g domes t ic
ma r ket for t ea in 1918, dir ect ion of ma kin g pr ovis ion in t h e
In dia Tea Ces s Act for pr opa ga n da in In dia a n d for ma t ion of
In dia n Tea Pla n t er s As s ocia t ion in J a lpa igu r i in 1918.
c. Int er Wa r Peri od [1 9 1 8 t o 1 9 3 9 ] The t ea indu s t ry du ring
t h e in t er wa r per iod exper ien ced ma n y u ps a n d down in it s
gr owt h . Ar ea in cr ea s ed fr om 2 7 5 t h . h a . t o 3 3 7 t h . h a . a n d
pr odu ct ion fr om 173 m kg t o 205 m kg du r in g t h e per iod.
In cr ea s e in pr odu ct ion wa s ma in ly du e t o expa n s ion of a r ea .
Aver a ge a n n u a l r a t e of gr owt h of a r ea wa s 1. 1 per cen t a n d
produ ct ion was 0.9 per cent . There was a decline in yield rat e
by 0.1 per cen t . Th e aver age an n u al r at e of gr owt h of t ea ex-
por t s wa s 0.5 per cen t , wh ile it wa s 2.9 per cen t for in t er n a l
con s u mpt ion an d 1.2 per cen t per h ead an n u al con s u mpt ion .
It e ms Ye ar % in- Avg.
c re as e annual
ove r growt h
1 8 1 8 1 9 3 9 1 9 1 8 rat e
Aver a ge yield [kg/ h a .] 629 610 -3.00 -0.10
Expor t (in million kg) 148 165 11.50 0.50
In t er n a l Con s u mpt ion (in .million Kg) 25 40 60.00 2.90
Per h ea d con s u mpt ion (in million kg) 0. 1 0.13 25.00 1.20
26
Th e wor ldwide depr es s ion of 1929 h ad it s impact on t ea. Tea
market was s o depres s ed t h at it was u n remu n erat ive t o go in
for t e a c u l t i va t i on . To s or t ou t t h e p r ob l e m s t h e fi r s t
Int ernat ional Tea Agreement [ITA] was s igned in 1933 and t he
Tea Con t r ol Act 1933 wa s in t r odu ced. Th e In t er n a t ion a l Tea
Commit t ee [ITC], Tea Ces s Commit t ee 1937, In dia Tea Market
Expa n s ion Boa r d wer e a ls o con s t it u t ed
d . Peri od of Pros p eri t y [1 9 3 9 t o 1 9 5 0 ] Th e ou t break of t h e
Second World war, int rodu ct ion of bu lk pu rchas e s cheme, end
of Br it is h Ru le in In dia , fu r t h er ext en s ion of Tea Agr eemen t ,
cr ea t ion of Cen t r a l Tea Boa r d a n d es t a b lis h men t of n ew
a u ct ion cen t r e a t Coch in wer e t h e ma jor even t s t h a t led t o
t h e p r os p er it y of t h e t ea in d u s t r y. Alt h ou gh t h er e wa s a
declin e in a r ea by 6. 2 per cen t , pr odu ct ion in cr ea s ed by 3. 6
p e r c e n t a n d yi e l d b y 4 4 p e r c e n t . S i m i l a r l y, In t e r n a l
con s u mpt ion in cr ea s ed by 92 per cen t , expor t s by 22 per
cen t a n d per h ea d con s u mpt ion by 64 per cen t . Th e pos it ion
of in t er wa r per iod a n d per iod of pr os per it y is given below:
It e ms Ye ar pe rc e n- Avg.
t age in- annual
1 9 3 9 1 9 5 0 c re as e / growt h
de c re as e rat e
ove r 1 9 3 9
Ar ea u n der cu lt iva t ion [in Th .h a .] 337 316 -6.20 -0.58
Expor t of t ea (in million kg) 165 201 22.00 2.00
In t er n a l Con s u mpt ion (in .million Kg) 40 77 92.00 8.30
Per h ea d con s u mpt ion (in million kg) 0.13 0. 2 64.00 5.80
II Pos t Five Year Plan
a . Fi r s t Fi ve Yea r Pl a n [1 9 5 1 -5 2 t o 1 9 5 5 -5 6 ] Du r in g t h e
Fir s t Pla n p er iod , t h e in d u s t r y d evelop ed ma in ly d u e t o
pa r t icipa t ion of pr iva t e en t r epr en eu r s . Aver a ge a n n u a l r a t e of
gr owt h of a r ea wa s 0. 3 per cen t , pr odu ct ion by 1. 7 per cen t
and yield by 1.4 per cent .The average annu al growt h of export
was 3.9 per cent , u nit valu e by 5.5 per cent and revenu e from
cen t r a l excis e by 14.3 per cen t a n d in t er n a l t ea con s u mpt ion
by 1.6 per cen t .
27
It ems / part iculars Pos it ion as at t he Percent age Avg.
inc re as e annual
commence- end of over growt h
ment of plan Plan on 1 9 5 1 rat e
on 1 . 4 . 1 9 5 1 3 1 . 3 . 1 9 5 6
Ar ea u n der cu lt iva t ion 317 321 1.30 0.30
[in Th .h a .]
Va lu e of expor t of t ea 91 141 54.90 11.00
(in . cr or e Rs ]
Un it va lu e [Rs . per kg] 4.7 6 27.70 5.50
In t er n a l con s u mpt ion 73 97 8.20 1.60
[in million kg]
Reven u e fr om cen t r a l 1.4 2.4 71.40 14.30
excis e [in cr or e Rs ]
b. Second Fi ve Yea r Pl a n [1 9 5 6 -5 7 t o 1 9 6 0 -6 1 ] Alt h ou gh
a ver a ge a n n u a l r a t e of gr owt h of a r ea declin ed by 1. 7 per
cent , produ ct ion and yield were enhanced by 2.9 per cent and
2. 2 per cen t r es pect ively, expor t of t ea declin ed by 2. 4 per
cen t a n d r even u e fr om cen t r a l excis e b y 4 . 8 p er cen t b u t
in t er n a l t ea con s u mpt ion in cr ea s ed by 8.9 per cen t .
It ems / part iculars Pos it ion as at t he Percent age Avg.
inc re as e annual
commence- end of over growt h
ment of plan Plan on 1 9 5 6 rat e
on 1 . 4 . 1 9 5 6 3 1 . 3 . 1 9 6 1
Ar ea u n der cu lt iva t ion 361 331 -8.30 -1.70
[in Th .h a .]
Expor t of t ea (in million kg) 233 205 -12.00 -2.40
Va lu e of expor t of t ea 143 124 -5.30 -3.10
(in cr or e Rs ]
Un it va lu e [Rs . per kg] 6 6 1.50 0.30
Per cen t a ge of for eign 24.5 18.5 -23.80 -4.80
exch a n ge ea r n in gs
[in million kg]
Cen t r a l excis e r even u e 3.2 10.8 237.50 47.50
fr om t ea [in cr or e Rs ]
Source: various is s ues of Tea Statis tics , Tea Board India Calcutta
28
Th e ma jor fa ct or s a ffect ed t h e gr owt h of t ea in du s t r y du r in g
t h e p er iod wer e [1 ] p r eva len ce of lon g la s t in g Su ez Ca n a l
cr is is in 1956 [2] s u bmis s ion of Repor t on Pla n t a t ion In qu ir y
Commis s ion [PIC] t o t h e Govt . . of In dia [3] Is s u a n ce of Tea
Dis t r ibu t ion a n d Expor t Con t r ol or der [TDECR], 1957 [4] Tea
Wa s t e Con t r ol Or der [TWCR], 1959 a n d [5] For ma t ion of Tea
As s ocia t ion of In dia in 1956. Th e lon g pen din g Su ez Ca n a l
cris is had an advers e effect on t ea indu s t ry cau s ing hards hip
in t ran s port in g t ea t o U K i.e. t h e h igh es t bu yer of In dian t ea
a n d t h is r es u lt ed in con s ider a ble s u ffer in g t o t h e in t er es t of
t h e t ea ma n u fa ct u r er s .
Th e s u bmis s ion of t h e Pla n t a t ion In qu ir y Commis s ion r epor t
h a d a pos it ive impa ct on t h e t ea in du s t r y. Th e Commis s ion
made valu able r ecommen dat ion s like [a] r edu ct ion in t h e cos t
of pr odu ct ion [b] br eakin g u p of con cen t r at ion of t ea t r ade [c]
gr a n t of fin a n cia l a s s is t a n ce t o t ea in du s t r y [d] emph a s izin g
t h e n eed for ext en s ion , r ep la cemen t a n d r ep la n t in g in a
phased manner [e] improvement in t ransport at ion [f] promot ion
of t ea expor t s .
The issu ance of TDECR had a posit ive impact on t ea indu st ry.
It s ou gh t t o r e gu l a t e t h e a c t i vi t i e s of e xp or t e r s a n d
d is t r ib u t or s of t ea t h r ou gh a s ys t em of licen cin g. It a ls o
i m p os e d s om e r e s t r i c t i on s on t h e q u a l i t y of t e a t o b e
ob s er ved , b y exp or t er s a n d d is t r ib u t or s . Th e p u r p os e of
in t r odu ct ion of TWCR wa s t o con t r ol a n d r egu la t e Bu yin g,
Sellin g, St ockin g et c. of t ea wa s t e s o t h a t it ma y n ot r ea ch
t h e h an ds of adu lt erat ors t o be u s ed by t h em for adu lt erat in g
t ea for h u ma n con s u mpt ion .
Th e Tea As s ociat ion of India which was s et u p in 1956 aimed
a t pr ot ect in g t h e in t er es t of In dia n t ea gr ower s in Nor t h Ea s t
In dia .
c. Th i r d Fi v e Ye a r Pl a n [1 9 6 1 -6 2 t o 1 9 6 5 -6 6 ] Aver a ge
a n n u a l r a t e of gr owt h of a r ea s t ood a t 1. 2 per cen t wh ile it
wa s 0. 8 per cen t for pr odu ct ion a n d 0. 4 per cen t for yield.
Expor t s of t ea declin ed by 0.8 per cen t a n d for eign exch a n ge
ea r n in gs by 1.1 per cen t . However , in t er n a l t ea con s u mpt ion
in cr ea s ed by 6.3 per cen t a n d cen t r a l excis e by 8.9 per cen t .
29
It ems / part iculars Pos it ion End of Percent age Avg.
as at t he plan in increas e annual
commen- March over growt h
c e me nt of 3 1 . 3 . 1 9 6 6 1 9 6 1 rat e
plan on
1 . 4 . 1 9 6 1
(in cr or e Rs ]
Un it va lu e [Rs .per kg] 6 8.7 45.00 9.00
Per cen t a ge of for eign exch a n ge 18.5 13.5 -5.50 -1.10
ea r n in gs fr om t ea
[in million kg]
Cen t r a l excis e r even u e fr om 10.8 15.6 44.40 8.90
t ea [in cr pr e Rs ]
Th e a ggr es s ion of Ch in a in Oct ob er 1 9 6 2 a n d s u b s equ en t
aggression of Pakist an in 1965 on India creat ed problems for t he
t ea in du s t r y. Th e Ch in es e a ggr es s ion dela yed t h e expor t of t ea
d u e t o h ea vy wa r s u p p lies t o Nor t h Ea s t Region s t o r ep el
Ch in es e a ggr es s ion . Th e wa r cr ea t ed ma jor p r ob lems on e
r ela t in g t o t h e t r a n s p or t a t ion of t ea fr om As s a m va lley a n d
Ca ch a r t o Ca lcu t t a a n d t h e ot h er r ega r din g s u pply of es s en t ia l
r aw mat er ials t o t ea gar den s of t h es e r egion s . Th e s econ d n ot e-
wort hy event which had a pos it ive effect on t he t ea indu s t ry was
t h e es t a blis h men t of a u ct ion cen t r es a t Coon oor in 1963 for
Sou t h Indian t ea and Amrit s ar in Pu njab for Nort h Indian t ea in
1964. Th e per s is t en t declin e in t ea pr ices h a s been a ma t t er of
s er iou s con cer n for t h e t ea expor t in g cou n t r ies . Du r in g 1964
a n d t h er ea ft er , Food a n d Agr icu lt u r a l Or ga n is a t ion [FAO]
in t r odu ced cer t ain in for mal r egu lat or y s ch emes for t ea expor t s .
d . An n u a l Pl a n s [1 9 6 6 -6 7 t o 1 9 6 8 -6 9 ] Aver a ge a n n u a l
gr owt h r a t e wa s 2 . 3 p e r c e n t i n a r e a , 4 . 8 p e r c e n t i n
pr odu ct ion , 2.9 per cen t in yield a n d 10 per cen t in in t er n a l
con s u mpt ion . In J u n e 1966, t h e Govt .. of In dia deva lu ed t h e
In dia n Ru pee for t h e s econ d t ime s in ce In depen den ce a n d
impos ed a h ea vy du t y of Rs . 2/ - per kg on expor t of t ea . As
t h e i mp a c t of d e va l u a t i on on t h e t e a i n d u s t r y wa s n ot
en cou r agin g, t h e Govt .. h ad t o r edu ce t h e r at e of expor t du t y
in November 1966.
30
e. Fourt h Fi ve Yea r Pl a n 1 9 6 9 -7 0 t o 1 9 7 3 -7 4 ] The average
a n n u a l r a t es of gr owt h of a r ea , p r od u ct ion , yield , exp or t ,
in t er n a l con s u mpt ion , cen t r a l excis e, wer e 0. 5 per cen t , 4. 8
per cen t , 4. 2 per cen t , 4. 2 per cen t , 5. 6 per cen t , 40. 6 per
cen t r es pect ively.
It e ms / part ic ulars Pos it ion End of Pe rc e nt age Avg.
as at t he plan in inc re as e annual
c omme n- Marc h ove r growt h
c e me nt of 3 1 . 3 . 1 9 7 4 1 9 6 9 rat e
plan on
1 . 4 . 1 9 6 9
[in Th .h a .]
(in cr or e Rs ]
Un it va lu e [Rs . per kg] 7. 1 9. 2 26.00 5.60
[in million kg]
Cen t r a l excis e r even u e fr om 13.2 40 203.00 40.60
t ea [in cr or e Rs ]
In 1 9 7 3 t h e Govt . . of In d ia p a s s ed t h e For eign Exch a n ge
Regu la t ion Act (FERA) wh ich pr ovided for dilu t in g t h e for eign
equ it y ca pit a l a n d qu icken in g t h e pr oces s of In dia n is a t ion of
t ea in du s t r y.
f. Fi f t h Fi ve Ye a r Pl a n [1 9 7 4 -7 5 t o 1 9 7 8 -7 9 ] Except for
r even u e fr om cen t r a l excis e a n d expor t , [declin e of 0. 5 per
cen t an d 1.8 per cen t ], t h er e was appr eciable in cr eas e by 0.6
per cent for area, 2.2 per cent for produ ct ion, 1.5 per cent for
yield, 5.7 per cen t for in t er n a l con s u mpt ion a n d 9.4 per cen t
for cen t r a l excis e r even u e.
31
c e me nt of 3 1 . 3 . 1 9 7 9 1 9 7 4 rat e
plan on
1 . 4 . 1 9 7 4
[in Th .h a .]
Expor t of t ea (in million kg) 211 200 5.00 -1.80
(in . cr or e Rs ]
Un it va lu e [Rs .per kg] 9.16 18.12 97.00 19.40
Cen t r a l excis e r even u e 40 58.9 47.80 9.40
The overall development of t he t ea indu s t ry was t he combined
effect of va r iou s s t r a t egies a dopt ed by Govt . . of In dia du r in g
t h e Pla n per iod. Th es e a r e a s follows :
1. Set t in g u p of In dian Tea In du s t ry Developmen t As s ociat ion
in 1974 wit h a s eed ca pit a l of Rs . 25/ - la c a cqu ir ed by
wa y of volu n t a r y s u bs cr ipt ion
2. Op en in g of n ew t ea a u ct ion cen t r e a t Siligu r i in 1 9 7 6
helped t he produ cers in t he localit y in redu cing t he cos t of
ma r ket in g a n d a ls o s a vin g t ime a n d a voidin g r is ks .
3. Th e Commit t ee on Tea Ma r ket in g u n der t h e ch a ir ma n s h ip
of Mr . Pr a k a s h Ta n d on t h e t h e n Dir e c t or Ge n e r a l of
Na t ion a l Cou n cil of Applied Econ omic Res ea r ch , Govt . . of
In d i a i n i t s r e p or t h a d m a d e n u m e r ou s va l u a b l e
s u gges t ion s for ma r ket in g of t ea in In dia a n d a br oa d. Th e
Commit t ee for t h e fir s t t ime ca u t ion ed t h a t In dia s h ou ld
n ot go for expor t on ly bu t a ls o ma ke effor t s for impor t of
t ea t o keep In dia s pos it ion in t h e wor ld ma r ket .
4. A meet ing was held on 18 Febru ary 1980 wit h t he officials
of Tea Boa r d , St a t e Tr a d in g Cor p or a t ion , Tea Tr a d in g
Cor p or a t ion of In d ia , Mr Pr a n a b Mu k h er jee, t h e t h en
32
Commer ce Min is t er , Govt . of In dia s t r es s ed t h e n eed for
i n c r e a s i n g c ou n t r ys e xp or t of t r a d i t i on a l a n d n on
t r adit ion al goods . Mr Pr an ab Mu kh er jee r equ es t ed t h e Tea
Boa r d t o t a ke s t eps t o in cr ea s e pr odu ct ion of t ea s o t h a t
t h er e wa s a con s ider a ble s u r plu s a ft er meet in g in t er n a l
con s u mpt ion n eeds .
5. De c i s i on wa s t a k e n for r e vi va l of t h e Da r j e e l i n g t e a
indu s t ry as it was pot ent ially viable t o produ ce 22 m kg of
t ea a n n u a lly.
6. Amen d men t of Imp or t p olicy of t ea b a ggin g ma ch in e.
Howe ve r Govt . of In d i a a m e n d e d t h e i m p or t p ol i c y
gover n in g impor t of t ea ba ggin g ma ch in e fr om Febr u a r y
1 9 8 0 . Imp or t of t ea b a ggin g ma ch in e is a llowed u n d er
Open Gen er a l Licen ce.
g. Si xt h Fi ve Ye a r Pl a n [1 9 8 0 -8 1 t o 1 9 8 4 -8 5 ] Th er e wa s
over a ll in cr ea s e in a r ea [1. 8 per cen t ], pr odu ct ion [2. 8 per
cent ], produ ct ivit y [0.9 per cent ], export s [1.7 per cent ], foreign
exch a n ge ea r n in gs [2. 4 per cen t ] a n d in t er n a l con s u mpt ion
[5.6 per cent ] except for decline in cent ral excis e revenu e from
t ea by -0.8 per cen t .
c e me nt of 3 1 . 3 . 1 9 8 5 1 9 8 0 rat e
plan on
1 . 4 . 1 9 8 0
Ar ea u n der cu lt iva t ion 374 408 9. 1 1. 8
[in Th .h a .]
Pr odu ct ion [in million kgs ] 544 620 14 2. 8
Aver a ge yield [kg/ h a .] 1,455 1,523 407 0. 9
Expor t of t ea (in million kg) 200 217 8. 5 1. 7
Va lu e of expor t of t ea 36.2 771 113 22.6
(in . cr or e Rs ]
Aver a ge per cen t a ge of for eign 5.9 6.6 11.9 2.4
exch a n ge ea r n in gs fr om t ea
[in million kgs ]
Cen t r a l excis e r even u e 58.9 56.7 -3.9 -0.8
33
Du r in g t h e Sixt h Pla n per iod, t h er e wa s over a ll gr owt h of t h e Tea
In du s t r y, wh ich wa s t h e cu mu la t ive effect on va r iou s policies or
s t r a t egies implemen t ed by t h e Govt .. s ome of wh ich a r e a s follows :
1. A Na t ion a l Level meet wa s h eld on 3r d Au gu s t 1981 u n der t h e
ch a ir ma n s h ip of Mr P K Ka u l, t h e t h en Secr et a r y, Min is t r y of
Com m e r c e , Govt . of In d i a , a n d wa s a l s o a t t e n d e d b y t h e
r epr es en t a t ives of Govt . of As s a m, Wes t Ben ga l, Tr ipu r a , Ker a la ,
TamilNadu , Kar n at aka, Himach al Pr ades h an d t h e As s ociat ion of
Tea Produ cers inclu ding s mall t ea growers . Dis cu s s ions were held
on t h e pr es en t a n d fu t u r e pr os pect s of t h e Tea In du s t r y a n d
r ecommen da t ion s ma de for s u bs t a n t ia l r edu ct ion in excis e du t y
r a t es on b ot h b u lk a n d p a ck et t ea , r ed u ct ion in a gr icu lt u r a l
i n c ome t a x r a t e s , e xe mp t i on fr om r u r a l e mp l oyme n t c e s s ,
s u s pen s ion of s a les t a x on a u ct ion s , fu ll cr edit r equ ir emen t s a t
con ces s ion a l r a t es of in t er es t t o t h e Govt . of In dia , St a t e Govt . .
a n d t ea pr odu cer s .
2. Th e RBI h ad con s t it u t ed a Commit t ee u n der t h e ch airman s h ip of
Mr K B Chore, Chief Officer, RBI in Oct ober 1980 t o examine t he
problems relat ing t o t he financing of t ea indu s t ry. The Commit t ee
h a d given a r ecommen ded t h a t t h e t ea in du s t r y wou ld pr ovide
fr om it s own fu n d s a n d lon g t er m r es ou r ces , fu n d equ a l t o
at leas t 25% amou nt of peak deficit . Bes ides , t he cas h credit limit
is t o be fixed on t h e det ailed mon t h ly cas h bu dget for t h e en t ir e
s e a s on . Th e Commit t e e h a d a ls o r e c omme n d e d for p r omp t
liqu ida t ion of a ccu mu la t ed deficit fr om t h e pa s t , wit h in 2 t o 3
year s . Fu r t h er , t h e Ch or e Commit t ee r ecommen dat ion s h ad dealt
a s er iou s blow t o t h e wor kin g of t ea in du s t r y. In a meet in g wit h
Dr Man moh an Sin gh , t h e t h en Govern or of RBI, t h e t ea in du s t ry
r ep r es en t a t ives h a d p oin t ed ou t t h e a d ver s e effect of Ch or e
Commit t ee r ecommen dat ion s . Th e Gover n or as s u r ed t h at n ot h in g
wou ld be don e t o h a r m t h e in du s t r y.
3. Th r ee ma in t ea p r od u cin g cou n t r ies i. e. In d ia , Sr ila n k a a n d
Ken ya h old in for ma l con s u lt a t ion s a t Gen eva in a n effor t t o s or t
ou t t h eir d iffer en ces on in t er n a t ion a l t ea a gr eemen t . Mr V P
Sin gh , t h e t h en Un ion Commer ce Min is t er , GoI, dir ect ed t h e Tea
Boa r d t o gea r u p it s exp or t p r omot ion effor t s s o t h a t it ca n
con t r ib u t e a lion s s h a r e t o t h e cou n t r ys for eign exch a n ge
ea r n in gs . He a ls o a d vis ed t h e Tea Boa r d t o d er ive ma ximu m
pos s ible ben efit fr om pa r t icipa t ion in a n y gen er ic pr omot ion by
t h e exis t in g Tea Cou n cil by s u it a ble modifica t ion s in t h e pa t t er n
of con t r ibu t ion a n d u n ila t er a l pr omot ion of In dia n Tea t h r ou gh
t h e r ole of Tea Boa r d.
34
4. R & D a r e a s for Te a we r e id e n t ifie d b y t h e p r od u c e r s a n d
exp or t er s of t ea a ll over t h e wor ld in clu d in g In d ia . Th e ma in
t h r u s t a r ea s for ca r r yin g ou t R&D wor k t o b oos t ou t p u t a n d
s u s t a in pr odu ct ion in cr ea s e, a r e :
! cr ea t ion of cen t r a l in foma t ion s er vices for t ea in du s t r ies for
t h e wor ld
! a n a l ys i s of b i o- c h e m i s t r y of t e a d u r i n g a n d a ft e r i t s
ma n u fa ct u r e
! Evolvin g pa cka gin g t ech n ology.
5. The Tea Market ing Cont rol Act , 1984 s t ipu lat ed t hat produ cers were
t o s ell a min imu m of 70 per cen t of t ea t h r ou gh pu blic a u ct ion .
Th e Cr a s h Pr ogr a mme for 1 9 8 7 for mu la t ed b y t h e Con s u lt a t ive
Commit t ee of t h e Plan t at ion As s ociat ion en vis aged t h e u t ilis at ion of
in t er n al r es ou r ces for au gmen t in g t ea pr odu ct ion in t h e s h or t t er m.
6. In t h e 25t h An n u a l Gen er a l Meet in g of In dia n Tea As s ocia t ion
h eld on Novemb er 1 9 8 2 , it wa s u r ged u p on b y t h e Govt . t o
in clu de t ea u n der pr ior it y s ect or t o en a ble it t o obt a in fin a n cia l
fa cilit ies a s ext en ded t o ot h er a gr icu lt u r a l commodit ies .
h. Se ve nt h Fi ve Ye a r Pl a n [1 9 8 5 -8 6 t o 1 9 8 9 -9 0 ] Except for
decline in export of t ea by -0.5 per cent and foreign exchange by-
10. 0 per cen t t h er e wa s impr ovemen t in a r ea by 0. 5 per cen t ,
p r od u ct ion b y 3 . 1 p er cen t , yield b y 2 . 5 p er cen t , in t er n a l
cons u m-pt ion by 4.1. per cent and cent ral excis e by 7.8 per cent .
c e me nt of 3 1 . 3 . 1 9 9 0 1 9 8 5 rat e
plan on
1 . 4 . 1 9 8 5
Va lu e of expor t of t ea (in cr or e Rs ] 771 1104 43.20 3.50
Un it va lu e [Rs . per kg] 35.5 52.8 48.70 4.20
Aver a ge per cen t a ge of for eign 6. 6 3. 4 -50.00 -10.00
In t er n a l con s u mpt ion [in million kgs ] 431 500 16.00 4.10
Cen t r a l excis e r even u e fr om t ea 56.7 78.9 38.80 7.80
[in cr or e Rs ]
35
Th e in du s t r y made pr ogr es s du r in g t h e Plan per iod except qu an t u m
of t ea expor t s a n d per cen t a ge of for eign exch a n ge ea r n in gs . Th e
pr ogr es s wa s t h e cu mu la t ive effect s of va r iou s s t r a t egies , policies ,
p r ogr a mmes , et c. , a d op t ed d u r in g t h e Pla n p er iod . Th es e a r e a s
follows :
i. iden t ifica t ion of n ew a r ea s t o be br ou gh t u n der pla n t in g of
t ea / coffee r u b b er a n d ca r d a mom of a b ou t 1 . 7 la c h ect a r e
b es id es t h e p la n t in g of 8 5 0 0 0 h ect . a n d r eju ven a t ion a n d
in fillin g of 1.3 la c h ect . by UPASI.
ii. in it ia t ion of join effor t s of Wes t Ben ga l a n d As s a m t o br in g
mor e a r ea s u n der Tea .
iii. a ppoin t men t of Ven ka t a ch a la m Commit t ee of Tea Au ct ion ,
s u gges t in g modifica t ion of s t ipu la t ion of s ellin g 70% of t ot a l
pr odu ct ion t h r ou gh a u ct ion .
iv. a n n ou n cemen t of n ew ma r k et in g p olicy b y Un ion Govt . .
r ega r d in g a d equ a t e s u p p ly of t ea a t r ea s on a b le p r ices for
domes t ic ma r ket a n d ma ximiza t ion of expor t ea r n in gs fr om
t ea.
v. l a u n c h i n g of m od e r n i za t i on p l a n for We s t Be n ga l Te a
Developmen t Cor por a t ion .
vi. implemen t a t ion of ma jor developmen t pr ogr a mme for As s a m
Tea Cor por a t ion
vii. con ven in g of Tea Scien t is t s Meet fr om a ll over t h e Wor ld a t
Coon oor u n d er t h e a egis of UPASI t o s t u d y t h e imp a ct of
pla n t den s it y & ma n u r in g of s oil gr ou ps in t ea ga r den s .
viii. familiarizat ion of t ea plant ing met hod which inclu des chopping
of t h e old bu s h es at t h e gr ou n d level an d applyin g ch emicals
t o kill t h em.
ix. h oldin g of Tea Fin a n ce Meet .
x. la u n ch in g of expor t ca mpa ign for Da r jeelin g t ea .
xi. for mu la t ion of a compr eh en s ive cr edit pla n t o r evit a lis e t h e
a ilin g t ea in du s t r y in Ka n gr a va lley by St a t e Ba n k of In dia ,
Ka n gr a .
36
xii. s et t in g u p of n ew pr oject s wor t h Rs . 7. 55 cr or e cover in g a n
a r ea of 8000 h ect a r es in Wes t er n Gh a t s in join t s ect or by
Govt . of Ka r n a t a ka .
xiii. es t a b lis h men t of a p er ma n en t cen t r e for d evelop men t of
pla n t a t ion in Ker a la .
xiv. con s t it u t ion of a Ra ma kr is h n a yya Commit t ee t o r eview t h e
wor kin g of Tea Boa r d.
xv. or ga n is in g Na t ion a l Con fer en ce on Tea Pr odu ct ivit y.
xvi. r econ s t it u t ion of Tea Boa r d.
xvii. la u n ch in g of Da r jeelin g logo.
xviii. open in g of min i a u ct ion cen t r es by Ta t a .
xix. s et t in g u p of a commit t ee on a lon g t er m s t r a t egy a n d pla n
for d evelop men t of t ea in d u s t r y. Th e via b ilit y of ch ea p er
packin g mat er ial an d br in gin g Or is s a, Megh alaya, Ar u n ach al
Pr a des h et c. in t h e t ea ma p.
Du r in g t h e Pla n per iod, t h e t ea in du s t r y h a d u n der t a ken va r iou s
developmen t a ct ivit ies wh ich en a bled s t ep u p of pr odu ct ion . Th e
s t r a t egy of r a is in g t ea pr odu ct ion in clu des , s h or t , mediu m a n d lon g
t e r m m e a s u r e s . S h or t t e r m m e a s u r e s i n c l u d e d c u l t u r a l a n d
cu lt iva t ion pr a ct ices , mediu m mea s u r es in cor por a t ed n ew pla n t in g,
r eju ven a t ion , p r u n in g, r ep la n t in g, in fillin g et c. , wh ile lon g t er m
mea s u r es in clu des a t t a in men t of 1100 m kg of t ea in 2000 a n d
ext en s ion of pla n t ed a r ea by a n ot h er 53600 h ect a r es , ca r r yin g ou t
in fillin g of a bou t 38,500 h ect a r e a n d 44600 h ect a r es .
i . Ei gh t h Fi ve Ye a r Pl a n [1 9 9 1 -9 2 t o 1 9 9 5 -9 6 ] Aver a ge
a n n u a l r a t e of gr owt h of pr odu ct ion wa s 1.1 per cen t du e t o
in cr ea s e in a r ea by 0. 6 per cen t a n d yield by 0. 5 per cen t .
Expor t was mar gin ally in cr eas ed by 0.5 per cen t an d in t er n al
con s u mpt ion by 2.3 per cen t a n d cen t r a l r even u e by 1.0 per
cen t .
37
c e me nt 3 1 . 3 . 1 9 9 6 1 9 9 1 rat e
of plan on
1 . 4 . 1 9 9 1
(in . cr or e Rs ]
Aver a ge per cen t a ge of for eign 3.8 3.6 -5.30 -1.00
[in million kgs ]
Cen t r a l excis e r even u e fr om t ea 75.5 79.4 5.20 1.00
[in cr or e Rs ]
j. Ni nt h Fi ve Yea r Pl a n [1 9 9 7 -9 8 t o 2 0 0 1 -2 0 0 2 ] - Alt hou gh are
in cr ea s ed over t h e yea r s b y 1 7 8 p er cen t , b u t p r od u ct ion
impr oved ma r gin a l (les s t h a n 0.4 per cen t ) ma in ly on a ccou n t
of fa ll in pr odu ct ivit y. Expor t wa s mor e or les s equ a l over t h e
yea r s bu t va lu e of expor t s wen t u p beca u s e of impr ovemen t in
u n it valu e (Rs 85.79 t o Rs 87.13 per kg). In t ern al con s u mpt ion
wa s h iked @ 3.24 per cen t a n n u a lly. Det a ils a r e given below;
c e me nt 3 1 . 3 . 2 0 0 2 1 9 8 7 rat e
of plan on
1 . 4 . 1 9 9 7
Aver a ge yield [kg/ h a .] 1865 1620 -13.14 -2.62
(in . cr or e Rs ]
Un it va lu e [Rs . per kg] 86 87 1.56 0.31
Aver a ge per cen t a ge of for eign 4 3 -2.85 -0.57
[in million kgs ]
Cen t r a l excis e r even u e fr om t ea N.A
[in cr or e Rs ]
Source : various is s ues of Tea Statis tics , Tea Board, Kolk ata
38
k . Tent h Fi ve Yea r Pl a ns [2 0 0 2 -0 3 t o 2 0 0 6 -2 0 0 7 ] An n u a l
produ ct ion in 2003 was est imat ed at 846 million Kg compared
t o 826 million kg. in t h e pr eviou s yea r . Expor t h a d declin ed
t o184 million Kgs .
l . Area , Prod uct i on, Yi el d , Exp ort , Va l ue of Exp ort , Qua nt i t y
Sol d , et c. , d ur i ng t he p er i od fr om 1 9 5 0 t o 2 0 0 2 It is
ob s e r ve d fr om t h e d a t a Ta b l e - 1 1 t h a t p r od u c t i on h a d
in cr ea s ed over t h e yea r s exp ect 1 9 9 9 a n d 2 0 0 2 . Th is wa s
ma in ly on a ccou n t of impr ovemen t in yield r a t e. Of cou r s e,
t h er e wa s ma r gin a l in cr ea s e in a r ea . Yield wa s impr oved by
197 per cen t over t h e year wh er eas ar ea by 61 per cen t . Th e
average annu al rat e of growt h of yield was 4.10 per cent while
it wa s 1.28 per cen t in ca s e of a r ea .
Table 1 1 : Are a, Produc t ion, Yie ld, Export s and
Pric e s of Te a during t he pas t 5 de c ade s
Export Auct ion
Year Area Produc- Yield Unit Labour
t ion Qt y. Value price Qt y. Sale No.
pric e
1950 316 278.21 881 200.70 80.42 4.10 113.64 4.23 0.94859
1960 331 312.07 971 193.00 119.99 6.21 173.79 5.28 0.84516
1970 354 418.51 1182 202.00 148.75 7.36 241.31 6.47 0.75964
1980 381 589.17 1494 224.00 429.03 19.15 306.95 13.60 0.84665
1990 416 720.33 1731 209.10 1104.15 52.81 482.25 43.23 0.98678
1991 420 754.19 1794 201.70 1120.31 55.54 501.58 40.31 0.99673
1995 427 756.01 1770 167.10 1190.87 71.24 428.36 47.99 1.02878
1997 434 810.03 1865 202.90 1721.84 85.79 459.02 66.89 1.03226
1998 474 870.40 1844 210.30 2238.31 107.80 442.35 76.43 1.03500
1999 490 826.00 1685 191.70 1902.44 100.61 480.71 72.80 1.03600
2000 504 847.00 1679 206.90 1898.62 91.80 507.53 84.50 1.03700
2001 510 854.00 1675 182.60 1682.11 92.13 463.69 86.70 1.03900
2002 511 826.00 1620 201.00 1753.39 87.13 456.54 88.15 1.03956
Area in t h.kg., Produ ct ion in m.Kg., Yield kg per ha, Sale Qt y in m.kg, , Sale price Rs per kg,,
la bou r in million n u mber
Source : Tea Statis tics , Tea Board, Kolk ata
39
Pa rt Two : Nomencl a t ure a nd Cl a s s i fi ca t i on, Fl ora
Bi ol ogy a nd Embr y ol ogy , Pol l i na t i on,
Ar t i f i c i a l Pol l i na t i on, Ge ne t i c s , De ve -
l o p m e n t i n Pl a n t Im p r o v e m e n t ,
Cl i ma t i c Cond i t i ons f or Te a Gr ow i ng
Di s t ri ct s i n Ind i a
5 . Nome nc lat ure , Clas s ific at ion and Bot any of Te a
i . Nomencl a t ure a nd Cl a s s i fi ca t i on
Tea (ca mellia s in es is (L). O. Ku n t ze) is a h igh ly h et er ozygou s a n d
ou t br eedin g cr op, exh ibit in g gr ea t diver s it y wit h for m a n d s h a pe.
Th e s cien t ific des cr ipt ion as well as n omen clat u r e dat es back t o t h e
ea r ly pa r t of t h e eigh t een t h cen t u r y. Tea pla n t is br oa dly cla s s ified
as Assam, China and Cambodia t ypes. The scient ific nomenclat u re is
a s follows :
A. Th e Ch in a Pla n t : Ca mellia Sin es is (L),
B. Th e As s a m Pla n t : Ca mellia As s a mica (Ma s t on )
C. Th e Ca mbodia pla n t : Ca m e l l i a As s a m i c a s u l s p . l a s i oc a l yx
(Pla n ch . M.S.)
i i . Fl ora Bi ol ogy a nd Embry ol ogy
Th e mor ph ologica l veget a t ive or ga n s of t ea pla n t a r e a ffect ed by t h e
par en t plan t s an d en vir on men t al con dit ion s bu t flor a ch ar act er is t ics
a r e r e l a t i ve l y s t a b l e a n d p r ovi d e r e l i a b l e b a s i s for s p e c i fi c
iden t ifica t ion . Th er e is s ign ifica n t differ en ce in flor a ch a r a ct er is t ics
bet ween Ch in es e an d As s am t ea var iet ies . For example, in len gt h of
st yle and st yle arm; t he nu mber and lengt h of ou t er st amens; size of
in t er pet a ls et c.
a . Pol l i na t i on Tea pla n t s s h owed a n a ppr ecia ble degr ee of s elf
s t er ilit y a n d in va r ia bly s et a bet t er cr op of s eeds wit h pollen
fr om a n ot h er bu s h n ea r ly fou r t imes t h a t of s elf-fed s eeds .
Wit h efficien t cr os s t r an s fer of pollen , mor e t h an 3 per cen t of
t ot a l s eeds for med will be s elf fer t ilized
b. Ar t i f i c i a l Po l l i n a t i on / Ha n d Cr os s Pol l i n a t i on Hea lt h y
flower in g br a n ch es a r e ch os en for a r t ificia l pollin a t ion . To a void
con t a min a t ion , open flower s a n d imma t u r e fr u it s a r e r emoved.
i i i . Genet i cs
a . Cy t o l o g y Ch r omos ome n u mb er is t h e b a s ic cr it er ion for
different iat ion bet ween s pecies . Cyt ological inves t igat ion on t ea
40
s t u d ies t h e s oma t ic ch r omos ome of d iffer en t s p ecies a n d
va r iet ies wh ich s h ows a con s t a n t n u mber (2n = 30).
b. Inbreed i ng Con t in u ou s in br eedin g of a cr os s pollin a t ed cr op
s pecies in cr ea s es h omozygos it y. Homozygou s diploids a r e of
immen s e imp or t a n ce in p la n t imp r ovemen t p a r t icu la r ly in
cr ops like t ea wh er e gen et ic s t u dy is s ca n t y.
c. Comp a t i bi l i t y A s t u dy con du ct ed by TRA, Tockla i r evea led
t hat t he degree of s elf-incompat abilit y was generally prominent
in Ch in a a n d As s a m va r iet ies t h a n in Combodia . Th e in br ed
p r ogen ies in a ll t h e va r iet ies a ls o s h owed s egr ega t ion of
ch ar act er s wit h los s of vigou r wh ich was maximu m for Ch in a
pla n t s .
d . Inheri t a nce Becau s e of n on -availabilit y of h omogen ou s lin es ,
mos t of t h e ch aract eris t ics of t ea are polygen ic in n at u re. Th e
pa t t er n of in h er it a n ce is qu a n t it a t ive. Obs er va t ion s on t h e
in h er i-t a n ce of yield in biclon a l cr os s es s h owed t h a t pos it ive
c or r e l a t i on e xi s t e d b e t we e n me a n yi e l d of p a r e n t s a n d
pr ogen ies in cr os s es in volvin g widely differ en t clon es . Bu t t h e
r ela t ion s h ip br oke down wh en mor ph ologica lly s imila r clon es
a r e u s ed.
6 . De ve lopme nt in Plant Improve me nt
i . Ma s s Se l e c t i on Seeds wer e t h e on ly s ou r ce of pr opa ga t in g t ea
du r in g t h e ea r ly yea r s of t ea cu lt iva t ion . Th e fir s t s cien t ific a t t empt
t o s elect in pu t s in Nort h Eas t In dia was made in 1860 by es t ablis h -
in g s t a n da r d s ou r ces of t ea s eeds . Th e s eeds fr om t h e pa r t icu la r
s eed garden were kn own by t h e n ame of t h at garden or localit y an d
wa s ca lled J AT.
i i . Sel ect i on Cri t eri a for Yi el d In it ial s elect ion was don e bas ed on
vis u al ch aract eris t ics of a plan t like leaf an d bran ch in g pat t ern . Th e
s ize of lea f is dir ect ly pr opor t ion a l t o it s weigh t . Th e yield of a t ea
bu s h is t h e produ ct of t h e n u mber of s h oot s mu lt iplied by weigh t of
in d ivid u a l s h oot s . Fu r t h er , a r ea of p lu ck in g s u r fa ce, d en s it y of
plu ckin g poin t s a n d weigh t of pr u n in gs a r e r es pon s ible for yield.
i i i . S e l e c t i on Cr i t e r i a f or Qua l i t y Th e followin g mor ph ologica l
ch a r a ct er s r ela t ed t o qu a lit y a r e u s ed for s elect ion s :
a . Pubes cence - It is t he amou nt of hair on t he u nder s u rface of
a you n g lea f. It h a s been fou n d t o h a ve a s ign ifica n t r ela t ion
wit h qu a lit y of b la ck or t h od ox t ea in va r iou s p a r t s of t h e
wor ld. However , n o cor r ela t ion cou ld be obs er ved bet ween
pu bes cen ce a n d CTC.
41
b. Col our of Lea f - A bet t er t ea qu a lit y wa s pr odu ced by ligh t
green leaved t ype. For liqu or, colou r and st rengt h, over qu alit y
a n d fla vou r , ligh t lea ved s ect ion s wer e bet t er t h a n da r k lea ve
on es .
c. An a t o m i c a l Ch a r a c t e r - Th r e e fa c t or s wh i c h h a ve a n
in flu en ce on qu a lit y a n d s t r en gt h a r e pu bes cen ce, ph loem
in d ex a n d va s cu la r in d ex. In gen er a l, on ly h igh va lu es of
vas cu lar in dex ar e as s ociat ed wit h t h e des ir able combin at ion s
of big bu s h es wit h h igh yield per u n it of bu s h s u r fa ce a n d
bet t er r es pon s e t o fer t ilizer s .
i v. Cl ona l Vs . Se e d Pr op a ga t i on Th e s eed gr own pla n t s a r e n ot
u n ifor m as t h eir ch ar act er is t ics wer e gover n ed by gen ot ypes of t h eir
pa r en t s a n d s oil con dit ion s . In s ome ca s es , yield a n d qu a lit y wer e
u n pr edict a ble. Bu t , a s t h e pla n t er s wa n t a u n ifor m pla n t a t ion bot h
for mor ph ologica l fea t u r es a n d qu a lit y, t ea pla n t s wer e pr opa ga t ed
veget at ively. Thes e were propagat ed by means of layering, bu dding or
gr a ft in g on r oot s t ocks t o obt a in s eed ga r den s on s elect ed bu s h es .
The st andardizat ion of t he t echniqu e of single leaf int ernode cu t t ings,
pr a ct iced t oda y, t ook a lon g t ime t o be s u cces s fu l.
v. Sel ect i on Proced ures /Cri t eri a In view of t he commercializat ion of
t ea , pla n t in g ma t er ia ls h a ve been developed a n d s elect ed fr om t h e
des ir ed pla n t ma t er ia l. In r ecen t yea r s t h e ext en t of impr ovemen t
h a s b een s lowed d own d u e t o la ck of r elia b le s elect ion cr it er ia .
Va r iou s mor p h op h ys iologica l ma r k et s h a ve a lr ea d y ma r gin a lly
improved for des ired agron omic t rades as t h ey are great ly in flu en ced
b y en vir on men t a l fa ct or s . Select ion ma y b e imp r oved t o a la r ge
ext en t u s in g cyt ologica l, b ioch emica l a n d / or molecu la r ma r k et s
lin ked t o va r iou s des ir a ble a gr on omic ch a r a ct er s . Th e fa ct or s wh ich
con t r ibu t e t o t h e qu a lit y a r e impr oved con t r olla ble pr a ct ices like
field , cu lt u r a l a n d fa ct or y op er a t ion s , t h e gen et ic in p u t , n on -
con t rollable en viron men t al fact ors an d t h eir in t eract ion s wit h gen et ic
fa ct or s .
7 . Agroc limat ic Condit ions of Te a Growing Re gions
In In dia t ea is con cen t r a t ed in t wo widely s epa r a t ed r egion s in t h e
Nor t h Ea s t a n d Sou t h In dia . In a ddit ion , t ea is gr own in a limit ed
a r ea in Ka n gr a (Hima ch a l Pr a des h ) Tr ipu r a a n d Deh r a du n Va lleys
(Ut t t aran ch al). In recen t years t ea h as als o been in t rodu ced in s ome
n on t r adit ion al ar eas like Ar u n ach al Pr ades h , Megh alaya, Nagalan d,
Mizor a m, Ma n ipu r , Sikkim, Or is s a a n d Un divided Bih a r .
42
Nort h Eas t
Tea gr owin g a r ea s in t h is r egion lie b et ween 2 4 d egr ee a n d 2 7
degr ee lat it u de an d 88 degr ee an d 95 degr ee lon git u de. Tea gr owin g
a r e a s c a n b e d i vi d e d a m on g s e ve r a l d i s t i n c t r e gi on s vi z.
Br a h ma pu t r a a n d Ba r a k Va lley in As s a m, Nor t h Ben ga l Pla in s of
Dooa r s a n d Ter a i a s well a s Da r jeelin g Hills . In t h e Br a h ma pu t r a
va lley, t ea is gr own on b ot h t h e b a n k s of t h e r iver on fla t la n d
bet ween 50 a n d 120 m (160 - 400 ft ) a bove Mea n Sea Level (MSL).
In Sou t h In dia, t ea area lies bet ween 8 C an d 13 C on t h e s lopes of
Wes t er n Gh a t mou n t a in s a n d a d join in g p la t ea u s a t eleva t ion s
r a n gin g fr om 8 0 0 t o 2 0 0 0 MSL. Some t ea a r ea s a r e, h owever ,
s it u a t ed a bove or below t h is . Clima t ic con dit ion s of differ en t t ea
dis t r ict s a r e given below :
Table 1 2 : Climat ic Condit ions of Tea Growing Dis t rict s of India
Te a dis t ric t s Loc at ion of Ave rage *We t Range of me an
Me t e oro- Rainfall Mont hs mont hly t e mp.
logic al (mm) (Nos . )
St at ions Max (
0
C) (
0
C)
NORTH EAST INDIA
In clu din g
NORTH OF
WEST BENGAL
As s a m Va lley J or h a t 2642.10 8 32.60 8.30
Ca ch a r Silcoor ie 2994.60 8 32.20 10.60
Dooa r a s Na ga r ka t a 3956.70 7 31.00 10.40
Ter a i Gu n a ga r a m 3178.00 7 32.20 8.90
Da r jeelin g Na gr i Fa r m 2371.70 7 24.90 7.70
Ka n gr a (Hima ch a l) Pa la mpu r 2667.40 8 29.40 4.90
SOUTH INDIA
An n a ma la i Cin ch on a 3686.30 8 29.30 11.50
C. Tr a va n cor e Va n diper iya r 1145.00 5 31.60 13.40
High Ra n ges Mu n n a r 3843.00 7 25.00 5.90
Ka r n a t a ka Du r ga bet t a 2914.00 6 33.90 11.10
Nilgir is Coon oor 1452.00 6 25.40 9.50
Nilgir i Wya n a a d Gu da lu r 1782.00 6 40.00 7.00
Wya n a a d Meppa di 22.30.7 5 32.90 148.00
Source : Global advances of Tea Science - 96,
* w et months : rainfall > 90mm per month.
43
Pa rt Three : Pl a nt i ng a nd Proces s i ng Technol ogy ,
Ma nuri ng, Res ea rch & Devel op ment ,
Thrus t Area of Tea
8 . Field and Proces s ing Technology - The Changing Trends Over
The Years
i . Fi el d Technol ogy Fr om t h e begin n in g, impr ovemen t s in field
cu lt iva t ion pr a ct ices a n d pr oces s in g t ech n ology h a ve been a
dir ect r es u lt of r es ear ch act ivit ies of t h e Tocklai Exper imen t al
St a t ion , J or h a t , As s a m a n d Un it ed Pla n t er s As s ocia t ion of
Sou t h In d ia (UPASI), Tea Res ea r ch In s t it u t e, Ta mil Na d u .
S u b s e q u e n t l y, t h e Cou n c i l of S c i e n t i fi c a n d In d u s t r i a l
Research (CSIR) Inst it u t e of Himalayan Bioresou rce Technology
in Pa la mp u r , Ka n gr a , Hima ch a l Kr is h i Vis h wa Vid ya la y,
As s a m Agr icu lt u r e Un iver s it y, J or h a t , Tea Boa r ds Da r jeelin g
Res earch Cen t re at Ku rs eon g an d Tea Hu s ban dry Depart men t
a t Nor t h Ben ga l Un iver s it y p la yed imp or t a n t r oles in t h is
r ega r d. Fu r t h er , Res ea r ch Cen t r es wer e a ls o s t a r t ed by Ta t a ,
Goodr icke Tea Compa n y et c.
Va r iou s imp or t a n t a gr o- t ech n iqu es d evelop ed in p lu ck in g,
pr u n in g, s h a de, s oil ma n a gemen t wit h emph a s is on dr a in a ge
a n d con s er va t ion h a ve in deed ma de a t r emen dou s impa ct on
in cr ea s e in t ea cr op pr odu ct ion a n d yield.
i i . Ma nuri ng To begin wit h, nit rogen alone was u s ed as fert ilizer
in t ea in t h e for m of a mmon iu m s u lph a t e wh ich t u r n s s oil
h igh ly a cidic in du e cou r s e. Ur ea wa s la t er in t r odu ced. Th e
impor t a n ce of pot a s s iu m a s a key elemen t wa s r ecogn ized
when wides pread pot as s iu m deficiency cau s ed defoliat ion on a
la r ge s ca le. Liber a l a pplica t ion of NPK fer t ilizer h a s in cr ea s ed
t h e u pt a ke of ot h er es s en t ia l micr o-n u t r ien t s fr om t h e s oil.
Th e con cept of ba la n ced n u t r ien t s t o cou n t er a ct deficien cy of
micr o n u t r ien t s wa s in t r od u ced in t ea cu lt iva t ion . Folia r
a pplica t ion of micr o n u t r ien t s s u ch a s zin c, ma n ga n es e is
pr es en t ly don e on a r egu la r ba s is u n der s pecific con dit ion s .
Th e p r olon ged a p p lica t ion of u r ea is lik ely t o exa cer b a t e
s u lph u r deficien cy in t ea plan t s . Su lph u r is likely t o become
a major n u t rien t in fert ilizer s ch edu le. Th e applicat ion of SOA
for long t erm has t u rned t he s oil over acidic and t his is being
r ect ified by t h e a pplica t ion of lime or dolomit ic lime.
44
9 . Re s e arc h and De ve lopme nt
Res ea r ch on t ea h a s con t r ib u t ed ver y s ign ifica n t ly t owa r d s t h e
s cient ific development of t he t ea indu s t ry. Major R&D breakt hrou ghs
provided by Tocklai Experiment al St at ion du ring different periods are
s u mma r ized below :
i . 1 9 5 0 s : Sh a de, N-fer t ilizer s , McTea r s Rot or va n e;
i i . 1 9 6 0 s : Lon ger pr u n in g cycles , ch emica l weed con t r ol, u s e of
or ga n oph os ph a t es , Con t in u ou s Tr a y Dr ier , Ba r bor a s
Fift ie s . Con t in u ou s Le a f Con d it ion e r , c a t c h me n t
pla n n in g;
i i i . 1 9 7 0 s : Dr a i n a ge , K- ma n u r i n g, h e r b i c i d e s , i n fi l l i n g a n d
con s olida t ion , pla n t popu la t ion , Ba r u a Con t in u ou s
Roller , h igh -yieldin g clon es an d h ybr id biclon al s eeds ;
i v. 1 9 8 0 s : Ba la n ced NPK ma n u r in g, s yn t h et ic pyr et h r oids , h igh -
yieldin g clon es an d n ew h ybr id s eeds , opt imu m plan t
p op u la t ion , you n g t ea ma n a gemen t p a ck a ge, Tea
Br ea ker cu m Sepa r a t or , Gr een Lea f St or a ge Sys t em.
v. Tockla i Exper imen t St a t ion on R & D
In recent t imes , Tocklai Experiment al St at ion has been concent rat ing
on t h e followin g r es ea r ch a r ea s :-
a . Breed i ng & s el ect i on : Develop men t of s u p er ior clon es a n d
s eed s t ocks ;
b. Ti s s ue cul t ure : Micr opr opagat ion an d gen et ic en gin eer -
in g;
c. Pruni ng : Reju ven a t ion a n d con s olida t ion , bu s h
a r ch it ect u r e;
d . Pl uck i ng : Mech a n ica l a ids ;
e. Tea p hy s i ol ogy : Phot os ynt hes is , res pirat ory los s , growt h
pr omot er s a n d biogen et ic pa t h wa ys ;
f. Mi crobi ol ogy : Iden t ifica t ion of micr obes a n d r ole of
n u t r ien t met a bolis m, bio-fer t ilis er s ;
g. Nut ri t i on : Need-bas ed s t u dy of macr o an d micr o-
n u t r ien t s ;
45
h. Pes t s a nd d i s ea s es : Bi o- c on t r ol a n d i n t e gr a t e d p e s t
ma n a gemen t s ys t ems ;
i . Tea chemi s t ry : Qu a lit y pa r a met er s , in cr ea s ed cu ppa ge
a n d ph a r ma cokin et ics ; a n d
j. Tea ma nufa ct ure : Mi c r op r oc e s s or b a s e d e l e c t r on i c
mon it orin g an d proces s con t rol s ys t em.
k . Hea l t h a s p ect s of t ea : Helps in a r r es t in g ca r dio a t t a ck, s kin
dis ea s es et c.
Developmen t of Sou t h In dia n Tea h a s been pos s ible du e t o R&D
b r ea k t h r ou gh s a n d a d op t ion of n ew t ech n ologies a t UPASI Tea
Res earch Ins t it u t e. Nu t rit ion of pot as s iu m and zinc, cont rol of blis t er
bligh t by s pecific fu n gicide, con t r ol of s h or t -h ole-bor er , r eju ven a t ion
pr u n in g a n d n o t illa ge r epla n t a t ion et c. a r e s ome of t h e t ime t es t ed
pr a ct ices developed by t h e In s t it u t e. Amon gs t t h e mor e impor t a n t
r ecommen da t ion s of r ecen t or igin a r e r ou t in e h or mon e for mu la t ion s
a n d n u r s er y gr a ft in g of fr es h cu t t in gs , biclon a l s eed s t ock, pa r t ia l
mechanizat ion of harves t ing, leaf expans ion concept in programming,
plu cking int ervals, organic syst emat ic fu ngicides et c. The u se of u lt ra
violet r a ys t o impr ove pr oces s in g qu a lit y is a ma jor br ea k t h r ou gh .
1 0 . Thrus t Area in Tea Res earch
Th e t ea in du s t ry in In dia n eeds an in t egrat ed res earch s t rat egy. Th e
t h r u s t of fu t u r e r es ea r ch s h ou ld be on s pecific t ech n ica l n eeds
wh ich in clu de, (i) Pla n t impr ovemen t , (ii) Pla n t n u t r ien t s , (iii) Wa t er
ma n a gemen t , (iv) Applied ph ys iology, (v) Impr ovemen t of Tea qu a lit y
and flavou r, (vi) Biological cont rol of pest diseases, (vii) Modernizat ion
a n d a u t oma t ion of t ea fa ct or ies a n d (viii) Alt er n a t ive u s es of t ea .
47
Pa rt Four : Ma r k e t i ng s y s t e ms , As p e c t s of Te a
Ma r k e t s , Dome s t i c Ma r k e t , Ex p or t
Ma rk et s , Promot i on
1 1 . Te a Marke t ing Signs of Mat urit y
Sign s of ma t u r it y wer e obs er ved in t h e t ea - ma r ket in g s cen e, wh ich
was , perhaps , part ly du e t o t he effect s of dis int egrat ion of t he former
USSR and part ly t o t he economic liberalizat ion move s t ou t ly pu rs u ed
by t h e t h en Fin a n ce Min is t er , Dr . Ma n moh a n Sin g. Ea r ly glor iou s
per iod of In dia n t ea ma r ket in g wa s r es t r ict ed t o pr odu ct ion of t ea s
on In dia n s oil t o s u it t h e n eeds of Br it is h Blen der s . In dia n t ea -
s ahibs were happy t o s at is fy t he vis it ing agent s , pack t he produ ce in
plywood ch es t s a n d pu t t h em on t o t h e h olds of ves s els s a ilin g for
Lon don Por t . Th e es t a t es wer e la r gely own ed by t h e Br it is h er s (a t
lea s t t h e r ich on es ) a n d t h e a ccou n t a n t s in Lon d on d et er min ed
pr ices . It wa s h a ppy t ime. Bu t , fr a n kly, n o ma r ket in g wa s in volved.
It mer ely s er ved a s commod it y s u p p lier s for b ig b u s in es s . Th is
s it u a t ion con t in u ed for a lon g t ime t h r ou gh in d ep en d en ce. Fir s t
s h ock ca me fr om For eign Exch a n ge Regu la t ion Act (FERA), wh ich
was ren amed as Foreign Exch an ge Man agemen t Act (FEMA). A great
dea l of h es it a t ion r ega r din g per mis s ible s h a r e of for eign h oldin gs ,
la ck of d ecis ion s u s u a lly wit h Govt . of In d ia , led t o s h ift in g of
own er s h ip of ga r d en s . Br it is h p la n t er s wer e los in g in t er es t a n d
s t a r t ed developin g a n a lt er n a t ive s ou r ce of s u pply for wh ich Ken ya
wa s fou n d t o be s u it a ble loca t ion . Th a t is , h owever , a n ot h er s t or y.
1 2 . Los s of London Market
Wit h t h e los s of Lon don ma r ket , for mer USSR a n d Ea s t Eu r opea n
cou n t r ies a p p ea r ed on t h e s cen e, s t r en gt h en ed b y a lon g- t er m
fr ien ds h ip t r ea t y in volvin g r u pee t r a de a gr eemen t . Tea beca me a n
import ant it em in t his pact . Wit hin a s hort t ime, t he s hare of former
USSR an d Eas t Eu ropean cou nt ries s u rpas s ed 50 per cent of Indian
expor t qu a n t u m. So t h e n eed for expor t in g mor e t h a n wh a t In dia
cou ld con ven ien t ly d o wa s n ot s t r on g. However , a n a mb it iou s
pr oject ion of 370 m. kg expor t by t h e t u r n of cen t u r y, kept t h e t ea
in du s t r y bu s y a ll t h e wh ile. Th e s loga n of n eed for expor t in g mor e
va lu e a dded pr odu ct s like pa cket t ea ; t ea ba g a n d in s t a n t t ea wa s
heard from all corners . It was all for increas ing t he foreign exchange
ea r n in gs . Some meek a t t empt s wer e ma de t o popu la r ize In dia n t ea
in for eign ma r ket s by wa y of s u bs idin g a dver t is in g expen dit u r e on
In dia expor t er s for t h eir packs wit h t h e men t ion of In dian t ea on it .
For eign pa cker s wou ld a ls o r eceive s u bs idy if t h ey u s ed a cer t a in
48
per cen t a ge of In dia n t ea in t h eir blen ds a n d a dver t is ed t h a t poin t .
Fu n ds for s u ch a ct ivit y wer e s ma ll a n d mech a n is m of pa ymen t wa s
complica t ed. As a r es u lt , r ea l big t ea ma r ket er s h a r dly ca r ed for
s u ch s ch emes . Bu t yea r a ft er yea r s ome mon ey, wh ich a ppea r ed
la r ge in In dia n con t ext , bu t ch icken feed in t h e con t ext of globa l
oper a t ion s , u s ed t o be dis s ipa t ed. Aft er t h e los s of USSR ma r ket
when export s fell sharply, t here was hardly any scope for t oying wit h
s u ch exper imen t s . Colla bor a t ion wit h globa l oper a t or s , a t t empt s t o
es t a b lis h b r a n d ima ge, r ea lizin g n eed for con s u mer r es ea r ch ,
pr odu ct ion of Bio-t ea an d s pecialt ies et c. gave In dian t ea in du s t r y a
s ma r t a ppea r a n ce Con ver t ibilit y of r u pee a s a pa r t of liber a liza t ion
pla n pr ovided n eces s a r y s u ppor t for t a kin g r igh t s t eps . Deva lu ed
r u p ees h a d p os it ively en cou r a ged la r ger in t er es t fr om gen er a l
cu r r en cy ar eas . In dian t ea was fou n d mor e compet it ive in t h e wor ld
ma r ket s . Br ea kdown of t h e bu yin g s ys t em in CIS cou n t r ies cr ea t ed
s u ch a n impa ct in t h e in t er n a t ion a l t r a de t h a t t h e n or ma l r u les of
d ema n d a n d s u p p ly d id n ot wor k . Exp or t p r oject ion ca lled for
s u bs t a n t ia l effor t s in t h e field of ma r ket in g.
Th is pa r t dea ls wit h ma r ket in g s ys t em of t ea , modes of dis pos a l of
t ea , s even ma r k et in g mod es , p r ima r y ma r k et in g, d evelop men t of
au ct ion cent ers , t ea au ct ion facilit ies , t ea au ct ion s ys t ems , advant age
of a u ct ion s a le, Ta n don Commit t ee on Tea Ma r ket in g, ex-ga r den
s a les , min i-a u ct ion , a u ct ion for blen ded a n d pa cket t ea s . Bes ides ,
effor t s h a ve been ma de t o devot e cr it ica l a n a lys is on n ew a u ct ion
r u les -Ah u ja commit t ee 1981, ma r ket in g of In dia n t ea domes t ic
v/ s export s , u nres t rict ed import of t ea t o allow or not et c. Tea is t he
mos t p op u la r of a ll t h e b ever a ges in t h e wor ld . As t h e la r ges t
or ga n ized s ect or , t ea is on e of t h e oldes t in du s t r ies in In dia a n d
h olds a con s ider a ble pot en t ia l for t h e econ omic developmen t of t h e
cou n t ry. In dia h as t h e larges t area u n der t ea an d is als o t h e larges t
produ cer, consu mer and export er of t ea in t he world. In 2000 Indias
pr odu ct ion was es t imat ed at 950 m kg accou n t in g for 29 per cen t of
world produ ct ion. Tea export from India was abou t 210 m kg, which
r epr es en t s 18 per cen t of wor ld expor t s . In a ddit ion t o con t r ibu t in g
s u b s t a n t i a l l y t o n a t i on a l a n d s t a t e e x- c h e qu e r s d i r e c t l y a n d
in dir ect ly, it is t h e la r ges t s in gle expor t commodit y ea r n in g for eign
exch a n ge.
1 3 . Marke t ing Sys t e m of Te a
Tea bein g a per is h a ble pr odu ct s h ou ld be dis pos ed of a s qu ickly a s
pos s ible. Th e econ omic viabilit y of t ea in du s t r y depen ds cr u cially on
profit able dis pos al of it s produ ct s . The market ing s ys t em of India t ea
49
deals wit h market ing channels and Govt . regu lat ions on t ea disposal.
It refers t o t h e complex s ys t em of in s t it u t ion s an d operat ion s , wh ich
in t er ven e bet ween t h e pr odu cer of t ea on on e h a n d a n d u lt ima t e
con s u mer wh o drin ks h is cu p of t ea, on t h e ot h er h an d. Amon g t h e
a lt er n a t ive mea n s of dis pos a l, t h e pr odu cer ch oos es t h e ch a n n el,
wh ich b r in gs t h e b es t p r ice t o h im wit h in t h e p u r view of Govt .
r e gu l a t i on s . Th e ma r k e t i n g c h a n n e l i n t e a i s t h e p a t h wa y of
movemen t of t ea s t h r ou gh in t er media r ies fr om pr odu ct ion in t h e
garden t o t he hands of t he u lt imat e cons u mers wit hin or ou t s ide t he
cou n t r y. Da s commit t ee in it s s t u d y ea r ly in 1 9 7 4 fou n d t h a t
ma r ket in g of In dia n t ea wa s don e by a t wo s t a ge pr oces s in wh ich
t h e fir s t s t a ge wa s t h e pa s s a ge of In dia n t ea a s a pr ima r y pr odu ct
via t h e va r iou s ch a n n els t o (i) In dia n blen der pa cker s (ii) In dia n
l oos e t e a wh ol e s a l e r s (i i i ) U. K. i mp or t e r s , (i v) r u p e e c ou n t r y
impor t er s , a n d (v) n on -r u pee-n on -U. K. impor t er s over s ea s . In t h e
d ome s t ic ma r k e t , t h e s e c on d s t a ge of t e a ma r k e t in g wa s t wo
compa r t men t a ffa ir s , on e of wh ich wa s t h e ma r ket in g of pa cket s in
In dia by In dia n blen der pa cker s a n d t h e ot h er wa s t h e loos e t ea
ma r ket in g s ys t em.
1 4 . Mode s of Dis pos al
Tea is ma r k et ed a n d ma d e a va ila b le t o t h e con s u mer s in t wo
different forms viz. loos e and packaged. Loos e t ea is not s u bject ed t o
a n y fu r t h er ma jor pr oces s in g a ft er it is pu r ch a s ed a t a u ct ion . It is
s old t o t h e con s u mer r a t h er in t h e s a me con dit ion or in blen ded
for m. It is gen er ally n ot packed in con ven ien t s izes befor e it is s old.
In p a ck et t ea t r a d e, on t h e ot h er h a n d , t ea u n d er goes fu r t h er
pr oces s in g a n d differ en t t ypes of t ea a r e blen ded a n d s old t o t h e
con s u mer s in pa cket s of con ven t ion a l s izes . Th er e a r e ma in ly t h r ee
modes of dis pos a l of t ea viz. a u ct ion , ex-fa ct or y or ex-ga r den a n d
for wa r d con t r a ct . Amon g t h es e t h e pu blic a u ct ion s ys t em pla ys t h e
most import ant role as Tea (market ing) Cont rol Order (1984) specifies
t h a t 75 per cen t of t h e t ot a l ou t pu t of t ea es t a t es s h ou ld be s old
t h r ou gh it . Th e in t er lin ked modes of dis pos a l of In dia n t ea a r e a s
follows (a ) Dir ect con s ign men t t o Lon don a u ct ion , (b) Dir ect s a le by
for wa r d con t r a ct t o over s ea s b u yer s , (c) Con s ign men t t o In d ia n
a u ct ion s , (d) Dir ect ex-fa ct or y s a le t o In dia n bu yer s , (e) Dir ect s a le
by forward con t ract t o Indian bu yers , (e) Direct Market ing (loos e t ea)
in wh oles a le ma r ket s a n d. (g) Self-pa cket in g a n d expor t s of pa cket s
over s ea s . Over a n d a bove, t h er e a r e s ome s a les of In dia n pa cka ged
t ea a br oa d a n d s ma ll s ca le a t t empt s t o s ell pa cka ged t ea in h ome
ma r ket by In dia n pr odu cer s .
50
1 5 . Market ing Models of Tea
Th e s even ma r ket in g modes a r e dis cu s s ed below:
i . Di rect Cons i gnment t o Lond on Auct i on:
Lon d on a u ct ion is t h e old es t a n d p ion eer of in s t it u t ion a l
ma r ket in g of t ea in t h e wor ld. Th ou gh over t h e yea r s , t h e
qu a n t it y of In dia n t ea s en t dir ect ly for a u ct ion t o Lon don is
comin g down , s t ill a good qu a n t it y of qu a lit y In dia n t ea is
s h ipped dir ect ly t o Lon don for s a le.
i i . Di rect Sa l e by Forwa rd Cont ra ct t o Overs ea s Buy ers
Th is p r a ct ice wa s ver y common in t h e fir s t qu a r t er of t h e
pr es en t cen t u r y. La r ge bu yer s in t h e Un it ed Kin gdom or t h e
Eas t n egot iat ed for war d for t h e pu r ch as e of t h e wh ole ou t pu t
of a n es t a t e, or for a pa r t t h er e of, over a per iod of on e yea r
or mor e. Th e even t u a l dis pos a l migh t t a ke ma n y for ms . It
migh t b e s h ip p ed d ir ect t o t h e b u yer s for gen er a l t r a d e
dis t r ibu t ion ; it migh t be t r a n s por t ed in va r yin g qu a n t it ies t o
differ en t pa r t s of t h e wor ld, s ome of it migh t fin d it s wa y t o
Lon don a u ct ion ; it migh t be r et a in ed a t t h e por t of s h ipmen t
t o be blen ded a n d pos s ible pa cket ed t h er e a n d r es h ipped t o
va r iou s con s u min g cou n t r ies .
i i i . Cons i gnment t o Ind i a n Auct i ons
Mos t of t h e t ea pr odu ced in In dia is s old t h r ou gh t h e s even
au ct ion cent ers s it u at ed in different part s of t he cou nt ry. Here
t ea is s old t o t h e bu yer s t h r ou gh br oker s , a middleman , wh o
s ells t ea on beh a lf of t h e gr ower s . Th e t ea is s old t o h igh es t
bidder u n der t h e u s u a l r u les of s a le gover n in g s u ch a u ct ion .
Th e s even a u ct ion cen t er s of t h e cou n t r y a r e Gu wa h a t i,
Kolkat a, Siligu r i, Coch in , Coon oor , Coimbat or e, an d Amr it s ar .
i v. Di rect Ex-fa ct ory Sa l e t o Ind i a n Buy er
By t h is s ys t em t ea is s old in t h e garden it s elf. Th is applies t o
s ales from bou gh t leaf fact ory. Tea produ ced in s u ch fact ories
is mor e r egu la r ly s old ex-fa ct or y t o loca l collect or s or dea ler s
t h r ou gh wh om it pa s s es t o mer ch a n t s , fr om wh om it ma y be
s old in a u ct ion or b y p r iva t e t r ea t y or b e s h ip p ed . Some
es t a t es loca t ed on t h e ma in r oa d s ell t ea r a t h er loos e or in
p a ck et s t o r et a il b u yer s a t t h e fa ct or y d oor , a lt h ou gh t h e
a mou n t is les s . Th is gives a qu ick r et u r n t o t h e ga r den .
51
v. Di rect Sa l e by Forwa rd Cont ra ct t o Ind i a n Buy ers
Bu ye r s a n d s e l l e r s ma k e a c on t r a c t e ve n b e for e t e a i s
produ ced t o s ell it at a fixed price lat er. Th is produ cer h as t o
s ell t h e t ea s t o t h e bu yer s a t t h e a gr eed pr ice, ir r es pect ive of
t h e pr ice of t ea la t er .
vi . Di rect Ma rk et i ng (l oos e t ea ) i n Whol es a l e Ma rk et s
Gr ower s a r e s ellin g t ea d ir ect ly in wh oles a le ou t let in t h e
ma r ket .
vi i . Sel f-p a ck et i ng a nd Exp ort of Pa ck et s Overs ea s
Tea is expor t ed in pa cket for ms fr om t h e ga r den t o differ en t
cou n t r ies of t h e wor ld in compa n ys n a me.
1 6 . Pri ma ry Ma rk et i ng
A det a il of pr ima r y ma r ket in g of t ea du r in g 1980 t o 1999 is given
below:
Table 1 : Primary Marke t ing of Indian Te a During 1 9 8 0 -2 0 0 4
Part ic ulars 1 9 8 0 1 9 9 0 1 9 9 5 2 0 0 4
Qt y (1) Pc (2) Qt y.(1) Pc (2) Qt y.(1) Pc (2) Qt y.(1) Pc (2)
In dian Au ct ion 306.96 53.89 482.25 66.95 428.36 56.66 503.41 52.79
Lon don Au ct ion 31.73 5.57 8.13 1.13 3.31 0.44 3.42 0.36
Sin ga por e Au ct ion
Tot al Au ct ion 338.69 59.46 490.38 68.08 431.66 57.10 506.83 53.13
Expor t u n der 22.29 3.92 25.61 3.55 30.02 3.97 45.31 4.77
for wa r d con t r a ct
Ex-gar den s ale 208.56 36.62 204.35 28.37 294.33 38.93 397.86 42.10
Tot al Produc t i on 5 6 9 . 5 4 1 0 0 . 0 0 7 0 2 . 3 4 1 0 0 . 0 0 7 5 6 . 0 1 1 0 0 . 0 0 9 5 0 . 0 0 1 0 0 . 0 0
Source : Various is s ues of Tea Statis tics , Tea Board, India
Note Quantity in million k gs . (1), Percentage to total s ale (2).
Th e bu yer s a t t h e ot h er en d of ea ch of t h es e ch a n n els a r e n ot dis -
t in ct gr ou ps . Th er e is con s ider able over lap an d in t er mixt u r e amon g
t h em. To des cr ibe t h is in t er lin ka ge t h e bu yer s a r e ca t egor ized in t o
s ever a l ma in t ypes viz. (i) In dia n pa cket er s (ii) In dia n (loos e t ea )
wh ole s eller s , (iii) r u pee cou n t r y bu yer s (iv) U. K. impor t er s / bu yer s
and (v) non-ru pee overs eas import ers . Ou t of Indias t ot al produ ct ion
of 950.00 m kg in 2004, qu a n t it y s old t h r ou gh a u ct ion wa s 506.83
m kg (53. 13 per cen t ), expor t u n der for wa r d con t r a ct 45. 31 m kg
52
(4.77 per cen t ), a n d ex-ga r den s a le 397.86 m kg r epr es en t in g 42.10
per cen t .
1 7 . Development of Auct ion Market in t he World
The firs t organized s ale of t ea t hrou gh au ct ion t ook place at Mincing
La n e in Lon d on . Th e Ea s t In d ia Comp a n y s old it s t ea in In d ia
Hou s e, privat ely t ill 1838 bu t aft er it los t it s mon opoly of t h e In dian
t r a d e, a ll t ea wa s s old in t h e commer cia l s a le- r oom a t Min cin g
La n e. For t h e fir s t five yea r s a ft er 1834 t ea s old a t Min cin g La n e
wa s e xc l u s i ve l y fr om Ch i n a . On 1 0
t h
J a n u a r y 1 8 3 9 t h e fi r s t
commer cia l con s ign men t of In dia n Tea wa s s old in t h e commer cia l
s a ler oom by t h e ea s t In dia Compa n y, wh ich wa s a n even t of gr ea t
impor t a n ce in t h e h is t or y of In dia n t ea . As Sir Per civa l Gr iffit h s in
Th e His t ory of t h e In dian Tea In du s t ry s aid, Th e firs t import an ce of
t ea fr om t h e Br it is h t er r it or ies in As s a m, con s is t in g of eigh t ch es t s ,
con t a in in g a b ou t 3 5 0 p ou n d s , wa s p u t u p b y t h e Ea s t In d ia n
Company in pu blic sale in t he commercial sale rooms, Mincing Lane,
on t he 10
th
J anu ary, 1839 and excit ed mu ch cu riosit y. This was t he
fir s t au ct ion of In dian Tea. Th e fir s t In dian Tea Au ct ion Cen t er was
es t ablis h ed in Kolkat a on 27
th
December 1861. Kolkat a Tea Brokers
as s ociat ion at firs t condu ct ed t he au ct ion. Since 1947, au ct ions have
been held in Kolkat a u nder t he au s pices at t he Calcu t t a Tea Traders
As s ocia t ion (CTTA). Th er e a r e 13 a u ct ion cen t er s in t h e wor ld a t
pr es en t ou t of wh ich s even a r e in In dia . Ta ble - 2 s h ows t h e da t es
of es t a blis h men t of t h e t ea a u ct ion cen t er s of In dia
Table 2 : Te a Auc t ion Ce nt e rs of India
Sl. No. Name of t he auc t ion c e nt e r Dat e of e s t ablis hme nt
1 Amr it s a r 30
t h
Apr il, 1964
2 Ca lcu t t a 27
t h
December , 1861
3 Coch in 4
t h
J u ly, 1947
4 Coimba t or e 22
n d
November , 1980
5 Coon oor 23
rd
Ma r ch , 1963
6 Gu wa h a t i 25
t h
Sept ember , 1970
7 Siligu r i 26
t h
Oct ober , 1976
1 8 . Auc t ion Ce nt re s of Abroad
Au ct ion mar ket in Colombo s t ar t ed on 30
th
J u ly 1883 for Sr i Lan ka
t ea . Ch it t a gon g a u ct ion cen t er wa s es t a blis h ed on 16 J u ly 1949 t o
53
deal in t eas of t h en Eas t Pakis t an , n ow Ban glades h . Nairobi au ct ion
mar ket began s ale on 7 November 1956 for t h e s ale of Afr ican t eas .
Na ir obi a u ct ion ma r ket h a s s in ce moved t o Momba s s a on 14 J u ly
1959. Befor e t h e Wa r , Ams t er da m wa s a n impor t a n t a u ct ion cen t er
for In don es ian t ea. Sale ceas ed in t h at au ct ion cen t er in Apr il 1940
bu t wa s r es u med in J a n u a r y 1949 a n d t h en a ga in s u s pen ded in
J u ly 1958. Au ct ion s a le wa s in a u gu r a t ed in An t wer p in 1959 a n d
la t er s u s pen ded in 1966. In 1960 a u ct ion s t a r t ed in Ha mbu r g a n d
s u s pen ded in 1965. Th es e t wo a u ct ion cen t er s h a n dled In don es ia n
t ea . Limbo a u ct ion ma r ket s t a r t ed oper a t ion in Febr u a r y 1970 a n d
Djakar t a au ct ion on 11 December 1972. Th u s wh ile Lon don au ct ion
mar ket is cos mopolit an in n at u r e, ot h er mar ket s h an dle t ea of t h e
loca l pr odu cer s .
1 9 . Te a Auc t ion Fac ilit ie s
Th e a u ct ion fa cilit a t es dis t r ibu t ion of t h e la r ges t qu a n t it ies of t h e
pr odu ct in t h e s h or t es t pos s ible t ime, in cr ea s es compet it ion a mon g
bu yer s a n d s eller s beca u s e of t h e con cen t r a t ion of t h e fa ct or s of
s u pply a n d dema n d u n der on e r oof, impr oves gr a din g a n d pa ckin g,
offer s a d va n t a ges t o t h e b u yer s in fin d in g qu ick ly t h e t yp e a n d
qu a n t it y h e wa n t s a n d ext en s ion of cr edit t o bu yer s by fin a n cia l
in s t it u t ion s . Th e a u ct ion s er ves , t h e bu yer s by en a blin g t h em t o
pu r ch a s e t ea of a mu ch br oa der va r iet y t h a n t h ey wou ld ot h er wis e
be able t o, moving from garden t o garden individu ally. The consu mer
deman ds cer t ain s t an dar dizat ion in t ea blen ds . Th is is an ext r emely
delica t e oper a t ion a s t h e qu a lit y of t ea ma n u fa ct u r ed da y t o da y of
differ en t t ea es t at es ver y gr eat ly. To ach ieve t h is s t an dar dizat ion t h e
a u ct ion s a llow t h e blen der s t o ma t ch t ea s fr om a ll over In dia wit h
t h eir blen ds . Bu yer s a r e a ffor ded t h e wides t ch oice t o fu lfill t h eir
pa r t icu la r r equ ir emen t s , be t h ey for expor t s , wh oles a le, r et a il or
blen din g, wh ile t h e s eller s ar e pr ovided a plat for m for at t r act in g t h e
wides t range of market t hrou gh nu merou s bu yers , bot h int ernal and
export . No ot her commodit y of s u ch a varied qu alit y can be dis pos ed
of in s o s h or t a t ime.
2 0 . Te a Auc t ion Sys t e m
It h as oft en been claimed t h at t h e t ea au ct ion s ys t em h as wit h s t ood
t h e t es t of t ime. Th e a u ct ion s h a ve been fou n d a ccept a ble by bot h
s ellers an d bu yers an d h ave t h e approval of t h e govern men t as well.
Th e a u ct ion s pr ovide t h e pr odu cer s a r ea dy a n d r elia ble mea n s of
s ellin g t h eir pr odu ce. A n ew en t r a n t , t h a n ks t o t h e a u ct ion s ys t em,
does n ot h a ve t o n eces s a r ily wor r y a bou t ma r ket in g h is pr odu ct ion .
54
Th is is n ot t h e ca s e wit h ot h er p r od u ct s wh er e ma r k et in g is a n
es s en t ia l in p u t . Th e t ea in d u s t r y h a s a t t r a ct ed ma n y in ves t or s
b eca u s e it is in b u s in es s s t r a igh t a wa y, wit h ou t s ea r ch in g for
ma r ket s . Th e pr odu cer s r eceive t h e s a le pr oceeds t imely, 14 da ys
a ft er t h e s a le, t h r ou gh a well es t a blis h ed, s ys t em of pr ompt s . Th e
bu yer s h a ve fou n d t h e a u ct ion s ben eficia l a s t h ey ca n n ot on ly bu y
a t a cen t r a l poin t bu t ca n wa t ch t h e oper a t ion of t h eir compet it or s .
Th ey do n ot h a ve t o go fr om door t o door for t h eir r equ ir emen t s .
Even for p r iva t e t r a n s a ct ion s a u ct ion s a r e t h e b a r omet er . Th e
b r ok er s h a ve b een a b le t o evolve a n effect ive s ys t em wh er eb y
services are efficient ly provided t o bot h bu yers and sellers. They have
been pr ovidin g ma r ket in t elligen ce, ma n u fa ct u r in g a n d a gr icu lt u r a l
advice t o t h e pr odu cer s an d h ave r egu lar ly compiled u s efu l dat a for
t h e t ea in du s t r y, in clu din g s t a t is t ica l in for ma t ion . However , a s t h e
cou n t d own t o t h e 2 1
s t
cen t u r y b egin s , t h er e a p p ea r t o b e s ome
cr a cks in t h e s ys t em. Mor e a n d mor e pr odu cer s a r e goin g in for
direct market in g, by pas s in g t h e au ct ion s ys t em. Th is t ren d is likely
t o con t in u e, a s pr odu cer s wou ld like t o exer cis e per s on a l con t r ol
over t h eir pr odu ct ion . Th e major bu yer s h ave s u ppor t ed t h e au ct ion
s ys t em in pa s t . Th e for mer USSR bou gh t t h e bu lk of it s qu a n t it y
t hrou gh t he au ct ions bu t t he dis int egrat ion of t he former Ru s s ia has
mea n t a ch a n ge in t h eir b u yin g p olicies a n d p u r ch a s es for t h e
Ru s s i a n Fe d e r a t i on a n d CIS c ou n t r i e s t od a y a r e b e i n g d on e
s u bs t an t ially t h rou gh privat e s ales . Similarly ot h er bu yers , t o s ecu re
qu an t it ies , ar e bu yin g t eas pr ivat ely. In fact , t h e main s u ppor t er s of
Darjeeling t ea have s hown a clear preference for privat e s ales du ring
qu alit y periods . Th e Tea Market in g Con t rol Order of 1984 pres cribes
t hat t he produ cers mu s t s ell 75 per cent of t heir produ ct ion t hrou gh
s even recogn ized au ct ion cen t ers of In dia-Gu wah at i, Siligu ri, Coch in ,
Coon oor , Coimba t or e a n d Amr it s a r . Th is or der , h owever , h a s n o
t eet h a n d, in a n y ca s e, it is wit h dr a wn a s In dia moved t owa r ds a
fr ee econ omy.
2 1 . Advant age of Auc t ion Sale
Tea a u ct ion cen t er collect s s u pplies of t ea s fr om a la r ge n u mber of
go- d own s a n d c a n a lize s t h e m in t o ma n y a r e a s of t h e h igh e s t
d ema n d s p r ea d a ll over t h e wor ld . As a mech a n is m of s a le, t h e
ou t s t a n din g vir t u e of t h e a u ct ion is in t egr it y-t h e s ellin g a n d bu yin g
a r e don e pu blicly. Th e a u ct ion is econ omic ga ps of mon ey t o t h e
s eller . As Gor a dia obs er ves , t h e a u ct ion cen t er is a meet in g pla ce,
wh ere u p t o 1000 garden s meet s ome 1000 bu yers t o t rade 3000 t o
5000 lot s of t ea ever y week, in t h e cou r s e of on ly 20 h ou r s . Th e
pres ent s ys t em of s elling t ea in au ct ions t hrou gh brokers , are s elling
55
s a mples t o bu yer s a n d pr in t in g in for ma t ion ca t a logu e or igin a t ed in
London. The s ame s ys t em, t herefore, have been adopt ed in ot her t ea
a u ct ion cen t er s a ls o. Th e a u ct ion mech a n is m h a s s ome d efin it e
a d va n t a ges : (i) t h e p r od u cer s is a s s u r ed of t h e fa ir p r ice on t h e
p r eva ilin g ma r k et , (ii) a s s u r a n ce of con t in u a l flow of s a le t o t h e
pr odu cer s wit h ou t fea r of a bu ildu p in u n s old s t ocks wh ich ma y
h a ppen in ca s e of ot h er s ellin g modes in t imes of r eces s ion (iii) n o
pr oblem of bid collect ion a s pa ymen t is a u t oma t ica lly collect ed on
t h e 1 4
t h
d a y (iv) t h e p u s h in g n a t u r e of b id d in g in t ea a u ct ion
impr oves pr ice a n d h elps in ma in t a in in g a s imila r pr ice level for
compa r a ble lot s of t ea (v) fr ee s a mplin g, wh ich cos t s les s t h a n 2
per cen t , is a veh icle of s a les pr omot ion idea l for a commodit y of
s u ch variet y (vi) as t h e au ct ion t akes place pu blicit y, t h e in t egrit y of
s a le in implicit t o a pr odu cer r ega r dles s of h is s it u a t ion fr om t h e
a u ct ion cen t er or u n fa milia r it y wit h mech a n ics of t r a din g.
2 2 . Tandon Commit t e e on Marke t ing
Th u s t h e s ys t em of t ea au ct ion s , wh ich is mor e t h an a cen t u r y old.
In s p i t e of vi e ws oc c a s i on a l l y e xp r e s s e d t o t h e c on t r a r y, a l l
commit t ees a n d commis s ion s s et u p in In d ia a n d a b r oa d h a ve
r ecommen ded t h e con t in u a t ion of t h e a u ct ion s ys t em a s t h e mos t
efficien t met h od of dis pos a l of bu lk commodit y like t ea . Th e la s t
commit t ee t o exa min e t h e a u ct ion s ys t em in In dia wa s t h e Ta n don
commit t ee, wh ich s u bmit t ed it s r epor t in November 1978. Aft er ver y
ca r efu l exa min a t ion of a ll a s p ect s of t h e ma t t er t h e commit t ee
c on fi r me d t h e n e e d t o a l l ow a u c t i on s t o p r ogr e s s fr e e l y. Th e
c ommi t t e e a l s o r e c omme n d e d t h a t e ffor t s s h ou l d b e ma d e t o
in t r odu ce in differ en t a u ct ion cen t er s u s efu l pr a ct ices followed in
ot h er au ct ion cen t er s an d t o ach ieve u n ifor mit y in r u les in differ en t
a u ct ion cen t er s a s fa r a s pos s ible.
2 3 . Ex-garde n Sale
Th e Tea Boa r d con s t it u t ed a commit t ee t o exa min e t h e r ole of min i
a u ct ion a n d r ecommen d ed t h a t exp er imen t s t o b e wa t ch ed a n d
modu s -opa r a n di a n d t h eir impa ct on t ea t r a de s h ou ld be ca r efu lly
e xa m i n e d t o d e c i d e t h e a d va n t a ge s a n d d i s a d va n t a ge s . Th e
commit t ee clearly en vis aged t h e pos s ibilit y of Min i Au ct ion as s u min g
b i gge r r ol e i n c omi n g ye a r s . Wh a t i s mor e r e ma r k a b l e i s t h e
commit t ee did not decry ex-garden s ale and t ook a cert ain port ion of
t ea s p r od u ced b ein g s old a t ex- ga r d en a s a fa it a ccomp li a n d
in dis pen s a ble fr om t h e poin t of view of pr odu ct s , pa r t icu la r ly t h e
weaker s ect ion . Th e n eed for ex-garden s ale aros e from t h e common
wis d om of n ot p u t t in g a ll t h e eggs in t h e s a me b a s k et , wh ich
56
in evit a bly r edu ce pr ice. Mor eover , h a vin g s ome volu me of ex-ga r den
s a le is a ls o imp or t a n t for ma in t a in in g a s a t is fa ct or y ca s h flow
pos it ion s in ce t h e s a le t h r ou gh a u ct ion s it t a kes 3 t o 6 mon t h s for
t h e s eller s t o r eceive t h e s a le pr oceeds . In t h is ba ck-gr ou n d t h e
s t ipu lat ion u n der t h e Tea Mar ket in g Con t r ol or der 1984 t h at 70 per
cen t of cr op in 1 9 8 4 a n d 7 5 p er cen t of cr op in 1 9 8 5 on wa r d s
s h ou ld be s old t h r ou gh pu blic a u ct ion s in In dia h a s been ca u s in g
s er iou s fin a n cia l pr oblems for t h e pr odu ct s a pa r t fr om r edu cin g t h e
pr ices r ea lized a t a u ct ion s . St ipu la t ion of min imu m of cr op for s a le
t hrou gh au ct ions in India was held good for t wo years i.e, 1985 and
1986 bu t for m 1987 on wa r ds , t h e pr opor t ion s t a r t ed declin in g.
Th is wa s du e t o con s ider a ble dela y in s a le t h r ou gh a u ct ion s on t h e
on e h an d an d r edu ct ion in pr ices as a r es u lt of t oo mu ch t ea bein g
a va ila ble a t a u ct ion s , on t h e ot h er . Th e exis t in g a u ct ion s will a ls o
fin d it ext r emely difficu lt t o h a n dle t h e la r gely in cr ea s ed volu me of
t ea s moot h ly a n d pr ompt ly u n les s t h eir fa cilit ies a r e a u gmen t ed. It
is , t h er efor e, pr oved t h a t ot h er met h od of dis pos a l of t ea s h ou ld be
a llowed t o pla y a gr owin g r ole.
2 4 . Mini Auct ion
Ta t a , wh ich or ga n ized min i a u ct ion , filled t h e ga p t o s ome ext en t . It
s h ou ld be en cou r aged. Simu lt an eou s ly ex-gar den s ale, wh ich in 1995
a n d 2004 a ccou n t ed for 38. 93 per cen t a n d 42. 04 per cen t t o t ot a l
produ ct ion, s hou ld be allowed t o cont inu e and if neces s ary t o increas e
depen din g on cir cu ms t a n ces s o t h a t pr odu cer s ma y r eceive t h e bes t
p os s ib le p r ices for t h eir p r od u ce a n d s a le p r oceed s ma y a ls o b e
r eceived a s ea r ly a s pos s ible wh ich is es s en t ia l in view of t h eir t igh t
ca s h - flow p os it ion . Th e qu a n t it y s old t h r ou gh a u ct ion in 2 0 0 4
con s t it u t ed 5 3 . 1 3 p er cen t of t ot a l cr op . Over t h e yea r s , t h e s a le
t h r ou gh pu blic au ct ion in per cen t age t er ms s t ar t ed flu ct u at in g an d it
cou ld be a ble t o h a n dle 45 per cen t of t h e cr op in immedia t e fu t u r e
a n d s t ill lower pr opor t ion in t h e followin g yea r s . As a r es u lt , a bigger
role will be played by mini-au ct ions , London au ct ions , ex-garden s ales
a s well a s C a n d F Expor t . An y dogma t ic in s is t en ce on in cr ea s in g
s a les t h r ou gh p u b lic a u ct ion s in In d ia wit h ou t con s id er in g t h e
capacit y of t h e au ct ion cen t er s on t h e on e h an d an d effect s of s u ch a
policy on t ea pr ices a n d fin a n cia l pos it ion of t ea pr odu cer s , on t h e
ot h er h a n d, will on ly cr ea t e u t t er con fu s ion in t h e t ea in du s t r y a n d
t r a d e a n d a n i n e vi t a b l e s l u mp i n t e a p r i c e s . Mi n i a u c t i on s i n
pa r t icu la r h a ve a big r ole t o pla y a s a met h od, wh ich lies in bet ween
pu blic a u ct ion a n d ex-ga r den s a le. Tea Boa r d h a d dr a wn u p a s et of
model r u les t o gover n , t h es e min i-a u ct ion s o a s t o r emove t h e s cope
for u n der in voicin g a n d evils a s s ocia t ed wit h pu blic a u ct ion s .
57
2 5 . Auc t ion for Ble nde d and Pac ke t Te as
Th er e is a n eed for ot h er in n ova t ive a p p r oa ch es . Au ct ion in g of
blen ded t ea s a n d pa cket ed t ea s wou ld be on e s u ch a ppr oa ch . It
s h ou l d c ove r n ot on l y t e a s b l e n d e d a n d or p a c k e t e d b y t e a
pr odu cer s bu t als o t eas blen ded an d or packet ed by bu yer s of loos e
t ea . In fa ct t r a d er s r a t h er t h a n p r od u cer s ma y t a k e t h e lea d in
or ga n izin g a u ct ion s of blen ded a n d pa cket ed t ea s , wh ich ma y be
pu r ch a s ed by s econ d s t a ge t r a der s for eit h er domes t ic con s u mpt ion
or export . On immediat e beneficiary effect of t his approach wou ld be
elimin a t ion of t h e oligopa lis t ic h old on t h e ma t t er for pa cker t ea s
en joyed by few pa cker s wit h con s equ en t r edu ct ion in pr ices for t h e
u lt imat ely con s u mer s wh o h ave t o pay exor bit an t pr ices for t h e t eas
pu rchas ed by t hem becau s e of high profit margin enjoyed by t raders
a t differ en t levels of dis t r ibu t ion ch a n n els a n d do n ot get a n y r elief
even when au ct ion prices decline. Table 3 indicat es t he percent age of
offer in gs t h r ou gh a u ct ion s s in ce 1990.
Table 3 : Product ion and Sales of Tea
(Quant it y in million kgs )
Ye ar Produc t ion Sold t hrough auc t ions Pe r c e nt s old in auc t ions
1900 89.60 24.60 27.45
1910 119.60 34.50 28.85
1920 156.60 37.50 23.96
1930 177.40 42.00 23.67
1940 210.40 45.20 21.48
1950 275.50 113.60 41.23
1960 321.10 173.80 54.13
1970 418.50 241.30 57.66
1980 569.20 307.00 53.93
1985 656.20 505.30 77.00
1986 620.80 468.40 75.45
1987 674.30 472.50 70.07
1988 701.10 504.40 71.96
1989 684.10 477.40 69.78
1990 702.34 474.00 65.80
1991 754.20 501.20 66.45
1992 732.30 448.00 61.18
1993 760.80 441.70 58.06
1994 752.90 428.30 56.89
1995 756.90 428.40 56.66
1996 780.00 427.30 56.52
1997 810.60 442.20 56.99
1998 870.40 454.70 52.24
1999 880.20 464.70 52.79
2000 900.20 476.10 52.89
2004 950.00 506.83 53.13
58
Th e t ea ma r ket con t r ol or der ca me in t o for ce fr om 19
t h
Apr il 1984.
It will be s een fr om t h e da t a t h a t qu a n t it y of offer in gs wen t u p t o
1991. It however, showed st eady decline, except 2004. Wit h t he ever-
expa n din g middle cla s s in In dia , pa cket s a n d br a n ded goods a r e
becomin g mor e a n d mor e popu la r . Th e n u mber of pr odu cer pa cket ,
t he sale of which privat ely permit t ed u nder t he t ea market ing cont rol
or der , h as in cr eas ed. Th e poly pou ch wit h t h e gar den fr es h s logan
is popu la r izin g pa cket t ea s in In dia . Th e con s u mer pa cket s , pa cked
at t he gardens, are sold direct ly and do not go t hrou gh t he au ct ions.
Impr oved commu n ica t ion s h a ve a ls o h elped expa n din g t h e pr iva t e
s a le ma r ket .
2 6 . Ne w Te a Auc t ion Rule s Ahuja Commit t e e , 1 9 8 5
Th e t ea (ma r k et in g) con t r ol or d er 1 9 8 4 wa s p r omu lga t ed b y t h e
government of India in April, 984. This order made it obligat ory for t he
or gan izer s of pu blic t ea au ct ion s an d br oker s t o obt ain a licen s e fr om
t h e Tea Boa r d. Fu r t h er -mor e, a ll t ea ma n u fa ct u r er s in In dia h a d t o
r egis t er t h ems elves wit h Tea Boa r d a n d s ell 7 5 p er cen t of t h eir
a n n u a l p r od u ct ion t h r ou gh t h e med iu m of p u b lic a u ct ion s . Th e
Ch a ir ma n , Tea Boa r d bein g t h e Licen s in g/ Regis t er in g Au t h or it y wa s
empower ed t o over s ee t h e fu n ct ion in g of t h e t ea a u ct ion cen t er s a n d
t o is s u e d ir ect ives wh en ever n eces s a r y t o en s u r e t h a t t h e p u b lic
a u ct ion s r u n s moot h ly, efficien t ly a n d in t h e b es t in t er es t s of a ll
con cer n ed. Th e Tea Boa r d, t h u s , beca me dir ect ly in volved in t h e t ea
au ct ion s ys t em. The pu blic t ea au ct ion s ys t em plays a vit al role in t he
t ea t r ade an d in du s t r y. Th er e ar e s even r ecogn ized au ct ion cen t er s in
In dia a t Ca lcu t t a , Siligu r i, Gu wa h a t i, Coch in , Coon oor , Coimba t or e
a n d Amr it s a r . Ou t of t h e t ot a l In dia n pr odu ct ion of 950 million kg in
2004, 506.80 million kg of t ea was s old t h r ou gh t h e au ct ion s (det ails
in Ta ble 3). Th e t ea a u ct ion commit t ees a t va r iou s cen t er s h a ve been
r eviewin g t h e r u les gover n in g t h eir r es pect ive a u ct ion cen t er s fr om
t ime t o t ime a n d h a ve been u pda t in g t h em in lin e wit h t h e ch a n gin g
t imes , con d it ion s a n d n eed . Des p it e t h is , t h e t ea b oa r d r eceived
gr ieva n ces a n d r equ es t s fr om a ll s ect ion s of t h e t r a de t o look in t o
cert ain areas , wh ich n eeded fu rt h er improvemen t . Th e Ou t lot s ales
a n d d is t r ib u t ion of fr ee t r a d e s a mp les wer e t h e fir s t a mon gs t t h e
i s s u e s r a i s e d wi t h t h e Te a Boa r d . In Au gu s t 1 9 8 5 , b y a n
a dmin is t r a t ive or der , t h e Ch a ir ma n , Tea Boa r d for med a commit t ee
h ea ded by Sr i S. S. Ah u ja , t h e t h en Depu t y Ch a ir ma n , t ea boa r d t o
s t u dy t h e exis t in g r u les of a ll t h e pu blic t ea a u ct ion cen t er s in In dia
a n d t o s u gges t ch a n ges wh er ever n eces s a r y t o br in g impr ovemen t in
t h e a u ct ion s ys t em. Th is commit t ee on a u ct ion r u les a ls o kn own a s
t h e Ah u ja Commit t ee s u b mit t ed it s fin a l r ep or t a n d r ecommen -
59
d a t i on s i n t h e t h i r d we e k of Ap r i l 1 9 9 0 . As i t s fi r s t t a s k , t h e
Commit t ee id en t ified eleven a r ea s . Th es e a r e (a ) a u ct ion d a y, (b )
cat alogu es , (c) prompt dat e, (d) brokers commis s ion, (e) s ize of lot s , (f)
brokers commis s ions , (g) divis ion of lot s , (h) wit hdrawal of lot s , (i) s ale
of ou t let s , (j) wa r eh ou s e r en t a n d in s u r a n ce, (k) clos in g of ca t a logu es
a n d (l) dis t r ibu t ion of s a mples , for det a ils exa min a t ion . Th e Ah u ja
Commit t ee s u b mit t ed fou r in t er im r ep or t s a n d a fin a l r ep or t , t h e
recommendat ions of which were accept ed by t he Chairman, t ea board.
Th e ma in fea t u r es of t h is r epor t wer e a s a ppen ded below:
i . Auct i on Da y Th e commit t ee h a d exa min ed t h e pos s ibilit y
of con du ct in g a u ct ion s a t a ll t h e cen t er s on t h e s a me da y
in s t ea d of s epa r a t e da ys a s is t h e cu r r en t pr a ct ice t o a void
s p ecu la t ive t en d en cies , if a n y. Th e commit t ee, h owever ,
r ecommen ded t h at t h e pr es en t s ys t em of h oldin g au ct ion s on
d iffer en t d a ys a t d iffer en t p la ces s h ou ld con t in u e a s it is
r u n n in g s at is fact or ily. Th e au ct ion s at each cen t er h ave t o be
complet ed in t wo da ys a n d n o mor e. For t h is , t h e a u ct ion
commit t ees h a ve been a s ked t o look in t o t h eir in fr a s t r u ct u r e
a n d ma ke a ddit ion a l a lt er n a t ive a u ct ion r ooms , if r equ ir ed.
The brokers mu s t be given fixed t imings and mu s t s t rict ly ad-
h er e t o t h em.
i i . Ca t a l og ue Th e commit t ee r ecommen ded t h a t CTC lea f,
or t h odox lea f. Da r jeelin g lea f, gr een t ea , a ll du s t s a n d t h e
s u pplemen t ed t eas be prin t ed s eparat ely. Th is was becau s e of
s a mp lin g n or ms a n d p r op er ma in t en a n ce of ca t egor y wis e
s t a t is t ica l d a t a . Th e b r ok er s h a ve b een a s k ed t o d eliver
s a mp les , ca t a logu es et c. s t r ict ly wit h in t h e s p ecified t ime
limit s s o t h a t t h e bu yer s a r e n ot in con ven ien ced.
i i i . Promp t Da t a Th e commit t ee s u gges t ed n o ma jor ch a n ge in
t h e p r es en t s ys t em of p a ymen t of p r omp t s a t t h e va r iou s
a u ct ion cen t er s . Th e bu yer s a n d s eller s pr ompt fa lls du e on
differ en t da ys a ft er t h e da t e of t h e s a le a t va r iou s cen t er s . For
example, in Coonoor t he bu yers prompt , is on t he 12
th
day aft er
t h e da t e of t h e s a le a n d for t h e s eller s it is t h e 13
t h
da y a ft er
t h e s a le. In Siligu r i pr ompt is pa ya ble by t h e bu yer s on t h e
1 3 t h d a y wh ich is p a id t o t h e s eller s on t h e 1 4
t h
d a y. In
Ca lcu t t a , t h e bu yer pr ompt is on t h e 14
t h
da y for lea f a n d 15
t h
d a y for d u s t . Alt h ou gh t h er e is n o s pecifica t ion on s eller s
pr ompt in Ca lcu t t a , t h e br oker s dis bu r s e t o t h e pr odu cer s
pr ompt on t h e s a me da y it is r eceived fr om t h e bu yer s . Th e
commit t ee recommended t hat t he payment of t he prompt t o t he
60
seller by t he broker shou ld be t he next working day immediat ely
a ft er t h e s t ipu la t ed pr ompt da t e of t h e bu yer . Th e commit t ee
h a s a ls o r ecommen ded t h a t t h e a u ct ion commit t ee s h ou ld n ot
ext en d pr ompt s u n les s t h e cir cu ms t a n ces a r e except ion a l.
i v. Br ok er a ge Th e s eller s pa y 1 per cen t of t h e s ellin g pr ice
t o t h e br oker s a s commis s ion . However , in Sou t h In dia , t h e
brokerage is calcu lat ed on t he s elling price minu s excis e du t y.
Fu r t h er mor e, bu yer s pa y t o t h e br oker s , for va r iou s s er vices
r en d er ed a t t h e r a t e of Rs 5 p er 1 0 0 k g in Siligu r i a n d
Gu wa h a t i. In t h e Sou t h t h er e is n o commis s ion pa ya ble by
t he bu yers t o t he brokers bu t t here is a syst em of lot money
Accor din g t o t h is r epor t , h en cefor t h , br oker a ge pa id by t h e
s eller will be ca lcu la t ed on t h e kn ocked down pr ice, t h u s
ch a n gin g t h e cu r r en t pr a ct ice in t h e Sou t h .
v. Si z e of Lot s In t h e Nor t h , t ea es t a t es (except Da r jeelin g)
pr odu cin g t wo la kh kg or mor e will h a ve t o pa ck in lot s n ot
les s t h an 30 packages du r in g man u fact u r in g per iods bet ween
1
s t
J u ly t o 30
t h
November . Th e on ly except ion s will be BPS,
s ma ll Du s t s a n d Secon da r y in t h e CTC ca t egor y a n d t ippy
t eas like BPS, Fannings, Du st s and Secondary in t he ort hodox
ca t egor y.
vi . Di vi s i on of Lot s In or der t o expedit e t h e s peed of s a le in
t h e Nor t h In d i a n a u c t i on c e n t e r s , t h e c om m i t t e e h a s
r ecommen ded t h a t br oker s s h ou ld n ot is s u e mor e t h a n t wo
con t r a ct s for 3 0 p a ck a ges for u n d er a n d mor e t h a n t h r ee
con t r a ct s for 31 pa cka ges a n d a bove. No bu yer s h ou ld get
les s t h a n five pa cka ges in a divis ion . However , for Da r jeelin g
t eas t h er e is n o ch an ge r ecommen ded an d t h er efor e u p t o 15
ch es t s on e bu yer , 16 t o 30 ch es t s t wo bu yer s a n d a bove 30
ch es t s t h r ee bu yer s will con t in u e.
vi i . Wi t hd ra wa l of Lot s In Calcu t t a, wh er e au ct ion s n or mally
t a ke pla ce on Mon da ys a n d Tu es da ys ever y week, s eller s will
h a ve t o gi ve a d va n c e i n t i m a t i on t o t h e b r ok e r s a b ou t
wit h dr a wa l of a n y t ea s in clu ded in t h e ca t a logu e for s a le a t
t he lat es t by 1.00 p.m on Wednes day of t he week immediat ely
p r oc e e d in g t h e we e k p r ior t o t h e s a le in qu e s t ion . Th is
pr in ciple will a pply t o a ll ot h er Nor t h In dia n cen t er s . In t h e
Sou t h t h is pr oblem is n ot s o vis ible a n d t h er efor e n o ch a n ge
h a s been s u gges t ed.
61
vi i i . Sa l e Lot Out l et s Th e Tea Boa r d h a d ea r lier dir ect ed t h a t
t eas remaining u ns old in t he au ct ion room s hou ld not be s old
a s ou t let s . Th e Au ct ion Commit t ees h a ve t h e opt ion eit h er t o
s u pplemen t t h e u n s old t ea s in t h e followin g weeks a u ct ion
wi t h ou t r e - s a m p l i n g or r e p r i n t i n g t h e m i n s u b s e q u e n t
a u ct ion s wit h fr es h s a mplin g. Th is pr a ct ice is t o con t in u e.
Th e qu a n t it y of In dia n t ea s old t h r ou gh differ en t a u ct ion cen t er s in
In dia a r e pr es en t ed below:-
Table 4 : Dis pos al of Nort h and Sout h Indian Te a Through
Various Auc t ions During 1 9 8 4 t o 2 0 0 4
(Quant it y in million kg)
Part ic ular/ ye ar 1 9 8 4 1 8 8 7 1 9 9 0 1 9 9 3 1 9 9 7 1 9 9 9 2 0 0 4
Tot a l pr odu ct ion 639.90 674.30 720.30 760.80 810.60 880.20 950.00
Quant it y s old t hrough
Ca lcu t t a 114.70 132.60 129.20 102.30 89.00 95.10 104.30
Siligu r i 72.20 80.60 90.00 75.80 80.00 85.30 103.20
Gu wa h a t i 89.00 147.70 140.90 151.30 150.20 151.30 158.30
Amr it s a r 0.30 0.40 0.40 0.10 0.80 0.90 0.90
Tot al nort h Indian 276.20 361.30 360.50 329.50 320.10 332.60 366.70
auc t ion s ale
Quant it y s old t hrough
Coch in 64.00 52.30 52.30 52.00 56.10 58.50 62.50
Coon oor 23.00 27.40 36.90 41.00 44.80 57.30 62.90
Coimbot or 27.50 31.50 24.30 19.00 21.20 16.30 14.70
Tot al Sout h Indian 114.50 111.20 113.50 112.20 122.10 132.10 140.10
auc t ion s ale
Tot al all India 390.70 472.50 474.00 441.70 442.20 464.70 506.80
auc t ion s ale
Source : Same as Table -1
i x. Wa rehous e Rent a nd Ins ura nce In Siligu ri and Gu wahat i
t he s ellers liabilit y for rent and ins u rance is u p t o a s pecified
t ime on t he prompt dat e. Thereaft er, t he liabilit y, pas s es on t o
t he bu yers. In Cochin, Coonoor and Coimbat ore, t he goods are
at s ellers ris k t o t h e ext en t of s ale price on ly u n t il a s pecified
t ime on t h e s e c on d wor k in g d a y a ft e r t h e p r omp t d a t e .
However , in Ca lcu t t a t h e s eller s bea r a ddit ion a l 14 da ys r en t
beyon d t h e pr ompt da t e. Th e Commit t ee r ecommen ded t h a t
t h e s ys t em in Ca lcu t t a s h ou ld be u r gen t ly r eviewed s o t h a t
62
t h e s ys t e m p r e va l e n t i n S i l i gu r i a n d Gu wa h a t i fi n d s
a ccept a n ce in du e cou r s e a n d pr ogr es s ively.
x. Cl os i ng Ca t a l ogue Th e commit t ee felt t h at t h e availabilit y
of t ea s for t h e domes t ic ma r ket , des pit e s ea s on a lit y of t ea
pr odu ct ion in t h e Nor t h , s h ou ld be r egu la r a n d a dequ a t e a ll
t h r ou gh . Th er efor e, r egu la r con s u lt a t ion s wer e s u gges t ed t o
a ch ieve t h is object ive.
xi . Di s t r i but i on of Sa mp l es Th is h a s been a ma jor a r ea of
deba t e a n d t h e commit t ees r ecommen da t ion s wer e ela bor a t e.
Th e commit t ee felt t h a t is s u a n ce of fr ee t r a de s a mples t o t h e
t r a de cou ld n ot be cla imed a s a ma t t er of r igh t . Fr ee t r a de
s amples s hou ld be worked ou t and s u pplied in a manner t hat
en cou r a ges gen u in e, r egu la r a n d en er get ic bu yer s bu t a t t h e
s a me t ime dis cou r a ges fr ivolou s a n d/ or ca s u a l bu yin g. Th e
commit t ee, t herefore, specified qu alificat ions for small, mediu m
and large bu yers for each cat egory of t ea and for each au ct ion
cen t er . Th e commit t ee fu r t h er r ecommen ded t h a t over a n d
a bove t h e min imu m per cen t a ge pu r ch a s e qu a lifica t ion , ea ch
b u yer s h a ll h a ve t o op er a t e in a t lea s t 2 5 p er cen t of t h e
s ales held for t he cat egory concerned for t he pu rchas e year t o
be eligible for free t rade s amples in t h e immediat e s u cceedin g
s a mplin g yea r . Th e commit t ee fu r t h er dea lt wit h ma t t er s like
pu r ch a s e of t r a de s a mples , r es t r ict ed s a mplin g of expen s ive
t eas , defin ed power s of t h e s amplin g commit t ee an d s t at u s of
on a ccou n t of con cer n ed t ea s .
2 7 . Quant um of Samples Th e brokers en s u re delivery of proper
qu ant u m of samples t o t he bu yers in order t o st reamline t he syst em.
Fu rt her, it is recommended t hat brokers while sending t rade samples
mu s t clea r ly in dica t e in t h e ch a lla n s t h e n u mber of la r ge, mediu m
a n d s ma ll s a mples -ca t egor y- wis e s en t in a con s ign men t wit h it s
t ot a l n e t we igh t . Th e qu a n t it y of p u r c h a s e s a mp le s h a s b e e n
in cr ea s ed t o 300 gm.
2 8 . Bidding Rat es Wit h a view t o improvin g au ct ion in g efficien cy
t h e followin g s ca les of biddin g s h ou ld be in t r odu ced in Kolka t a ,
Siligu r e a n d Gu wa h a t i:
Up t o Rs 26.99 20 pa is e/ kg
Rs . 27.00 t o 49.99 50 pa is e/ kg
Rs 50.00 t o 99.00 I Re. Per kg
Rs 100 & a bove 5 Rs / kg
63
2 9 . Cl ai ms for Short age s , Non-De l i ve ry, Damage d Te as Th e
commit t ee r ecommen d ed t h a t n o cla im for s h or t weigh t will b e
a dmis s ible u n les s t h e s h or t a ge exceeds 0.1 per cen t of t h e decla r ed
weigh t per lot pu r ch as ed by an y bu yer . Th e commit t ee r ecommen ds
t h at wh er e lot s pu r ch as ed by t h e bu yer s ar e n ot t o be fou n d at t h e
wa r e h ou s e a t a l l e i t h e r wh ol l y or i n p a r t , a c om p e n s a t i on
amou nt ing t o 30 per cent of valu e of s u ch t eas s hou ld be payable t o
t h e bu yer .
3 0 . Supe rvi s i o n Th e commit t ee con s id er ed t h a t wa y b a ck in
1978, t he P.L Tandon commit t ee st rongly favou red t he pu blic au ct ion
of t ea s a s t h e bes t mea n s of bu lk ma r ket in g a n d a ls o des ir ed t h a t
infrast ru ct u re of t he t ea board shou ld be st rengt hened for t he proper
s u pervis ion and co-ordinat ion of t he pu blic au ct ion s ys t em. Owing t o
variou s financial and ot her as pect s , t his has pos s ibly not been given
effect t o s o fa r . Tea (Ma r ket in g) con t r ol or der , 1984 is s u ed by t h e
gover n men t u n der t h e t ea a ct , 1953, pr ovides t h a t 75 per cen t of
t h e t ea p r od u ct ion is t o b e r ou t ed t h r ou gh t h e p u b lic a u ct ion s
t h er eby clea r ly in dica t in g t h e min d of t h e gover n men t of In dia in
t h is r es pect . Th e commit t ee, t h er efor e, a ft er ca r efu lly r eviewin g t h e
s it u a t ion r ecommen ded t h a t t h e t ea boa r d s h ou ld devis e wa ys a n d
means of s t rengt hening t he infras t ru ct u re for proper s u pervis ion and
co-ordin at ion of t h e pu blic au ct ion s ys t em in Nort h an d Sou t h In dia
t o s u b-s er ve t h e Gover n men t policy a n d t h e la r ger pu blic in t er es t .
The Ahu ja commit t ee compris ed of members , from all s ect ions of t he
In dia n t ea t r a de a n d it s , r ecommen da t ion s h a ve been s en t by t h e
ch air man , t ea boar d t o t h e au ct ion commit t ees . Tea Boar d accept ed
s ome of t h e r ecommen da t ion s ma de by t h e Ah u ja commit t ee r epor t
a n d t h er efor e it b ecomes a d ir ect ive u n d er t h e t ea (Ma r k et in g)
con t r ol or der 1984. Th e Au ct ion commit t ees can , h owever , appr oach
t h e a u t h or i t i e s on s p e c i fi c i s s u e s wi t h t h e i r p r ob l e m s a n d
s u gges t ion s t o en s u r e eas ier implemen t at ion of t h e Ah u ja commit t ee
r epor t . Th e Repor t of t h e commit t ee on a u ct ion r u les is a ma jor
r epor t on t h e a u ct ion s ys t em a n d is a va lu a ble docu men t pr odu ced
a ft er a gr ea t dea l of effor t a n d t oil. It is a wor k of dedica t ion a n d
s h ows gen u in e in t er es t in t h e wor k in g of t h e t ea in d u s t r y. Th e
Rep or t will go a lon g wa y in fu r t h er s t r en gt h en in g t h e b on d s
bet ween t h e t r in it y of t h e t ea t r a de, n a mely, bu yer s , s eller s a n d
br oker s .
3 1 . Collaborat i ons Suc h as Tat a-Te lly, Me ne i l Magor Ne s t le a r e
va lid in t er - n a t ion a l t ick et s for glob a l ma r k et d es t in a t ion s . Big
con t r a ct by Ir a n did h elp t o pu s h u p expor t bu t s u ch s a les ca n n ot
64
be depen ded u pon u n t il dema n d for a pa r t icu la r br a n d a r is es fr om
cons u mer level, going alone in t he world market t o es t ablis h a blend
is a t ou gh job. In dia n big bu s in es s h ou s es a r e gla n cin g a t t ea for
d i ve r s i fi c a t i on for e xa m p l e ITC- wh o c a n u s e t h e i r ove r s e a s
connect ions not only for bu lk export s bu t market ing a brand as well.
In t er n ally mos t of t h e big t ea compan ies ar e bu yin g for bet t er s h ar e
of t h eir br a n ds a t t h e con s u mer level. As a r es u lt n u mber of pa cks
have appeared in t he domes t ic market leading a healt hy compet it ion.
A commen d a b le s t ep wa s t a k en b y Bo mbay Burmah gro up b y
cr ea t in g p r od u ct ion fa cilit ies for e c o l o gi c al l y c ul t i vat e d t e a at
Si ngampat t i s out he rn t i p of Indi a. Th er e is a wide-open a r ea in
t h e s p ecia lit y ma r k et , t a p in g of wh ich ca lls for ma r k et in g s k ill.
Th er e is n o mor e a fa s h ion a b le s loga n s h ou t in g a n d b u r ea u t ic
lu xu r ies . It is h opefu l s ign t h a t ma t u r e ma r ket in g a ct ivit y is s een
t oday in In dian t ea s cen e. Hopefu lly 2010 wou ld begin wit h a boom
of in n ova t ive ma r ket in g pr oces s .
3 2 . Tea Market Trend
Tea is a t r a dit ion bou n d in du s t r y. Th e ch a n gin g wor ld or der in t h e
la s t t h r ee yea r s , h owever , h a s left it s own imp a ct on t ea . Th e
comin g down of t h e Ber lin wall an d t h e dis in t egr at ion of t h e for mer
US S R h a ve l e d t o m a n y c h a n ge s a n d op e n e d u p s e ve r a l
opport u nit ies for t he t ea world. The firs t , s econd and t he t hird world
a r e movin g mor e a n d mor e t owa r ds fr eer econ omy, fr eer t r a de a n d
fr eer in ves t men t . Con s u mer is m h as t aken t h e fr on t s eat even in t h e
developing and poor cou nt ries. Fu rt her more, t he developed cou nt ries
a r e movin g t owa r d s h ea lt h ier p r od u ct s a n d qu a lit y a s s u r a n ces .
Environme nt ally frie ndly bulk pa cka gin g is bein g en cou r a ged a n d
t o p u t p r es s u r e on t h e exp or t er s , t h e d is p os a l or u n fr ien d ly
pa cka gin g ma t er ia l is bein g ma de t h e r es pon s ibilit y of t h e expor t er .
In a ddit ion , ma n y n ew t r en ds h a ve emer ged, pa r t icu la r ly for In dia n
t ea , s ome of wh ich a r e dis cu s s ed below.
3 3 . Product ion
In 2004, t h e In dia n pr odu ct ion s h ou ld r ea ch 950 million kg, wh ich
will be s econ d h igh es t ever. Qu alit y con s ciou s n es s an d t h e widen in g
pr ice con cer t in a h a ve pu t br a kes on r a pid gr owt h of pr odu ct ion . In
2007, if t h e wea t h er is r igh t , In dia s h ou ld h a r ves t a cr op of 1000
million kg. It is als o clear t hat u nles s new areas are brou ght u nder
t ea cu lt ivat ion , t ea pr odu ct ion will gr ow at a s mall r at e of ar ou n d 3
per cen t per a n n u m. Aga in , it is n eces s a r y t o r en ova t e t ea a r ea s ,
wh ich a r e mor e t h a n s ixt y yea r s of a ge. A r epla n t in g pr ogr a mme of
65
t wo per cen t per a n n u m will en s u r e a r ot a t ion over fift y yea r s . An
a t t emp t wa s ma d e in Un ion Bu d get of 2 0 0 5 t o go for Sp ecia l
Pu r pos e Veh icle for r epla n t a t ion / r eju ven a t ion of t ea a r ea s by Tea
Boa r d. It h a s h owever n ot t a ken a con cr et e s h a pe.
3 4 . Dome s t ic Marke t
In dias per capit a con s u mpt ion of t ea is amon gs t t h e lowes t . Yet in
volu me t er ms In dia is t h e la r ges t con s u mer . Wit h t h e popu la t ion
h a vin g r ea ch ed 100 cr or e even if a n In dia n wer e t o dr in k on e ext r a
c u p a ye a r , t h e a d d i t i on a l r e q u i r e m e n t of t e a for d om e s t i c
con s u mpt ion wou ld be 2.55 million kg. If t en cu ps ext r a wer e t o be
dr u n k ever y da y by ever y In dia n , t h en t h e r equ ir emen t wou ld be
25.5 million kg. Taken int o accou nt one cu p ext ra t o be dru nk every
da y by ever y In dia n , t h e a ddit ion a l r equ ir emen t wor ks ou t t o 931
million kg per a n n u m. In dia n is in deed a ver y power fu l ma r ket .
An ot h er impor t a n t fa ct or t o n ot e is t h a t t h e In dia n s dr in k t h e ver y
b es t of CTCs a n d a r e p r ep a r ed t o p a y a p r emiu m for qu a lit y.
Becau s e of t h e s t r on g domes t ic bas e, In dian t ea pr ices ar e gen er ally
h igh er t h an t h e wor ld pr ices . Th e s u per ior qu alit y of In dian t ea an d
it s va s t va r iet y h a s a ls o h elped in ma in t a in in g h igh er pr ice levels .
3 5 . Export
It h a s n ow b ecome clea r t h a t t h e gover n men t of In d ia will n ot
h in d er , in a n y wa y, exp or t s of In d ia n t ea . Pr oced u r es a r e b ein g
s implified a n d r es t r ict ion s h a ve been ea s ed or fu lly r emoved. Th e
Gover n men t of In d ia a n d t h e t ea in d u s t r y h a ve b een wor k in g
t owa r ds impr ovin g per u n it r et u r n s fr om expor t s a n d va lu e a dded
pr odu ct s h a ve been ga in in g gr ou n d. Wh ils t it is u n likely t h a t t h e
government will impos e any res t rict ions on export s in t he fores eeable
fu t u r e , t h e p r e s s u r e fr om t h e d ome s t i c ma r k e t wi l l l i mi t t h e
qu a n t u m of In dia n t ea expor t s in t h e yea r s t o come. A s t r a t egy,
t h e r e for e , h a s t o b e e vol ve d s o t h a t e ve n t h r ou gh t h e e xp or t
qu a n t it ies r ema in a r ou n d 2 0 0 million k g, t h e va lu e will go on
in cr ea s in g. Ba r t er d ea ls a n d gover n men t - t o- gover n men t b u yin g
appear t o be t hing of t he pas t and t rading, in fu t u re will be done in
h a r d cu r r en cy. Th e for mer USSR is t od a y a n op en ma r k et a n d
a lt h ou gh t h er e is a p r efer en ce for In d ia n t ea s in t h e Ru s s ia n
Feder a t ion a n d CIS cou n t r ies , ot h er pr odu cer s es pecia lly Ch in a ,
wh ich h a s a va s t common bor der , wou ld exploit t h e la r ge pot en t ia l
of t h is ma r ket . Th e pr odu cer expor t er s a r e a lr ea dy pla yin g a ma jor
r ole in cer t ain impor t in g cou n t r ies an d t h is t r en d is likely t o s pr ead
fu r t h er .
66
3 6 . The Auc t ion Sys t e m
Th e ma jor t ea gr ou ps , t oda y, a r e in cr ea s in gly ma r ket in g t h eir own
t ea s eit h er t h r ou gh domes t ic pa cker s or dir ect expor t s . Wh ils t t h e
au ct ions will cont inu e t o be t he baromet er for price levels , more and
mor e pr odu cer s ar e likely t o go in for dir ect mar ket in g. Th e s maller
produ cers wh o h ave gon e in for direct market in g t h rou gh s oft packs
ma y fin d t h e goin g r ou gh u n les s t h ey s t a r t pu t t in g in t h e es s en t ia l
ma r ket in g in pu t s like a dver t is in g et c. a s well. Th eir pr es en t met h od
of s a le is vir t u a lly b u lk - ma r k et in g t h r ou gh a t h ir d p a r t y. Th e
qu a n t i t y fr om t h e s e p r od u c e r s i s l i k e l y t o r e ve r t b a c k t o t h e
a u ct ion s .
3 7 . Import of Te a
From t ime t o t ime idea of import ing t ea int o India has been moot ed.
Impor t in g ch ea p t ea s for domes t ic con s u mpt ion will n ot s olve t h e
pr oblem. In dia n s dr in k good qu a lit y t ea a n d t h e impor t ed va r iet ies
will n ot s u it t h eir t a s t e. Fu r t h er mor e, if 40 t o 50 million kg of t ea
were t o be import ed, t h ere wou ld be a ph en omen al price in creas e in
t h e wor ld ma r ket s . In dia h a s t o be ver y ca r efu l s o a s n ot t o u ps et
t h e a pple ca r t .
3 8 . Promot ion - He alt hfulne s s
As c on s u mp t i on of t e a i n c e r t a i n d e ve l op e d c ou n t r i e s i s n ot
in cr ea s in g, t h e t ime h a s come t o give a n ew pos it ion t o t ea . Th e
wor l d i s t od a y m or e h e a l t h c on s c i ou s t h a n e ve r b e for e a n d
h ea lt h fu ln es s cou ld be t h e n ew s loga n for t ea . Th e ch ea pn es s
s loga n h a s t o be dis ca r ded.
3 9 . Qualit y
On e wa y of in cr ea s in g t ea con s u mpt ion , in t h e wor ld ma r ket , is t o
ens u re t hat t he cons u mer is s erved good qu alit y t eas . Produ cers and
impor t er s of t ea will h a ve t o ma ke s u r e t h a t s u b-s t a n da r d t ea s a r e
n eit h er produ ced n or import ed. Un ivers al accept an ce of in t ern at ion al
s t a n d a r d ISO 3 7 2 0 will h elp in lift in g qu a lit y s t a n d a r d s of a ll
gr owt h s . In dia is per h a ps t h e on ly cou n t r y t oda y, wh ich s t r ict ly
follows r igid qu a lit y s t a n da r ds .
4 0 . Cult ure Product s
All t he t ea bagging machines in India is bu s y fu lfilling export - orders
a n d s ome domes t ic n eeds . Bu t t h e pr odu ct of t h e fu t u r e is in s t a n t
t ea . Time is n ot fa r wh en a dr in ka ble pu r e in s t a n t t ea , wh ich is
bot h h ot a n d cold wa t er s olu ble, will be on t h e s h elves .
67
4 1 . Bulk Pac kaging
Wh ile bu lk pa cka gin g is s t ill s ea r ch in g for a n a lt er n a t ive t o t h e t ea
ch es t , pa per s a cks a r e bein g u s ed mor e a n d mor e. Th e r ea l a n s wer
lies in convincing t he t ea import ers t o accept gu nny bags , which are
a lr ea dy popu la r in t h e domes t ic ma r ket .
In t h e over a ll, t h e fu t u r e pr os pect s of t ea a ppea r t o be br igh t a n d
t h e t ea in du s t r y in In dia is r ea dy t o fa ce t h e ch a llen ges of t h e 21
s t
cen t u r y.
4 2 . Marke t ing of Indian Te a Dome s t ic Ve rs e s Export
In dia n t ea s popu la r s loga n s in ce In depen den ce h a s been wor lds
la r ges t pr odu cer , con s u mer a n d expor t er of Tea . In 2004, h owever ,
Sr i La n ka for ged a h ea d a n d expor t ed 238 million kg a ga in s t In dia n
exp or t s of 2 0 5 million k g. Aga in , in 1 9 9 1 a n d 2 0 0 3 Sr i La n k a
expor t ed mor e t h a n In dia . Sr i La n ka n expor t s for t h es e yea r s wer e
2 1 2 million k g a n d 2 3 5 million k g r es p ect ively, a ga in s t In d ia n
expor t s of 201 million kg a n d 202 million kg. An ot h er fea t u r e of
In dia n expor t s h a s been t h e s ea ch a n ge in it s pr ofile bet ween 1947
a n d 2004. In 1947 U. Ks s h a r e of In dia n expor t s wa s 66 per cen t
an d in 2004 it h as declin ed t o 12 per cen t . On t h e ot h er h an d, t h e
for mer Soviet Un ion , wh ich b ou gh t n o In d ia n t ea s t ill t h e 6 0 s
beca me t h e ma jor impor t er of In dia n t ea , it a ccou n t ed for 44.9 per
cen t of In dia n t ea expor t s in 2004.
Table 5 : Count ry Wis e Export s from India During 1947 t o 2004
(In million kg)
Count ry / ye ar 1 9 4 7 1 9 5 7 1 9 6 7 1 9 7 7 1 9 8 7 1 9 9 1 1 9 9 7 1 9 9 9 2 0 0 4
Un it ed Kin gdom 127.20 135.40 117.20 74.30 22.40 22.50 25.40 25.00 25.10
% Of expor t 66.30 68.00 53.80 32.40 11.09 11.09 12.70 12.10 12.11
Ir elan d 9.00 8.30 6.20 6.40 2.10 2.50 2.60 2.50 2.50
% Of expor t 4.70 4.20 2.80 2.80 1.04 1.23 1.28 1.20 1.19
Net h er lan ds 1.50 0.90 3.70 3.40 1.60 1.90 2.70 2.60 2.60
% Of expor t 0.80 0.50 1.70 1.50 0.79 0.90 1.33 1.27 1.26
Wes t Ger man y NII 1.90 2.20 5.80 4.70 4.70 6.90 6.60 6.65
% Of expor t Nil 0.90 1.00 2.50 2.33 2.30 3.40 3.20 3.21
Res t of Wes t Eu r ope 0.60 0.10 0.50 0.90 0.50 0.60 0.80 0.80 0.80
% Of expor t 0.30 0.05 0.20 0.40 0.20 0.30 0.40 0.40 0.40
Polan d NIL NIL 1.80 5.30 10.70 11.90 14.00 14.70 14.75
% Of expor t NIL NIL 0.80 2.80 5.30 5.90 6.90 7.10 7.11
Yu gos lavia NIL NII 0.50 4.70 1.40 0.20 0.30 0.40 0.40
% Of expor t NIL NIL 0.20 2.00 0.70 0.10 0.15 0.17 0.16
68
Count ry / ye ar 1 9 4 7 1 9 5 7 1 9 6 7 1 9 7 7 1 9 8 7 1 9 9 1 1 9 9 7 1 9 9 9 2 0 0 4
Res t of Eas t Eu r ope NIL 0.10 1.70 1.40 3.30 1.00 1.60 1.40 1.40
% Of expor t NIL 0.05 0.80 0.60 1.60 0.50 0.80 0.70 0.70
USSR 4.00 7.30 20.70 47.70 96.60 104.50 90.70 92.80 94.10
% Of expor t 2.10 3.60 9.50 20.80 47.80 51.50 44.70 44.90 44.95
Afgh an is t an NIL NIL 5.70 8.60 3.60 1.60 0.80 1.20 1.20
% Of expor t NIL NIL 2.60 3.70 1.80 0.80 0.40 0.60 0.60
Ir a n 3.90 5.60 1.80 6.60 18.90 14.80 11.70 12.80 12.80
% Of expor t 2.00 2.80 1.10 2.90 9.40 7.30 5.80 6.20 6.15
Ir aq 1.40 0.02 2.50 4.60 8.80 0.10 0.04 0.40
% Of expor t 0.70 0.00 1.10 2.00 4.30 0.01 0.02 0.02
Per s ian Gu lf Por t s 4.40 2.60 3.00 6.20 7.00 5.20 6.80 7.02 7.02
% Of expor t 2.30 1.30 1.40 2.70 3.50 2.60 3.35 3.40 3.40
J or dan NIL NIL 1.40 0.60 0.50 0.10 0.60 0.60
% Of expor t 0.60 0.30 0.05 0.20 0.20 0.30 0.36
Res t of Middle Eas t 0.60 0.30 0.05 0.07 0.30 0.20 0.20 0.20
% Of expor t 0.30 0.10 0.02 0.03 0.10 0.10 0.10 0.10
Pakis t an NIL NIL NIL 4.60 0.60 0.30 0.40 O.4 0.40
% Of expor t 2.00 0.30 0.15 0.20 0.20 0.26
J apan NIL NIL 0.30 0.80 1.40 2.00 1.90 2.30 2.30
% Of expor t 0.10 0.30 0.30 1.00 0.90 1.10 1.10
Ar a b Rep. Of Egypt 1.80 7.30 16.60 14.10 7.80 7.90 7.20 7.60 7.60
% Of expor t 0.90 3.70 7.60 6.10 3.90 3.90 3.50 3.70 3.76
Su dan 0.70 2.00 10.00 13.60 0.10 0.10 0.10 0.10
% Of expor t 0.40 1.00 4.60 5.70 0.05 0.05 0.06 0.06
Tu n is ia NIL NIL 3.80 1.20 1.00 1.70 1.50 1.90 1.90
% Of expor t 1.70 0.50 0.50 0.80 0.70 0.90 0.90
Res t of Afr ica NIL NIL 0.40 3.70 7.00 9.80 9.50 9.50
% Of expor t 0.20 1.80 3.40 4.80 4.60 4.60
Can ada 8.20 7.70 3.90 2.50 0.80 0.60 0.10 0.15 0.15
% Of expor t 4.30 3.90 1.80 1.10 0.40 0.30 0.05 0.07 0.07
USA 17.30 10.60 8.40 10.00 1.80 2.50 2.90 3.30 3.30
% Of expor t 9.00 5.30 3.90 4.40 0.90 1.20 1.40 1.60 1.60
Au s t r alia 7.00 3.40 5.40 4.60 0.70 0.80 0.50 0.60 0.60
% Of expor t 3.70 1.70 2.50 2.00 0.30 0.40 0.25 0.30 0.30
New Zealan d 0.50 0.70 0.40 1.30
% Of expor t 0.30 0.40 0.20 0.60
All ot h er cou n t r ies 3.60 5.00 0.10 0.50 4.30 8.10 13.40 11.95 11.95
% Of expor t 1.90 2.50 0.05 0.20 2.10 4.00 6.63 5.81 5.81
Tot al 1 9 1 . 7 0 1 9 9 . 2 0 2 1 7 . 8 0 2 2 9 . 6 0 2 0 1 . 9 0 2 0 2 . 9 0 2 0 3 . 0 0 2 0 6 . 5 0 2 0 5 . 0 0
Same as Table -1
69
Cou n t r ies like Pola n d, Yu gos la via , Afgh a n is t a n , J a pa n , Tu n is ia a n d
even Ger ma n y bou gh t n o t ea s fr om In dia in 1947 bu t t oda y a r e
s t r on g s u ppor t er s of t h e In dia n pr odu ce. Ir a q, Ir a n , Gu lf, ARE h a ve
been bu ying more bu t Canada, USA, Au s t ralia, New Zealand and t he
UK, h a ve r edu ced t h eir pu r ch a s ed fr om In dia s u bs t a n t ia lly. In t h e
57 yea r s per iod s in ce 1947, Afr ica n Cou n t r ies , pa r t icu la r ly Ken ya ,
h a ve b een givin g s t iff comp et it ion t o In d ia n CTC t ea s a n d h a ve
ga in ed popu la r it y in t h e h a r d cu r r en cy a r ea s . Sr i La n ka , on t h e
ot h er h a n d, a ma jor pr odu cer of or t h odox, h a s been s t eppin g in t o
t he Indian ort hodox export s and t ook credit for cat ering t o t he ent ire
expan s ion an d deman d in t h e ort h odox s egmen t . Th e on ly except ion
h a s b een t h e for mer USSR wh o h a s s u p p or t ed In d ia n or t h od ox
va r iet ies s t r on gly. Sr i La n k a h a s b een ca t er in g t o t h e gr owin g
ma r ket s of ARE, Ir a n , USA, a n d Pa kis t a n .
An en cou r a gin g fea t u r e of In dia n t ea expor t s h a s been a r is e in
va lu e a dded goods a n d in s t a n t Tea . Pa cket expor t s in a 24 yea r s
s pa n bet ween 1981 a n d 2004 wen t u p fr om 32 million kg t o 125
million kg, t h u s s h owin g a n d in cr ea s e of a bou t 400 per cen t . Th e
in s t a n t t ea exp or t s in t h e s a me 2 4 yea r s p er iod n ea r ly d ou b led
r a is in g, fr om 0.78 million kg t o 117.68 million kg. Expor t s of va lu e
added t eas have gone u p in 9 years from 33.85 million kg t o 116.68
million kg. In valu e t er ms t h e ear n in gs fr om Packet s in cr eas ed fr om
Rs 69. 98 cr or es t o Rs 836. 65 cr or es ; in t h e ca s e of t ea ba gs t h e
ea r n in gs r a is ed fr om Rs 3. 26 cr or es t o Rs 13. 58 cr or es . Th e t ot a l
va lu e of In dia n expor t s in 2004 wa s Rs 990. 50 cr or es a s a ga in s t
Rs 55.38 cr or es in 1947 a n d Rs 76.90 cr or es in 1999.
In dia s s h a r e in wor ld expor t s is s h own in t a ble below:
Table 6 : Indias Share in World Export s During 1 9 4 7 - 2 0 0 4
(In million kg)
Count ry/ Ye ar 1 9 4 7 1 9 5 7 1 9 6 7 1 9 7 7 1 9 8 7 1 9 9 1 1 9 9 7 1 9 9 9 2 0 0 4
India 191.70 199.20 217.80 229.60 201.90 202.90 203.00 204.20 205.60
% Sh a r e 53.30 39.90 35.60 28.20 20.70 17.90 13.20 18.50 18.25
Sri Lanka 130.30 166.80 216.50 185.50 201.20 212.40 234.85 238.05 242.50
% Sh a r e 36.30 33.40 35.40 22.70 20.60 18.80 21.24 21.52 21.60
In don es ia 3.90 38.80 26.60 51.30 90.40 109.60 103.90 102.50 104.20
% Sh ar e 1.10 7.80 4.30 6.30 9.20 9.70 9.40 9.60 9.70
Ban glades h N.A 4.50 N 26.00 21.60 25.30 24.30 25.40 25.45
% Sh ar e N 0.90 N 3.20 2.20 2.20 2.40 2.30 2.32
70
Count ry/ Ye ar 1 9 4 7 1 9 5 7 1 9 6 7 1 9 7 7 1 9 8 7 1 9 9 1 1 9 9 7 1 9 9 9 2 0 0 4
Ken ya 4.40 8.20 19.70 70.20 135.00 191.60 245.50 251.10 255.20
%Sh a r e 1.20 1.60 3.20 8.60 13.80 16.90 22.20 22.70 22.73
Ugan da 1.10 2.80 9.60 14.70 2.10 4.70 15.20 15.10 16.10
% Sh ar e 0.30 0.60 1.60 1.80 0.20 0.40 1.40 1.40 1.42
Tan zan ia 0.50 2.40 6.20 12.00 11.40 15.00 18.80 19.90 20.95
% Sh ar e 0.10 0.50 1.00 1.50 1.20 1.30 1.70 1.80 1.82
Malawi 5.90 8.80 16.80 29.90 33.40 41.20 36.50 35.40 36.20
% Sh ar e 1.70 1.80 2.70 3.70 3.40 3.60 3.30 3.20 3.21
Mozambiqu e 1.50 5.90 14.40 15.60 2.10 1.00 0.42 0.95 0.97
% Sh ar e 0.40 1.20 2.40 1.90 0.20 0.09 0.04 0.05 0.08
Ot hers 20.20 61.70 84.40 180.60 277.50 338.40 223.23 213.60 216.15
% Sh a r e 5.60 12.30 13.80 22.10 28.40 29.90 25.12 18.93 19.25
Tot al 3 5 9 . 5 0 4 9 9 . 1 0 6 1 2 . 0 0 8 1 5 . 4 0 9 7 6 . 6 0 1 1 3 2 . 1 0 1 1 0 5 . 7 0 1 1 0 6 . 2 0 1 1 2 2 . 7 2
N : Negligible, Source : Same as Table 1
In t h e domes t ic fr on t a ls o, t h e s cen e h a s ch a n ged. In 1947, In dia n
con s u mpt ion wa s on ly 39 per cen t of pr odu ct ion a n d in 1999 t h is
figu r e r ea ch ed 76 per cen t . In t h e pa s t , t h e equ a t ion wa s In dia n
con s u mpt ion equ als pr odu ct ion min u s expor t s . In t h e eigh t ies , t h is
equ a t ion wa s r ever s ed a n d on s ever a l occa s ion s , t h e gover n men t
res t rict ed export t o cons erve t ea for t he domes t ic market . The det ails
of In dia n con s u mpt ion of t ea in given below:
Table 7 : Indian Cons umpt ion of Te a During 1 9 4 7 -2 0 0 4
(In million kg)
Part ic u- 1 9 4 7 1 9 5 7 1 9 6 7 1 9 7 7 1 9 8 7 1 9 9 1 1 9 9 7 1 9 9 9 2004
lars / Ye ar
Con s u m- 98.5 112.9 180.7 302.0 446.0 520.0 635 670 740
pt ion
Gr owt h 14.6 60.1 67.1 47.6 16.6 22.1 5.5 10.5
(% a ge)
Aver a ge 1.46 6.01 6.7 4.76 4.1 3.6 2.3 2.1
a n n u a l
r a t e of
gr owt h
% a ge
71
Indian Te a Cons umpt ion As Pe rc e nt age of Produc t ion
Part ic u- 1 9 4 7 1 9 5 7 1 9 6 7 1 9 7 7 1 9 8 7 1 9 9 1 1 9 9 7 1 9 9 9 2004
lars / Ye ar
Con s u m- 98.5 112.9 180.7 302.0 446.0 520.0 635.0 670.0 740.0
pt ion in
m. kg
Pr odu ct ion 254.8 310.8 384.8 556.3 674.3 741.7 810.6 880.2 950.0
in m kg
% Of pr o- 38.7 36.3 47.0 54.3 66.0 70.1 78.3 76.1 77.9
du ct ion
Th e break-u p of t h e Soviet Un ion h as t h erefore h ad a s t ron g impact
on t h e In dia n t ea ma r ket . However , it ga in ed momen t u m over t h e
yea r s . Ru s s ia a n d ot h er CIS member s did n ot cr os s 45 million kg.
Tot a l In dia n expor t s t h u s t ou ch ed 205 million kg. In dia n domes t ic
ma r k et con t in u es t o gr ow a t a r ou n d 2 p er cen t p er a n n u m. t h e
1999 domes t ic cons u mpt ion was abou t 670 million kg. By 2004 t his
figu r e wa s 7 2 5 million k g. If exp or t of 2 0 5 million k g is a d d ed ,
pr odu ct ion in 2004 wa s a bou t 940 million kg. Th e CTC elemen t of
Indian cons u mpt ion is over 94 per cent . It is es t imat ed t hat in 2010
t h e In dia n r equ ir emen t for CTC t ea s h a s been es t ima t ed a t 1034
million kg, wh ich wou ld go u p t o 1050 million kg in 2012. St a t e
wis e s plit of es t ima t ed con s u mpt ion of t ea is fu r n is h ed below:
Table 8 : A s t at e-wis e s plit of
e s t imat e d c ons umpt ion during 1 9 9 1 -1 9 9 9
(Million kg)
Part ic ulars / Ye ar 1 9 9 1 1 9 9 5 1 9 9 9 2004
Ut t a r Pr a des h 44 50 57 67
Bih a r 18 23 25 25
Ma h a r a s t r a 67 76 86 99
Wes t Ben ga l 38 43 48 52
An dr a Pr a des h 25 30 32 33
Ma dh ya Pr a des h 32 38 40 43
Ta mil Na du 21 23 26 28
Ra ja s t h a n 45 48 52 56
Gu ja r a t 45 50 57 67
Or is s a 10 12 18 20
72
Part ic ulars / Ye ar 1 9 9 1 1 9 9 5 1 9 9 9 2004
Ker a la 33 37 40 44
As s am 18 20 23 25
Pu n ja b 40 45 50 55
Har yan a 18 20 22 24
J a mmu & Ka s h mir 10 15 20 22
Ka r n a t a ka 26 30 34 36
Ot h er s 30 35 40 44
Tot al 5 2 0 5 9 5 6 7 0 7 4 0
Source s ame as Table -1
New s t r a t egies will h a ve t o be evolved for t h e Ru s s ia n Feder a t ion ,
CIS a n d Pa kis t a n . Above a ll, expor t s will h a ve t o be given a clea r
priorit y over domest ic need. While fu t u re su pply and demand, on t he
over a ll, a ppea r s h a n d t o-mou t h t h e fu t u r e of s pecia lt y va r iet ies ,
s u ch a s Da r jeelin gs a n d As s a m or t h od ox, wou ld d ep en d u p on
a ggr es s ive ma r ket in g.
4 3 . Unre s t ric t e d Import of Te a: To Allow or Not
Propos al of minis t ry of commerce, Government of India, modified t he
expor t -impor t policy (1992-97) wit h a view t o fa cilit a t in g t h e EOU/
EPZ t o freely import t eas for bu lk-re-export s generat ed u nfat homable
dis s a t is fa ct ion a mon g ma n y Ba r on s of t h e In dia s t ea in du s t r y. Tea
impor t s wer e a llowed wit h t h e r ider t h a t t h ey s h ou ld be u s ed on ly
for re-export wit h a 20 per cent valu e addit ion. Bu t t he import s were
ins ignificant becau s e t he facilit y was limit ed t o re-export of packaged
t ea s , t ea ba gs a n d in s t a n t t ea . Th e Commer ce Min is t r y s ou gh t t h e
in du s t r ys view on a llowin g bu lk r e-expor t of t ea blen ded wit h t h e
impor t ed pr odu ct . Ba r on s of t h e In dia n t ea a s s ocia t ion a s s er t ed: (i)
having an export able s u rplu s , India does not need t o import t eas ; (ii)
if t h e impor t ed low gr a de t ea s a r e blen ded wit h bet t er s t u ff of t h e
cou n t r y t o expor t as t ea bags , packet s , in s t an t t ea, it s image wou ld
be da ma ged a t t h e in t er n a t ion a l ma r ket a n d expor t s s u ffer in t h e
lon g ru n ; (iii) u n der t h e Exim policy (1997 - 2002) for t ea, export ers
wer e n ot a llowed t o s ell a n y por t ion of t h e ma n u fa ct u r ed it ems in
t h e domes t ic ma r ket . Bu t t h e lea der s of t h e In dia n t ea in du s t r y
feared t h at on ce bu lk t eas , allowed t o be import ed, t h ere wou ld als o
be an opt ion for u nloading t hes e t eas in t he domes t ic market . And a
few la r ger bu s in es s h ou s es , fa cin g s t iff compet it ion in t h e domes t ic
mar ket , wou ld pr act ically u s e t h e ch eap impor t ed pr odu ct t o r edu ce
t h eir pr ices in a bid t o ea r n a n d ma in t a in s u bs t a n t ia l pr ofit a n d
73
h old t h e domes t ic s h a r e; (iv) impor t of t ea s by In dia wou ld r a is e
in t er n a t ion a l pr ices of t ea s wh ile depr es s in g domes t ic ma r ket s , a
s it u a t ion , wh ich wou ld a dver s ely effect t h e gr owt h of t ea in du s t r y
t h a t ma y even t u a lly lea d t o r eces s ion . Th e a for es a id pr emis es , a s a
cor olla r y, led ma n y ba r on s of t h e in du s t r y t o r a is e s t r on g object ion
a ga in s t t h e gover n men t s in t en t ion of fu r t h er liber a lizin g t h e Exim
policy, wh ich ma y open t h e floodga t es for impor t of t ea s . Th ey felt
t h a t t h e p olicy, if imp lemen t ed , wou ld n ot , in a n ywa y, h elp t h e
gr owt h of t h e cou n t r ys t ea in du s t r y. Bu t , h owever , on e s h ou ld n ot
b e t ou ch y a n d emot ion a l wh ile con s id er in g t h e p olicy of imp or t .
Rat h er, it was imperat ive t o vis u alize t h e n eces s it y of import s in t h e
per s pect ive of r ea lit y. An d n o den yin g t h e fa ct , t h a t on ly s u ch a
s t u dy ca n h elp commen t ju diciou s ly eit h er in fa vou r or a ga in s t t h e
pr opos ed policy.
4 4 . Produc t ion vis --vis - Cons umpt ion
Wh ils t it wa s u n lik ely t h a t t h e gover n men t wou ld imp os e a n y
r es t r ict ion on expor t s in t h e for es eea ble fu t u r e, t h e pr es s u r e fr om
t h e domes t ic ma r ket wou ld limit t h e qu a n t u m of In dia n t ea expor t s
in t h e yea r s t o come. AS s t a t ed ea r lier t h a t wit h t h e cou n t r ys
popu lat ion t ou ch ed t o 100 cr or e, ever if an In dian was t o dr in k on e
ext r a cu p a yea r , t h e a ddit ion a l r equ ir emen t of t ea wou ld be 2. 55
million kg; a ga in , if t en cu ps ext r a wer e t o be t a ken ever y da y by
every Indian, t he addit ional requ irement wou ld be 931 million kg per
a n n u m. Bu t h ow mu ch t h e in du s t r y wit h it s pr es en t ca pa cit y ca n
p r od u ce a t t h e ma ximu m? It ma y b e men t ion ed , h owever , t h a t
h igh es t t ea produ ct ion was ach ieved in 2004 at 950 million kg. An d
it wa s h igh in 1999 wit h t h e cr op a mou n t in g t o 880 million kg,
in dicat ed by Mr. A.K. Bot h ra, ch airman , Nort h Ben gal bran ch of t h e
In d ia t ea a s s ocia t ion a t t h e 2 7
t h
a n n u a l gen er a l meet in g of t h e
a s s ocia t ion . An d t h is a ch ievemen t is , of cou r s e, du e t o ma ximu m
fa vou r of a ll in p u t s , p r a ct ica lly t h e clima t ic con d it ion . Bu t h e
reit erat ed t h at t h e t ea in du s t ry immediat ely requ ires more addit ion al
plan t at ion ar ea t o meet t h e t ar get of 1,000 million kg by t h e en d of
t h e t wen t y fir s t cen t u r y. Ot h er wis e, t ea pr odu ct ion will gr ow a t a
s ma ll r a t e of a r ou n d 3 p er cen t p er a n n u m. Never t h eles s , it is
n eces s ar y t o r en ovat e t ea ar eas , wh ich ar e mor e t h an s ixt y year s of
age. A replan t in g programme of 2 per cen t per an n u m will en s u re a
r ot a t ion ove r 5 0 ye a r s . Ob viou s ly, t h e a r gu me n t in fa vou r of
expor t able s u r plu s n eeds be r econ s ider ed. It is a plain t r u t h t h at if
not t oday, t omorrow India will have t o import sizeable qu ant it y of t ea
eit h er , or t o cu r t a il it s expor t for t h e s a ke of domes t ic con s u mer .
Ot h erwis e, wh ere is t h e gu aran t ee t h at , in t h e n ear fu t u re, domes t ic
74
con s u mers will n ot be s t ran gu lat ed wit h s evere pres s u re of deman d-
pu ll in flat ion ? Wh er e is t h e gu ar an t ee t h at t h e in du s t r y will be able
t o ma in t a in expor t a ble s u r plu s , a s expect ed? Th es e ma t t er s a r e,
in deed, relat ed wit h t h e in du s t rys s ocial obligat ion t o t wo s egmen t s -
fir s t , obliga t ion s t o domes t ic con s u mer s in t er ms of r igh t pr ice for
t h e r igh t pr odu ct a t t h e r igh t t ime; s econ d, obliga t ion t o t h e n a t ion
i n t e r ms of h e l p i n g e a r n for e i gn e xc h a n ge . Con t e xt u a l l y, t h e
obs er va t ion of Mr J immy Hildit ch ma y be r efer r ed t o. In cou r s e of
s u mmin g u p t h e con ven t ion p a p er s p r es en t ed a t t h e U. K. Tea
convent ion held in May 1993, t he following t able s hows t he fu t u re of
In dia s expor t a ble s u r plu s of t ea .
India
Part ic ulars / Ye ar 1 9 5 0 1 9 6 0 1 9 7 0 1 9 8 0 1 9 9 2 1 9 9 5 1 9 9 7 1 9 9 8 1 9 9 9 2004
Expor t s (m/ kg) 181 193 200 224 190 167 203 205 206 205
Pr odu ct ion (m/ kg) 278 321 419 570 704 756 810 870 880 950
Popu lat ion (million ) 354 429 539 675 869 915 935 937 952 1005
Per Capit a (kg) 0.21 0.29 0.39 0.57 0.61 0.68 0.74 0.79 0.87 0.95
He obs er ved: Du r in g t h is per iod In dia s pr odu ct ion h a s in cr ea s ed
r ema r k a b ly. So, t oo, h a ve t h eir p op u la t ion a n d t h e p er ca p it a
n u mber for t h e s a me per iod. Wit h t h es e s t a t is t ic it is difficu lt t o
a s s es s h ow In dia ca n feed in t er n a l dema n d a n d in cr ea s e expor t s
wit h ou t in cr ea s in g pr odu ct ion .
4 5 . Import s for Re -e xport
There are cou nt ries like U.K, U.S.A., import ing hu ge qu ant it y of t eas,
of cou r s e, h igh gr ade, t o r e-expor t t h em in t h e valu e added fr om. It
s h ou ld n ot go u n n ot iced t h a t in t er n a t ion a l bu yer s a r e fa s t lea n in g
t owa r ds pa cket t ea , in s t a n t t ea a n d t ea ba gs . So, it is h igh t ime t o
ca t ch t h em you n g. In dia n t ea ba r on s s h ou ld r ea lize t h is fa ct . Th ey
s h ou ld fu r t h er a ppr ecia t e t h a t en dea vou r t o r e-expor t va lu e a dded
t ea s will h elp t o fin d n ew ma r ket s a n d t o con t r ibu t e mor e for eign
exch a n ge in t h e n a t ion a l exch equ er t h r ou gh n on t r a dit ion a l wa y.
Th is is likely t o at t ract n ew in ves t men t als o. Th is bes ides , t wo ot h er
s ign ifica n t ma t t er s h ou ld n ot go u n -es ca ped fr om ou r view. Fir s t ,
In dias over wh elmin g depen den ce on t r adit ion al bu yer s - Ru s s ia an d
CIS, wh o wer e t h e pr in cipa l bu yer s of In dia n t ea ? Alt h ou gh , a t t h e
momen t , In dia en joys comfor t able pos it ion t h e pos s ibilit y of cr eat in g
dis comfor t by t h e in filt r a t ed s eller s in t h es e ma r ket s s h ou ld n ot be
over -looked. Th e s eller s mar ket at t h at t ime was t u r n ed t o bu yer s
ma r ket . Secon d, Ch in a is pr epa r in g vigor ou s ly t o exer t it s pr es s u r e
75
in t h e in t er n a t ion a l ma r ket . Tea is lis t ed a s on e of t h e key expor t
commodit ies . Du e t o over -wh elmin g impor t a n ce of h a r d cu r r en cy
ea r n in gs it wa s ver y likely t h a t t h e Ch in a gover n men t pr ovided a ll
s ort s of incent ive t o t he t ea indu s t ry. It is wort h not ing t hat bet ween
1950 a n d 2004 t ot a l t ea a r ea in t h a t cou n t r y in cr ea s ed by mor e
t h a n 7 t imes , 1 5 5 , 0 0 0 h ect a r es t o 1 , 1 1 5 , 3 0 0 h ect a r es . Ou t p u t
in cr ea s ed by mor e t h a n 3 t imes over t h e s a me per iod fr om 255 m
kg t o 950 m kg. Expor t -in cr eas e accou n t ed for 10 t imes fr om 18 m
k g. in 1 9 5 0 t o 2 0 5 m k g in 2 0 0 4 . Never t h eles s , Ch in a h a s t h e
great es t ran ge of t ea in differen t grades an d variet ies . Ch in a in t en ds
t o be a t t h e t op of t h e lis t of t ea t r a der s in t h e wor ld ma r ket . An d
n o d e n yi n g t h e fa c t , Ch i n a ma y, a t t h e e a r l i e s t op p or t u n i t y,
p en et r a t e in t h e Ru s s ia n a n d CIS ma r k et . Keep in g in view t h is
pos s ibilit y, t h e in du s t r y s h ou ld r igh t n ow fin d n ew ma r ket , wh ich
ma y ea s ily be pos s ible wit h s ellin g va lu e-a dded t ea s .
4 6 . St andard of Qualit y
Of cou rse, t he st andard of qu alit y mat t ers mu ch at any export t rade.
It ma y be r ecollect ed t h a t on ly a few yea r s ba ck t h e qu a lit y of t ea
s old t o Ru s s ia wa s s o ba d t h a t million kgs of t ea wer e des t r oyed.
Seriou s complain t s were lodged t o t h e t ea board. Ru s s ian t elevis ion
cau t ion ed t h e domes t ic con s u mers wit h t h e words : Don t s ip In dian
t ea . No dou bt , in du s t r ys goodwill h a s been s ever ely da ma ged by
t his act of t he export ers . The qu es t ions are obviou s ly, who has t o be
bla med for t h is even t ; wh a t mea s u r es h a ve been t a ken s o fa r t o
prevent recu rrences . The Tea Board, being t he appropriat e au t horit y,
s h ou ld d evis e fu ll- p r oof mea s u r es t o en s u r e qu a lit y. Tea Boa r d
s h ou ld (i) s cr u t in ize ever y exp or t or d er r eceived ; (ii) en s u r e t h e
cr edit wor t h in es s of t h e expor t er ; (iii) a r r a n ge in t en s ive ch eckin g a t
t h e t ime of s h ipmen t ; (iv) arran ge ran dom ch eckin g aft er u n -loadin g;
(v) in t r odu ce ma n da t or y u s e of t h e Tea Boa r ds logo, s u bject t o t h e
fu lfilmen t of s t ipu la t ed con dit ion s , for ever y expor t .
4 7 . Conc lus ion
It is u n likely t h at wit h fu rt h er liberalizat ion of import s , t h e domes t ic
ma r k e t will b e flood e d wit h low- gr a d e imp or t e d t e a . For t h e
Gr es h a ms La w d oes n ot h old good in a n op en ma r k et . Th e la w
r e a c t s in t h e op p os it e ma n n e r - good p r od u c t d r ive s a wa y b a d
p r od u c t . As fa r a s In d ia s d ome s t ic t e a ma r k e t is c on c e r n e d ,
con s u mer s h er e d r in k t h e b es t of CTCs . Not on ly t h a t , t h ey a r e
p r ep a r ed t o p a y a p r emiu m for qu a lit y. Beca u s e of t h e s t r on g
domes t ic dema n d In dia n t ea pr ices a r e gen er a lly h igh er t h a n t h e
76
wor ld pr ices . An d it is t o be n ot ed fu r t h er t h a t in volu me t er ms
In dia is t h e la r ges t con s u mer . Eviden t ly, in t h e per s pect ive of t h e
cou n t r ys con s u mer beh a viou r it is dou bt fu l t h a t t o wh a t ext en t
import ers will be able t o sell t he low grade import ed st u ff t o increase
t h eir pr ofit s a n d be a ble t o exer t domin a n t voice in t h e domes t ic
ma r ket .
It wa s u n wis e t o view t h a t on ce In dia s t a r t ed bu yin g of low pr iced
t ea, t h e pr ice of it s pr odu ce in t h e in t er n at ion al mar ket wou ld h ave
fa llen . Some As ia n s eller s wou ld h a ve been ben efit ed ou t of t h is
t ransact ion. From t he viewpoint of open market economy, however, it
wa s felt t h a t t h e a for es a id p r omis e wa s n ot cor r ect . In a n op en
ma r ket mech a n is m on ly t h e a ppr opr ia t e s u bs t it u t e a n d it s pr ice
pla yed a domin a n t r ole in det er min in g t h e dema n d of t h e pr in cipa l
pr odu ct t h e vice-ver s a . Sin ce In dia n impor t er s in t en ded t o impor t
on ly ch ea p va r iet y of t ea s , t h e pr ice of In dia n t ea wa s likely t oo
r ema in u n a ffect ed u n t il n ow s u pplier s en t er ed t h e ma r ket . An d in
t his mat t er t he only t hreat was likely t o come from China- t he As ian
Dr a gon -h a vin g a la r ge va r iet y a n d qu a n t it y of t ea a t it s dis pos a l.
In t he light of t he above st u dy it was viewed t hat t here was no point
of becomin g s h a ky even t h ou gh t h e Min is t r y of Commer ce a llowed
fr ee impor t of t eas for r e-expor t s in bu lk as well. Th e on ly n eces s it y
is t o r ema in a ler t a ga in s t t h e u n s cr u pu lou s t r a der s wh o ma y t a ke
t h e a dva n t a ge of impor t liber a liza t ion policy of t h e Gover n men t of
In dia ju s t t o fu r t h er t h eir own in t er es t .
77
Pa rt Fi ve : Oo l o n g a n d Ot h e r Te a s Wo r l d
Prod uct i on, Worl d Export s & Import s ,
Pr od u c e r s a n d Imp or t e r s of Gr e e n
Tea et c.
4 8 . Int roduct ion
Th e or igin of gr een t ea da t es ba ck t o 1611 wh en t h e Ea s t In dia s
Comp a n y es t a b lis h ed a fa ct or y for ma n u fa ct u r in g gr een t ea in
Hir a do Is la n d in J a pa n . Un t il a bou t a deca de a go, gr een t ea wa s
mos t ly con s u med in t h e p r od u cin g cou n t r ies in As ia a n d Nor t h
Afr ica . Ch in a is t h e ma in p r od u cer a n d con s u mer of gr een t ea .
Green t ea is get t ing increas ingly more at t ent ion in t he world market s
b eca u s e of it s h ea lt h b en efit s . It con t a in s mor e vit a min s a n d
min er a ls t h a n bla ck t ea a n d pr odu ces ma n y effect s t h a t ca n figh t
in fect ion an d dis eas e in h u man bodies . Wor ld gr een t ea pr odu ct ion ,
consu mpt ion and export s are mainly dominat ed by China followed by
J a pa n , In don es ia , Viet n a m, In dia , Ba n gla des h , Sr i La n ka et c.
i . Di s t i nct Qua l i t y Green t ea is dis t inct from black t ea in as
mu ch a s t h e b r ew fr om it on in fu s ion of wa t er is n ea r ly
s i m i l a r t o t h e b r e w fr om fr e s h gr e e n t e a l e a ve s . Th i s
ch a r a ct er is t ic is ma in t a in ed b eca u s e of k illin g of en zymes
wh ich ca u s e oxidis a t ion of ph en olic compon en t s . As a r es u lt
of act ion of bact eria an d ot h er micro-organ is ms , t h e green t ea
leaf as als o t he black t ea leaf,s poils eas ily. Therefore, it has t o
be pr es er ved for u s e du r in g off-s ea s on a n d t r a n s por t a t ion t o
dis t an t mar ket s . Th e mos t pr imit ive, an d by far t h e ch eapes t ,
met h od of pres ervat ion is s u n dryin g wh ich removes mois t u re
fr om t ea lea ves t h er eby pr even t in g s poila ge. Un like bla ck t ea ,
gr een t ea is n ot fer men t ed du r in g it s ma n u fa ct u r e a n d t h e
gr een colou r a n d t h e ch emica l compos it ion is ma in t a in ed t o
r et a in t h e or igin a l ch a r a ct er is t ics . Gr een t ea s r ich in ca ffein e
a n d t a n n in s a r e qu it e d is t in ct b eca u s e of t h eir b it t er or
a s t r in gen t t a s t e du e t o polyph en olics .
i i . Ma n u f a c t u r i n g Pr oc e s s e s Th er e a r e t wo d is t in ct a n d
p r omin en t met h od s of ma k in g gr een t ea . De- en zymin g is
t ypica l of gr een t ea pr oces s in g wh ich ca n be don e t h r ou gh
eit h er s t ea min g or pa n - h ea t in g. Rollin g a n d t wis t in g ca n be
don e eit h er t h rou gh bakin g or roas t in g. Th e J apan es e met h od
u s es t h e s t eamin g pr oces s t o deact ivat e t h e en zymes wh er eas
t h e Ch in es e follow t h e pa n h ea t in g met h od. In bot h ca s es ,
r a w ma t er ia ls u s ed a r e h igh qu a lit y lea ves a n d bu ds , fr es h ly
h a r ves t ed fr om gr een bu s h es .
78
i i i . Cons er va t i on Ra t i o On a n a ver a ge 4. 2 t o 4. 8 kg of gr een
t ea lea ves a r e r equ ir ed t o ma n u fa ct u r e 1 kg of ma n u fa ct u r ed
b la ck t ea , wh er ea s 4 . 6 k g t o 6 . 1 k g of lea f a r e r equ ir ed for
making 1 kg of made green t ea. Green t ea is more vu lnerable t o
spoilage u nder adverse keeping condit ions t han black t ea and it
h a s t o be s t or ed u n der con t r olled a t mos ph er ic con dit ion s .
4 9 . World Produc t ion of Gre e n Te a
Wor ld pr odu ct ion of gr een t ea h a s been gr owin g con s is t en t ly a n d
in cr ea s ed fr om 167.06 m kg in 1978 t o 667.61 m kg in 1999. Th e
s h a r e of gr een t ea in t ot a l t ea p r od u ced h a s b een con s is t en t ly
in cr eas in g an d J apan domin at ed wit h mor e t h an 60 per cen t s h ar e.
From Sept ember 1980 on wards , Ch in a s t art ed h avin g a mu ch larger
s h a r e. However , J a pa n es e pr odu ct ion of gr een t ea h a s declin ed s o
mu ch s o t h a t it h a s on ly 12. 81% s h a r e in compa r is on wit h Ch in a
wh ich pr odu ces n ear ly 75 per cen t of t h e wor ld pr odu ct ion of gr een
t ea. Viet nam has been also increasing produ ct ion of green t ea and of
la t e it h a s a s t a ble 5 per cen t s h a r e.
Th e s h a r e of gr een t ea pr odu ced in t ot a l t ea h a s been con s is t en t ly
in cr ea s in g fr om 9. 35 per cen t in 1978 t o 23. 45 per cen t in 1999.
[t a bles 13 a n d 14]. However , gr een t ea h a s les s t h a n 10 per cen t
s h a r e in wor ld expor t s of t ea a n d t h a t s h a r e h a s been flu ct u a t in g.
Mor e a n d mor e gr een t ea p r od u ct ion is r et a in ed in p r od u cin g
cou n t r ies for domes t ic con s u mpt ion .
Table 1 3 : Pe rc e nt age of Gre e n Te a Produc t ion
1 9 7 8 1 9 7 9 1 9 8 0 1 9 8 1 1 9 8 2 1 9 8 3 1 9 8 4 1 9 8 5 1 9 8 6 1 9 8 7 1 9 8 8
In dia 4.72 3.73 2.40 1.96 1.97 1.66 1.86 1.96 1.80 2.13 1.55
Ban glades h 0.31 0.12 0.12 0.11 0.11 0.09 0.06 0.22 0.23 0.19 0.20
Sr ilan ka [Med] 0.00 0.00 0.00 0.00 0.19 0.16 0.27 0.28 0.32 0.26 0.24
In don es ia 10.43 11.75 5.82 7.89 5.29 6.78 6.85 7.93 7.34 6.38 5.97
Ch in a 0.00 0.00 50.70 52.11 58.26 56.12 57.04 55.18 57.71 61.89 65.76
J apan 62.69 60.38 29.06 26.46 23.22 23.81 21.76 22.10 21.02 19.79 17.45
Viet n am 8.56 9.55 4.52 4.40 4.36 4.64 5.06 5.30 5.01 4.42 4.27
Geor gia 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Ru s s ian Fed 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
USSR/ CIS 13.29 14.48 7.39 7.06 6.60 6.75 7.10 7.03 6.58 4.93 4.55
Tot a l Gr een 167.06 162.32 352.00 386.65 424.21 431.26 425.15 432.17 445.32 486.50 514.72
Tea pr odu c-
t ion [m kg]
79
1 9 7 8 1 9 7 9 1 9 8 0 1 9 8 1 1 9 8 2 1 9 8 3 1 9 8 4 1 9 8 5 1 9 8 6 1 9 8 7 1 9 8 8
% s h a r e of 9.35 8.93 19.05 20.53 21.79 21.00 19.39 18.88 19.56 20.78 20.79
Gr een Tea
in t ot a l t ea
pr odu ced
1989.00 1990.00 1991.00 1992.00 1993.00 1994.00 1995.00 1996.00 1997.00 1998.00 1999.00
In dia 1.62 1.59 1.82 1.67 1.27 1.25 1.43 1.41 1.35 1.34 1.23
Ban glades h 0.19 0.27 0.24 0.20 0.16 0.19 0.09 0.02 0.02 0.03 0.04
Sr ilan ka [Med] 0.19 0.18 0.15 0.07 0.24 0.24 0.08 0.09 0.09 0.10 0.06
In don es ia 6.57 6.58 6.13 6.22 5.62 5.66 5.76 6.13 5.88 5.90 5.54
Ch in a 63.51 64.32 66.46 69.04 71.61 71.67 72.28 71.89 72.41 74.61 74.44
J apan 18.29 17.39 16.35 16.36 15.68 15.35 14.81 15.10 14.90 12.83 13.26
Viet n am 4.51 4.60 4.54 4.48 4.41 5.00 5.17 5.04 5.07 4.82 5.09
Geor gia 0.00 0.00 0.00 0.00 0.00 0.00 0.33 0.29 0.26 0.36 0.33
Ru s s ian Fed 0.00 0.00 0.00 0.00 0.00 0.00 0.04 0.02 0.01 0.01 0.01
USSR/ CIS 5.13 5.07 4.31 1.96 1.02 0.64 0.00 0.00 0.00 0.00 0.00
Tot a l Gr een 494.91 516.91 537.73 562.46 587.54 562.10 572.44 587.32 612.02 643.62 667.61
Tea Pr odu c-
t ion [mkg]
% s h a r e of 20.24 20.36 20.84 23.09 23.04 22.32 22.70 22.23 22.53 21.73 23.45
Gr een Tea in
t ot a l t ea
pr odu ced
Source : various is s ues of ITC Bulletin, London
5 0 . World Export s of Gre e n Te a
Wor ld expor t s of gr een t ea in 1999 t ot a lled 144. 82 m kg, 70 per
cen t mor e t h a n wh a t it wa s t wo deca des a go. In 1978, Ch in a h a d
6 0 . 7 5 p er cen t s h a r e in p r od u ct ion , con s u mp t ion a n d exp or t of
green t ea in t h e world an d t h e s ame h ad in creas ed t o 84 percen t in
1999. [Ta ble 14].
Table 1 4 : Pe rc e nt age s hare of Gre e n Te a Export ing c ount rie s
1 9 7 8 1 9 7 9 1 9 8 0 1 9 8 1 1 9 8 2 1 9 8 3 1 9 8 4 1 9 8 5 1 9 8 6 1 9 8 7 1 9 8 8
In dia[e] 3.77 3.27 1.44 4.58 4.32 4.93 1.58 2.23 2.59 5.72 3.21
Sr ilan ka 0.00 0.00 0.00 0.00 0.11 1.33 1.10 1.74 1.89 1.23 1.35
In don es ia 0.05 0.16 0.14 0.15 0.31 0.15 0.19 0.16 0.14 0.21 0.14
Ch in a 60.75 61.82 67.57 64.82 70.96 69.96 83.40 83.22 85.07 84.41 84.07
[Main lan d]
Taiwan 20.38 19.10 14.66 12.18 5.25 6.46 3.66 3.37 3.05 1.70 2.11
J apan 4.55 3.99 3.70 4.18 3.90 2.96 3.80 2.42 1.69 1.27 1.32
Viet n am 10.50 11.65 12.48 14.09 15.16 14.22 6.27 6.86 5.57 5.46 7.81
80
1 9 7 8 1 9 7 9 1 9 8 0 1 9 8 1 1 9 8 2 1 9 8 3 1 9 8 4 1 9 8 5 1 9 8 6 1 9 8 7 1 9 8 8
Tot a l Gr een 74.25 76.38 72.10 63.88 62.67 70.33 71.80 72.89 71.77 82.38 93.51
Tea Expor t s
mkg]
% of Gr een 9.24 8.98 8.39 7.50 7.64 8.08 7.63 7.65 7.38 8.47 9.03
Tea
% of Gr een 44.46 47.15 20.48 16.51 14.78 16.32 16.89 16.87 16.13 16.92 18.16
Tea Pr odn
expor t ed
% of Gr een 55.54 52.85 79.52 83.49 85.22 83.68 83.11 83.13 83.87 83.08 81.84
Tea Pr odn
r et a in ed
1989.00 1990.00 1991.00 1992.00 1993.00 1994.00 1995.00 1996.00 1997.00 1998.00 1999.00
In dia[e] 2.93 3.15 3.09 2.47 2.69 2.94 3.65 4.10 3.08 2.30 2.07
Sr ilan ka 0.02 0.44 0.03 0.40 0.62 0.73 0.97 0.55 0.49 0.36 0.38
In don es ia 1.48 1.82 2.67 4.48 10.08 7.43 3.93 5.91 4.51 2.71 5.06
Ch in a 85.83 86.92 86.86 85.41 79.36 81.00 81.38 76.34 80.94 85.78 83.99
[Main lan d]
Taiwan 1.78 1.06 0.91 1.05 0.69 0.74 0.99 1.59 0.71 0.27 0.38
J apan 0.62 0.30 0.26 0.25 0.27 0.30 0.56 0.58 0.51 0.50 0.52
Viet n am 7.33 6.30 6.18 5.94 6.28 6.85 8.52 10.93 9.76 8.06 7.60
Tot a l Gr een 74.25 76.38 72.10 63.88 62.67 70.33 71.80 72.89 71.77 82.38 93.51
Tea Expor t s
[mkg]
% of Gr een 9.10 8.39 9.02 9.95 9.67 9.91 7.53 6.51 8.13 10.05 11.64
Tea
% of Gr een 20.66 18.41 18.05 17.98 18.95 18.17 14.37 12.47 15.90 20.22 21.68
Tea Pr odn
expor t ed
% of Gr een 79.34 81.59 81.95 82.02 81.05 81.83 85.63 87.53 84.10 79.78 78.32
Tea Pr odn
r et a in ed
5 1 . World Import s of Green Tea
Pr i or t o 1 9 9 0 Pa k i s t a n wa s a k e y i mp or t e r of gr e e n t e a b u t
t h er ea ft er Mor occo emer ged a s t h e mos t s ign ifica n t impor t er wit h
over on e-h a lf of wor ld impor t s (Ta ble 15).
81
Table 1 5 : Count rie s Import ing Gre e n Te a
[% s hare ]
1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9
Au s t r ia 0.04 0.06 0. 3 0.17 0.28 0.36 0.48
UK 1.77 2.93 2 1.47 1.1 0.71 0.89
Belgiu m a n d Lu x. 0.88 1.13 0.41 0.38 0.16 1.17 0
Den ma r k 0.01 0.01 0.02 0.01 0.02 0.06 0.03
Fin la n d 0.01 0.02 0 0.08 0.14 0.04 0
Ger ma n y 0.58 0.51 0.88 2 3.27 7.15 9.74
Ir ela n d [Rep.] 1.13 0.11 0.05 0.01 0.18 1.47 0.17
It a ly 0.42 0.24 0 0.58 0.5 0.32 0
Net h er la n ds 1.36 1.18 1.52 2.15 2.25 1.83 1.32
Swit zer la n d 0.05 0.04 0.06 0.17 0.23 0.4 0.57
Tot a l [mkg] 52.23 60.29 62.4 62.38 70.19 72.92 76.15
1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9
J a pa n 10.49 7.83 10.36 17.35 16.11 8.66 15.82
Pa kis t a n 8.03 6.02 3.24 2.89 0. 8 1.32 1.57
Egypt 0 1.97 0.29 0 0.25 0.03 0.21
Mor occo 50.56 54.35 60.18 45.32 49.79 54.85 46.26
Au s t r a lia 0.41 0.37 0.41 0.51 0. 4 0.49 0.57
New Zea la n d 0.04 0. 1 0.02 0.02 0.29 0. 2 0.06
Tu n is ia 2.87 3.32 3. 4 3.37 3.56 2.71 1.84
USA 9.39 9.66 8.51 9.26 5.9 8.62 10.1
Ca n a da 1. 7 2.04 2.13 2 2.26 2.31 3.39
Fr a n ce 10.25 8.11 6.21 12.26 12.5 7. 3 6.97
Source : Various is s ues of ITC Bulletin, London
5 2 . Produc e rs of Gre e n Te a
i . Chi na Nea r ly 75 per cen t of a ll t ea pr odu ced in Ch in a is
gr een t ea a n d Ch in a h a s 84 per cen t s h a r e in wor ld expor t s
of gr een t ea (Ta ble-2). Ch in a a ls o expor t s s iza ble qu a n t it y of
ot h er t ea s , wh ich in clu d es Oolon g t ea , Pou ch on g t ea a n d
s p ecia lit y t ea s . Pr od u ct ion of gr een t ea in Ch in a in clu d es
s ever a l s equ en t ia l pr oces s es . Ch in a pr odu ces s ever a l t ypes of
gr een t ea , ea ch wit h dis t in ct fla vou r a n d t a s t e (Box-1).
82
Fr es h Lea ves
Spr ea din g
De-en zymin g
Rollin g a n d t wis t in g

Pa n Roa s t Dr yin g Ba ke dr yin g ma ch in e

Roa s t ed Gr een Tea Ba ked Gr een Tea

Lon g s h a ped Rou n d s h a ped
Box - 1 : Chine s e Me t hod of Making Gre e n Te a
Accor din g t o a va ila ble s t a t is t ics , Ch in a s expor t s of gr een t ea h a ve
flu ct u a t ed bet ween 55. 87 million kg a n d 121. 63 million kg du r in g
t h e per iod 1990-99 [Tables 4 & 5] On t h e wh ole, t h e expor t mar ket
for Ch in es e gr een t ea is b a la n ced a n d well d is t r ib u t ed . Th e k ey
des t inat ions have been Morocco [23 per cent s hare] followed by CIS/
USSR [13.86 per cen t ], Sen egal [6.25 per cen t ], USA [5.70 per cen t ],
a n d Afgh a n is t a n [5. 19 per cen t ]. Expor t s t o Ma li du r in g 1990-99
h a ve b e e n on l y 2 . 9 6 p e r c e n t wi t h a ve r y h i gh c oe ffi c i e n t of
va r ia t ion in d ica t in g a ver y h igh flu ct u a t ion in p er cen t a ge s h a r e
t h a t h a s r a n ged bet ween 0.18 a n d 9.54 per cen t . In 1999, Ma li h a d
4.87 per cen t s h a r e in t h e Ch in es e expor t s of 121.63 million kg of
gr een t ea . Th is wa s of cou r s e les s t h a n t h e s h a r e of Mor occo
a n d US S R/ CIS . Pa k i s t a n wi t h a 4 . 4 0 p e r c e n t s h a r e a n d a
h igh r a t e of gr owt h h a s been con s is t en t ly impor t in g gr een t ea fr om
Ch in a .
Ch in a a ls o expor t s s iza ble qu a n t it y of ot h er t ea s , wh ich in clu des
Oolon g t ea , Pou ch on g t ea , a n d s pecia lit y t ea s [Ta bles 14 a n d 15].
Qu a n t it ies h a ve r a n ged b et ween 2 3 . 1 6 million k g in 1 9 9 0 a n d
3. 65 million kg in 1997. J a pa n h a d impor t ed n ea r ly h a lf of t h es e
expor t s .
83
Table : 1 6 Analys i s of Pe r Ce nt Share of Export s of Gre e n Te a
from China 82. 80 Per Cent Share of World Export s of Green Tea
{1 9 9 0 -9 9 ave rage s }
1 9 9 0 1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7
(1) (2) (3) (4) (5) (6) (7) (8)
Fr an ce 3.62 2.11 2.25 4.64 2.7 2.7 0.72 2.22
USSR/ CIS 12.09 16.41 6.26 17.53 22.86 1.99 11.67 22.57
USA 6.35 5.4 5.72 4.53 6.24 7.54 10.13 4.2
Afgh an is t an 6.78 2.81 4.64 10.1 2.74 6.42 8.86 5.49
Hon gkon g 5.94 5.46 10.01 8.43 9.62 4.17 2.47 3.94
J apan 1.69 2.51 4.11 4.84 3 3.47 5.3 4.87
Pakis t an 3.03 1.07 4.37 2.92 6.04 5.51 7.8 5.98
Alger ia 4.45 6.93 2.76 0.66 0.28 0.2
Libya 3.81 3.58 9.07 0.59 2.69 1.38 2.16
Mali 0.18 0.56 0.79 0.46 1.13 9.54 3.54 2.27
Morocco 30.8 33.61 30.12 24.22 20.47 22.76 14.73 13.46
Niger ia 3.67 3.67 1.61 5.96 5.29 7.71 3.87
Sen ega l 3.37 3.78 3 3.96 4.99 7.65 10.24 9.04
Tan go 2.7 1.87 2.47 1.95 1.36 2.46 1.71 3.36
Ot h er cou n t r ies 15.2 10.22 10.76 14.21 12.89 17.11 13.46 16.36
Tot al expor t s [mkg] 82.73 84.33 86.32 88.43 82.72 66.88 55.87 78.78
1 9 9 8 1 9 9 9 Avg COV G. Rat e Min. Max.
(9) (10) (11) (12) (13) (14) (15)
Fr an ce 10.88 5.88 3.77 76.43 6.39 0.72 10.88
USSR/ CIS 13.16 14.04 13.86 47.13 1.56 1.99 22.86
USA 3.75 3.17 5.7 35.89 -4.59 3.17 10.13
Afgh an is t an 2.31 1.76 5.19 55.11 -7.13 1.76 10.1
Hon gkon g 2.94 0.58 5.36 59.05 -18.88 0.58 10.01
J apan 0.74 2.71 3.32 44.52 -1.82 0.74 5.3
Pakis t an 2.88 4.42 4.4 45.09 9.35 1.07 7.8
Alger ia 4.9 1.82 2.75 89.97 0.2 6.93
Libya 0.6 2.99 92 0.59 9.07
Mali 6.23 4.87 2.96 104.64 43.98 0.18 9.54
Morocco 13.18 25.68 22.9 32.38 -7.91 13.18 33.61
Niger ia 4.02 5.21 4.56 37.94 1.61 7.71
Sen ega l 10.45 6.05 6.25 46.19 13.69 3 10.45
Tan go 3.75 3.33 2.49 31.75 5.27 1.36 3.75
Ot h er cou n t r ies 20.81 19.88 15.09 23.4 6 10.22 20.81
Tot al expor t s [mkg] 111.68 121.63 85.94 22.23 2.07 55.87 121.63
84
Table 1 7 : Quant it y-wis e Analys is of Gre e n Te a Export s from
China 8 2 . 8 0 Pe r Ce nt Share of World Export s of Gre e n Te a
{1 9 9 0 -9 9 mkg ave rage s }
Ave rage CV Growt h Rat e Min. Max.
Fr a n ce 3.63 96.76 8.59 0.41 12.51
USSR/ CIS 12.11 49.34 3.67 1.33 18.91
USA 4. 6 16.11 -2.61 3.31 5.66
Afgh a n is t a n 4.15 50.11 -5.2 2.14 8.93
Hon g Kon g 4.48 61.54 -17.19 0. 7 8.64
J a pa n 2.71 40.21 0.21 0.83 4.28
Pa kis t a n 3.61 37.63 11.61 0.91 5.38
Alger ia 2.54 90.05 0.16 5.85
Libya 2.44 98.19 0.53 7.83
Ma li 2.57 106.37 46.96 0.15 6.96
Mor occo 19.82 39.46 -6 8.23 31.23
Niger ia 3.82 36.62 1.42 6.33
Sen ega l 5.32 52.82 16.05 2.59 11.67
Ta n go 2.23 50.08 7.45 0.95 4.19
Ot h er cou n t r ies 13.3 43.44 8. 2 7.52 24.18
Tot a l Expor t s 85.94 22.23 0 55.87 121.63
Table 18 : Percent age Share of Export s of Ot her Tea from China
{1 9 9 0 -9 9 ave rage s }
1 9 9 0 1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7
(1) (2) (3) (4) (5) (6) (7) (8)
USA 4.57 5.58 5.80 4.00 2.33 2.11 2.56 3.47
Afgh an is t an 1.23 4.12 1.68 1.43 3.81 3.61
Hon gkon g 32.45 30.95 27.11 22.41 18.61 17.08 15.48 18.54
J apan 40.35 48.96 44.10 36.12 44.64 57.47 57.67 49.95
Malays ia 3.36 3.37 1.91 2.32 2.18 2.43 2.43 2.33
Mon golia 9.19 0.00 2.94 13.89 0.04 0.25 0.02
Sin gapor e 2.30 3.19 4.03 4.19 6.44 6.48 3.46 4.07
Ot h er cou n t r ies 7.79 7.87 12.88 12.95 24.07 12.74 14.57 18.03
Tot al expor t s [mkg] 23.16 25.72 24.76 27.08 32.12 31.69 32.83 36.54
1 9 9 8 1 9 9 9 Avg CV GRat e Min Max
(9) (10) (11) (12) (13) (14) (15)
USA 4.40 3.90 3.87 33.05 -4.21 2.11 5.80
Afgh an is t an 2.68 0.95 2.44 52.32 0.95 4.12
Hon gkon g 16.23 17.60 21.65 29.10 -7.64 15.48 32.45
J apan 49.94 55.37 48.46 14.91 3.24 36.12 57.67
Malays ia 2.95 4.07 2.74 24.75 1.25 1.91 4.07
Mon golia 0.00 0.00 2.93 174.11 0.00 13.89
Sin gapor e 3.42 1.42 3.90 40.85 -2.61 1.42 6.48
Ot h er cou n t r ies 20.38 16.69 14.80 34.87 9.46 7.79 24.07
Tot al expor t s [mkg] 36.16 44.38 31.44 20.75 6.73 23.16 44.38
85
Table 1 9 : Export s of Ot he r Te a from China
{1 9 9 0 -9 9 ave rage s }
Qu a n t it y-wis e [mkg]
Cou n t r y Aver a ge CV Gr owt h Ra t e Min . Ma x.
USA 1.19 30.7 2.24 0.67 1.73
Afgh a n is t a n 0. 8 51.48 0. 3 1.32
Hon gkon g 6.52 15.38 -1.43 5.08 7.96
J a pa n 15.5 31.68 10.19 9.35 24.57
Ma la ys ia 0.87 41.5 8.06 0.47 1.81
Mon golia 0.96 151.45 0 3.76
Sin ga por e 1.21 43.78 3.94 0.53 2.07
Ot h er cou n t r ies 4.84 47.03 16.83 1. 8 7.73
Tot a l 31.44 20.75 6.73 23.16 44.38
i i . Ja p a n Bla ck t ea pr odu ct ion h a s pr a ct ica lly cea s ed a ft er
1971 s in ce it h a d become h igh ly u n compet it ive a ft er t r a de
lib er a liza t ion . Pr od u ct ion of gr een t ea in J a p a n h a s b een
gr a d u a lly d ecr ea s in g s in ce 1 9 8 0 . J a p a n is a mou n t a in ou s
cou n t r y a n d a bou t 60 per cen t of t ea pla n t s a r e loca t ed on
t h e h ills id e s a n d p la t e a u s in Sh izu ok a , Kyot o, Mie a n d
Ka gos h ima dis t r ict s . Th e J a pa n es e met h od of ma n u fa ct u r in g
gr een t ea is a complex pr oces s in volvin g s ever a l s t eps a n d
s ever a l t ypes of gr een t ea a r e ma n u fa ct u r ed in J a pa n . J a pa n
is a s ign ific a n t p r od u c e r of gr e e n t e a a n d mos t of it is
con s u med in t ern ally. Th e s h are of J apan es e t ea t o t ot al green
t ea expor t wa s on ly 4. 55 per cen t in 1978. However , it h a s
r ed u ced t o 0 . 5 2 p er cen t in 1 9 9 2 . J a p a n es e exp or t s a r e
ma in ly d ir ect ed t owa r d s USA a n d Ca n a d a . Th e met h od of
ma n u fa ct u r in g gr een t ea is a comp lex p r oces s in volvin g
s ever a l s t eps . Sever a l t ypes of gr een t ea a r e ma n u fa ct u r ed in
J a pa n wit h t h e det a ils a s u n der :
In a ddit ion t o t h e domes t ica lly h igh ly popu la r gr a de Sen Ch a
made of you ng t ender leaves and well t wist ed, J apan produ ces
s everal ot her grades of green t ea, Gyoku ro or Pearl Dew is t he
fin es t t ea in J a pa n ma de fr om lea ves gr own u n der t h e s h a de
wh ich r ed u ces t h e t a n n in con t en t , in cr ea s es ca ffein e a n d
amin o acids , brigh t en s t h e colou r of t h e leaf an d s weet en s it s
fla vou r . Ma t ch a or cer emon ia l t ea is ma d e of lea ves fr om
s h a ded bu s h es . Th e ma n u fa ct u r in g pr oces s is s imila r t o t h a t
for Gyoku r o bu t wit h ou t r ollin g. Aft er dr yin g, t h e pr odu ct is
pu lver ized, Ka ma ir ich a is ma de in Kyu s h u dis t r ict . Th e r a w
86
ma t er ia l is t h e s a me a s in Sen -ch a , bu t t h e fir s t pr oces s is
p a r ch in g in p la ce of s t ea min g. It h a s a cu r ly a p p ea r a n ce.
Bancha is coarse t ea, made of coarser leaves, or by separat ing
fr om r a w Sen -ch a in t h e r efin in g pr oces s .
Sou r ce : Ku n io O Tea In du s t r y in J a pa n Tea Scien ce a n d Hu ma n
He a l t h Pr oc e e d i n gs of t h e In t e r n a t i on a l S ym p os i u m on Te a
Tech n ology, Kolka t a .
Table 2 0 : Export s of Gre e n Te a from Japan
{1 9 9 0 -9 9 ave rage s }
1 9 8 4 1 9 8 5 1 9 8 6 1 9 8 7 1 9 8 8 1 9 8 9 1 9 9 0 1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4
Gr een Tea % 98.03 97.62 96.03 94.49 97.62 94.63 87.89 87.54 88.62 92.99 90.14
Gr een Tea 2.73 1.76 1.21 1.05 1.23 0.64 0.28 0.25 0.26 0.31 0.31
[mkg]
Tot al [mkg] 2.79 1.81 1.26 1.11 1.26 0.67 0.32 0.29 0.29 0.33 0.35
1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 Avg. CV Growt h Min. Max.
Rat e
Gr een Tea % 93.7 86.21 86.03 86.47 91.18 89.08 3.14 -0.02 86.03 93.7
Gr een Tea 0.46 0.43 0.5 0.65 0.76 0.42 41.41 5.45 0.25 0.76
[mkg]
Tot al [mkg] 0.49 0.49 0.58 0.75 0.83 0.47 41.46 5.48 0.29 0.83
i i i . Ind i a India produ ces only a small qu ant it y of green t ea. It s
s h a r e in gr een t ea pr odu ct ion h a s been declin in g fr om 4. 72
per cen t in 1978 t o 1. 23 per cen t in 1999. Du r in g 1993-94
In dia expor t ed 3. 36 m kg [n ea r ly 84 per cen t of gr een t ea
produ ct ion] t o Afghanist an and Ru ssia. In 1999 India export ed
arou nd 3 m kg having a 2.07 per cent share in world export s.
Alt h ou gh In dia is n ot a la r ge con s u mer of gr een t ea , in t h e
h illy r egion s of Ka n gr a a n d Ka s h mir va lleys , gr een t ea goes
well wit h low t emperat u res . In s ome Indian market s green t ea
i s a l s o s ol d a s h e r b a l t e a u s u a l l y mi xe d wi t h a r oma t i c
con dimen t s .
Du rin g 1993-94 In dia export ed 3.36 m kg [n early 84 per cen t
of gr een t ea pr odu ct ion ] t o Afgh a n is t a n . Th er ea ft er expor t s t o
Afgh an is t an declin ed rapidly bu t export s t o Ru s s ia picked u p.
Lik e b la ck t ea , Ru s s ia h a s b een h a vin g a la r ge s h a r e in
In dian green t ea export s . Percen t age s h are of green t ea export
fr om In d ia wa s 2 . 0 7 % in 1 9 9 9 . Th e p r oc e d u r e in In d ia
r ega r din g gr een t ea is a s u n der :
87
5 3 . Proc e s s c hart of Indian Gre e n Te a
Fr es h ly plu cked lea ves
St ea min g [u pt o 2 min u t es ]
Cu r lin g a n d dr yin g [in h ot a ir a t 90 -100 C for 40-50 min u t es

t h e lea f mois t u r e r edu ces fr om 76% t o a bou t 50%]
Rollin g [wit h ou t h ea t for 15 min u t es ]
Pr es s in g a n d dr yin g [h ot a ir a t 50 -60 C for 30-40 min u t es ,

lea f mois t u r e r edu ces t o a bou t 30%]
Cu r lin g [Dr yin g dir ect ly on a h ot pa n a t 80 - 90 C
Twis t in g [for 40 min u t es u n der pr es s in g a n d r ollin g by a

cu r lin g-h a n d mou n t ed on a pa n ]
Dr yin g [a t 80 C u n t il mois t u r e con t en t of 6% is a ch ieved]
Ma de Sin Ch a
St or a ge
Temper at u r e below 100 C, mois t u r e con t en t below 6% con cen t r at ion
of oxyge n l owe r t h a n 2 % a n d h u m i d i t y c on t r ol l e d i n e r t ga s
pa cka gin g.
i v. Ind ones i a In don es ia produ ces abou t 37 m kg of green t ea
wit h 5.54 per cent s hare in world produ ct ion. Indones ia has a
la r ge dema n d for s cen t ed t ea s a n d a s ign ifica n t pr opor t ion of
In don es ia gr een t ea is s cen t ed u s in g jas min e, r ed gambir an d
ot h er t ypes of flower s . Th er efor e In don es ia h a s on ly 5.06 per
c e n t s h a r e i n wor l d e xp or t s of gr e e n t e a . S i n c e 1 9 8 9 ,
In don es ia h a s expor t ed s iza ble qu a n t it y of gr een t ea t o t h e
Middle Ea s t a n d Mor occo.
88
Table 2 1 : Pe rc e nt age s hare and unit value of e xport s of gre e n
t e a from Indone s ia 4 . 8 6 Pe r Ce nt s hare of World Gre e n Te a
Export s
{1 9 9 0 -9 9 ave rage s }
1 9 9 0 1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7
Gr een Tea % 1.56 2.35 3.72 9.06 8.94 4.08 4.26 6.56
Gr een t ea mkg 1.73 2.6 4.53 11.23 7.59 3.23 4.33 4.39
All t eas mkg 110.96 110.33 121.78 123.93 84.92 79.23 101.53 66.84
1 9 9 8 1 9 9 9 Avg CV G. Rat e Min Max
Gr een Tea % 5.26 7.56 5.34 49.1 12.62 1.56 9.06
Gr een t ea mkg 3.54 7.33 5.05 56.67 7.06 1.73 11.23
All t eas mkg 67.22 96.99 96.37 21.84 -4.93 66.84 123.93
Source : various is s ues of ITC Bulletin London
Table 2 2 : Export s of Gre e n Te a from Indone s ia
{1 9 9 0 -9 9 ave rage s }
Quant it y-wis e [mkg]
Avg CV Gr owt h Ra t e Min . Ma x.
Gr een Tea 5.05 56.67 7.06 1.73 11.23
All Tea s 96.37 21.84 -4.93 66.84 123.93
Source : various is s ues of ITC Bulletin London.
5 4 . Import e rs of Gre e n Te a
i . Cons ume r Pr e f e r e nc e Ma jor impor t er s of gr een t ea a r e
J a p a n , US A, In d on e s i a , Nor t h Afr i c a n c ou n t r i e s a n d
Afgh a n is t a n . Th e con s u mer s in t h es e ma r ket s h a ve differ en t
t a s t es a n d pr efer en ces . However , a common fea t u r e gen er a lly
s ou gh t is t h a t t h e dr ied gr een t ea lea ves s h ou ld h a ve br igh t
olive gr een colou r wit h ou t a n y br own or r ed. Th e Ch in es e
gr een t ea is pr efer r ed in J a pa n a n d USA. Ch in es e gr een t ea
lea ves a r e gen er a lly polis h ed u s in g Fr en ch ch a lks or gyps u m
a n d colou r ed wit h in digo. Afgh a n s pr efer t h e gr een t ea liqu or
s imila r t o Ch in es e gr een t ea a n d u n like t h e Mor occa n s , t h ey
a r e mu ch les s fu s s y a b ou t t h e a p p ea r a n ce of t h e d r y t ea
lea ves .
i i . Mor oc c o Mor occo h a s t h e la r ges t ma r k et for gr een t ea
h avin g impor t ed as mu ch as 35.23 m kg in 1999 an d almos t
89
all of t hat came from mainland China. Import s of green t ea in
Mor occo h a ve been r is in g a n d s o a ls o it s s h a r e in t h e wor ld
impor t s . Du r in g 1990-99, Mor occo impor t ed a n a ver a ge of
33.67 m kg having a 51.62 per cent s hare at a moderat e u nit
imp or t p r ice of US $ 2. 10. Impor t s fr om Ch in a h a ve been
consist ent ly increasing [98.4 per cent share in 1999]. Per head
con s u mpt ion of t ea in Mor occo is in exces s of 1 kg.
i i i . Ja pa n J apan has been a s ignificant cons u mer of green t ea
bu t it s import s h ave been les s t h an on e-fou rt h of t h e import s
of Mor occo. Of t h e t ot a l t ea impor t ed du r in g 1993-99, bla ck
t ea had t aken an increas ing s hare bet ween 28 t o 42 per cent .
In t erms of per u nit import valu e in 1993, green t ea was only
44 per cen t of t h e bla ck t ea a n d 59 per cen t of t h e ot h er
t eas. While t he volu me and u nit valu e of import s of ot her t eas
h a s been s omewh a t declin in g, t h e u n it impor t va lu e of gr een
t ea has increas ed s light ly from US$ 2.20 in 1993 t o US$ 2.45
per kg in 1999.
i v. Fra nce Nearly 82 per cent of green t ea import ed in France
is fr om Ch in a a n d 13 per cen t is r e-expor t s fr om Belgiu m.
Th e Fr en ch ma r ket h a d pa id a n a ver a ge of US$ 3.71 per kg.
Th e qu a n t it y imp or t ed h a s flu ct u a t ed a n d t h e a ver a ge for
1990-99 wa s 5. 36 m kg in 1997 a s mu ch a s 8. 78 m kg of
gr een t ea wa s impor t ed.
v. USA USA impor t ed a n a ver a ge of 6. 20 m kg of gr een t ea
du r in g 1990-99 in wh ich Ch in a h a d n ea r ly 77. 68 per cen t
s hare. The popu larit y of green t ea in US is largely on accou nt
of it s h ea lt h ben efit s wh ich h a s been r eceivin g in cr ea s in gly
more and more media at t ent ion. Alt hou gh import s from ot her
cou n t r ies a r e s ma ll, t h ey r eceive h igh er u n it imp or t va lu e
wh en comp a r ed t o Ch in a , wh ich on a ver a ge r eceived ju s t
a bou t US$ 1.11 per kg.
vi . Tuni s i a Alt h ou gh in 1997 Tu n is ia impor t ed 2. 5 m kg of
green t ea import s , t h is was abru pt ly h alved in 1999. A h igh ly
flu ct u a t in g pa t t er n of impor t s of gr een t ea in Tu n is ia fr om
Ch in a exis t ed du r in g t h e yea r s 1990-99 wit h t h e a ver a ge of
8 2 . 4 6 p er cen t Fu r t h er t h e qu a n t it y- wis e [mk g] a ver a ge
imp or t s of gr een t ea in Tu n is ia fr om Ch in a for t h e p er iod
1990-97 is 1.38.
90
vi i . Ca na d a In 1999 Canada import ed 2.58 m kg of green t ea.
Impor t s h a ve been in cr ea s in g con s is t en t ly a n d exh ibit in g a
good gr owt h r a t e. Ch in a , Hon g Kon g, J a pa n a n d Ta iwa n a r e
t h e ma in s ou r ces a lt h ou gh US a ls o h a d n ea r ly 34 per cen t
s h a r e. Gr een t ea fr om Ta iwa n fet ch ed t h e h igh es t pr ice a t
US$ 4. 49 per kg wh er ea s Ch in a , Hon g Kon g a n d USA t ea s
fet ch ed u n der US$ 3.5 per kg.
5 5 . Ooolong Tea
i . Ch i n a Oolon g t e a is p r od u c e d ma in ly in Fu jia n a n d
Gu a n gdon g pr ovin ces of ma in la n d Ch in a a n d Ta iwa n . Oolon g
t ea is s emi-ferment ed. In 1990, 90 million cas es of Oolong t ea
a n d 70 million ca s es of bla ck t ea wer e pr odu ced in J a pa n .
Ool on g t e a i s mor e s t a b l e t h a n ot h e r b e ve r a ge s a n d i s
t h er efor e ea s ier t o pa ck in t in s , ca n s or bot t les . As bla ck t ea
is milk or lemon fla vor ed, it s s t or a ge in ven din g ma ch in es is
s omewh a t difficu lt . For t h es e r ea s on s , Oolon g t ea h a s fou n d
fa vou r wit h t h e food pr oces s or s pa r t icu la r ly in J a pa n .
i i . Ta i wa n Tea pr odu ct ion in Taiwan h as been declin in g an d
pr odu ct ion in 1999 a t 3. 07 m kg wa s les s t h a n on e-t h ir d of
t h e p r od u ct ion in 1 9 8 7 . Pr od u ct ion of gr een t ea h a s b een
declin in g a n d r ea ch ed a low of 0.55 m kg in 1999. However ,
Ta iwa n is a key pr odu cer of Oolon g t ea a n d a lmos t a ll of it s
pr odu ct ion in 1999 wa s of t h is t ype. Du r in g 1990-99, t h e
share of green t ea in t ea export s has been bet ween 14 and 33
per cen t . In format ion on export s of green an d ot h er t eas from
Ta iwa n is n ot a va ila ble.
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Pa rt Si x : Cur r e nt Te a Tr e nd s , FAO Pr oje c t i ons
Do m e s t i c Co n s u m p t i o n , Im p o r t s ,
Res ea rch & Devel op ment et c.
5 6 . Current Tea Trends
Next t o wa t er , t ea is t h e mos t wid ely con s u med n on - a lch oh olic
b ever a ge wor ld over a n d it is gr own in mor e t h a n 3 2 cou n t r ies .
Amon gs t t h em, In d ia is t h e la r ges t p r od u cer (2 8 % of t h e wor ld
pr odu ct ion ). Wor ld Tea Tr a de is goin g t h r ou gh a s ign ifica n t ch a n ge.
Wh ile d e ve lop e d ma r k e t s s t a gn a t e , gr owt h is e xp e c t e d in t h e
developin g cou n t r ies . Th es e ma r ket s h a ve n ow been open ed in t h e
wake of WTO regime. This will facilit at e increas ing global compet it ion
in t h e a r ea s of cos t , pr ice, qu a lit y, s u pply s ch edu les , pa cka gin g,
ma r ket focu s a n d cu s t omer s a t is fa ct ion .
In In d ia , t ea is gr own in 1 3 St a t es wit h d iver s e a gr o- clima t ic
con dit ion s . Tea pr odu ct ion in In dia h as been in cr eas in g an d s o als o
has domest ic consu mpt ion. Increased produ ct ion in t ea was achieved
by enhanced produ ct ivit y t hrou gh int rodu ct ion of high-yielding clonal
ma t er ia l, impr oved wa t er ma n a gemen t a n d t r a n s fer r in g r es u lt s of
r es ea r ch t o t h e field. Fu r t h er , cu lt u r a l pr a ct ices s u ch a s pr u n in g
cycles , pr oper u s e of fer t ilizer s a n d folia r a pplica t ion s of n u t r ien t s
a n d pla n t pr ot ect ion mea s u r es u s in g s a fe ch emica ls h a ve in cr ea s ed
yield s . Pr od u ct ion a ls o in cr ea s ed on a ccou n t of in cr ea s ed p la n t
den s it y an d r eh abilit at ion of old t ea lan ds t h r ou gh r eplan t in g, u s in g
t h e bes t a va ila ble pla n t in g ma t er ia ls a n d bet t er h u s ba n dr y. Va s t
r es ou r ces of s killed a n d mot iva t ed wor ker s , compet en t ma n a ger ia l
ma n p ower , s t r on g r es ea r ch b a ck in g, mod er n ized a n d u p gr a d ed
ma n u fa c t u r e e t c . , h a ve a l l c on t r i b u t e d t o a s ou n d b a s e a n d
p r ogr es s ive in d u s t r y. Th e gr owt h p r ofile in t er ms of comp ou n d
gr owt h r a t e of a r ea , p r od u ct ion , p r od u ct ivit y, yield a n d exp or t s
du r in g t h e la s t five deca des is given below :
Table 2 3 : Growt h rat es of area, product ion,
yie ld and e xport of t e a
Pe ri od Are a Produc t i on Yi e ld Export
1950-60 0.45 1.16 0.98 -0.39
1960-70 0.74 2.98 1.98 +0.47
1970-80 0.67 3.48 2.37 +1.06
1980-90 0.96 2.03 1.48 -0.68
1990-00 0.53 1.35 0.83 -0.34
2000-01 0.67 2.19 1.53 -0.03
Source : X Five Year Plan. Report on s ub-group on Plantation Crops II - Minis try of Commerce
92
57. Food and Agricult ure Organisat ion (FAO) Project ions for 2005
Accor din g t o FAO, wor ld bla ck t ea pr odu ct ion is es t ima t ed t o be in
t h e r egion of 2 7 0 0 million k g of wh ich In d ia s con t r ib u t ion is
expect ed t o be 1015 t o 1018 million kg. World cons u mpt ion by 2005
is es t ima t ed t o go u p t o 2 6 7 0 million k gs . a n d In d ia s exp or t is
likely t o r is e t o t h e level of 246 t o 250 million kg. Ch in a, In don es ia
and African cou nt ries are expect ed t o increas e produ ct ion. There will
be a produ ct ion su rplu s of 24 million kg and possible imbalance and
d own wa r d p r es s u r e on p r ices . Of cou r s e t h e emer gen ce of t h a t
s it u at ion is con t in gen t u pon weat h er con dit ion s in produ ct ion areas .
5 8 . De c line in t he Rat e of Dome s t ic Cons umpt ion
Th e r ecen t s t u dy con du ct ed on beh a lf of Tea Boa r d by t h e In dia n
In s t it u t e of Man agemen t , Calcu t t a (IIMC), r eveals t h at t ea con s u mp-
t ion h as n ot been of t h e order as s een in t h e pas t . Expect ed an n u al
domes t ic dema n d for t h e n ext 5 yea r s a s es t ima t ed by IIMC is a s
follows :
Table 2 4 : De mand proje c t ions for Te a
Ye ar Rural Urban Tot al
2000 388 265 653
2001 398 275 673
2002 408 285 693
2003 418 296 714
2004 428 307 735
2005 439 318 757
2006 450 330 780
Source : X Five Year Plan. Report on Sub-group on Plantation Crops II - Minis try of
Commerce
5 9 . Import s
Import s t ou ched arou nd 14 million kg in 2004 agains t average levels
of 1 t o 2 million k g in t h e p a s t . Th e u n iqu e CIF va lu e of t ea
impor t ed fr om a few cou n t r ies wa s lower t h a n t h e pr ices fa ced a t
In d ia n a u ct ion s . Th is h a s a ffect ed ma r k et s en t imen t s . Wit h t h e
emer gin g t r en ds in t h e globa lis ed econ omy, ma r ket s ca n n o lon ger
b e p r ot ect ed . In d ia n Tea In d u s t r y will h a ve t o comp et e in t h e
93
d omes t ic ma r k et . Pr ot ect in g t h e h ome ma r k et is goin g t o b e a
challenging t as k and t he Tea Indu s t ry has t o evolve s ome s t rat egy t o
cou n t er t h e n ew compet in g for ces u n lea s h ed by globa liza t ion .
Con t in u ed s u p p lies of t ea a t r ea s on a b le p r ices t o t h e d omes t ic
ma r ket a n d t o ma in t a in a n d impr ove t h e expor t s h a r e in t h e globa l
t ea t rade were t h e t win object ives of t h e previou s plan period. Th es e
t win object ives h old good for t h e X Pla n per iod a n d t h ey cou ld be
fu lfilled , on ly if t h e in d u s t r y con t in u es t o gr ow wit h p r ofit a n d
r ema in s h ea lt h y.
6 0 . Pre s e nt St at us on Re s e arc h and De ve lopme nt in Te a
i . R&D Cont ri but i ons on Tea Tea Res earch As s ociat ion an d
UPASI Tea Res ea r ch Fou n d a t ion h a ve r elea s ed 3 0 h igh -
yielding veget at ive clones each. This has enhanced produ ct ivit y
fr om 1416 kg. per h ect ar e in 1981 t o 1850 kg per h ect ar e in
2000 in Nor t h In dia an d 1645 kg per h ect ar e t o 2300 kg per
hect are in 2000 in Sou t h India. UPASI-TRF-I recent ly releas ed
i n S ou t h In d i a h a s yi e l d p ot e n t i a l u p t o 1 1 0 0 0 k gs p e r
h ect a r e.
Biot ech n ologica l a p p r oa ch in t ea b r eed in g h a s p r ogr es s ed
t owa r ds pr ot opla s t fu s ion , h a ploid lin e a n d ma r ket develop-
men t s in pr u n in g, DNA, fin ger pr in t in g a n d pa t en t in g of elit e
clon es . Nu t r it ion in Tea is n ow bas ed on compu t er is ed model
a n d gr een lea f yield pot en t ia l. Su lph u r a n d zin c n u t r ien t s
h a ve been a ccommoda t ed a lon g wit h NPK r equ ir emen t s .
Cu lt iva t ion a s pect s like pr u n in g, s h a de ma n a gemen t , or ga n ic
nu t rit ion in soil, soil amendment and applicat ion of weedicides
a n d ba la n ced a pplica t ion of fer t ilizer s h a ve been r efin ed over
t h e yea r s t o h a r ves t in cr ea s in g yield . Fu r t h er , Ir r iga t ion
Dr a in a ge Tech n ologies in t ea h a ve been impr oved a n d t h eir
r equ ir emen t in impr ovin g yields h a s been es t a blis h ed.
Pr ot ect ion of cr op s is lin k ed t o min imu m a p p lica t ion of
p e s t i c i d e s a n d i t s l i n k a ge t o fol l ow In t e gr a t e d Pe s t
Ma n a gemen t (IPM) p r a ct ice. Ma in t a in in g b io- d iver s it y a n d
min imu m or n o p es t icid e r es id u e is t h e ca ll of t h e d a y.
Biocides a n d biocon t r ols h a ve been developed. Ch emis t r y of
Tea man u fact u r e an d flavou r ch emis t r y of Tea h ave h elped in
r e fi n i n g m a n u fa c t u r e of Te a on s c i e n t i fi c b a s i s a n d
u n der s t a n din g t h e r ole of en zymes in volved in it .
94
Qu a lit y imp r ovemen t in Tea h a s b een a ch ieved t h r ou gh
t r a in in g, mod er n iza t ion of fa ct or y, u p gr a d in g of p lu ck in g
s t a n da r d a n d impr ovin g s a n it a t ion a n d h ygien ic s it u a t ion s .
ISO-9000 a n d HACCP a s a pa cka ge for qu a lit y impr ovemen t ,
h a ve been in t r odu ced.
Res ea r ch on h ea lt h b en efit a s p ect s h a s yield ed p os it ive
r es u lt s . Tea dr in kin g is ben eficia l in t h e cu r e of Hyper t en -
s ion s , diabet es , can cer, kidn ey, malfu n ct ion , den t al caries et c.
Tea con t a in s a n t ioxida n t s wh ich h elp h u ma n bein gs t o a void
ma n y h ea lt h complica t ion s . Pa cka gin g of t ea is n ow bein g
don e wit h r ecen t ly developed pa cka gin g ma t er ia ls like ju t e,
la min a t ed ba gs , mu lt i-wa ll pa per s a cks a n d u s e of flexible
pa cka gin g s u bs t a n ces .
i i . Approa ch t o X Pl a n Peri od Specific areas of res earch can
be iden t ified t o la u n ch n ew a r ea s of fu n da men t a l r es ea r ch in
differ en t fields , like a dva n ce pr ogr a mmes in bio-t ech n ology,
charact erizat ion of clones et c. Nu t rit ion of Tea Plant s is a grey
a r ea . Compu t er s imu -la t ion models for ba la n ced n u t r it ion for
Tea will be a st ep t o apply non-cont ent s of fert ilizer t o t he Tea
p la n t b a s ed on va r ia b le cr it er ia lik e s oil con d it ion s , b u s h
fr a me a n d a ge, en vir on men t a l fa ct or s et c. Th is will h elp in
s cien t ific ma n a gemen t of t ea es t a t es in a ccor da n ce wit h t h e
pr odu ct ion n eed.
Compu t er a ided da t a ba s e, if s t or ed for fu t u r e u t ilis a t ion a n d
gu idan ce t o t h e man agemen t an d s ect ion al in for mat ion of t ea
gar den s will h elp bot h t h e r es ear ch in s t it u t es an d t ea es t at es
t o s a ve t ime a n d in it ia t e pr ompt a ct ion in t a kin g cor r ect ive
a ct ion s .Qu a lit y of Tea ca n be en h a n ced fr om t h e in for ma t ion
on bio-chemical pat hways , if t hes e are ident ified and packages
a r e developed.
E l e c t r on i c s c a n p l a y a b i g r ol e on c e t h e b i o- c h e m i c a l
p a t h wa ys a r e id en t ified a n d t h es e a r e lin k ed t o comp u t er
s en s or s By-pr odu ct s of Tea ca n be ga in fu lly u t ilized for ot h er
i n d u s t r i a l u s e . S i m i l a r l y, va l u e a d d e d i t e m s l i k e RTD,
fla vou r ed t ea a r e t h e a r ea s on wh ich n ew r es ea r ch cou ld be
t h ou gh t of.
Su s t a in a bilit y is a ma jor pr oblem in Tea . It is obs er ved t h a t
Tea produ ct ivit y is n ot in creas in g in t h e replan t ed areas . Th is
h a s been lin ked t o s oil s ickn es s , r ea s on s for wh ich a r e n ot
95
well es t ablis hed. Bio-agricu lt u re is a new res earch area, which
can give an s wer s t o t h e pr oblems as in dicat ed, in or gan ic t ea
es t a t es wit h s t a ble yields .
Qu a lit y con t r ol is a ma jor is s u e in Tea . Th e Qu a lit y Con t r ol
La bor a t or y Ch a in in Sou t h In dia a s well a s in Nor t h In dia
n e e d s t o b e s t r e n gt h e n e d s oon . We l l d e ve l op e d fi e l d
la b or a t or ies for qu a lit y t es t in g of t ea a n d mon it or in g of
a d ve r s i t i e s wi t h Te a Es t a t e i s e s s e n t i a l . Th e c on d u c i ve
en vir on men t for t r a de h a s pr ompt ed s u ch s t eps t o en s u r e
qu alit y t ea produ ct ion. If needed, a phas ed programme can be
d e ve l op e d a n d c om p u t e r n e t wor k m on i t or i n g m a y b e
es s en t ia l.
6 1 . Ne w Propos al for Re s e arc h During X Five Ye ar Plan
Net wor k pr ogr a mme for t r a n s fer of t ech n ology, compu t er is a t ion a n d
soft ware development , dat a collect ion and st rengt hening of t ransfer of
t ech n ology u n it s in each zon e (7 cen t res in Nort h Eas t , 7 cen t res in
Sou t h In dia an d con n ect ion wit h bas e laborat ories ) h ave been made.
A ch a in of Qu a lit y Con t r ol La bor a t or ies (4 in Nor t h Ea s t - Tockla i,
Dibr u gar h , Cach ar , Nagr akat a), u pgr adat ion of labor at or ies in Sou t h
In dia (Va lpa r a i, Coon oor , Va n diper iya r , Gu da lu r ) h a ve been es t a bli-
s h ed. Pr opos a ls r ela t in g t o (i) In t egr a t ed Nu t r it ion Ma n a gemen t a n d
Compu t er Simu la t ion of da t a in ea ch of t h e Advis or y Cen t r es a n d
con n ect in g ba s e la bor a t or ies in clu din g developmen t of models , (ii)
Ir r iga t ion a n d Dr a in a ge Res ea r ch Pr oject , (iii) Bio-ch emica l An a lys is
an d Qu alit y Upgr adat ion Pr ogr amme in Nor t h Eas t an d Sou t h In dia
a n d (iv) Developmen t of For eca s t in g Model for Pes t
Dis ea s e Con t r ol in clu din g Bio-con t r ol a s pect s a r e on t h e pr oces s of
implemen t a t ion . Soil ma n a gemen t a n d Or ga n ic Cu lt iva t ion of Tea ,
Tea a n d Hu ma n Hea lt h , Va lu e Added it ems a n d Pr odu ct Diver s ifi-
ca t ion in Tea , Pa cka gin g, Eco-fr ien dlin es s a n d ot h er r ela t ed a r ea s
a n d Bio-t ech n ology in Tea a r e n ew pr opos a ls for r es ea r ch in t h e
Ten t h Five Yea r Pla n .
97
Pa rt Seven : Exp ort s Ma rk et s & Comp et i t i venes s
6 2 . Int roduct ion
Keepin g in view t h e globa l compet it ion in bla ck t ea ma in ly a mon g
In dia , Sr i La n ka a n d Ken ya , t h er e is n eed t o a s s es s t h eir compet it ive
pos it ion s . Th e Wor ld Ba n k s t u dy h a s don e s o in t h e con t ext of Sr i
La n ka s t ea in du s t r y. Th is a n a lys is [Table 1 1 ] wh ile qu it e u s efu l is
bas ed on recent t heories of compet it ivenes s as per Port ers Framework.
Th a t fr a mewor k, a n d for t h a t ma t t er ot h er wr it in gs in t h is a r ea a r e
la r gely ba s ed on ma n u fa ct u r in g in du s t r y wh ile t h e a gr icu lt u r a l s cen e
is r a t h er differ en t . Th e fr a mewor k wit h s u it a ble modifica t ion s , wou ld
perhaps be s u it able for applicat ion t o t he indu s t rial part of agricu lt u re
bu t n ot qu it e s o far t o agr icu lt u r al pr odu ct ion an d t r ade commodit ies
wh ich con t in u es t o be an alyzed in t radit ion al t h eories of comparat ive
advant age. One t akes a rat her s imple view of compet it ivenes s in global
t rade in t ea. Th e compet it ive pos it ion s in t h e market are a cu mu lat ive
expr es s ion of in t er a ct ive effect s of a ll va r ia bles fr om pr odu ct ion a n d
pr oces s in g t o con s u mer ma r ket s .
Th e det a ils of globa l pla yer s in t ea in du s t r y [cou n t r y pos it ion of
compet it ive fa ct or s a r e given below] [Table 2 5 ]
Table 2 5 : The Global playe rs in t he Te a Indus t ry :
Count ry pos it ion on Compe t it ive Fac t ors
India Sri Lanka Ke nya
Nat ural Re s ourc e s and Human Capit al
La n d Aver a ge Wea k St r on g
Wa t er Res ou r ces Aver a ge St r on g St r on g
Qu a lit y of t ea bu s h es Wea k Wea k St r on g
Yields Aver a ge Wea k St r on g
Ava ila bilit y a n d qu a lit y of wor ker s Aver a ge Aver a ge Wea k
Lit er a cy r a t e Low High Aver a ge
Mac ro e c onomic Environme nt
Ma cr o econ omic a n d s ect or policy Wea k Aver a ge St r on g
Sect or in ves t men t gr owt h Wea k Aver a ge St r on g
Exch a n ge r a t e r egime St r on g St r on g St r on g
Tr a de a n d t a x r egime Wea k St r on g Aver a ge
Pr ice r egime Wea k St r on g St r on g
La bou r r egime Wea k Wea k St r on g
98
India Sri Lanka Ke nya
Infras t ruc t ure
Tr a n s por t a n d commu n ica t ion s Wea k Aver a ge Wea k
Ma r ket in g Aver a ge Wea k St r on g
R & D Aver a ge Wea k Aver a ge
Ext en s ion Aver a ge Wea k St r on g
Marke t ing Environme nt
Key ma r ket s s ize a n d gr owt h r a t e St r on g Aver a ge Aver a ge
In come a n d gr owt h of in come in key ma r ket s Wea k Aver a ge St r on g
Pr ice pos it ion in key ma r ket s Wea k St r on g St r on g
Compet it ive s t r en gt h Wea k Aver a ge Aver a ge
Mic ro-marke t ing and c o-ordinat ion
Pr odu ct ion / Ma r ket in g co-or din a t ion St r on g Wea k St r on g
Loca l Pr oces s in g a n d lin ked in du s t r ies St r on g St r on g Aver a ge
Qu a lit y con t r ol St r on g St r on g
Ris k s h a r in g St r on g St r on g
Tech n ica l, fin a n cia l a n d ma n a ger ia l s kills Wea k Aver a ge St r on g
Cos t s t r u ct u r e Aver a ge Wea k St r on g
Ma r ket in g s t r en gt h Aver a ge Aver a ge Aver a ge
Pr odu ct in n ova t ion St r on g Aver a ge Wea k
Source : Reproduced from World Bank [1997], Sri Lank as Tea Indus try , Dis cus s ion
Paper No. 368 Was hington DC. Augus t p.86
6 3 . Compe t it or Analys is of Sixt e e n s pe c ific Marke t s
An a t t empt h a s been ma de on t h e ba s is of da t a given in Anne xure
II t o p r es en t comp et it or a n a lys is for 1 6 s p ecific ma r k et s , wh ich
t oget h er cover a n a ver a ge of over 70 per cen t of wor ld impor t s of
t ea . On t h e s u pply s ide, a n a lys is h a ve been ma de on 13 cou n t r ies ,
comma n din g over 96 per cen t of t h e wor ld expor t s . For illu s t r a t ion ,
con s ider t h e UK ma r ket . Du r in g 1990-99 it comma n ded a n a ver a ge
13.01 per cen t s h a r e in t h e wor ld impor t s in qu a n t it y 145.99 m kg
a n d r a t e of gr owt h @0.24 per cen t a n d per h ea d con s u mpt ion 2.52
kg per a n n u m. All in a ll, UK is a ver y la r ge s ize ma r ket t o wh ich
man y cou n t ries s u pply. Sri Lan ka, a key s u pplier t o t h e UK market ,
h a s a 6. 16 per cen t s h a r e wit h a declin e in r a t e of gr owt h a t -
3. 44 per cen t wit h u n it in pu t va lu e a t US$ 2. 01. As r ega r ds , Sr i
La n ka , 5.2 per cen t of t ea expor t s fr om Sr i La n ka h a ve gon e t o UK
wit h gr owt h r a t e a t - 6 . 1 5 p er cen t a n d a n exp or t u n it va lu e
r e a l i s a t i on a t US $ 1 . 9 7 . For e a c h c e l l i n t h e An n e x u re - II,
in t er pr et a t ion s a r e s imila r a n d pr ovide t h e ba s is of compa r is on a n d
a s s es s in g compet it ive pos it ion .
99
Compa r in g r ela t ive pos it ion in t er ms of ma r ket s h a r e r a t e of gr owt h in
mar ket s h ar e an d u n it valu e r ealis at ion yields a good u n der s t an din g of
compet it ive pos it ion wh ich a r e s u mma r ized in Anne xure -III.
For illu s t r a t ion , Ken ya is t h e ma r ket lea der wit h 28 per cen t of t h e
t ot al World Tea Market , compris ing UK, Pakis t an, Egypt and Ireland.
In con t r a s t , In dia is a ma r ket lea der on ly in 16 per cen t of Wor ld
t ea market which inclu des Ru ssian Federat ion, Poland and Germany.
For Sr i Lan ka leader s h ip is of 2.5 per cen t mar ket s . Ch in a leads in
7. 5 per cen t for ma r ket s bu t a la r ge s h a r e of t h a t is in gr een t ea .
Argen t in a h as a market leaders h ip in USA, wh ich comman ds a 7.53
per cen t s h a r e in t h e wor ld impor t s (Anne xure -III).
An a lyzin g ma r k et s in t h is fr a mewor k , a n u n d er s t a n d in g of a n d
eva lu a t in g t h e compet it ive pos it ion , wou ld h elp t h e t ea in du s t r y t o
d e ve lop c omp e t it ive p r od u c t s a n d ma r k e t s t r a t e gy. Aft e r a ll,
Pau ls kr u gman pu t s it , A cou n t r y does n ot loos e in t h e compet it ive-
n es s ga me b u t p er for ma n ce of fir ms d o. An in d ivid u a l fir m is
compet it ive an d it can s ell it s goods at t h e mar ket pr ice an d make
mon ey. Ot h er wis e t h e fir m goes bu s t bu t t h e econ omy does n ot .
However, in cas e of t ea, economies of s mall nat ions wou ld als o falt er
if t h eir fir ms fa il t o compet e. Th u s con s equ en ces of u n compet it ive-
n e s s c ou l d b e a d i s a s t e r for b ot h c ou n t r i e s a s we l l a s fi r ms
depen din g u pon h ow impor t a n t t ea impor t s a r e t o t h eir econ omies .
To t h a t ext en t , In dia , a s a n a t ion , h a s a la r ge cu s h ion a n d t h a t is
probably t he reas on for ou r complacency and lack of compet it ivenes s
in wor ld ma r ket s .
6 4 . Are a, Produc t ion and Export s of Te a of Diffe re nt Count rie s
Alt h ou gh a s ma n y a s 34 cou n t r ies a r e pr odu cin g t ea in t h e wor ld,
t h e ma jor cou n t r ies a r e In dia , Ch in a , Sr iLa n ka , In don es ia , Ken ya ,
Uga n da , Mya n ma r et c. On a n a ver a ge, In dia h a s a n a r ea of 498
t h ou s an d h ect ar e wit h an aver age an n u al pr odu ct ion of 830 million
kg s h owin g a n a ver a ge yield of 1666 kg per h ect a r e. Sr i La n ka , on
a n a ver a ge, cu lt iva t es t ea t o t h e ext en t of 191 t h ou s a n d h ect a r e
pr odu cin g a ver a ge a n a n n u a l cr op of 295 million kg wit h t h e yield
rat e of 1545 kg per h ect are. In s pit e of t h e fact t h at Ch in a occu pies
more t han t wice t he area [average of 1115 t hou sand hect are] held by
In dia, t h e pr odu ct ion was n ot s ign ifican t it was on ly 689 million kg
on a n a ver a ge. Th is wa s du e t o low yield r a t e [618 kg per h ect a r e].
On t h e expor t fr on t , Ken ya expor t s 93 per cen t of t ot a l pr odu ct ion
followed by Sr i La n ka a t 83 per cen t , In don es ia 66 per cen t , Ch in a
36 per cent , India 24 per cent et c. There are variou s reas ons for low
expor t s fr om In dia a n d t h es e a r e dis cu s s ed s epa r a t ely in Pa r t VII.
100
Table 2 6 : Are a, Produc t ion and Export s of
Te a of Diffe re nt Count rie s
a. Are a Unde r Te a in Diffe re nt Count rie s (Are a in 0 0 0 he c t are s )
Year India Sri Lanka China Indone s i a Kenya Uganda Myanmar Ot hers @ Tot al
1989 415 221 0 129 87 21 58 555 2551
1990 416 221 1061 135 97 21 59 550 2560
1991 420 222 1061 137 100 21 58 551 2570
1997 434 194 1076 154 118 20 67 627 2690
1998 474 195 1056 157 118 20 68 604 2692
1999 490 195 1130 157 120 20 68 512 2692
2000 504 189 1089 157 122 21 68 515 2665
2001 509 189 1141 161 132 21 68 514 2735
2002 512 189 1155 162 132 21 68 517 2756
b. Produc t ion of Te a in Diffe re nt Count rie s [Qt y in million kgs ]
Year India Sri Lanka China Indone s i a Kenya Uganda Myanmar Ot hers @ Tot al
1989 688 208 525 147 181 5 50 689 2503
1990 720 234 540 161 197 7 36 689 2584
1997 731 278 665 158 240 20 54 738 2883
1998 798 280 670 159 245 22 57 721 2952
1999 825 284 676 161 249 25 60 693 2973
2000 847 307 683 157 236 29 60 673 2992
2001 853 296 702 161 294 33 60 692 3091
2002 826 310 715 166 287 34 60 701 3099
c . Export s of Te a from Diffe re nt Count rie s [Qt y in million kgs ]
Year India Sri Lanka China Indone s i a Kenya Uganda Myanmar Ot hers @* Tot al
1989 213 204 204 115 163 3 5 218 1125
1990 210 215 195 111 170 5 5 224 1135
1997 188 256 194 105 220 18 25 244 1250
1998 189 260 195 102 230 20 25 234 1255
1999 191 262 194 99 242 22 25 225 1265
2000 207 280 228 106 217 26 25 245 1334
2001 183 288 250 99 258 30 25 262 1395
2002 201 290 253 100 268 31 25 264 1432
Source : Tea s tatis tics , Tea Board of India, Kolk ata
Not e : @ Ot hers inclu de Banglades h, Taiwan, J apan, Viet nam, Papu a & New Gu inea, USSR/
CIS, Ir a n , Tu r k ey, Ta n za n ia , Ma la wi, Moza mb iqu e, Za ir e, Ma u r it iu s , Rwa n d a ,
Bu ru ndi, Cameroon, Argent ina Brazil, Peru , Ecu ador, Zimbabwe, Thailand, Malaysia,
Sou t h Afr ica , Au s t r a lia , Et h iopia a n d Nepa l.
* Ot h er s in clu d e Ba n gla d es h , Ta iwa n , J a p a n , Ma la ys ia , Viet n a m, Pa p u a & New
Gu in ea , Ir a n , Tu r key, Ma la wi, Moza mbiqu e, Za ir e, Ma u r it iu s , Rwa n da , Br u n di,
Argent ina, Brazil, Peru , Ecqu ador, Zimbabwe, Cameroon, Thailand, Nepal, Myanmar,
Geor gia , Et h iopia a n d Sou t h Afr ica .
101
Pa rt Ei ght : Cons t ra i nt s , Sugges t i ons & Remed i a l
Mea s ures
6 5 . Cons t raint s
Viewed fr om lon g-t er m per s pect ives , t h e In dia n Tea In du s t r y h a s
s ever a l con s t r a in t s t h a t a r e dir ect ly a ffect in g bot h pr odu ct ion a n d
pr odu ct ivit y. Th e followin g a r e s ome of t h e impor t a n t con s t r a in t s .
Old age of t ea bu s h es - Near ly 40 per cen t of pr es en t t ea plan t s
in In dia h a ve exceeded t h e econ omic t h r es h old a ge limit of 40
yea r s . Th is h a s been a ffect in g pr odu ct ivit y.
Limit ed availabilit y of land for ext ension in t radit ional areas of t ea
cu lt iva t ion .
Slower pa ce of r epla n t a t ion , t h e r a t e of r epla n t a t ion is les s t h a n
0.4 per cen t a s a ga in s t t h e des ir ed level of 2 per cen t
Flu ct u a t ion s in t ea pr ices .
High er r a t e of t a xa t ion on in come fr om t ea .
The du al s t ru ct u re (agricu lt u re and indu s t ry) of Tea Indu s t ry has
r es u lt ed in t h e in ciden ce of h igh t a xes , s ome of wh ich a r e n ot
a pplica ble t o n on -pla n t a t ion a gr icu lt u r e.
* St iff compet it ion from s oft drin ks is n eeded t o pos it ion t ea as a
h ea lt h dr in k.
Poor drain age an d lack of irrigat ion wh en n eeded great ly redu ces
yield.
Th er e is con s id er a b le ga p b et ween p ot en t ia l a n d cu r r en t t ea
yields .
Low pr odu ct ivit y an d h igh cos t of pr odu ct ion on accou n t of h igh
in pu t cos t pa r t icu la r ly wa ges a n d t h e s ocia l ben efit s t h a t a lwa ys
wit h wa ges , r edu ce a t t r a ct iven es s of t ea pr odu ct ion .
Un t r a mmeled gr owt h of s ma ll gr ower s a n d poor a dh er en ce t o
qu a lit y pr odu ct ion n or ms .
6 6 . Cos t of Produc t ion
Labou r cos t accou nt s for a major part of t he t ot al cos t of produ ct ion
of t ea wh ich h as been r is in g s h ar ply. Th e s t agn at ion in pr odu ct ivit y
102
levels is compou n ded by h igh la n d la bou r r a t ios . Th e pr odu ct ivit y
a n d c os t of p r od u c t i on ma t t e r s t h e mos t i n d e t e r mi n i n g t h e
pr ofit a bilit y of t ea es t a t e. Con s ider in g t h e h igh cos t a n d in a dequ a t e
r es ou r ces , t h e own er s of t ea ga r den s pr efer t o con t in u e wit h t h e
exis t in g t ea bu s h es for r ea s on s of econ omy.
6 7 . Produc t ion Bas e Ge t t ing Conc e nt rat e d
In dia s Tea pr odu ct ion is s kewed t owa r ds bla ck t ea , es pecia lly t h e
CTC va r iet y wh ich a ccou n t s for 98 per cen t of pr odu ct ion . Wit h in
black t ea, CTC variet y is domin an t for reas on s of s t ron g flavou r an d
h i gh e r c u p p a ge a n d p r od u c t i vi t y. Wh a t c ou n t s i n t h e In d i a n
domes t ic ma r ket is s t r en gt h , a ffor da bilit y, cu ppa ge a n d a va ila bilit y.
Or t h odox t ea con s t it u t es a s ign ifican t por t ion of t h e wor ld t ea t r ade
a n d fet ch es h igh er pr ice r ea lis a t ion t h a n CTC va r iet y. Sr i La n ka
domin a t es in s u pply of or t h odox t ea . Lower cos t CTC t ea pr odu cer s
like Ken ya , et c. a r e compet in g a ga in s t In dia n t ea for ma r ket s h a r e
a n d h a s dis pla ced In dia n Tea in key expor t ma r ket cit ies like UK.
Domes t ic pr odu ct ion of or t h odox t ea h a s dr opped by 40 per cen t
du r in g t h e n in et ies ; h owever , or t h odox t ea h a s s ign ifica n ce in t h e
Wor ld t r a d e. In d ia n Tea In d u s t r y la gs b eh in d Ken ya , Ma la wi in
t er ms of yield per h ect ar e main ly du e t o old age of t ea bu s h es . Th e
a gin g b u s h es a r e p u llin g d own ga in s fr om a d op t ion of imp r oved
c u lt u r a l p r a c t ic e s a n d in c r e a s e in a r e a s u n d e r t e a . Dome s t ic
pr odu ct ion of gr een t ea is ma r gin a l; Ch in a domin a t es t h e globa l
ma r ket for gr een t ea .
6 8 . Is s ue s Impac t ing Indias Export Pe rformanc e
Th e r e a r e va r i ou s i s s u e s wh i c h h a ve s om e i m p a c t s on t h e
p e r for ma n c e of In d i a n e xp or t s . If t h e s e i s s u e s a r e a d d r e s s e d
s qu ar ely, t h er e ar e h opes of in cr eas in g In dias expor t s . Th es e ar e as
follows
In a d equ a t e effor t s ma d e in r es p ect of ma r k et in g a n d b r a n d
bu ildin g of In dia n t ea in over s ea s ma r ket .
Expos in g In dia s t ea expor t s t o con cen t r a t ion of r is k a r is in g ou t
of over - d ep en d en ce on Common wea lt h of In d ep en d a n t St a t es
(CIS), UK a n d UAE.
For CIS a n d UK ma r k et s , gr owt h r a t es h a ve b een s lower a s
compa r ed t o ot h er impor t des t in a t ion s .
103
In d ia n t ea s a r e get t in g ed ged ou t of emer gin g h igh er gr owt h
market s by compet ing produ ce from Sri Lanka, Kenya and China.
A la r ge ma r ket like Pa kis t a n wh ich a ccou n t s for 9% of wor ld
imp or t s r ema in s clos ed t o In d ia . Bla ck CTC t ea fr om Ken ya
domin a t es con s u mpt ion in Pa kis t a n . Th ou gh In dia n Tea wou ld
wor k ou t ch ea per on la n ded cos t ba s is in Pa kis t a n , t r a de in t ea
r ema in s ma r gin a l beca u s e of polit ica l s en s it ivit ies .
St a gn a n t expor t r ea lis a t ion .
Limit ed pr es en ce in emer gin g ma r ket s .
Ma r ket s h a r e deplet in g in ma t u r ed ma r ket s .
Tea export s const it u t e less t han 2 per cent of Indias export revenu es
a n d h en ce it h a s n ot been cover ed u n der t h e pr ior it y lis t .
Given policies a n d r egu la t ion s a r e or ien t ed t owa r ds pr ot ect ion of
domes t ic market ; availabilit y of t ea in domes t ic market an d price
s t abilit y are t h e over ridin g con cern s dict at in g policy formu lat ion .
6 9 . Indias Compe t it ive Pos it ion in World Te a Trade
Indias compet it ive pos it ion has weakened in t he world t ea t rade du e
t o variou s reas ons which are dis cu s s ed in variou s int eract ion meet s /
wor k s h ops / s emin a r s et c of n a t ion a l a n d in t er n a t ion a l n a t u r e. Th e
followin g fa ct or s a r e h eld r es pon s ible for s u ch wea kn es s ;-
In dia s t ea expor t s a r e fa cin g a dou ble cr u n ch wit h a pr odu ct ion
s low down and los s of s hare in major market s s erved and inabilit y t o
ma ke s ign ifica n t h ea dwa y in pot en t ia l/ emer gin g ma r ket s .
Wor ld expor t gr owt h @5. 3 per cen t Compou n d An n u a l Gr owt h
Rat e (CAGR) was higher t han Indias export growt h @3.4 per cent
- CAGR du r in g t h e per iod 1995-99.
Export realis at ions in dollar t erms have been s t agnant du ring t he
1990s .
Region -wis e t r en ds in dica t e t h a t ot h er t h a n t h e CIS cou n t r ies ,
In d i a s s h a r e h a s b e e n d e c l i n i n g (i n Nor t h Ame r i c a , In d i a
con t in u es t o be a ma r gin a l pla yer ).
In UK, t h e s econ d la r ges t impor t er a ft er t h e CIS gr ou p, In dia n
t ea h a s los t s ign ifica n t ma r ket s h a r e t o Ken ya n pr odu ce.
104
In gr een t ea Ch in a h a s r egis t er ed a mu ch h igh er gr owt h r a t e
(@15. 3 per cen t CAGR) t h a n In dia n t ea expor t s (@3. 4 per cen t
CAGR) du r in g 1995-99.
Even in In dias t r adit ion al s t r on gh olds , CIS, Sr i Lan ka h as made
s ign ifica n t in r oa ds s in ce 1993 followin g t h e dis ba n din g of t h e
cen t ralized market in g s ys t em. Th e main reas on s at t ribu t ed t o Sri
Lan kas s u cces s are bet t er an d more organ is ed market in g effort s .
7 0 . Indian Tea Indus t ry Supply Side Cons t raint s
Th e In dia n t ea in du s t r y is fa cin g va r iou s s u pply s ide con s t r a in t s .
Th e r a t e of gr owt h of la n d u n der t ea cu lt iva t ion dr opped fr om t h e
level of 15 per cen t + du r in g t h e 1970s an d t h e 1980s t o abou t 6-
7 per cen t du r in g t h e 1990s . Gr owt h in la n d u n der t ea cu lt iva t ion
wa s mu ch h igh er in Ken ya a n d In don es ia du r in g t h e 1990s . In dia
a lr ea d y h a s t h e s econ d h igh es t a r ea u n d er t ea cu lt iva t ion a ft er
Ch in a a n d fu r t h er s cope for expa n s ion is limit ed.
In d ia s cos t of p r od u ct ion is h igh er t h a n t h a t of Ken ya a n d Sr i
La n ka es s en t ia lly du e t o t h e h igh er pr odu ct ion over h ea ds , bes ides
la bou r cos t s . Th u s In dia n CTC t ea is les s compet it ive t h a n Ken ya n
pr odu ced t ea on t h e is s u e of pr icin g a lon e. Wit h t h e open in g u p of
t h e In dia n ma r ket pos t WTO, a pos s ible s cen a r io is t h a t ch ea per
impor t s ma y ca t er t o t h e domes t ic dema n d wh ile fin er qu a lit y t ea
cou ld be diver t ed t o expor t ma r ket s .
Th e in ward-lookin g n at u re of t h e t ea in du s t ry h as res u lt ed in a lack
of in n ova t ion a n d gen u in e va lu e cr ea t ion effor t s a n d t h e r es u lt is a
r a t h e r d ilu t e d e xp or t foc u s d u e t o la c k of c omp e t it ive n e s s in
in t er n a t ion a l ma r ket s . Con s u mer s a t is fa ct ion mor e t h a n pr odu ct ion
efficiency is t he key t o long-t erm su rvival and growt h. The Indian t ea
in du s t r y t h u s h a s t o move t owa r ds pr odu ct is in g In dia n t ea in t o a
con s u mer pr odu ct . It n eeds t o s h ift a wa y fr om t h e commodit ies ,
n a t u r e of expor t s in or der t o move u p t h e va lu e - cu r ve.
Th e in du s t ry n eeds t o addres s t h e is s u e of valu e creat ion t h rou gh a
con cer t ed effor t t h a t a ddr es s es t h e pr odu ct for m a n d t h e deliver y
s ys t e m (wi t h t h e a c c e n t on c on ve n i e n c e a n d i n n ova t i on i n
packagin g). Focu s ed br an d bu ildin g an d a mar ket in g campaign t h at
p os it ion s t ea a s a h ea lt h y a lt er n a t ive t o ot h er b ever a ges a n d
r ein for ces t h e s u per ior valu e of In dian t ea, ar e cr it ical. Th e in du s t r y
a ls o n eeds t o es t a blis h s t r a t egic a llia n ces in it s ma jor ma r ket s .
105
7 1 . Sc he me s during t he Xt h Five Ye ar Plan
For effect ively dealing wit h t he const raint s, t he following five schemes
h a ve been t a ken u p for t h e X Pla n per iod [2002-07].
i . Pl a nt a t i on De v e l op me nt S c h e me Un d er t h is Sch eme,
ext ens ion of loans will be cont inu ed for u ndert aking ext ens ion
p la n t in g, r ep la n t in g/ r ep la cemen t p la n t in g a n d p r ocu r in g
i r r i ga t i on e q u i p m e n t s . S i m i l a r l y, s u b s i d y s u p p or t for
r epla n t in g/ r epla cemen t pla n t in g, r eju ven a t ion pr u n in g a n d
consolidat ion will also be cont inu ed. Renovat ion of t he exist ing
field a s s et s r a t h er t h a n expa n s ion wou ld be t h e t h r u s t a r ea
du rin g t h e X Plan . Fu rt h er, s u bs idy for irrigat ion an d s u bs idy
for n ew p la n t in g a t d iffer en t s ca les is p os s ib le u n d er t h e
s ch eme.
i i . Qua l i t y Upgra d a t i on a nd Prod uct Di vers i fi ca t i on Scheme
Un der t h is s ch eme, loa n will be a dva n ced for pr ocu r in g t ea
p r oces s in g ma ch in er y, t r a ct or s , ligh t commer cia l veh icles ,
pa cka gin g ma ch in er y a n d s et t in g u p of cooper a t ive fa ct or ies .
Du r in g t h e X Pla n p er iod , t h r u s t wou ld b e on mor e va lu e
r ea lis a t ion . For t h is pu r pos e, t h e fa ct or ies a r e r equ ir ed t o be
equ ip p ed wit h a d equ a t e ma ch in er y for u n d er t a k in g d u a l
manu fact u re of ort hodox or CTC t ype as t he market demands.
Fu r t h e r , p r op e r i n fr a s t r u c t u r e n e e d s t o b e c r e a t e d for
improving t he volu me of valu e added t eas and specialt ies su ch
a s gr een t ea s , fla vou r ed t ea s , r ea d y t o d r in k t ea s , et c. In
or der t o en s u r e qu a lit y of t ea , t h e pr oces s of ma n u fa ct u r e
n eeds t o u n der go ch a n ges t o s u it t h e emer gin g n ew ma r ket s .
To fa c i l i t a t e t h i s t e a gr owe r s a n d m a n u fa c t u r e r s m a y
pa r t icipa t e in t h e qu a lit y impr ovemen t pr ogr a mmes s u ch a s
ca pit a l HACCP a n d ISO cer t ifica t ion .
i i i . Ma rk et Promot i on Scheme The s cheme wou ld cont inu e t o
s u pport act ivit ies s u ch as market res earch s u rvey, u ninat ional
campaign for In dian t ea in s elect ed market s , bran d promot ion
s u p p or t t o In d ia n comp a n ies for la u n ch in g t h e b r a n d s in
in t er - n a t ion a l ma r k et s , gen et ic ca mp a ign for t ea in n ew
ma r ket s a n d s et t in g u p of a n u mbr ella u n it in In dia t o meet
t h e r equ ir emen t s of p r od u ct a n d p a ck a gin g s t a n d a r d s in
in t er n a t ion a l ma r ket s . Th er e is a n a ll r ou n d r ea lis a t ion t h a t
t h e gr owt h r a t e of t h e domes t ic ma r ket s n eed a s t ep u p for
s u s t ainabilit y of t he t ea indu s t ry. Towards t his end, t here is a
n eed t o ma k e s p ecia l p r ovis ion s for la u n ch in g d omes t ic
s ch emes u n der t h e s ch eme.
106
Th e ma r ket for t ea is ch a n gin g. Tea is n ow fa cin g in cr ea s ed
compet it ion fr om s oft dr in ks . In view of t h is , t ea n eeds t o
pr ot ect it s ca r efu lly n u r t u r ed ma r ket . It a ls o n eeds t o ma ke
for a ys i n t o s oft d r i n k m a r k e t s wi t h a vi e w t o c r e a t i n g
compet it ion r a t h er t h a n mer ely r ea ct in g t o it . Th is ca n be
don e t h r ou gh fu r t h er va lu e a ddit ion a n d developmen t of n ew
pr odu ct s
Th e s ys t em of a u ct ion will h a ve t o b e s t r en gt h en ed a n d
t ech n ologica lly impr oved by movin g t o a ppr opr ia t e elect r on ic
for ma t s mod ifyin g t h e exis t in g s ys t ems . Accor d in gly, it is
p r op os ed t o ext en d fin a n cia l s u p p or t for cr ea t in g s u it a b le
da t a ba s e/ in for ma t ion collect ion / dis s emin a t ion s ys t em a n d
elect r on ic a u ct ion s ys t em.
i v. Re s e a r c h a n d De v e l o p m e n t S c h e m e Re s e a r c h a n d
development s cheme may expand t he ext ens ion s ervices of t he
r es ea r ch in s t it u t es s o t h a t t h e ga p bet ween la b a n d la n d is
n a r r owe d d own a n d a l l t h e gr owe r s a r e a b l e t o e n s u r e
in t er fa ce wit h t h e r es ea r ch in s t it u t es t h r ou gh a n et wor k of
advis or y cen t r es . Fu r t h er , r es ear ch in s t it u t es may be dir ect ed
t o focu s at t ent ion on produ ct ivit y improvement , cos t redu ct ion
in field op er a t ion s , qu a lit y ma n u fa ct u r in g p r oces s , va lu e
addit ion , produ ct divers ificat ion , et c. Great er awaren es s abou t
environment al issu es for emphasizing t he ecofriendliness of t ea
h a s t o b e cr ea t ed . Or ga n ic t ea is emer gin g a s a s p ecia l
pr odu ct a n d dema n d for it is likely t o in cr ea s e. Th er efor e,
t h e r e i s a n u r ge n t n e e d for r e s e a r c h i n t e r ve n t i on for
developin g appropriat e package of pract ices . Healt h benefit s of
t e a h a ve b e e n r e d i s c ove r e d r e c e n t l y t h r ou gh s c i e n t i fi c
r es ea r ch . Awa r en es s ca mpa ign s will ma ke t ea t h e n ew a ge
dr in k t h a t is ben eficia l for ph ys ica l h ea lt h .
v. Huma n Res ource Devel op ment Scheme Th e s ch eme will
a im a t a ch ievin g over a ll impr ovemen t of t h e s kills of per s on s
a s s ocia t ed wit h t ea p la n t a t ion s a t a ll levels (wor k er s t o
ma n a ger s ) t h r ou gh ext en s ive a n d in t en s ive t r a in in g. For t h is ,
t h e s er vices of (i) In dia n In s t it u t e of Pla n t a t ion Ma n a gemen t ,
(ii) Tr a in in g Cen t r e for Sma ll Gr ower s a n d Ma n u fa ct u r er s
(iii) Compr eh en s ive la bou r welfa r e s ch emes implemen t ed by
In dia n Tea As s ocia t ion (ITA) a n d Un it ed Pla n t er s As s ocia t ion
of Sou t hern India (UPASI) and (iv) Impart ing t echnical t raining
by Tea Res ea r ch As s ocia t ion a n d UPASI ma y be a va iled of.
107
Th e in n ovat ive idea of a Mot h er s Clu b bein g t es t ed in Dooar s
r egion pr ovides a n ew model for impr ovin g wor ker s h ealt h at
t h e es t a t e level. Th is model n eeds t o be ext en ded t o a ll ot h er
t ea gr owin g r egion s for wh ich a ddit ion a l fu n ds n eed t o be
ear mar ked u n der t h is s ch eme. A n ew appr oach is r equ ir ed t o
t ap local t alent and int ernal t raining in est at e management . In
a ddit ion , con t in u in g developmen t of t h e ma n a ger ia l s kills of
exis t in g ma n a ger s is a ls o r equ ir ed . Th e exis t in g s t a t u s of
s ma ll a n d ma r gin a l fa r mer s a n d iden t ifyin g t h eir ba s ic n eeds
for development of t hes e s u b s ect ors and evolving s t rat egies t o
ma ke t h em mor e a ct ive pa r t icipa n t s in over a ll developmen t
ma y be given pr ior it y. Or ga n izin g t r a in in g pr ogr a mmes on
moder n a s pect s of t ea gr owin g a n d ma n u fa ct u r e, es t a blis h -
men t of demon s t r a t ion plot s in t h e impor t a n t a r ea s of s ma ll
gr ower s con cen t r a t ion a n d s u pply of h igh yieldin g pla n t in g
ma t er ia ls a t s u bs idized r a t es .
Demon s t r a t ion plot s a n d t r ia l pla n t a t ion s in impor t a n t a r ea s
wit h con cen t r a t ion of s ma ll gr ower s in colla b or a t ion wit h
UPASI a n d CSIR in Hima c h a l Pr a d e s h ma y b e e xp lor e d
Fu r t h e r t r a in in g of s ma ll t e a gr owe r s b y UPASI, As s a m
Agr icu lt u r a l Un iver s it y, Nor t h Ben ga l Un iver s it y, et c. ma y be
con du ct ed. In a ddit ion , s t u dy t ou r s t o s ma ll t ea fa r mer s in
Nor t h Ea s t er n St a t es , Wes t Ben ga l, et c. t o lea r n impr oved
c u l t u r a l p r a c t i c e s b e i n g a d op t e d b y t h e m a r e t o b e
organized.Vis it t o Cooperat ive Tea Fact ories in Nilgiris t o s t u dy
t h eir d evot ion s , et c. is a n ot h er a r ea wh ich r equ ir es t o b e
look ed in t o. Qu a lit y u p gr a d a t ion s ch eme wh ich a ims a t
c r e a t i n g a n a wa r e n e s s a m on g t h e s m a l l gr owe r s a n d
manu fact u rers as t o t he import ance of adopt ing finer plu cking
s t a n da r ds a n d impr ovemen t of ma n u fa ct u r in g pr oces s of t ea
a r e t o be la u n ch ed.
Tea Boa r d imp lemen t ed t h e p r ogr a mmes lik e (a ) Qu a lit y
a wa r e n e s s c a m p a i gn i n d i ffe r e n t vi l l a ge s , (b ) Qu a l i t y
u p gr a d a t ion exp er imen t cu m d emon s t r a t ion in d iffer en t
r egion s , (c) pu blicit y in clu din g a dver t is emen t s , film/ pos t er s ,
n ot ices , et c. (d ) Qu a lit y a wa r en es s s emin a r s / con fer en ces /
fa r me r s me e t s for gr owe r s a s we l l a s b ou gh t l e a f a n d
in du s t r ia l cooper a t ive t ea fa ct or ies in differ en t t a lu ka s du r in g
t h e cu r r en t fin a n cia l yea r in clu de.
Wh ile ar ea for expan s ion of t ea in t h e es t at e s ect or is get t in g
exh au s t ed, t h er e is dis t in ct s cope for br in gin g addit ion al ar ea
108
u n der t ea in t h e s ma ll gr ower s s ect or . Th e la n d policy of t h e
Government is als o condu cive t o t his development . Growing of
t ea es p ecia lly in t h e Nor t h Ea s t er n r egion wou ld h elp in
gen er a t ion of s u fficien t in come t o s u s t a in r u r a l h ou s eh olds ,
cr ea t ion of employmen t oppor -t u n it ies for u n employed you t h
a n d la n d les s la b ou r er s , con s er va t ion of n a t u r a l r es ou r ces
t h r ou gh con t r ol of s h ift in g cu lt iva t ion a n d d egr a d a t ion of
for es t a r ea s , a n d pr ovidin g a mea n s of h a r mon iou s livin g by
min imizin g t h e s ocia l u n r es t in t h e r u r a l a r ea s .
7 2 . De ve lopme nt of Small Te a Growe rs - Me as ure s duri ng t he
Xt h Plan Pe riod
Th e Ten t h Pla n h a s a dopt ed mu lt i-dimen t ion a l mea s u r es for t h e
welfare of t he s mall t ea growers who are concent rat ed in s ome part s
of As s am, Tamil Nadu , Kar n at aka et c. an d con s t it u t e a major s h ar e
in t ot a l t ea es t a t es of t h e cou n t r y. Some of t h e mea s u r es a r e (i)
s et t in g u p of demon s t r a t ion plot s in ea ch of t h e Nor t h Ea s t St a t es
for demon s t r a t in g a ll a s pect s of t ea gr owin g, in a mor e compr e-
hens ive manner, (ii) format ion of cent ral nu rs eries for s u pply of right
kind of plant ing mat erial t o t he s mall growers , (iii) arranging t raining
pr ogr a mmes t o a ll t h e pa r t icipa t in g fa r mer s on a ll a s pect s of t ea
growing in collaborat ion wit h TRA, Assam Agricu lt u ral Universit y and
Nor t h Ben ga l Un iver s it y, (iv)la u n ch in g of a dvis or y s er vices in ea ch
St a t e for per iodic field vis it s a n d a dvis in g on pr a ct ica l a s pect s of
cu lt iva t ion a n d pr ovidin g s oil a n a lyt ica l s u r vey, (v) a r r a n gin g s t u dy
t ou rs for t h e growers t o vis it t h e developed areas es pecially in s ou t h
In d ia a s well a s for eign cou n t r ies s u ch a s Ken ya a n d In d on es ia
wh er e con s ider a ble wor k h a s been don e for t h e ben efit of s ma ll t ea
gr ower s .
All a ct ivit ies will b e ca r r ied ou t b y t h e Tea Boa r d t h r ou gh it s
r e gi on a l offi c e s a n d i n c ol l a b or a t i on wi t h r e s p e c t i ve S t a t e
Gover n men t s .
7 3 . Progre s s in Re c e nt Te c hnique s in Cult ivat ion of Te a
In r ecen t t imes , micr o- p r op a ga t ion , h yb r id s eed p r od u ct ion a n d
s eedlin gs , h i-den s it y pla n t in g, in t egr a t ed n u t r ien t ma n a gemen t , u s e
of bio-fer t ilizer s , micr o ir r iga t ion , fer t iga t ion , pr ot ect ed cu lt iva t ion ,
or ga n ic fa r min g, in t egr a t ed p es t ma n a gemen t a n d u s e of b io-
pes t icides , mobecu lar diagn os t ics , pes t icides r es idu es , et c. ar e s ome
of t h e t ech n iqu es in t ea cu lt iva t ion .
109
Pr opa ga t ion of t ea in clu des r elea s e of h igh yieldin g clon es , bi-clon a l
s eed s t ock an d gr aft ed plan t s . Th es e plan t in g mat er ials h ave s h own
ext r emely s a t is fa ct or y r es u lt s . However , exis t in g ma t er ia ls a n d
t ech n iqu es n eed t o b e imp r oved . St a n d a r d is a t ion of p a ck a ge for
cu lt iva t ion of or ga n ic t ea is yet t o be ma de.High den s it y pla n t in g is
s u fficien t for obt a in in g h igh er yield fr om a n u n it a r ea . An y fu r t h er
increas e in t he dens it y wou ld only lead t o u neconomic produ ct ion in
t h e lon g r u n .
Wit h in t r odu ct ion of s t r in gen t Min imu m Res idu a l Limit s (MRLs ),
in t egr a t ed p os t h a r ves t ma n a gemen t , t ech n iqu es r equ ir ed t o b e
fu rt h er res earch ed. More res earch and development effort s are called
for in t h e a r ea s of micr o-n u t r ien t ma n a gemen t .
7 4 . Produc t ion Targe t for Xt h Plan
Ba s ed on t h e pr oject ed domes t ic dema n d, a s per s t u dies con du ct ed
b y In d ia n In s t it u t e of Ma n a gemen t , Ca lcu t t a a n d Wor ld Exp or t
dema n d a s es t ima t ed by Food a n d Agr icu lt u r e Or ga n is a t ion a n d
r emova l of qu a n t it y r es t r ict ion s (QRs ) u n d er t h e Agr eemen t of
Agr icu lt u r e of WTO, t h e es t ima t ed pr odu ct ion a n d expor t t a r get s
du r in g t h e Xt h Pla n per iod a r e s h own below :
Targe t s 2 0 0 2 -0 3 2 0 0 3 -0 4 2 0 0 4 -0 5 2 0 0 5 -0 6 2 0 0 6 -0 7
1. Domes t ic Con s u mpt ion * 693 714 735 757 780
2. Expor t ++ 234 241 248 256 264
Tot al produc t ion 9 2 7 9 5 5 9 8 3 1 0 1 3 1 0 4 4
* Bas ed on IIMC s t udy
++ Ac c ordi ng t o FAO, e xport avai labi li t i e s are proje c t e d t o re ac h 1 6 0 0 mi lli on kg i n
2 0 0 5 , it is t arget ed t o achieve a s hare of 1 6 % of t he t ot al global export s
Source : Xth Five Year Plan - Report of Sub-group on Plantation Crops - II - Tea, Coffee and
Rubber - Minis try of Commerce
7 5 . FAO Project ions for Black Tea - 2 0 0 5
FAO ma de fu t u r e pr oject ion s t a kin g in t o a ccou n t t h e commit t ed
r ed u ct ion in t a r iff r a t es for t ea imp or t s . Th is r ed u ct ion wa s on
a ccou n t of t r a d e lib er a liza t ion a ft er 1 9 9 4 . Th e FAO p r oject ion s
in dica t e t h a t wor ld bla ck t ea impor t s wou ld in cr ea s e by a fu r t h er
2.9 per cen t , fr om 1355 m.kg t o 1394 m.kg by 2005 becau s e of t h e
impa ct of t a r iff r edu ct ion s r es u lt in g fr om t h e URA.
110
Blac k Te a Count ry Wit hout t ariff Wit h t ariff
re duc t ion re duc t ion
m. kg % s hare m. kg % s hare
Pr odu ct ion In dia 1015 36.11 1018 35.96
Sr i La n ka 285 10.14 287 10.12
Ken ya 278 9.80 280 9.94
Ch in a 220 7.83 224 7.92
In don es ia 210 7.47 213 7.51
Tu r key 215 7.65 215 7.60
Expor t s In dia 245.8 17.12 249.8 172.20
Sr i La n ka 254.5 18.22 262.6 18.09
Ken ya 254.0 17.69 256.8 17.68
Ch in a 192.0 13.37 201.2 13.85
In don es ia 200.0 13.93 214.0 7.51
Source : FAO, (1995), Impact of t he URA on t he World Tea Economy : Project ions t o 2005,
Committee on Commodity Problems , IGG of Tea, Rome
7 6 . Approac h t o Xt h Five Ye ar Plan
Accor din g t o t h e Appr oa ch t o Ten t h Five Yea r Pla n t a r get s s h ou ld
n o lon ger b e p r od u ct ion or ien t ed , b u t s h a ll a im a t imp r ovin g
pr odu ct ivit y, va lu e a ddit ion a n d ma r ket a bilit y. It fu r t h er s t a t es t h a t
on e mu s t con cen t r a t e on in cr ea s in g t h e p r od u ct ivit y of exis t in g
ga r d e n s r a t h e r t h a n e s t a b l i s h i n g n e w p l a n t a t i on s wi t h h u ge
in ves t men t s . Th er e s h ou ld b e con t in u ed effor t s t owa r d s fu r t h er
in cr ea s in g t h e p r ofit a b ilit y of t ea ga r d en s t h r ou gh r ep la n t in g/
r eju ven a t ion a n d mech a n iza t ion of oper a t ion s .
Th e ma in t h r u s t wou ld b e on qu a lit y s o a s t o ma k e ou r t ea s
compet it ive in t h e ligh t of open in g u p of t h e econ omy u n der t h e
WTO a gr eemen t on a gr icu lt u r e. Th r u s t is t o be given on impr ovin g
ma r ket in g ca pa bilit ies a s well a s s u bs t a n t ia lly impr ovin g pa cka gin g
an d valu e addit ion . Con vers ion t o organ ic met h ods of t ea growin g t o
be en cou r a ged.
In for ma t ion t ech n ology n eed s t o b e given d u e con s id er a t ion for
ma k in g a va ila b le r ea d y in for ma t ion t o t h e t ea in d u s t r y a n d for
pr omot ion of ou r pr odu ce in ot h er ma r ket s .
Th er e mu s t b e con t in u ed effor t s t owa r d s fu r t h er in cr ea s in g t h e
p r ofit a b ilit y of t ea ga r d en s t h r ou gh r ep la n t in g/ r eju ven a t ion a n d
mech a n iza t ion of oper a t ion s .
111
7 7 . St rat e gie s for t he Te nt h Plan Pe riod
Th e s t r a t egies of t h e Ten t h Five Yea r Pla n a r e t o : (i) en h a n ce
p r od u c t i on t h r ou gh ve r t i c a l d e ve l op m e n t m e a s u r e s s u c h a s
r eplan t at ion , r eju ven at ion , pr u n in g, in fillin g of vacan cies wit h bet t er
va r iet ies , et c. (ii)impr ove t h e pr odu ct ivit y of s ma ll t ea ga r den s , (iii)
e m p h a s i ze s p e c i a l a t t e n t i on on i r r i ga t i on a n d d r a i n a ge (i i i )
ma n u fa ct u r e a d d it ion a l cr op ; t ea p r oces s in g fa cilit ies a r e t o b e
a u gmen t ed by con s t r u ct ion of n ew t ea fa ct or ies (iv) moder n ize t h e
exis t in g t ea fa ct or ies for en s u r in g pr odu ct ion of clea n t ea s wit h ou t
an y t r ace of for eign mat er ial in en d pr odu ct s , (v) en cou r age pr odu ct
diver s ifica t ion a n d cr ea t ion of fa cilit ies for du a l ma n u fa ct u r e of t ea
(or t h odox a n d CTC), (v) en cou r a ge va lu e a ddit ion a n d pr odu ct ion of
in s t a n t , r ea dy-t o-dr in k t ea , deca ffein a t ed t ea a n d s pecia lt y t ea s , (vi)
en s u r e a dh er en ce t o t h e pr es cr ibed in t er n a t ion a l a n d domes t ic SPS
(Sa n it a r y a n d Ph yt o-s a n it a r y) s t a n da r ds for t ea , (vii) ma ke h igh er
i n ve s t m e n t on R&D a n d t r a n s fe r of t e c h n ol ogy, (vi i i ) r e a c h
t e c h n ologic a l a d va n c e s t o s ma lle r e s t a t e s wh e r e p ot e n t ia l for
imp r ovemen t is t h e b es t , (ix) r ed u ce p a ck a gin g cos t s a n d u s e
a lt er n a t ive a n d in exp en s ive p a ck a gin g ma t er ia ls , (x) exp lor e t h e
pos s ibilit y of s et t in g u p of moder n pa cka gin g a n d blen din g u n it s
wit h in In dia wit h for eign colla bor a t ion , (xi) s u ppor t for pr omot ion of
valu e added t eas in over s eas mar ket by expor t er s , impor t er s t o t ake
advant age of IT t ools for promot ion vigorou sly, (xii) encou rage organic
t ea cu lt iva t ion a n d pr odu ct ion of gr een t ea s , (xiii) in it ia t e s pecia l
pr omot ion a l pr ogr a mmes in t h r u s t cou n t r ies , (xiv) n eed t o con t in u e
an int ens ive generic promot ion campaign wit hin t he cou nt ry s o as t o
in cr ea s e per ca pit a con s u mpt ion a n d t o a r r es t declin in g t r en d in
domes t ic dema n d. A s t r on g a n d vibr a n t in t er n a l ma r ket will cr ea t e
t h e n eces s ary s yn ergys for expan din g t h e export market , (xv) redu ce
t h e cos t of pr odu ct ion by impr ovin g pr odu ct ivit y a n d min imizin g
wa s t efu l expen dit u r e t o in cr ea s e pr ofit s fr om t h e exis t in g pla n t a t ion
Th e comp et it ive a d va n t a ge of t ea in d u s t r y d ep en d s p r ima r ily on
qu a lit y of ma n power . Th er efor e, HRD in pu t s a r e cr it ica l t o fu t u r e
developmen t of t h e t ea in du s t r y.
7 8 . On t he Product ion Front
On t he produ ct ion front , t he st rat egies requ ired t o be adopt ed are (a)
implement at ion of HACCP and ISO s t andard, (b) lau nching of qu alit y
a s s u r a n c e s c h e m e b y Te a Boa r d , (c ) u n d e r t a k i n g a p l a n n e d
pr ogr a mme t o en cou r a ge s h ift in pr odu ct ion fr om CTC t o or t h odox,
(d) des ign in g a n d la u n ch in g of a s epa r a t e s ch eme, (e) focu s in g on
in cr ea s in g yield of a r ea u n der t ea in or der t o con t r ibu t e a h igh er
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percent age t o world produ ct ion and als o increas e export able s u rplu s ,
(f) redu cin g cos t of produ ct ion by edu cat in g workers at garden levels
t h r ou gh wor k s h op s wh i l e ma i n t a i n i n g t a r ge t s for r e p l a n t i n g,
r eju ven a t ion pla n t in g, et c. , (g) n a r r owin g down in n u mber of gr a des
p r od u ced wh ich lea d t o con fu s ion in imp or t er s min d a n d (h )
explor in g t h e pos s ibilit y of pr ovidin g zer o in t er es t / low in t er es t loan s
for p u r ch a s e of r ollin g ma ch in es for or t h od ox, es p ecia lly in t h e
con t ext of t h e cr is is in Sou t h In dia .
7 9 . On t he Product Front
On t he produ ct front , cont inu ou s emphasis on valu e added forms of
t ea (t ea ba gs followed by pa cket t ea a n d in s t a n t t ea ) in or der t o
maximize r et u r n s an d for eign exch an ge ear n in gs , may be made. For
t his , t here is a need t o u ndert ake s pecific act ivit ies t o promot e t hes e
for ms of t ea . Th es e in clu d e (i) exemp t ion of imp or t d u t y on t ea
ba ggin g ma ch in er y a n d filt er pa per s , (ii) a r r a n gin g of wor ks h ops t o
h elp p r omot e p a ck a gin g s t a n d a r d s in a s s ocia t ion wit h In d ia n
In s t it u t e of Pla n t a t ion Ma n a gemen t (IIPM), (iii) on t h e b u lk t ea
expor t s , focu s on or t h odox a n d Da r jeelin g a s t h r u s t a r ea s wh ile
ma in t a in in g t r a dit ion a l ma r ket s , (iv) impr ovin g pa cka gin g s t a n da r ds
t o meet wor ld n or ms , (v) en cou r agin g expor t of gr een t ea wit h focu s
on s pecific market s like Morocco. Market ing an Indian green t ea t hat
is u n iqu e an d n ot n eces s arily a replica of Ch in es e green t ea, an d (v)
developin g s pecific va lu e a dded pr odu ct s i.e. fla vou r ed t ea a n d t ea s
wit h h er ba l in fu s ion wh ile ma in t a in in g t h e br a n d equ it y of In dia n
t ea.
8 0 . On t he Market ing Front
On t h e ma r ket in g fr on t on e mu s t iden t ify ma r ket s ba s ed on globa l
p r ed ict ion s on d ema n d a n d a b ilit y t o p a y p r emiu m d ema n d b y
d iffer en t t yp es of In d ia n t ea s a n d d evelop s p ecific s t r a t egies for
focu s ed market s and allocat e fu nds in t hes e market s coinciding wit h
pen et r a t ion s t r a t egies .
Th er e is n eed t o bu ild on va lu e per cept ion s a r ou n d In dia n t ea wit h
Da r jeelin g a s fla gs h ip a n d la u n ch pr omot ion a l ca mpa ign in ma jor
ma r ket s a n d pr ovide legis la t ive pr ot ect ion for t ea s of In dia n or igin
alon gwit h In dian geogr aph ical in dicat ion s s u ch as Dar jeelin g, As s am
and Nilgiris . Fu rt her at t empt s may be made t o lau nch an Indian t ea
logo a s a ma r k of qu a lit y a n d s pecia lit y t ea r egis t er t oget h er wit h
ext en s ive pr omot ion of s pecialit y t eas by way of u s in g u s in g webs it e
as a market in g t ool t o h as t en t h e bu yin g proces s . Emph as is may be
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s h ift t ed fr om p r od u ct t o qu a lit y b a s ed on a p p ea r a n ce, cu p p a ge,
ecology, s en s it ivit y t o bio ch emica ls , h ea lt h ben efit s a n d lifes t yle.
Th er e is a n eed t o pr oject In dia a s a s t a ble, r elia ble pr odu cer a n d
s u pplier wh ich will h on ou r commit men t s .
8 1 . On t he Infras t ruc t ure Front
In fr a s t r u ct u r e is t h e key fa ct or in s u s t a in in g developmen t for a n y
s ect or a n d t ea is n ot a n excep t ion t o t h is . Keep in g t h is in view
t h er e is a n eed t o (i) develop in fr a s t r u ct u r e for va lu e a ddit ion , (ii)
pr ovide du t y fr ee fa cilit y t o expor t er s , (iii) s u ppor t t h e pu r ch a s e of
for eign b r a n d s / d is t r ib u t ion a r r a n gemen t s / wa r eh ou s es in for eign
ma r k et s b y In d ia n comp a n ies . Fu r t h er t r a d it ion a l ma r k et s for
pr ima r ily bu lk t ea mu s t be r et a in ed. A dr ive t o loca t e la r ge gr owin g
s egmen t of con s u mer ma r ket s a cr os s t h e globe h a s t o be fu r t h er
la u n ch ed a n d s t r en gt h en ed . We mu s t p r omot e ou r own glob a l
br a n ds a n d s ecu r e a lon g t er m ma r ket s for In dia n t ea in or igin .
8 2 . On Gove rnme nt Front
Gover n men t ma y fu r t h er con s id er d u t y fr ee imp or t s of ca p it a l
equ ipmen t s / ma ch in er y for pa cka gin g of t ea ba gs , in s t a n t t ea , r ea dy
t o dr in k t ea a n d ca n n ed t ea ma ch in er y a n d du t y fr ee impor t s of
filt er papers for t ea bags and remove infras t ru ct u re bot t le necks and
impr ove in fr as t r u ct u r e facilit ies (por t s , cu s t oms , ban kin g, in s u r an ce,
e t c . ). Pr ovis ion of in c e n t ive s for va lu e a d d e d t e a s . La u n c h in g
promot ional campaigns for Indian t eas in t hru s t market s , condu ct ing
ma r ket s er vice t o a s s is t In dia n expor t er s in t h eir ma r ket in g effor t s
a n d depu t a t ion of delega t ion s t o pr os pect ive cou n t r ies t o en h a n ce
con t r a ct for exp or t s a s well a s t o s t u d y s t r a t egies followed b y
compet in g pr odu cer cou n t r ies a r e s ome of t h e ot h er a r ea s t o be
s t r en gt h en ed.
In or der t o in cr eas e In dias expor t pot en t ial, t h e opt ion of impor t in g
t ea for r e-expor t will h a ve t o be kept open , a s wor ld blen ds will
r equ ir e t eas fr om ot h er gr owin g ar eas . A s epar at e focu s on t ea bags
is es s en t ia l. On e of t h e h igh es t va lu e a dded emer gin g ma r ket s is
in s t a n t t ea a n d r ea dy t o dr in k bever a ges . Wit h a view t o ma kin g
In dia t o a globally compet it ive pos it ion in valu e added t eas , t h er e is
n eed for s et t in g u p of t h e b len d in g, p a ck a gin g a n d p r oces s in g
fa cilit ies a t in t er n a t ion a lly compet it ive levels . Globa lly, compet it ive
canning lines, processing equ ipment and branded/ privat e level opt ion
n eeds t o be or gan ized. Th is is a h igh ly t ech n ical field an d an ear ly
edge wou ld open u p s oph is t ica t ed ma r ket s in fu t u r e.
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8 3 . Inve s t me nt Ac t ivit ie s during Xt h Plan Pe riod 2 0 0 2 -0 7
i . Pr o p o s e d De v e l o p m e n t Me a s u r e s Th e d e ve l op me n t
mea s u r es con t emp la t ed for t h e X Pla n p er iod in t er ms of
ph ys ical ar ea an d t h e an t icipat ed con t r ibu t ion s ar e pr es en t ed
below:
Sr. Ac t ivit y Are a t o be Cont ribut ion
No. de ve lope d (ha) (m. kg. )
1 Ext en s ion / n ew pla n t in g 4,500 4
2 Repla n t in g 20,000 14
3 Reju ven a t ion / pr u n in g 50,000 25
4 Ir r iga t ion 50,000 10
5 Impr ovemen t of dr a in a ge 100,000 10
6 Pr odu ct ivit y impr ovemen t 120,000 12
Tot al : 3 4 4 , 5 0 0 7 5
Mor e t h r u s t wou ld b e on r en ova t ion of field a s s et s a n d
impr ovin g pr odu ct ivit y fr om t h e exis t in g a r ea s r a t h er t h a n
exp a n s ion . It is p r op os ed t o in t egr a t e t h e a b ove a ct ivit ies
u n der on e s ch eme viz: Plan t at ion developmen t Sch eme du rin g
t h e X Plan period. Th e t ot al requ iremen t of fu n ds for t h e Five
Yea r per iod a dds u p t o Rs . 939 cr or es . Th e s ou r ces of fu n d
wou ld be a s u n der :
(Rs . in c rore )
Sr. Sourc e s of Fund Amount
No.
1 Tea Boa r d
Loa n 29.00
Su bs idy 130. 00
2 33 AB a / c. Un der Tea Developmen t 405.00
Accou n t Sch eme
3 Tea In du s t r ys own r es ou r ces 81.00
4 Ba n k/ In s t it u t ion a l loa n 294.00
Tot al : 9 3 9 . 0 0
i i . Qua l i t y Upgra d a t i on a nd Prod uct Di vers i fi ca t i on One of
t he main reas ons at t ribu t ed t o t he price s lu mp in Sou t h India
d u r in g 2 0 0 0 , wa s t h e p oor qu a lit y ima ge. It is , t h er efor e,
pr opos ed t o pa y mor e a t t en t ion t owa r ds qu a lit y impr ovemen t
of t h e ba s ic pr odu ct a n d on va lu e a ddit ion . All t h e pr oces s
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r e l a t e d a c t i vi t i e s a n d qu a l i t y u p gr a d a t i on a n d p r od u c t
diver s ifica t ion pr ogr a mmes wou ld be cover ed u n der a n ew
s ch eme viz. Qu a lit y Upgr a da t ion a n d Pr odu ct Diver s ifica t ion
Sch eme. Th e es t ima t ed r equ ir emen t of fu n d s a d d s u p t o
Rs .811 cr or es wit h t h e followin g s ou r ces of fu n ds :
(Rs . in c rore )
No.
1 Tea Boa r d
Loa n 24.00
Su bs idy 100. 00
2 33 AB a / c. Un der Tea Developmen t 250.00
Accou n t Sch eme
Tot al : 8 1 1 . 0 0
i i i . Res ea rch a nd Devel op ment Res ear ch ar eas t o be cover ed
du ring t he Plan period are (i) int egrat ed nu t rient management ,
(i i ) for e c a s t i n g m od e l for p e s t i n c i d e n c e , (i i i ) e n e r gy
con s er va t ion , (iv) pr odu ct diver s ifica t ion a n d va lu e a ddit ion ,
(i v) t e a a n d h u m a n h e a l t h , (v) t r a n s fe r of t e c h n ol ogy,
(vi) es t a b lis h men t of ch a in of qu a lit y la b or a t or ies in t h e
impor t a n t t ea gr owin g r egion s , (vi) ir r iga t ion a n d dr a in a ge,
(vii) bioch emica l a n a lys is a n d qu a lit y impr ovemen t , (viii) s oil
ma n a gemen t a n d or ga n ic cu lt iva t ion of t ea , (ix) pa cka gin g,
eco-pr es er va t ion a n d ot h er r ela t ed a r ea s , (x) biot ech n ologica l
a s pect s a n d (xi) pes t icide r es idu es , met a ls , myco-t oxic a n d
con n ect ed r es ea r ch wor k.
Developmen t a r ea s in clu de (a ) s et t in g u p of a t r a in in g cen t r e
a n d a dvis or y cen t r es for t h e ben efit of s ma ll t ea gr ower s in
NE r egion , (b ) op en in g of n ew Develop men t offices of Tea
Boa r d for clos er in t er fa ce wit h t h e s ma ll gr ower s in t h e n on -
t r a dit ion a l a r ea s , (c) s t r en gt h en in g t h e exis t in g field offices of
t h e Boa r d, (d) s et t in g u p of n u r s er ies for s u pply of pla n t in g
mat erials t o t he s mall growers , (e) s et t ing u p of demons t rat ion
plot s , (f) organizing s t u dy t ou rs , works hops , s eminars et c. and
(f) in s t it u t ion of pr odu ct ivit y a n d qu a lit y a wa r ds
Th e es t ima t ed r equ ir emen t of fu n ds for t h e a bove a ct ivit ies
inclu ding s ervice charges for implement ing t he s chemes wou ld
116
be in t he region of Rs . 225 crores wit h t he following s ou rce of
fu n ds :
Tea Boa r d : gr a n t in a id Rs . 125 cr or es
Tea In du s t r y : con t r ibu t ion Rs . 100 cr or es
Tot al : Rs . 2 2 5 c rore s
i v. Ma rk et Devel opment As a res u lt of changes in t he market
s cen ario, t h e market in g orien t at ion deman ds a n ew approach .
Towards t h at en d, it is n eces s ary t o make a s pecific provis ion
for la u n ch in g gen er ic pr omot ion ca mpa ign in t h e domes t ic
ma r ket in join t colla bor a t ion wit h t h e t ea in du s t r y. Bes ides ,
t h e r egu la r p r omot ion mea s u r es s u ch a s ma r k et r es ea r ch
s u r vey, u n i- n a t ion a l ca mp a ign , b r a n d p r omot ion s u p p or t ,
p a r t i c i p a t i on i n fa i r s a n d t e a fe s t i va l s , e xc h a n ge t r a d e
d elega t ion s et c. wou ld b e con t in u ed . Th e es t ima t ed fu n d s
r equ ir emen t for t h e above act ivit ies is in t h e r egion of Rs .300
c r or e s t o b e e q u a l l y s h a r e d b y t h e Te a Boa r d a n d t h e
in du s t r y on 50:50 ba s is .
Fin an cial as s is t an ce t o be ext en ded u n der t h is Sch eme wou ld
be in t h e for m of s u bs idies for va r iou s ma r ket developmen t
a n d expor t pr omot ion a l a ct ivit ies .
8 4 . Summary of t he Te nt h Plan out lay
It is propos ed t o cover t h e above n ot ed act ivit ies u n der t h e followin g
s ch emes :
No.
1 Tea Boa r d
Loa n 53.00
Su bs idy 535. 00
2 33 AB a / c. u n der t ea developmen t 655.00
Accou n t s ch eme
Tot al : 2 3 0 5 . 0 0
The est imat ed ou t lay and t he sou rces of fu nd for each of t he scheme
is s u mma r ized in t h e t a ble below :
117
Sl. Name of t he Es t ima- Te a Board 3 3 AB Indus - Bank /
No. s c he me t e d fund De pos it s t rys Ins t it u-
re quire - Loan Sub- re s ou- t ional
me nt s idy rc e s financ e
1 Pla n t a t ion develop- 939 29 130 405 81 294
men t s ch eme
2 Qu a lit y u pgr a da t ion 811 24 100 250 109 328
a n d pr odu ct diver s i-
fica t ion s ch eme
3 Ma r ket pr omot ion 300 150 150
s ch eme
4 Res ea r ch a n d 225 125 100
developmen t
5 HRD 30 30
Tot a l : 2305 53 535 655 440 622
Source : X Five Year Plan. Report on Sub-Group on Plantation Crops II - Minis try of
Commerce.
119
Pa rt Ni ne : Pri ce St a bi l i z a t i on Fund , Pri ce St a bi -
l i z a t i on Fund Account , Gui d el i nes
8 5 . Background
Deeply con cer n ed wit h t h e pr oblems bein g fa ced by t h e gr ower s of
coffee, t ea, r u bber an d t obacco du e t o con t in u ed low pr ices of t h es e
commodit ies (bot h domest ic/ export ), for qu it e some t ime, Government
of In d ia (GOI) h a s t a k en a s er ies of mea s u r es t o a melior a t e t h e
h a r d s h ip s b ein g fa ced b y t h e gr ower s of t h es e cr op s . Th e Pr ice
St abilizat ion Fu nd Scheme (PSFS) is yet anot her st ep in t he direct ion
by GOI t o s a fegu a r d t h e in t er es t s of t h e gr ower s .
8 6 . Obje c t ive
Th e PSFS a ims a t pr ovidin g fin a n cia l r elief t o t h e gr ower s wh en
p r ices of t h es e commod it ies fa ll b elow s p ecified levels , wit h ou t
r e s or t i n g t o t h e p r a c t i c e of p r oc u r e m e n t op e r a t i on s b y t h e
Gover n men t a gen cies .
8 7 . Durat ion of t he Sc he me
Th e Sch eme will be oper a t ion a l for a per iod of t en yea r s , s u bject t o
a r eview a ft er five yea r s .
8 8 . Mode of Int e rve nt ion
Un der t h e s ch eme, a fu n d called t h e Price St abilizat ion Fu n d will be
es t a blis h ed wit h con t r ibu t ion fr om t h e GOI a n d en t r y fee @Rs 500
fr om ea ch gr ower d es ir ou s of p a r t icip a t in g in t h e Sch eme. Th e
cor pu s of t h e fu n d s h all r emain u n dis t r ibu t ed an d in t er es t ear n in gs
a lon e will be u t ilized for oper a t ion a lis in g t h e PSFS.
8 9 . Who Can Part icipat e in t he Scheme?
In it ia lly, t h e Sch eme will be open t o gr ower s of t ea , coffee, r u bber
a n d t ob a cco h a vin g op er a t ion a l h old in gs of 4 h ect a r e or les s .
Su bs equ en t ly cover a ge of ot h er gr ower s cou ld be con s ider ed.
9 0 . How t o Become a Member?
Gr ower s of a for emen t ion ed commodit ies willin g t o pa r t icipa t e s h a ll
a p p ly t o t h e r es p ect ive commodit y Boa r d in t h e pr es cr ibed for m
wit h in t h e dat e s t ipu lat ed t h ereof. Th e Commodit y Boards will s elect
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t h e member s on fir s t come fir s t s er ve ba s is wit h pr efer en ce bein g
given t o t h e member s wit h t h e lea s t h oldin g s ize. Th e Commodit y
Boards will t h ereaft er en roll t h e eligible growers as member wh o will
be r equ ir ed t o depos it a n a mou n t of Rs 500 wit h t h e Commodit y
Boa r d.
9 1 . Opening and Maint enance of Bank Account
Th e member wou ld be pr ovided wit h a n a pplica t ion for m t o en a ble
him/ her t o open t he PSF accou nt wit h t he des ignat ed bank branch.
Th e Commodit y Boa r d will a ls o in for m t h e con cer n ed ba n k br a n ch
for open in g t h e a ccou n t in t h e n a me of t h e member . Th e a ccou n t
will be ma in t a in ed a s Sa vin gs Ba n k Accou n t a n d wou ld be en t it led
for payment of int erest at rat es applicable t o Savings Bank Accou nt s.
No s er vice ch a r ges of a n y kin d wou ld be levied. Member s h a ve t o
depos it t heir annu al cont ribu t ions t o t he accou nt by 31 March every
year. Govt . of In dia con t ribu t ion s t o t h e accou n t wou ld be made n ot
la t er t h a n 3 1 Ma y ever y yea r . At t h e en d of t h e d u r a t ion of t h e
Sch eme, t h e en t ir e ba la n ce in t h e a ccou n t wou ld be pa ya ble t o t h e
member .
9 2 . Modus Operandi for Calculat ion of Cont ribut ions from Govt .
of India and Members
Govt . of India will annou nce a price band for each commodit y bas ed
on t h e s even year movin g aver age of in t er n at ion al pr ices as t h e mid
poin t wit h t h e lower bou n d an d u pper bou n d as 20 per cen t (-) an d
20 per cen t (+), r es pect ively.
When t he average prices fall below t he lower bou nd of t he band in a
pa r t icu la r yea r , Govt . . of In dia will con t r ibu t e u pt o Rs . 1000 t o t h e
a c c ou n t of t h e me mb e r . In t h a t ye a r t h e me mb e r will n ot b e
r equ ir ed t o con t r ibu t e a n y a mou n t t o h is / h er a ccou n t .
In t h os e yea r s wh en t h e a ver a ge pr ice pier ces t h e u pper bou n d of
t h e ba n d, t h e member will h a ve t o con t r ibu t e Rs . 1000 t o h is / h er
a ccou n t wh ile t h e Govt ..of In dia will n ot con t r ibu t e a n y a mou n t
In t h e n or ma l yea r s wh en t h e pr ice r ema in s wit h in t h e pr ice ba n d,
t h e member will be r equ ir ed t o depos it Rs .500 each year t o h is / h er
a c c ou n t wi t h i n a s p e c i fi e d d a t e . Th e Govt . . of In d i a wi l l a l s o
con t r ibu t e u pt o Rs .500 t o t h e member s a ccou n t du r in g t h e n or ma l
yea r .
121
Du r in g yea r s wh en t h e a ver a ge ma r ket pr ice fa lls below t h e lower
bou n d of t h e pr ice ba n d, t h e member wou ld be a llowed t o dr a w
Rs . 1000 fr om t h e a ccou n t .
At t h e en d of t h e t en yea r per iod, t h e ba la n ce ou t s t a n din g ca n be
wit h dr a wn by t h e gr ower in clu din g t h e Govt ..of In dia s con t r ibu t ion
a n d t h e in t er es t ea r n in gs . Th e in it ia l con t r ibu t ion of Rs . 500 a s a n
en t r y fee h owever , will n ot be r efu n ded.
The Scheme will be implement ed t hrou gh a Tru s t Fu nd t o be s et u p
join t ly by Min is t r y of Commer ce a n d NABARD a n d t h e oper a t ion s
will b e mon it or ed b y a High Power ed Commit t ee s et u p b y t h e
Min is t r y of Commer ce.
9 3 . De fault e rs
In ca s e a member defa u lt s in ma kin g h is con t r ibu t ion wit h in t h e
s t ipu la t ed da t e, h e will be deemed a s a defa u lt er . Th e PSF a ccou n t
ma in t a in ed wit h t h e ba n k wou ld be clos ed a n d n o fu r t h er depos it s
eit h er fr om t h e Govt . of In dia or t h e member , wou ld be cr edit ed t o
t h e a ccou n t .
9 4 . New Members hip
New growers willing t o s u bs cribe t o t he Scheme du ring t he period of
op er a t ion of t h e Sch eme ma y b e a d mit t ed in p la ce of d r op ou t s ;
h owe ve r , t h e b e n e fit s of t h e Sc h e me will b e r e s t r ic t e d t o t h e
r ema in in g per iod of t h e Sch eme.
Illus t rat ion
Th e oper a t ion of t h e Sch eme is illu s t r a t ed below. Let u s pr es u me
t h a t t h e 7 yea r s movin g a ver a ge pr ice of t h e commodit y is Rs . 43/ .
Th e lower bou n d of t h e ba n d wou ld be Rs . 34. 40 a n d t h e u pper
bou n d of t h e ban d wou ld be Rs . 51.60. If t h e prevailin g price of t h e
commodit y is Rs . 31/ - per kg t h e pos it ion will be a s u n der .
Pric e of Commodit y Cont ribut ion t o t he a/ c Wit hdrawal from a/ c
Pr ice s a y Rs . 1000 by GOI. Rs .1000 ca n be dr a wn
Rs . 31 per kg No con t r ibu t ion by by member
[below lower bou n d] member
Rs . 45 per kg Rs . 500 by GOI No dr a wa ls
[wit h in t h e pr ice ba n d] Rs . 500 by member
Rs . 52 per kg Rs .1000 by member No dr a wa ls
[a bove u pper bou n d No con t r ibu t ion by Govt ..
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9 5 . Pric e St abilizat ion Fund Ac c ount
Gui d e l i ne s f or Op e ni ng a nd Ma i nt e na nc e of Ac c ount by
Ba nk s
! Th e a ccou n t will b e op en ed b y d es ign a t ed b a n k b r a n ch es
ba s ed on a Cer t ifica t e of Eligibilit y is s u ed by t h e con cer n ed
Commodit y Boa r d.
! Th e ba n ks wou ld n ot in s is t on in t r odu ct ion of t h e a ccou n t
h old e r a n d wou ld r e ly on t h e Ce r t ific a t e is s u e d b y t h e
Commodit y Boa r d.
! Th e accou n t s wou ld be open ed wit h t h e depos it of Rs . 100/ -
wh ich will b e t h e min imu m b a la n ce in r es p ect of t h es e
a c c ou n t s . Th e a c c ou n t s wou l d b e d e s i gn a t e d a s PS F
Accou n t s .
! Th e accou n t wou ld be main t ain ed as Savin gs Ban k Accou n t
a n d wou ld be en t it led for pa ymen t of in t er es t a t t h e r a t es
a pplica ble for SB Accou n t .
! No s er vice ch a r ges of a n y kin d wou ld be levia ble.
! In a ccor da n ce wit h t h e t er ms a n d con dit ion s of t h e s ch eme,
d ep os it s will b e ma d e b y t h e a ccou n t h old er s or b y t h e
Government of India t hrou gh t he concerned Commodit y Board
wh ich wou ld be cr edit ed t o t h e a ccou n t .
! Drawals wou ld be allowed from t he accou nt only on receipt of
s pecific a dvice fr om t h e con cer n ed Commodit y Boa r d in a n y
p a r t icu la r yea r . Th e a d vice wou ld in d ica t e t h e ext en t of
dr a wa l t h a t cou ld be a llowed t o t h e member .
! Member s h a ve t o depos it t h eir a n n u a l con t r ibu t ion s t o t h e
a ccou n t by a pr es cr ibed du e da t e wh ich is pr es en t ly s et a s
31 Ma r ch .
! Th e Gover n men t con t r ibu t ion s wou ld be made n ot lat er t h an
31 Ma y ever y yea r .
! Wh en t h e gr ower fa ils t o con t r ibu t e h is s h a r e t o t h e a ccou n t
by t h e du e da t e, h e will be deemed t o be a defa u lt er .
! On ce t h e a ccou n t is in defa u lt i. e. if t h e con t r ibu t ion du e
from t he member is not made by t he pres cribed du e dat e, i.e.
by 31 Ma r ch , t h e a ccou n t wou ld be clos ed.
123
! No fu r t h e r d e p os i t s of t h e gr owe r m e m b e r s s h ou l d b e
a ccept ed for cr edit t o a defa u lt er s a ccou n t .
! No Gove r n me n t c on t r i b u t i on s c ou l d b e c r e d i t e d t o t h e
defa u lt er s a ccou n t .
! At t h e r equ es t of t h e gr ower memb er , t h e b a la n ce in t h e
d efa u lt er s a ccou n t cou ld b e r ep a id t o t h e ext en t of t h e
member s con t r ibu t ion s wit h in t er es t t h er eon .
! No pa r t of Gover n men t s con t r ibu t ion s a n d in t er es t t h er eon
s h ou ld be pa id t o t h e defa u lt er gr ower member s .
! Aft er p a ymen t of t h e d u es t o t h e d efa u lt er , t h e b a la n ce
r epr es en -t in g Gover n men t s con t r ibu t ion s a n d in t er es t t h er eof
in s u c h a c c ou n t s s h ou ld b e r e mit t e d b a c k t o t h e Pr ic e
St a biliza t ion Fu n d Tr u s t t h r ou gh t h e con cer n ed Commodit y
Boa r d.
! Ba n ks h a ve t o pr ovide a n a n n u a l r et u r n t o t h e con cer n ed
Com - m od i t y Boa r d i n d i c a t i n g t h e n u m b e r of a c c ou n t s
ma in t a in ed, t h e ba la n ce t h er ein a n d t h e lis t of a ccou n t s t o
wh ich Gover n men t con t r ibu t ion s wer e cr edit ed du r in g t h e
yea r a n d a ls o a lis t of a ccou n t s wh ich h a ve t u r n ed in t o
defau lt wit h det ails of accou n t s clos ed on accou n t of defau lt .
Fu r t h er , det a ils of pa ymen t s ma de t o t h e defa u lt in g member
a s well a s a mou n t r emit t ed t o t h e Gover n men t fr om t h e
defa u lt in g a ccou n t , on it s clos u r e s h ou ld a ls o be s en t t o t h e
Commodit y Boa r d ever y yea r .
! At t h e en d of 10 yea r s , t h e en t ir e ba la n ce in t h e a ccou n t is
pa ya ble t o t h e gr ower member s .
! In ca s e of a n y dou bt , cla r ifica t on / s cou ld be obt a in ed fr om
t h e Pr ice St a bilis a t ion Fu n d Tr u s t Office, R No. 133, C win g
Nir ma n Bh a wa n , Ma u la n a Aza d Roa d, New Delh i 110 011.
125
Pa rt Ten : Ma d huk a r Commi t t ee Rep ort of t he
Wor k i ng Gr oup s on Pr obl e ms of t h e
Ind us t ry
9 6 . Background
A meet in g on t h e pr oblems of Tea In du s t r y wa s con ven ed a t RBI,
Mu mba i Sh r i Vepa Ka mes a n , t h e t h en Depu t y Gover n or , RBI a s
Ch a ir ma n . Th e meet in g wa s a t t en d ed b y L V Sa p t a r is h i, Ad d l.
Secret ary, Min is t ry of Commerce, Ch ief Execu t ives of variou s Ban ks ,
Chairman, Tea Board and represent at ives of Tea Associat ions. Du ring
t h e above meet in g, a s mall Wor kin g Gr ou p was con s t it u t ed t o s t u dy
t h e problems of t ea in du s t ry in -dept h an d come ou t wit h accept able
s olu t ion . Th e Wor k in g Gr ou p wa s ch a ir ed b y Sh r i Ma d h u k a r ,
Ch a ir ma n a n d Ma n a gin g Dir e c t or , Un it e d Ba n k of In d ia , a n d
member s wer e Ch a ir ma n , Tea Boa r d, r epr es en t a t ives of Min is t r y of
Comme r c e a n d In d u s t r y, Govt . . of In d ia , Re p r e s e n t a t ive s fr om
NABARD, Kolka t a , St a t e Ba n k of In dia , Tea As s ocia t ion s of Nor t h
In dia a n d Sou t h In dia . It wa s fu r t h er decided t h a t Wor kin g Gr ou p
wou ld s u bmit t h e r epor t t o t h e RBI befor e 25 J u ly 2002.
In t h e ligh t of t h e a bove decis ion , a meet in g of t h e Wor kin g Gr ou p
wa s con ven ed a t Un it ed Ba n k of In dia , HQ, Kolka t a on 22 a n d 23
J u ly 2003 wh er e 05 r epr es en t a t ives fr om Un it ed Ba n k of In dia , 03
from St at e Bank of India, 02 from Tea Board, Kolkat a, 02 from India
Tea As s ocia t ion , 0 1 fr om NABARD RO, Kolk a t a , 0 1 fr om Un it ed
Pla n t er s As s ocia t ion , Sou t h In dia , 01 fr om Min is t r y of Commer ce,
a n d 0 1 fr om Ni l gi r i Bou gh t l e a f Te a Mfg. As s oc i a t i on . Be for e
con ven in g t h is meet in g, a qu es t ion n a ir e wa s cir cu la t ed a mon g t h e
member s of t h e Gr ou p an d t h e dat a elicit ed by t h e qu es t ion n air e is
given below.
9 7 . Sugge s t e d Solut ions bas e d on t he fe e d bac ks
Bas ed on t h e s u gges t ion s r eceived fr om t h e var iou s Member s of t h e
gr ou p a n d t h e r eplies t o t h e a for es a id qu es t ion n a ir e, t h e cu r r en t
p r ob lems of t ea in d u s t r y vis - a - vis t h e s u gges t ed s olu t ion s wer e
dis cu s s ed a t len gt h in t h e a bove meet in g of t h e Wor kin g Gr ou p.
Du r in g t h e dis cu s s ion s , it wa s decided t h a t for r eviva l of t h e t ea
in du s t r y, a ll t h e a gen cies in volved in t h e pr oces s viz. t h e Ba n ks ,
NABARD, Tea Boa r d , Govt . of In d ia , Tea As s ocia t ion s a n d t h e
bor r ower s h ave t h eir r es pect ive r oles t o play. Th e deliber at ion s wer e
accor din gly s t r u ct u r ed on t h e above bas is an d t he d eci s i ons t a k en
t hereof a re a p p end ed bel ow:
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9 8 . For Banks
i . Th e major pr oblems cu r r en t ly bein g faced by t h e t ea in du s t r y
a r e du e t o t h e h igh cos t of pr odu ct ion , a n d s h a r p declin e in
s a le p r ic e a s a r e s u lt of wh ic h ma n y t e a b or r owe r s a r e
findings it difficu lt t o maint ain t heir cas h bu dget s prepared by
t hem at t he beginning of t he season. Since t his project ed cash
bu dget is t h e ba s is of pr ovidin g wor kin g ca pit a l limit t o t h e
t ea bor r ower s , oper a t ion s in t h eir a ccou n t s become difficu lt
b eca u s e of low ca s h in flow r es u lt in g in ir r egu la r it y in t h e
a ccou n t s . Nor ma lly, t h e bor r ower s a r e r equ ir ed t o liqu ida t e
t h eir ou t s t a n din gs in t h eir t ea h ypot h eca t ion a ccou n t by t h e
en d of t h e s eas on . Bu t failu re on t h e part of t h e borrowers t o
liqu ida t e t h e h ypot h eca t ion du es by t h e en d of t h e s ea s on ,
r es u lt s in fu r t h er difficu lt y for t h e bor r ower s a s t h ey a r e n ot
in a pos it ion t o a va il fr es h wor kin g ca pit a l limit for t h e n ext
s ea s on . In view of t h is , it wa s r ecommen ded t h a t
The s ea s ona l d efi ci t of t ea borrowa l a ccount s [cl a s s i fi ed
a s s t a nd a r d a s s e t s ] ma y be c onve r t e d t o a t e r m l oa n
rep a y a bl e wi t hi n a p eri od not exceed i ng 5 y ea rs s ubject
t o t he cond i t i ons t ha t a t l ea s t 5 0 % of t he p ea k hy p ot he-
ca t i on out s t a nd i ng ha s been l i qui d a t ed by t he borrowers :
i i . In ma n y t ea a ccou n t s , it h a s been obs er ved t h a t t h ou gh t h e
bor r ower is n ot in a pos it ion t o liqu ida t e it s s ea s on a ble du es
by t h e en d of t h e s ea s on , it is ba cked by a dequ a t e s t ock of
t ea wh ich cou ld n ot be s old du e t o la ck of dema n d in t h e
ma r k et . In s u ch ca s es , t h er e is n o n eed of con ver t in g t h e
du es t o a t er m loa n a n d in s t ea d, a n ext en s ion of r epa ymen t
per iod t o liqu idat e t h e ou t s t an din g s eas on al du es in h ypot h e-
ca t ion a ccou n t t o a ma ximu m per iod of 6 mon t h s ma y be
allowed wit h ou t affect in g it s dr awin g in t h e t ea h ypot h ecat ion
a ccou n t of t h e cu r r en t s ea s on . Accor d in gly, t h e Wor k in g
Gr ou p r ecommen ded t h a t ;
Ext ens i on of peri od t o l i qui d a t e t he work i ng ca pi t a l d ues
of l a s t s e a s on ma y be a l l ow e d t o a ma x i mu m of s i x
mont hs i n t hos e c a s e s w he r e t he e nt i r e out s t a nd i ng i s
b a c k e d b y a s t o c k o f t e a o r t h e p r o m p t r e c e i v a b l e s
wi t hout a ffect i ng t he d ra wi ngs a nd t he work i ng ca p i t a l
l i mi t of c ur r e nt y e a r , p r ovi d e d a t l e a s t 6 0 % of t h e t e a
hy pot heca t i on out s t a nd i ng ha s been i ncl ud ed a nd i n t hi s
c a s e t he r e i s no ne e d of c onve r s i on of w or k i ng c a p i t a l
l i mi t t o t erm l oa n a s s t a t ed a bove.
127
i i i . In or der t o en a ble t h e bor r ower s t o oper a t e t h e t ea ga r den
d u r i n g t h e c u r r e n t s e a s on a ft e r a for e s a i d c on ve r s i on /
r es t r u ct u r in g of t h e a ccou n t , a fr es h wor kin g ca pit a l ma y be
ext en ded a n d it wa s r ecommen ded t h a t
Rel ea s e of need ba s ed work i ng ca pi t a l fi na nce for current
s ea s on ba s ed on r ea l i s t i c p os i t i on, k eep i ng i n vi ew t he
p r od uc t i on t r a c k r e c or d , a c c e p t e d p r i c e l e ve l s , ma r k e t
d e ma nd e t c . ma y be a l l ow e d i n a c c ount s c l a s s i f i e d a s
s t a nd a rd a s s et s .
i v. Ma n y t ea b or r ower s a r e en joyin g t er m loa n fa cilit ies fr om
ban ks , wh ich wer e t aken ear lier t o meet var iou s pr oject cos t s
u n der t a ken for developmen t a n d expa n s ion of t ea ga r den /
processing u nit s and t hey are not in a posit ion t o service t heir
in s t allmen t s of s u ch loan s as per t h e ear lier t er ms s t ipu lat ed
a t t h e t ime of s a n ct ion in g s u ch loa n s . In view of gen u in e
pr oblems of t ea in du s t r y, it is r ecommen -ded t h a t
Re s c h e d u l e m e n t o f e x i s t i n g t e r m l o a n s r e p a y m e n t
s ched ul e on t he ba s i s of bor r ow er s fut ur e p os i t i on a nd
rep a y ment ca p a ci t y , ma y be a l l owed .
v. As t h e b a n k s a r e r e q u i r e d t o u n d e r t a k e t h e a for e s a i d
c on ve r s i on / r e s t r u c t u r i n g/ r e s c h e d u l e m e n t i n m a n y t e a
a c c ou n t s , s u c h a c c ou n t s s h ou ld n ot b e t r e a t e d a s NPA
b e c a u s e t h e b or r owe r c ou l d n ot s e r vi c e i n t i m e on
in s t a llmen t s or liqu id a t e t ea h yp ot h eca t ion d u es a n d t h e
accou n t was ot h er wis e t r eat ed as s t an dar d as s et . In t h e ligh t
of t h e a bove dis cu s s ion s , it is r ecommen ded t h a t
Aft er t he convers i on/res t ruct uri ng a nd res ched ul i ng i n t ea
a ccount s , t he t erm l oa n a s wel l a s work i ng ca p i t a l l i mi t
s h a l l b e t r e a t e d a s c u r r e n t d u e s , a n d n e e d n o t b e
cl a s s i fi ed a s NPA provi d ed t ha t a t t he t i me of convers i on/
res t ruct uri ng, res ched ul i ng, t he a ccount wa s cl a s s i fi ed a s
s t a nd a r d a s s et s a s p er t he p r ud ent i a l nor ms i s s ued by
RBI f r om t i me t o t i me . Th e a s s e t c l a s s i f i e d t h e r e a f t e r
w o u l d b e g o v e r n e d b y r e v i s e d t e r m s a n d c o n d i t i o n s
a d op t e d a d op t e d a t t h e t i me of r e s t r u c t u r i n g of t h e
a ccount .
vi . Th e t ea a dva n ces h a ve s in ce been ca t egor ized a s a gr icu lt u r a l
a dva n ce a s per t h e la t es t gu idelin es of RBI. Th e pr u den t ia l
n orms in res pect of agricu lt u re advan ces , in t er-alia, t reat t h at
128
in r e s p e c t of a d va n c e s gr a n t e d for a gr ic u lt u r e p u r p os e ,
in t er es t a n d/ or in s t a llmen t of pr in ciple r ema in s u n pa id for
t wo h a r ves t s ea s on bu t for a per iod n ot exceedin g t wo a n d
h alf year s , s u ch an advan ce will be t r eat ed as NPA. Th e cr op
cycle for t ea plan t at ion is on e year an d h en ce in t erms of t h e
a bove gu idelin es is s u ed by t h e RBI, t h e t ea a ccou n t s a r e n ot
get t in g fu ll ben efit s beca u s e of t h e exis t in g ceilin g per iod n ot
exceeding t wo and half years , whereas for t ea plant at ions crop
cycles a r e equ iva len t t o t wo yea r s . In view of t h e a bove a n d
con s ider in g t h e cu r r en t cr is is t h r ou gh wh ich t h e t ea in du s t r y
cu r r en t ly pa s s in g, it is r ecommen ded t h a t
In r e s p e c t o f t e a a d v a n c e s w h e r e i n t e r e s t a n d / o r
i ns t a l l ment of p ri nci p l e rema i ns unp a i d for t wo ha rves t
s ea s ons but for a p er i od not exceed i ng t w o y ea r s , s uch
a n a d va nce s houl d be t rea t ed a s NPA.
vi i . In ca s e of ma n y t ea a ccou n t s , t h e bor r ower s a r e in cu r r en t
ca p it a l exp en d it u r e t owa r d s d evelop men t of t ea ga r d en s ,
exp a n s ion of t ea p r oces s in g u n it s , wit h ou t a r r a n gin g t h e
corres ponding s ou rces of long t erm finance, part icu larly, when
t h e t ea in du s t r y wa s doin g well. Tea bor r ower s did n ot fa ce
mu ch p r ob lems a t t h a t t ime, a s t h ey cou ld fin a n ce s u ch
project s eit h er ou t of cas h gen erat ion or by u t ilizin g a port ion
of t h eir wor kin g ca pit a l a dva n ce. As s et s wer e cr ea t ed ou t of
s u ch capit al expen dit u re an d s u ch as s et s are als o ch an ged t o
t h e len din g ba n ks . However , du e t o t h e cu r r en t pr oblem of
t he t ea indu s t ry, s u ch borrowers are now finding it difficu lt t o
meet t h eir wor kin g ca pit a l r equ ir emen t s a s a por t ion of it is
t ied u p wit h ca pit a l cos t of t h e pr oject . In s u ch ca s es t h e
b a n k s , ma y a llow wor k in g ca p it a l t er m loa n t o meet s u ch
mis ma t ch in t h e a s s et lia b ilit y p os it ion of t h e b or r ower s ,
p r ovid ed t h a t wor k in g ca p it a l fa cilit ies ext en d ed t o s u ch
b or r owe r s i s n ot u t i l i s e d for i n t e r u n i t i n ve s t me n t t o a
comp a n y u n d er t h e s a me gr ou p or for a n y ot h er p u r p os e
ou t s ide t h e t ea bu s in es s of t h e u n it a n d debt equ it y r a t io in
s u ch cas es is not wors e t han 3:1 This facilit y may be given t o
gen u in e an d good borrowers h avin g s at is fact ory t rack records ,
for ca pit a l expen dit u r e in cu r r ed du r in g t h e la s t 3 yea r s a n d
n ot s u ppor t ed by a n y lon g t er ms s ou r ce. Th e Wor kin g Gr ou p
a ccor din gly r ecommen ded t h a t
Fres h work i ng ca pi t a l t erm l oa n i n a n a ccount cl a s s i fi ed
a s s t a nd a rd a s s et ma y be a l l owed where d ue t o ca p i t a l
129
e x p e nd i t ur e i nc ur r e d by t h e bor r ow e r d ur i ng t h e l a s t
t h r e e y e a r s f or d e ve l op me nt / e x t e ns i on of t e a e s t a t e s
p r oc e s s i ng uni t s e t c . w i t h out a r r a ngi ng c or r e s p ond i ng
l ong t e r m f und s r e s ul t i ng i n a s s e t l i a bi l i t y mi s ma t c h ,
a f f e c t i n g t h e n e t w o r k i n g c a p i t a l p o s i t i o n o f t h e
bor r ow e r s . Th i s f a c i l i t y w oul d be g r a nt e d t o g e nui ne ,
good borrowers wi t h s a t i s fa ct ory t ra ck record s ha vi ng a
mi n i mu m d e bt e q u i t y r a t i o of 3 :1 a n d w h o h a v e n ot
d i vert ed fund s by wa y of i nves t ment i n ot her comp a ni es ,
t r a ns fer r i ng fund t o t he s ubs i d i a r i es gr oup comp a ny or
crea t ed a s s et s ot her t ha n for p rod uct i ve p urp os es .
vi i i . There is a cont inu ou s demand from t he indu s t ry t hat t he rat e
of in t er es t bein g ch a r ged by t h e len din g ba n ks is r equ ir ed t o
be redu ced at t his hou r of cris is , for enabling t hem t o become
more compet it ive. In t his res pect it was ment ioned t hat all t he
in dividu al ban ks h ave t h eir own credit rat in g s ys t em wh ich is
lin k ed wit h t h e p r ices i. e. cr ed it of in t er es t a n d d oes n ot
ju s t ify t o a llow a r a t e of in t er es t n ot commen s u r a t e wit h it s
cr edit r a t in g. However , con s ider in g t h e difficu lt t ime t h r ou gh
wh ich in du s t r y pa s s in g, it is r ecommen ded
Ba nk ma y a l l ow a ra t e of i nt eres t upt o t wo s t a ges bet t er
t ha n t he ra t es a s a ppl i ca bl e t o s uch borrowers a ccord i ng
t o i t s cred i t ra t i ng by t he i nd i vi d ua l ba nk s s ubject t o t he
cond i t i on t ha t a ft er s uch red uct i on, s uch ra t e of i nt eres t
s houl d not be bel ow p ri me l end i ng ra t e [PLR]
9 9 . For NABARD
Un der r efin a n cin g s ch eme, NABARD is pr es en t ly ch a r gin g 10% p.a .
in t er es t for va r iou s p r oject s u n d er t ea fin a n ce. Con s id er in g t h e
cu r r en t cr is is it is r ecommen ded t h a t
Und er t he refi na nci ng s chemes rel a t ed t o t ea i nd us t ry NABARD
ma y cha rge a n i nt eres t ra t e of 0 . 5 % bel ow t he ra t e a p p l i ca bl e
t o a s i mi l a r p roject t o ot her i nd us t ry .
1 0 0 . For Te a Board
The Tea Board is at present providing 20% capit al su bsidy in respect
of c e r t a in c a p it a l c os t p r oje c t s , in c lu d in g d e ve lop me n t of t e a
pla n t a t ion s , it wa s fill t h a t Tea Boa r d ma y a llow s imila r s u bs idy in
r es p ect of t h os e ca p it a l exp en d it u r e wh ich a t ea b or r ower h a s
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in cu r r ed du r in g t h e la s t 3 yea r s a r r a n gin g t h e cor r es pon din g lon g
t er m fu n ds a n d wh ich h a s cr ea t ed pr odu ct ive a s s et s t owa r ds s u ch
bor r ower s en h a n cin g it s pr odu ct ion ca pa cit y a n d if s u ch s u bs idy is
a llowed by t h e Tea Boa r d, t h er e will be cor r es pon din g r edu ct ion in
t he long t erm loan requ irement s from banks . It is recommended t hat
Tea Boa rd ma y provi d e 2 0 % ca pi t a l s ubs i d y i n res pect of t hos e
c a p i t a l e xp e nd i t ur e i nc ur r e d d ur i ng t h e l a s t t h r e e y e a r s i n
cr ea t i ng a s s et s for enha nci ng t he p r od uct i on ca p a ci t y of t he
borrowers , where s uch borrowers coul d not a rra nge for t he food
t i e -up of s uc h c a p i t a l c os t s p r ovi d e d t he bor r ow e r i s ha vi ng
s a t i s fa ct ory t ra ck record . Such rel ea s e of s ubs i d y s houl d ha ve
l i n k a g e s w i t h t h e t e r m l o a n f r o m t h e b a n k f o r t h e s a m e
p u r p os e , i f a v a i l e d , t h e s u bs i d y s h ou l d be r e l e a s e d t o t h e
l end i ng of s uch borrower.
1 0 1 . For Cent ral and St at e Government s
Th e r e p r e s e n t a t i ve s of Mi n i s t r y of Com m e r c e , Govt . . of In d i a
me n t i on e d t h a t t h e Ce n t r a l Govt . i s l i k e l y t o s e t u p a Pr i c e
St a biliza t ion Fu n d for pla n t a t ion in clu din g t ea in du s t r y, a n d it s
modalit ies of operat ion is now t aking final s hape. All members of t he
Gr ou p a p p r e c i a t e d t h e e ffor t s t a k e n b y t h e Gove r n me n t a n d
requ est ed for expanding t he creat ion of t he Fu nd becau se t he benefit
s h ou ld a ccr u e t o t h e in du s t r y a s s oon a s pos s ible. It wa s fu r t h er
d is cu s s ed t h a t t h e r es p ect ive St a t e Govt s . ma y a va il t h e fa cilit y
u n der Ru r a l In fr a s t r u ct u r e Developmen t Fu n d bein g pr ovided by
NABARD for t h e pu r pos e of developmen t of in fr as t r u ct u r e at t h e t ea
es t a t es s u ch a s h ou s in g, ir r iga t ion ,et c. wh ich will ea s e t h e fin a n cia l
b u r d e n of t h e b or r owe r wh o a r e a t p r e s e n t s u p p or t i n g t h e s e
expen s es .
The St at e Govt .. may als o cons ider reimbu rs ement [by availing RIDF]
of t h e ca pit a l expen s es in cu r r ed by t ea bor r ower s du r in g t h e la s t
t h r ee yea r s for meet in g t h es e r equ ir emen t s of in fr a s t r u ct u r e of t ea
es t a t es . Th e Wor kin g Gr ou p t h er efor e r ecommen ds .
[a ] Th e f or ma t i on of Pr i c e S t a bi l i z a t i on Fund f or p l a nt a t i on
i ncl ud i ng t ea i nd us t ry i s t o be exp ed i t ed .
[b] The St a t e Govt . ma y a va i l t he RIDF Fund fr om NABARD t o
meet t he exp ens es t owa rd s d evel op ment of i nfra s t ruct ure a t
t e a e s t a t e s a n d r e i m b u r s e m e n t o f e a r l i e r e x p e n d i t u r e
i nc ur r e d by t he t e a bor r ow e r s d ur i ng l a s t t hr e e y e a r s f or
t he p ur p os e of bui l d i ng up r e qui r e d i nf r a s t r uc t ur e a t t e a
es t a t es .
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1 0 2 . For Te a As s oc iat ions
At present t he Associat ions do not commu nicat e wit h t he banks as a
res u lt of which t heir views on t he lat es t development in t he indu s t ry
is n ot for t h comin g. Ma n y policy decis ion s in r es pect of effica cy of
au ct ion syst em, review of variou s benchmark paramet ers like average
yield, coverage of t ea cu lt ivable land, replant at ion, convers ion rat io of
green leaves , was t ages , et c are n ot bein g regu larly commu n icat ed by
t h e As s ocia t ion s . It is expect ed t h a t t h er e s h ou ld be con t in u ou s
in t er fa ce bet ween t h e a s s ocia t ion s a n d t h e ba n ks . Mor eover , t h e
As s ocia t ion s h a ll b ea r t h e mor a l r es p on s ib ilit y for fos t er in g for
impr oved per for ma n ce a mon g it s member s a n d a s s is t t h em t owa r ds
t h is object ive in ever y pos s ible wa y.
Th e As s ocia t ion h a s a gr ea t er r ole for bet t er ma r ket in g effor t s t o
impr ove t h e domes t ic dema n d for t ea a s well a s developin g n ew
e xp or t m a r k e t s for b e t t e r p r i c e a n d for m or e e xp or t or d e r s .
Cu r r e n t l y t h e t e a ma r k e t i s u n d e r t h r e a t fr om c on t e mp or a r y
bever a ges a n d t h e As s ocia t ion is r equ ir ed t o immedia t ely in it ia t e
ima ge boos t in g exer cis es for t ea .
In t h e ligh t of t h e a bove dis cu s s ion s it is r ecommen ded t h a t :
The Tea As s oci a t i ons s houl d ha ve r egul a r i nt er f a ce w i t h t he
t ea l end i ng Ba nk s t o a p p r a i s e t he ba nk er s a bout t he gener a l
hea l t h of t he i nd us t ry , ma jor pol i cy d eci s i ons , t he s t a t us of t he
Ind us t ry a nd t he need s of t he i nd us t ry . They wi l l fos t er for t he
i mp r ove d p e r f or ma nc e a mong i t s me mbe r s hi p a nd a s s i s t t he
members t owa rd s t hi s object i n every p os s i bl e wa y .
The Tea As s oci a t i ons wi l l ha ve t o t a k e a more a ct i ve rol e for
d evel op ment for bot h d omes t i c a nd gl oba l t ea ma rk et s t hrough
p ubl i ci t y i n d i fferent med i a a nd t hwa rt t he cha l l enge p os ed by
cont emp ora ry bevera ges . It s houl d ca rry out cont i nuous effort s
t o i mp r ove t he t e a p r i c e i n t he d ome s t i c a s w e l l a s i nt e r na -
t i ona l ma rk et .
1 0 3 . For Small Te a Growe rs and Bought Le af Fac t orie s
Th e s ma ll t ea gr ower s a n d bou gh t lea f fa ct or ies a r e fa cin g cer t a in
s p ecific p r ob lems d u e t o p r ice d iffer en t ia t ion , n on - r ea lis a t ion of
r eceivable in t ime, et c. As mor e in -dept h s t u dy is r equ ir ed for t h es e
p r ob lems , s ep a r a t e wor k in g gr ou p s ma y b e for med u n d er t h e
chairmanship of t he convener bank of SLBCs of t he respect ive St at es
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wit h member s fr om SBI, Tea Boa r d a n d t h e In du s t r y t o s t u dy t h e
problem in-dept h and come ou t wit h t heir recommendat ions wit hin a
mon t h . In t h e ligh t of t h es e dis cu s s ion s it is r ecommen ded t h a t :
S e p a r a t e Wo r k i n g Gr o u p s u n d e r t h e c h a i r m a n s h i p o f t h e
Convener Ba nk of t he SLBC of res p ect i ve St a t es a l ong wi t h t he
member from l ea d ba nk of t he d i s t ri ct , SBI, Tea Boa rd a nd t he
Ind us t ry ma y be formed for a n i n-d ep t h s t ud y of t he p robl ems
of s ma l l t ea growers a nd bought l ea f fa ct ori es a nd t he rep ort
of t he Group [s ] ma y be s ubmi t t ed wi t hi n a mont h.
1 0 4 . For t he Te a Borrowe rs
Th e Gr ou ps r ecommen da t ion s in t h is r es pect a r e:
Every t ea borrower s houl d rep ort i t s una ud i t ed res ul t s a t l ea s t
ea ch qua rt er.
The t ea borrower s houl d ha ve bet t er fi na nci a l d i s ci pl i ne. There
s houl d be no d i vers i on of fund t o a ny s i s t er uni t or out s i d e t he
bus i nes s wi t hout p rop er t i e up of fund s a nd cons ul t a t i on wi t h
i t s l end i ng ba nk er[s ] pri or t o t a k i ng up a ny s uch commi t ment s .
There s houl d be a t l ea s t 1 % repl a nt a t i on every y ea r i n ea ch t ea
es t a t e.
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Pa rt El even : Pa ck a ge of Rel i ef Mea s ures for Tea
Ind us t ry
1 0 5 . Int roduc t ion
The t ea indu st ry has been experiencing difficu lt ies in t heir operat ions
s ince 1998 on accou nt of dras t ic fall in t he prices of t ea bot h in t he
domes t ic an d in t er n at ion al mar ket s . Th e pr oblems wer e t r igger ed by
a glu t in p r od u ct ion d u r in g 1 9 9 8 a n d t h e d ep r es s ed con d it ion s
con t in u ed u n abat ed t ill t h e en d of 2003. Th e prices are n ow lookin g
u p a n d t h e in du s t r y is s eein g t h e t r en d a s a t u r n a r ou n d a n d t h ey
expect ma r ket con dit ion s t o r ema in fa vou r a ble in t h e comin g yea r s .
Du r in g 2 0 0 2 , t h e RBI h a d a n n ou n ced cer t a in r elief mea s u r es
followin g s t u d ies con d u ct ed b y a n Exp er t Commit t ee. Wh ile t h e
fin a n cia l a s s is t a n ce ext en d ed u n d er t h e s ch eme b en efit ed t h e
indu s t ry t o s ome ext ent , t he Tea As s ociat ions had repres ent ed t o t he
gover n men t for a fr es h look a t t h e pa cka ge r elief mea s u r e s in ce
ma r ket con dit ion s con t in u ed t o be u n fa vou r a ble even du r in g 2003.
Following a requ es t received from t he Chairman, Tea Board, IBA had
a r r a n ged a meet in g bet ween s en ior ba n ker s a n d r epr es en t a t ives of
Tea Boa r d/ Tea As s ocia t ion of Kolka t a on J a n u a r y 12, 2004. At t h e
meet in g t h e Ch a ir ma n , Tea Boa r d a n d r epr es en t a t ives of ma jor Tea
As s oc ia t ion s p r e s e n t e d d iffic u lt ie s fa c e d b y t h e m b ot h in t h e
domes t ic a n d t h e expor t ma r ket , t h e cu r r en t s t a t e of t ea in du s t r y,
t h e ch a llen ges a n d oppor t u n it ies in t h e globa l ma r ket , effor t s bein g
ma de by t h e t ea in du s t r y t o over come t h eir wea kn es s es , a n d t h eir
expect at ion s of relief meas u res from t h e ban kin g in du s t ry. Bas ed on
t h e dis cu s s ion s in t h e meet in g, t h is pa cka ge of r elief mea s u r es wa s
p r ep a r ed a n d wa s a p p r oved b y t h e Ma n a gin g Commit t ee of t h e
As s ocia t ion in it s meet in g h eld on 31 Oct ober 2004.
1 0 6 . The St at us of Te a Indus t ry in India
India is t he larges t produ cer of t ea in t he world and t he cou nt ry has
ret ained it s leaders hip in produ ct ion over t he las t 150 years . India is
a ls o t h e la r ges t con s u mer of t ea in t h e wor ld . Tea h a s b een a n
impor t a n t for eign exch a n ge ea r n er con t r ibu t in g t o a bou t Rs . 2000
cr or e t o t h e expor t ba s ket even t h ou gh in t er ms of s h a r e in t h e
wor ld ma r k et , we la g b eh in d Sr i La n k a , Ken ya a n d Ch in a . Th e
fr a gmen t a t ion of USSR, s t r a in ed r ela t ion s h ip wit h Pa kis t a n a n d t h e
problems in Iraq had adversely affect ed Indian t ea export s in t he last
decade. The relat ively higher cos t of produ ct ion and poorer qu alit y of
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ou r ou t pu t h a s a ffect ed t h e compet it iven es s of ou r t ea in du s t r y.
High cos t of la b ou r cou p led wit h low p r od u ct ivit y h a s b een t h e
pr ima r y r ea s on for t h e h igh cos t of pr odu ct ion . Pr odu ct ivit y a n d
qu a lit y of t ea p r od u ced in t h e cou n t r y is a ls o a ffect ed d u e t o
exis t en ce of a gein g pla n t a t ion s in t h e cou n t r y. A s ign ifica n t por t ion
of ou r t ea pla n t a t ion s is a ged beyon d econ omic life of t ea bu s h es .
Th e t ea ga r den s of Sr i La n ka a n d Ken ya a r e of r ela t ively you n ger
origin s . It is t h erefore felt t h at t h e In dian t ea in du s t ry n eeds t o t ake
d r a s t i c m e a s u r e s t o i m p r ove p r od u c t i vi t y a n d a l s o t a k e u p
r epla n t a t ion / r eju ven a t ion on a wa r foot in g, t o impr ove compet it ive-
n es s a n d lon g t er m via bilit y.
Th e n eces s a r y con dit ion s con t in u in g s in ce 1998 h a d r es u lt ed in
ma n y of t h e t ea pla n t a t ion s in cu r r in g los s es in t h e r ecen t yea r s .
Th e s t r a i n e d c a s h fl ows h a s a l s o a ffe c t e d m u c h n e e d e d
developmen t a l a ct ivit y in t h e pla n t a t ion s .
1 0 7 . Out look for t he Fut ure
Th er e h a s been a pick u p in t h e dema n d for t ea a n d con s equ en t r y
pr ices s in ce December 2003. Th e t ea in du s t r y r epr es en t a t ives view
t h e d e ve l op m e n t s a s a t u r n a r ou n d a n d e xp e c t t h e p os i t i ve
s en t imen t s t o con t in u e over t h e n ext 4-5 yea r s . Th e pr os pect s of
r evivin g bu s in es s wit h Ir a q a n d Pa kis t a n , a dd t o t h e opt imis m. Th e
Gover n men t h a s a ls o in it ia t ed p r omot ion a l mea s u r es a imed a t
developin g n ew expor t mar ket s an d en cou r agin g con s u mpt ion of t ea
in t h e cou n t r y. Th e Gover n men t h as als o ear mar ked mor e fu n ds for
developmen t of t h is s ect or in t h e Ten t h Pla n . Th is cou ld en cou r a ge
t ea gr ower s t o t a ke u p r epla n t a t ion / r eju ven a t ion on a la r ger s ca le.
1 0 8 . Approac h t o Re s t ruc t uring of Borrowe rs Ac c ount s
Borrowers u nder t he t ea sect or cou ld be divided int o t hree segment s:
1 ) Sma ll t ea gr ower s wit h h old in gs n ot mor e t h a n 1 0 h ect a r es
2) Bou ght leaf fact ories which do not have own gardens and 3) Large
t ea gr ower s a n d ma n u fa ct u r er s . Th e ba n k len din g t o t h is s ect or
con s is t of bot h t er m loa n s for developmen t ga r den s , con s t r u ct ion of
fact or y s h eds , pr oces s in g facilit ies , et c. an d wor kin g capit al facilit ies
for on -goin g pr odu ct ion . An y r es t r u ct u r in g exer cis e wou ld in volve
s egr ega t ion of over du es in t o a s epa r a t e fa cilit y t o be r epa id over a
per iod of t ime. Th e u n it wou ld n eed fr es h wor kin g ca pit a l limit for
oper at ion s an d may als o n eed t er m loan s for r eplacemen t / balan cin g
of fa cilit ies t o a ch ieve p r oject ed levels of p r od u ct ion . As p a r t of
r es t r u ct u r in g, t h e u n it s ma y a ls o lik e t o ca r r y ou t p r od u ct ivit y
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imp r ovin g mea s u r es lik e imp lemen t a t ion of volu n t a r y r et ir emen t
s ch emes , et c. Wh ile in r es pect of s ma ll t ea gr ower s , a s t a n da r dized
a ppr oa ch cou ld be t a ken , it is felt t h a t decis ion on r es t r u ct u r in g of
la r ger u n it s s h ou ld be on t h e ba s is of ca s e-by-ca s e eva lu a t ion . In
t h e pr eva ilin g ma r ket con dit ion s a n d in t er es t r a t es s cen a r io, ba n ks
cou ld con s ider con ver t in g exis t in g r u pee loa n s in t o for eign cu r r en cy
d en omin a t ed fu n d in g. Th is wou ld en a b le t h e u n it s t o en joy t h e
ben efit of lower in t er es t r at es wit h ou t t h e ban kin g s ys t em h avin g t o
ma ke s a cr ifices .
Wh ile r es t r u ct u r in g t h e b or r owa l a ccou n t s in t h e t ea s ect or t h e
r egu la t or y r equ ir emen t s vide RBIs cir cu la r DBOD No. BP. BC. 98/
21.04.048/ 2000-2001 dat ed Mar ch 30, 2001 will h ave t o be kept in
min d . Th e in d u s t r y h a d s ou gh t ext en s ion of d elin qu en cy p er iod
beyond 2 half years on t he plea t hat t he harves t ing s eas on for t ea is
9-12 mon t h s . However , Res er ve Ba n k of In dia h a d n ot a cceded t o
t h is r equ es t .
1 0 9 . Recommended Relief Measures for various segment s of t ea
indus t ry
i . Sma l l Tea Growers Banks may carve ou t irregu lar port ion
of ou t s t a n din g in t er m/ wor kin g ca pit a l loa n a ccou n t s a s on
3 1 Decemb er 2 0 0 3 , in t o a Sp ecia l Tea Ter m Loa n (STTL)
r ep a ya b le in 5 t o 7 yea r s wit h a mor a t or iu m of on e yea r .
In t er es t on STTL ma y be ch a r ged a t t h e Ben ch ma r k Ra t e of
t h e b a n k . Fr es h wor k in g ca p it a l limit ma y b e con s id er ed
ba s ed on a s s es s men t of r equ ir emen t s . Wor kin g ca pit a l limit s
u pt o Rs . 2 la kh ma y be s a n ct ion ed a t a con ces s ion a l r a t e of
int eres t not exceeding 9 per cent p.m. For loans exceeding Rs .
2.00 lakh , in t eres t may be ch arged at t h e Ben ch mark Rat e of
t h e ba n k.
i i . Boug h t Le a f Fa c t or i e s Ba n ks ma y ca r ve ou t ir r egu la r
por t ion of ou t s t a n din g in t er m/ wor kin g ca pit a l loa n a ccou n t s
a s on 31 December 2003 in t o a s pecia l t ea t er m loa n (STTL)
r epa ya ble in five t o s even yea r s wit h a mor a t or iu m of on e
year . Fr es h wor kin g capit al limit may be con s ider ed bas ed on
a s s es s men t of r equ ir emen t s . In t er es t on STTL a n d fr es h
wor kin g capit al may be con s ider ed at Ben ch mar k Rat e of t h e
ba n k.
i i i . La r ge Tea Gr ow er s a nd Ma nufa ct ur er s It is s u gges t ed
t hat rest ru ct u ring opt ions for t he borrowers coming u nder t his
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cat egor y may be con s ider ed on a cas e-t o-cas e bas is on mer it .
Th e pos it ion of a ccou n t s a s on 31 December 2003 ma y be
con s ider ed for r es t r u ct u r in g. Ir r egu la r por t ion of ou t s t a n din g
in t er m/ wor kin g ca pit a l loa n a ccou n t s a s on 31 December
2003 may be carved ou t int o a Special Tea Term Loan (STTL).
As part of t he res t ru ct u ring exercis e, fu nding requ irement s for
ca r r yin g ou t a VRS exer cis e or s u ch ot h er mea s u r es for
impr ovin g pr odu ct ivit y cou ld als o be con s ider ed depen din g on
t h e via bilit y of t h e pr opos a l a n d s u it a ble r epa ymen t fixed on
t h e ba s is of ca s h flow pr oject ion s . Th e r epa ymen t of STTL
ma y b e a llowed over a p er iod of 5 t o 7 yea r s in clu d in g a
mor a t or iu m of on e yea r ba s ed on t h e ca s h flow pr oject ion .
In t er es t on STTL ma y be ch a r ged a t t h e Ben ch ma r k Ra t e of
t h e ba n k. Ba n ks ma y exa min e fea s ibilit y of con ver t in g Ru pee
Loa n s in clu d in g r es t r u ct u r ed loa n s in t o For eign Cu r r en cy
Loa n s t o pa s s on t h e ben efit of lower in t er es t r a t es t o t h e
b or r ower s . Fr es h wor k in g ca p it a l limit ma y b e con s id er ed
b a s ed on a s s es s men t of r equ ir emen t s . In t er es t on fr es h
wor k in g ca p it a l wou ld b e a s p er t h e p r icin g p olicy of t h e
ba n k. In ca s es wh er e t h e a s s et cover is in s u fficien t , ba n ks
ma y s eek a ddit ion a l colla t er a l s ecu r it y fr om t h e bor r ower s .
1 1 0 . Conc lus ion
Tea gr owin g r egion s , b eca u s e of t h e u s e of s h a d e t r ees in Wes t
Ben gal an d t h e Nort h eas t , can be clas s ed as fores t s . In Kerala, t h ey
a r e con ver t in g p ot a t o a n d ot h er a va ila b le la n d t o t ea a n d t h e
findings of t he expert s are t hat t ea areas carry ou t t he s ame pos it ive
fu n ct ion s a s for es t la n d , s o fa r a s ecology a n d la n d er os ion a r e
concerned. Indu st rys plea is simple, t ea areas wit h shade are almost
a s good a s for es t s a n d cer t a in ly mu ch bet t er t h a n t h e degr a ded
for es t s . As s u ch , degr a ded for es t s ca n be given t o t h e in du s t r y for
gr owi n g t e a n ot on l y i n t h e n a t i on a l i n t e r e s t b u t a l s o i n t h e
ecologica l in t er es t . An d it is t h e in du s t r y h a s for med pa r t n er s h ip
wit h t h e Gover n men t t o ext en d it s win gs an d gives effect ive s u ppor t
t o t h e in d u s t r y b y a llot t in g la n d , a b ig p or t ion of wh ich ca n b e
d e gr a d e d for e s t s . Pr a gm a t i s m i s c a l l e d for n ot l e ga l i s m or
bu reau crat ism. As t hese forest s on paper cannot claim any st anding
t r ees , it wou ld be bet t er t o pla n t t h es e a r ea s wit h t ea a n d s h a de
t r ees ! We ma y cla s s ify s h a ded t ea a r ea s a s for es t s a n d t h e r a t ios
la id down for for es t -la n d, will be effect ively ma in t a in ed. We ma y
h a ve t o on ly a men d t h e d efin it ion of a for es t ! Ta k in g a b ou t t h e
Gover n men t , as an act ive par t n er , t h e fir s t par t n er s h ip con t r ibu t ion
in d u s t r y s eek s fr om t h e Gover n men t is ma in t en a n ce of la w a n d
137
or der a n d r a t ion a liza t ion of t a xa t ion . Th e in du s t r y a n d Gover n men t
h a ve gon e in t o a gen u in e pa r t n er s h ip wh er e it is in t h e in t er es t of
b ot h p a r t i e s t o s e e t h a t t h e i n d u s t r y k e e p s on gr owi n g a n d
gen er a t es in cr ea s in gly mor e wea lt h , s o t h a t t h e Gover n men t ca n
par t ake of it an d get bigger r even u e amou n t s in comin g year s . As a
good pa r t n er , it is in du s t r ys du t y t o s ee t h a t bot h t h e Cen t er a n d
t h e St a t e ea r n in cr ea s in gly mor e r even u e fr om t h e t ea in du s t r y.
Govern men t s h ou ld con s ider by t akin g a s maller percen t age of a big
an d gr owin g cake, r at h er t h an a big per cen t age of a s t agn at in g an d
s lowly d imin is h in g s ma ller ca k e. Hen ce t h er e is a n eces s it y for
con t in u ou s gr owt h of pr odu ct ion t h r ou gh in cr ea s ed pr odu ct ivit y of
b ot h la n d a n d la b or a n d in cr ea s ed p r od u ct ion wit h mor e la n d
comin g u n der t ea .
Wh ile t h e in du s t r y u n der s t a n ds t h a t t h e Gover n men t h a s cer t a in
bas ic fis cal n eeds , an d is willin g t o do it s bes t , t h e Govern men t als o
h as t o appreciat e t h at if t h e in du s t ry is t o pros per, t axes h ave t o be
rat ion alis ed, more lan ds h ave t o be allot t ed an d law an d order mu s t
be ma in t a in ed. However , even wit h a ll t h e h elp a n d u n der s t a n din g
fr om t h e Gover n men t , t h e in du s t r y will n ot be a ble t o h old it s own
in t h e n ew climat e of fr ee mar ket econ omy an d globalizat ion , u n les s
it s pr odu ct ivit y impr oves mos t of wh ich will h a ve t o come fr om t h e
wor ker s , t h r ou gh in du s t r ys effor t s . Dema n din g pr odu ct ivit y fr om
workers as a qu id pro qu o for increas e in wages does not work. It is
in d u s t r ys r es p on s ib ilit y t o en s u r e t h a t wor k er s a r e t r a in ed a n d
m ot i va t e d t o u s e t h i s t r a i n i n g i n t h e ove r a l l i n t e r e s t s of a l l
con cer n ed.
139
Pa rt Twel ve : Pr od uc t Di ve r s i f i c a t i on, Exp or t s of
Pa ck et Tea s , Tea Ba gs , Ins t a nt Tea s
1 1 1 . Background
Even 50 years ago, t ea drinkers abroad u s ed t o bu y pu re t ea from
t h e pr odu cin g cou n t r y of h is ch oice fr om a mon g t h e n eigh bou r in g
gr ocer s . Th e t ea s of differ en t or igin s wer e bein g s old u n der well
a d ve r t is e d b r a n d n a me s b y t r a d in g c omp a n ie s loc a t e d in t h e
impor t in g cou n t r ies . Th es e compa n ies got t h eir mer ch a n dis e fr om a
n u mber of t ea pr odu cin g cou n t r ies . In ot h er wor ds , t h er e was a s o-
ca lled in t er n a t ion a l divis ion of la bou r u n der wh ich t ea wa s gr own
by poor developin g cou n t ries es pecially for t h e pu rpos e of export s in
bu lk a s r a w ma t er ia ls t o va r iou s developed cou n t r ies . Th e impor t ed
t ea wa s t h en s old by t h e developed cou n t r ies t h r ou gh a n et wor k of
la r ge s ized compa n ies wit h s u bs t a n t ia l ca pit a l in ves t men t wh o wer e
ma r k et in g t h e t ea in a t t r a ct ive con s u mer p a ck s u n d er d iffer en t
b r a n d n a mes b u ilt u p b y in t en s ive ca mp a ign s . Th is d ivis ion of
la bou r wa s n ot ba s ed on a n y n a t u r a l a dva n t a ge a s u n der s t ood in
t h e t h eor y of in t er n a t ion a l t r a de. It wa s ba s ed on h is t or ica l fa ct or s
a n d on a dva n t a ges a r t ificia lly cr ea t ed for differ en t compa n ies by
vir t u e of d omin a n t p os it ion of t h eir cou n t r ies over t h e er s t wh ile
colon ies . Th e compa n ies n ot on ly con t r olled over 40 or 50 per cen t
of t h e ma r k et s of d evelop ed cou n t r ies b u t a ls o con t r olled t r a d e
ch an n els for market in g an d dis t ribu t ion of t ea. Moreover, t h ere were
s ome bigger compa n ies wh ich own ed pla n t a t ion s a n d con t r olled a
la r ge pa r t of r et a il ma r ket in g of pa cka ged t ea . Th u s , it is of vit a l
impor t a n ce t h a t a n a t t it u din a l ch a n ge mu s t pr ecede ou r a t t empt s
t owa r ds boos t in g of t ea expor t s by t h e developin g cou n t r ies . Th is
wou ld wor k a s ca t a lys t t o ma r k a depa r t u r e fr om t h e t r a dit ion a l
pos it ion of t ea pr odu cin g cou n t r ies bein g con t en t wit h expor t of t ea
as a pr imar y pr odu ct t o valu e added it ems . Th is ch an ge cover s t h e
diver s ifica t ion in t o blen din g of t ea a n d it s pa cka gin g wou ld en a ble
t h e t ea pr odu cin g cou n t r ies t o fr ee t h ems elves fr om t h e va ga r ies of
t he wholesale market of t ea and ent er t he consu mer market s direct ly
where prices are more s t able compared t o wholes ale market s . Packet
t ea ca n h elp t h e p r od u cin g cou n t r ies t o ea r n a d d ed va lu e on
a ccou n t of blen din g a n d pa cka gin g a n d t h er eby ea r n mor e for eign
exch a n ge. Simila r is t h e ca s e of in s t a n t t ea a n d t ea ba gs .
It may, t h erefore, be t h e s t rat egy of all t h e developin g cou n t ries t h at
t h ey s h ou ld br in g in cer t a in s t r u ct u r a l ch a n ges in t h e pr odu ct t h ey
expor t . Th is will h elp t h em in impr ovin g t h eir s h ar e in wor ld t r ade
140
a n d in ea r n in g mor e for eign exch a n ge. Bes ides , t h is wou ld en a ble
t h e d evelop in g cou n t r ies t o b e k n own n ot on ly a s exp or t er s of
pr ima r y pr odu ct s bu t a ls o a s expor t er s of con ven ien t pr odu ct s or
ma n u fa ct u r ed goods wh ich ca n dir ect ly fin d pla ce in t h e dis pla y
cou nt ers of t he cons u mer s t ores in t he developed cou nt ries . In ot her
wor ds , a s wit ch over fr om pr imar y t o pr oces s ed goods migh t open
u p n ew vis t a s of econ omic gr owt h for t h e d evelop in g cou n t r ies
t h r ou gh in cr ea s ed expor t s . In dia , wh ich is on e of t h e developin g
cou n t r ies , h as pr ogr es s ively u s h er ed in diver s ificat ion in man y of it s
a gr icu lt u r a l commodit ies in r ecen t yea r s . In dia s t a r t ed by expor t in g
grou ndnu t seeds and t hen moved t o export of oilseeds and t hereaft er
t o pr odu ct s like mea l. In ca s e of lea t h er pr odu ct s , In dia h a s moved
fr om r aw h ides t o t an n ed, s emi-pr oces s ed t o pr oces s ed an d fin is h ed
lea t h er , a n d for over a deca de, In dia h a s been developin g ma r ket s
for s h oe u pper s , s h oes an d leat h er as well as leat h er gar men t s an d
goods . Th e s a me cou ld h a ppen in t h e ca s e of t ea . Th e qu es t ion is
wh a t t yp e of s t r u c t u r a l c h a n ge s i n t e a e xp or t s i . e . p r od u c t
diver s ifica t ion h a s been a ch ieved in In dia s o fa r .
1 1 2 . Export of Pac ke t t e a
In dia is t h e larges t produ cer an d export er of t ea in t h e world an d is
expect ed t o pr odu ce 850 million kgs in 2004 a s s u min g a n a ver a ge
an n u al gr owt h r at e in t ea pr odu ct ion t o t h e ext en t of a lit t le over 3
per cen t , ot h er t h in gs r ema in in g con s t a n t . On a n a ver a ge, In dia
pr odu ced abou t 820 million kgs an n u ally du r in g t h e las t five year s .
In dia pr odu ced 826 million kgs of t ea in 2002 a n d h er s h a r e in
wor ld pr odu ct ion wa s 27 per cen t . Th e volu me of h er t ea expor t s
wa s 201 m kg in 2002 wh ich a ccou n t ed for 14 per cen t of wor ld
expor t s an d t h es e ar e mos t ly in bu lk for m. In dia h as been t r yin g t o
ma ximis e expor t s pa r t icu la r ly in t h e for m of pr oces s ed t ea s u ch a s
pa cket s , t ea ba gs , a n d in s t a n t t ea .
In India, t ea packet s cont aining loose t ea are st ill t he normal form of
packaging. India for t he first t ime st art ed t he export of packet t ea [in
con s u mer pa ck u pt o a s ize of 1 kg] in 1965. Six yea r s la t er s h e
ven t u r ed in t o expor t of t ea ba gs , in s t a n t t ea , et c. Sin ce t h en In dia
h a s been ma kin g s t ea dy a n d con s is t en t pr ogr es s in t h e expor t of
p a ck et t ea . In 1 9 6 5 , wit h on ly t wo fir ms in t h e field , s h e h a d
expor t ed 2 m kgs of pa cket t ea a n d a t t h e en d of five yea r s , wit h
en t r y of few mor e fir ms , h er t ea expor t s dou bled t o 4 m kgs 1971-
72 an d in an ot h er 4 year s , expor t s r each ed t h e level of abou t 11 m
kgs [1975-76]. The progress, since t hen, not ewort hy wit h t he ent ry of
mor e t h a n 200 fir ms in t h e field.
141
Th e yea r -wis e gr owt h of expor t s of pa cket t ea in In dia for t h e la s t
t wo a n d a h a lf deca des s in ce 1973-74, is given below:
Table 2 7 : Export of pac ke t t e a from India during
1 9 7 3 -7 4 t o 2 0 0 1 -2 0 0 2
Ye ar Quant it y [t h kg] value [Rs . ] Unit value [Rs / kg]
1973-74 4744 50216.00 10.58
1974-75 6095 83051.00 13.56
1975-76 10787 172457.00 15.99
1976-77 12612 193635.00 15.37
1977-78 25187 519834.00 20.64
1978-79 38599 787384.00 20.40
1979-80 30024 580703.00 19.34
1980-81 32322 699834.00 21.65
1981-82 20493 468216.00 22.85
1982-83 10101 263232.00 26.06
1983-84 17368 521288.00 30.01
1984-85 21841 930552.00 42.61
1985-86 25690 994063.00 38.69
1986-87 16847 595727.00 35.36
1987-88 21142 785994.00 37.18
1988-89 25541 879841.00 34.45
1989-90 75817 3548148.00 46.80
1990-91 71514 3908642.00 54.64
1991-92 78321 4520917.00 57.72
1992-93 65245 4040263.00 61.92
1993-94 64917 4685722.00 72.18
1994-95 52042 3577669.00 68.75
1995-96 83965 6162394.00 73.39
1996-97 81016 5714458.00 70.53
1997-98 78115 7490434.00 97.89
1998-99 82013 8904328.00 108.57
1999-2000 63518 674390.00 106.16
2000-01 69315 7195601.00 103.89
2001-02 42719 5211372.00 121.99
Sources : various is s ues of Tea Statis tics , Tea Board, Kolk ata
In dia s expor t of pa cket t ea in cr ea s ed fr om 5 m kgs in 1973-74 t o
43 m kgs in 2001-02. Yea r wis e da t a fu r t h er r evea led t h a t on ma n y
occa s ion s In dia cou ld n ot r et a in t h e volu me of h er pr ecedin g yea r s
expor t s . Expor t of packet t ea s h owed a r ecor d in cr eas e of 84 m kgs
in 1 9 9 5 - 9 6 followed b y 8 2 m k gs in 1 9 9 8 - 9 9 a n d 8 1 m k gs in
1996-97. On an average In dia export ed abou t 68 m kgs fet ch in g Rs .
712 cr or e wit h a ver a ge u n it pr ice of Rs 105 per Kg. In dia a cqu ir ed
an import an t pos it ion as t h e worlds larges t direct export er of packet
t ea s u r pa s s in g t h e U K. Sh e is t h e lea din g expor t er of pa cket t ea
142
a n d a ccou n t s for 6 0 p er cen t of wor ld t r a d e in p a ck et t ea . It is
in t eres t in g t o n ot e t h at packet t ea import s con s t it u t ed n early 20 per
cen t of t ot al world import s an d In dia con s t it u t es for n early h alf of it
by wa y of dir ect expor t of t h is it em du r in g t h e yea r .
1 1 3 . Dire c t ion - Re gionwis e Pac ke t Te a Export
Du r in g t h e la s t 4 deca des ma jor ch a n ges h a ve a lr ea dy t a ken pla ce
in t h e t ea ma r ket in t h e wor ld. Cou n t r ies like USA, UK, Ca n a da
a n d ot h er s h a ve pr efer en ce for pa cket t ea , t ea ba gs , in s t a n t t ea in
r ecen t yea r s . Th e cou n t r ies in t h e r egion of Wes t As ia a n d Nor t h
Africa place t heir order mos t ly for t hes e it ems . The export s of packet
t e a i n t h e c ou n t r i e s of We s t Eu r op e [Un i t e d Ki n gd om, Ir i s h ,
Net herland, Germany, Au st ria, Finland et c.] are also gradu ally falling.
On a n a ver a ge, a bou t 4 m kgs a r e expor t ed t o Wes t Eu r ope, 21 m
kg t o Ea s t Eu r ope, 1.5 m kg t o Amer ica {Nor t h & La t in Amer ica ].
1 1 4 . Export of Te a Bags
In or d er t o cop e u p wit h ch a n gin g con s u mer p r efer en ces , In d ia
s t a r t ed pr odu ct ion a n d expor t of t ea ba gs fr om 1971 on wa r ds wit h
t h r ee fir ms . Pr ogr es s made s in ce t h en h as been con s ider able an d at
pr es en t t h er e ar e man y fir ms man u fact u r in g t ea bags . Th e pr ogr es s
r ela t in g t o expor t of t ea ba gs in In dia is s et ou t below:
Table 2 8 : Export of Te a bags during 1 9 7 3 -7 4 t o 2 0 0 1 -0 2
1973-74 4744 50216.00 10.58
1973-74 144 3571.00 24.80
1974-75 108 2752.00 25.48
1975-76 157 5914.00 37.67
1976-77 285 10560.00 37.05
1977-78 390 18522.00 47.49
1978-79 238 10570.00 44.41
1979-80 493 20275.00 41.13
1980-81 754 32591.00 43.22
1981-82 777 33531.00 43.15
1982-83 618 23172.00 37.50
1983-84 514 24259.00 47.20
1984-85 631 36551.00 57.93
1985-86 590 37839.00 64.13
1986-87 467 31845.00 68.19
143
1987-88 498 32424.00 65.11
1988-89 626 44409.00 70.94
1989-90 546 46875.00 85.85
1990-91 496 43715.00 89.20
1991-92 483 71408.00 147.84
1992-93 520 72536.00 139.49
1993-94 1007 101456.00 100.75
1994-95 1008 144180.00 143.04
1995-96 861 125811.00 146.15
1996-97 1716 252479.00 147.16
1997-98 2169 449957.00 207.45
1998-99 2415 498180.00 206.29
1999-2000 2305 557207.00 241.74
2000-2001 1917 385332.00 200.96
2001-2002 2542 597103.00 234.89
2002-2003
export s of t ea bag in 1973-74 was 144 t hou s and kgs which went u p
t o 2524 t h. kgs in 2001-02 showing an increase of 17.6 t imes. There
wa s a n a ppr ecia ble in cr ea s e of t h is it em fr om 1994-95 on wa r ds .
Except 1995-96, expor t s of packet t ea boos t ed u p fr om 1716 t h . kg
in 1996-97 t o 2169 t h kgs in 1997-98. It fu r t h er impr oved fr om
2 4 1 5 t h . k gs . in 1 9 9 8 - 9 9 t o 2 5 4 2 t h . k gs . in 2 0 0 1 - 0 2 . Aver a ge
expor t of pa cket t ea du r in g la s t five yea r s wa s t o t h e level of 2270
t h . Kgs . fet ch in g Rs 219 per kg. It is als o obs er ved t h at aver age u n it
pr ice s t a n ds a t Rs 201 per kg.
1 1 5 . Dire c t ion of Te a Bag Export s Re gion-wis e
Tea bags are export ed t o mainly cou nt ries like Unit ed Kingdom, Iris h
Repu blic, Ger ma n y, Fr a n ce, Belgiu m & Lu xember g of Wes t Eu r ope.
A s u b s t a n t ia l qu a n t it y is a ls o exp or t ed t o ea s t Eu r op e i. e CIS
cou n t r ies (Ru s s ia n Feder a t ion , Ukr a in e, La t via , Ka za kh a s t h a n , et c.)
a n d Pola n d. Mea gr e qu a n t it ies a r e expor t ed t o USA, Ca n a da a n d
Br a zil of Amer ica a s well a s Ir a n , UAE, Kwa it , Ba h r a in , Mu s ca t
,Yemen of Wes t As ia a n d Nor t h Afr ica . Fu r t h er les s qu a n t it y in t h e
level of 20 t h ou s a n d is expor t ed t o As ia ot h er t h a n Wes t (J a pa n ),
Afr ica ot h er t h a n Nor t h (An gola , Sou t h Afr ica ) a n d Au s t r a lia a n d
Ocea n ia (Au s t r a lia ). It is in t er es t in g t o n ot e t h a t over t h e la s t t h r ee
yea r s qu a n t it ies expor t ed t o Ea s t Eu r ope h a s in cr ea s ed fr om 1816
t h .kg in 1999-00 t o 2115 in 2001-02, wh ile it was 16 t h . kg 84 t h .
kg du rin g t h e period in America. Th ere was fall in export s from 207
t h . kg t o 106 t h . kg in Wes t As ia a n d n or t h Afr ica .
144
1 1 6 . Value Added Concept
By in t r odu cin g s t r u ct u r a l ch a n ges in t ea expor t s In dia h a s been
s h a r in g t h e va lu e a d d ed ma r k et . Befor e ma k in g a n y a t t emp t t o
defin e valu e added con cept it wou ld be wor t h wh ile t o men t ion t h at
des pit e over a cen t u r y of In dia s en t r y in wor ld t ea expor t ma r ket
In dia n t ea h a s been h a r dly kn own by n a me or or igin except in t h e
cou n t r y like UK a n d Ger ma n y. In t h es e cou n t r ies t h er e wa s good
deman d for fin e Darjeelin g Tea wh ile Ch in es e an d Srilan kan Tea are
well kn own in expor t ma r ket s a br oa d. Even t h e s ma ll a mou n t of
valu e t h at may be added on accou n t of t h e con s u mer preferen ce for
a pa r t icu la r or igin of t ea h a s n ot r ea ch ed u s . Th e fir s t va lu e a dded
exer cis e cou ld, t h er efor e, s t a r t wit h In dia n t ea kn own for s u per ior
qu a lit y a n d fla vou r t o c r e a t e a mon g c on s u me r s a p u r c h a s in g
p r e fe r e c n e for In d i a n t e a . Th e n e xt s t a ge wou l d b e t o c r e a t e
a wa r en es s a mon g t h e con s u mer s a bou t t h e r egion a l va r iet ies s u ch
a s Da r j e e l i n g t e a , t h e Ni l gi r i s t e a , t h e As s a m t e a , Ka n gr a
t ea et c..
1 1 7 . Forms of Value Addit ion
There are t hree met hods by which valu es are added t o t ea. Thes e are
(i) Br ea kin g bu lk a n d blen din g in volvin g n o t ech n ology bu t r equ ir e
s kills t h a t we pos s es s . (ii) Con s u mer pa ckin g in a t t r a ct ive pa cket s ,
can s or bags u s in g moder n packin g mat er ials , if s old in ot h er br an d
names (t o devot e at t ent ion t owards market ing and promot ional s kills )
an d cos t , if s old u n der own br an d n ame (iii) Pr odu ct pr oces s in g an d
qu a lit a t ive imp r ovemen t ext r a ct in g t ea s olu b les i. e. , s olid s a n d
fla vou r . Th e cou n t r y wh ich expor t s t ea in bu lk qu a n t it ies wit h ou t
r ecou r s e t o va lu e a dded s ys t em is , t h er efor e, n ot on ly depr ived of
legit imat e s h ar e or valu e added bu t als o fails t o r each t h e con s u mer
dir ect ly. Th e va lu e a dded it ems of t ea wh ich a r e s old in t h e r et a il
ma r ket , a r e in t h e for ms of t ea in con s u mer pa cka ge a n d t ea ba gs .
1 1 8 . Sharing of Value Adde d Te a
Th e s h a r in g of va lu e a d d ed wh ich cou ld b e s een fr om t h e p r ice
differ en t ia ls in r es pect of pa cket t ea s a n d t ea ba gs a s compa r ed t o
bu lk t ea s is s h own below:
145
Table 2 9 : Pric e diffe re nt ials during 1 9 6 6 -6 7 t o 2 0 0 1 -0 2
(fob Rs . / kg)
Ye ar Pac ke t t e a Te a bag Bulk t e a Pe rc e nt age of value addit ion
in pac ke t / bag t o bulk t e a
1966-67 9.88 8.18 20.80
1971-72 9.48 20.39 7.47 26.90 173
1973-74 10.58 24.80 7.63 27.90 225
1974-75 13.76 25.48 9.16 50.20 178
1975-76 15.99 37.67 11.22 42.50 178
1976-77 15.36 37.05 12.01 27.90 235
1977-78 20.64 47.49 23.29 -14.00 208
1978-79 20.40 44.41 20.61 -1.90 113
1979-80 19.34 41.13 18.12 6.70 127
1980-81 21.65 43.22 19.15 12.80 122
1981-82 22.85 43.15 18.15 25.90 138
1982-83 26.06 37.50 18.72 39.20 101
1983-84 30.01 47.20 24.79 21.00 91
1984-85 42.61 57.93 34.12 24.80 70
1985-86 38.69 64.23 30.25 27.70 112
1986-87 37.42 63.84 29.53 26.50 116
1987-88 37.18 65.11 31.10 19.50 109
1988-89 34.45 70.94 31.13 10.60 128
1989-90 46.80 85.88 42.97 8.90 100
1990-91 54.64 89.20 53.58 3.50 69
1991-92 57.72 147.84 55.61 3.80 62
1992-93 61.92 139.49 56.05 10.50 148
1993-94 72.18 100.75 65.19 10.70 55
1994-95 68.75 143.05 64.64 6.40 0
1995-96 73.39 146.15 71.25 3.10 105
1996-97 70.53 147.13 75.44 -6.50 95
1997-98 97.89 207.45 85.79 14.10 142
1998-99 108.57 207.45 107.81 -0.70 91
1999-2000 106.16 241.74 100.61 5.60 143
2000-01 103.81 200.96 89.41 16.10 125
2001-02 121.99 234.89 89.98 36.90 164
Th e da t a pr es en t ed in t h e a bove t a ble s h owed t h a t pa cket t ea a n d
t ea ba gs a dded mor e va lu e a ppr oxima t ely 27% a n d 173% r es pec-
t ively t h an t h e bu lk t ea du r in g 1971 - 72. Valu e addit ion in r es pect
of pa cket t ea a n d t ea ba gs s t ood a t 37% a n d 164% r es pect ively in
146
2 0 0 1 - 0 2 . Va lu e a d d it ion for p a ck et t ea r a n ged fr om 3 % t o 3 9 %
du r in g t h e per iod fr om 1966-67 t o 2001-02, wh ile it r a n ged fr om
55% t o 235% du r in g t h e s a me per iod in r es pect of t ea ba gs . Va lu e
a ddit ion wa s r edu ced t o min imu m du r in g 1990-91 a n d 1992-93 in
res pect of packet t ea an d t ea bags as compared t o bu lk t ea becau s e
of in cr ea s e in t h e pr ice per kg of bu lk t ea .
Pa cket t ea ca n offer a depen da ble a n d s t a n da r dis ed pr odu ct t o a
con s u mer wh ile t ea ba gs s t a n da r dis a t ion s implifies t h e pr oces s of
brewing. In t he second st age, by market ing t ea u nder a brand name,
alt hou gh being a cos t ly proces s in t erms of high cos t s of dis t ribu t ion
a n d con s u mer p r omot ion , t h e exp or t er get s a n ea s y a cces s t o
p r efer en ces a n d s ome comma n d over t h e ma r k et , t oget h er wit h
in cr ea s e in p r ofit a b ilit y comp a r a t ively h igh er t h a n t h e r et u r n s
a va ila ble fr om t h e expor t of loos e t ea .
1 1 9 . Ins t ant Te a - It s De ve lopme nt
As r ega r ds in s t a n t t ea , In dia is s t ill on t h e t h r es h old of pr odu ct
d evelop men t . Wit h t h e gr a d u a l a ccep t a n ce of in s t a n t t ea b y t h e
con s u mer, it s deman d is bou n d t o ris e gradu ally in t h e n ear fu t u re.
In s t an t t ea is proces s ed in t wo forms , t h e cold wat er s olu bles (CWS)
a n d h ot wa t er s olu bles (HWS). Th es e a r e ma n u fa ct u r ed bot h fr om
t h e green leaf an d from t h e black t ea or from a combin at ion of bot h
t ypes . HWS has limit ed market in t he UK, Au s t ralia, et c. While CWS
h a s ma r ket s in USA. Ta t a Fin la y, is s pecia lis in g in CWS a n d food
s pecia lit ies in HWS. Bot h t h e pr odu ct s a r e ma n u fa ct u r ed in Sou t h
In dia . Th e da t a r ela t in g t o expor t of in s t a n t t ea fr om In dia is given
in t h e t a ble below:
Table 30 : Export of Inst ant Tea from India : 1974-75 t o 2001-02
Ye ar Quant it y (Th. kg) Value (Rs . ) Unit Value (Rs . / Kg)
1973-74 295 9217.00 31.24
1974-75 255 563.00 33.58
1975-76 478 19162.00 40.09
1976-77 584 25064.00 42.92
1977-78 598 31533.00 52.73
1978-79 686 35500.00 51.75
1979-80 656 30509.00 46.51
1980-81 761 36608.00 48.11
1981-82 832 41712.00 50.13
1982-83 799 43185.00 54.05
1983-84 1049 66874.00 63.75
1984-85 1138 95538.00 83.95
147
Ye ar Quant it y (Th. kg) Value (Rs . ) Unit Value (Rs . / Kg)
1985-86 938 80428.00 85.74
1986-87 1134 94896.00 83.68
1987-88 8661 66611.00 7.36
1988-89 1147 100986.00 88.04
1989-90 925 90068.00 97.39
1990-91 1283 158039.00 123.18
1991-92 1740 270592.00 155.51
1992-93 1122 221463.00 197.56
1993-94 1320 228667.00 173.23
1994-95 1230 260940.00 212.15
1995-96 1868 446403.00 238.97
1996-97 2483 578336.00 232.92
1997-98 2428 629703.00 259.35
1998-99 2602 653770.00 252.26
1999-2000 2783 831013.00 298.60
2000-01 2574 741979.00 286.04
2001-02
It will be s een fr om t h e a bove t a ble t h a t t h e expor t of in s t a n t t ea
in cr ea s ed fr om 295000 kg in 1973-74 t o 2594000 kg in 2001-02
s h owin g a n impr ovemen t of les s t h a n 10 t imes . Simila r ly, in va lu e
t er ms it was Rs . 92.17 lakh in 1973-74 an d 7419.79 lakh in 2001-
02.
1 2 0 . Export Marke t for Indian Te a
In d i a n i n s t a n t t e a i s e xp or t e d t o 2 3 c ou n t r i e s . Amon g t h os e
cou n t r ies USA a ccou n t s for a b ou t 7 1 % of t h e t ot a l followed b y
Swit zer la n d 9%, Ca n a da 6%, It a ly 5%, et c. It is in t er es t in g t o n ot e
t h a t in s t a n t t ea is ga in in g popu la r it y in Un it ed Kin gdom, Fr a n ce,
Au s t r ia , Net h er la n ds , UAE, J a pa n et c.
1 2 1 . Inc e nt ive s t o Value Adde d Te as
In order t o encou rage valu e added t eas , t he Cent ral Government has
been pr ovidin g va r iou s in cen t ives a s u n der :
A. Pac kage Te a
Ra t e of du t y Rs / Kg
(a ) Tea pa cked in u n it con t a in er s Rs . 0 . 4 4 + d u t y for t h e t i me
of con t en t n ot exceedin g 25 b e i n g l e vi a b l e for l oos e t e a
148
gr a ms a n d or din a r ily in t en - wh i c h h a s n ot a l r e a d y b e e n
ded t o s ell t o con s u mer s in pa id (w.e.f. 11.3.86)
t h os e pa ck.
(b) Tea pa cked in u n it con t a in er s Rs . 1 . 1 0 + d u t y for t h e t i me
of con t en t exceedin g 25 gr a ms b e i n g l e vi a b l e for l oos e t e a
bu t n ot exceedin g 20 kgs wh e- wh i c h h a s n ot a l r e a d y b e e n
t h er or n ot or din a r ily in t en ded pa id (w.e.f. 11.3.86)
for s a le t o con s u mer s in t h a t
pa ck.
(c) Th e pa cked in ba gs for r et a il Th er e is n o excis e du t y on Tea
con s u mpt ion kn own a s Tea Ba gs , bu t du t y levia ble for loos e
Ba gs . t ea s h ou ld be pa id if s u ch loos e
t ea is u s ed for ma n u fa ct u r e of
t ea ba gs (w.e.f. 15.5.86)
1 1 % + d u t y for t h e t ime b ein g
l e vi a b l e for l oos e t e a (w. e . f.
11.3.86)
B. Ins t ant Te a
Re bat e allowe d on e xport (w.e.f. 9.9.86)
a . Loos e Te a:
A r eba t e on excis e du t y @50 pa is a per kg on loos e u n -blen ded/
blen ded t ea expor t ed ou t of In dia is gr a n t ed w.e.f 9.9.1986
Wi t h e ffe c t from 4 . 1 2 . 1 9 8 6 t h e r eba t e is gr a n t ed on expor t @50
pais e per kg on loos e u n - blen ded/ blen ded t ea export ed ou t of In dia
provided t he du t y of excis e s o paid is not les s t han 50 pais a per kg.
Fu l l re bat e o f e x c i s e du t y h as be e n gran t e d o n l o o s e t e a
e xport e d out of India w. e . f. 2 7 . 4 . 1 9 8 8 .
b. Pac kage Te a :
(i) A r ebat e on Excis e Du t y @ 50 pais a per kg on loos e u n -blen ded
t ea wh ich is u s ed in t h e man u fact u r e of blen ded t ea an d packet
t ea expor t ed ou t of In dia is gr a n t ed w.e.f. 9.9.1986.
(ii) A r eba t e of a ddit ion a l excis e du t y on expor t of pa cket t ea a t t h e
followin g r a t es a r e a ls o gr a n t ed w.e.f. 9.9.1986
149
(a ) Tea packed in an y kin d of con t ain er n ot more t h an 25 grams
n et of t ea Rs . 0.44 per kg
(b) Tea packed in an y kin d of con t ain er more t h an 25 grams bu t
n ot mor e t h a n 1kg n et of t ea Rs . 1.10 per kg.
c. Ins t ant Te a
Th e wh ole of t h e du t y of excis e leviable on in s t an t t ea provided t h at
t h e du t y of excis e h a s a lr ea dy been pa id on loos e t ea u s ed in t h e
ma n u fa ct u r e of s u ch in s t a n t t ea w.e.f. 1.3.1986.
W.e.f. 27.4.1988 t h e wh ole of t h e du t y of excis e levia ble on in s t a n t
t ea.
C. Loos e Tea
Re b a t e of Exc i s e Du t y gr a n t e d on e xp or t s of Bu l k t e a w. e . f.
23.7.1983 h a s been wit h dr a wn w.e.f. 1.2.1985.
D. Cas h Compe ns at ory s upport : W. e. f. 1. 4. 1989 t h e C. C. S. Ha s
been gr a n t ed a t t h e followin g r a t es on f.o.b. Va lu e of expor t s (va lid
u pt o 31.3.1992.).
De s c ript ion of t he produc t Rat e s of C. C. S.
(a ) Tea Ba gs 8% (Eigh t )
(b) Pa cket Tea ca ddies a n d Tea ch es t let s 18% (Eigh t een )
(c) In s t a n t 8% (Eigh t )
(d) Qu ick Br ewin g Bla ck Tea 12% (Twelve)
1 2 2 . Proble ms of Value Adde d Ins t ant Te a
For expans ion of export s of valu e added it ems of Tea, India is facing
va r iou s pr oblems . Th es e a r e : (i) Dea r t h of in digen ou s kn ow h ow in
in t ern at ion al market , (ii) in adequ at e produ ct ion capacit y of t ea bags ,
(iii) la ck of in ves t men t for es t a blis h men t of fir ms br a n d n a me a n d
en t r y in t o t h e s u per ma r ket s in for eign cou n t r ies (iv) impos it ion of
va r iou s t a r iff a s well a s n on -t a r iff b a r r ier s cr ea t ed b y d evelop ed
cou n t r ies a ga in s t t h e en t r y of In dia n t ea in con s u mer pa cks .
1 2 3 . Long t e rm St rat e gy for Marke t ing of Value Adde d It e ms
For evolving a long t erm st rat egy for market ing of valu e added it ems,
t h e Commit t ee on Tea Ma r ket in g s et u p by t h e GoI r ecommen ded
in it s r epor t a t h r ee ph a s ed a ppr oa ch wh ich is qu ot ed below:
150
In t h e fir s t p h a s e p a ck et t ea exp or t s h ou ld b e con fin ed t o ou r
n eigh bou r in g cou n t r ies t h r ou gh loca l colla bor a t ion pa r t icu la r ly in
t h os e ca s es wh er e t h er e a r e n o p a ck et in g fa cilit ies a n d t ea is
import ed in packages es pecially in premiu m range. This wou ld mean
les s in ves t men t , n o cla s h of in t er es t a mon g own cu s t omer s a n d a
pr ice a dva n t a ge on a ccou n t of lower fr eigh t . On bot h s ides of In dia
u pt o Africa and Sou t h Eas t As ia, t here is great demand for import ed
packet t eas wh er e ou r expor t ed t ea cou ld s u cces s fu lly compet e wit h
ot h er s .
Th e s econ d ph a s e wou ld be colla bor a t in g wit h exis t in g pa cker s in
Eu r ope a n d s u pplyin g t h e blen ds in bu lk a n d s h a r in g pa r t of t h eir
pr ofit s .
Th e t h ir d ph a s e cou ld be in depen den t ma r ket in g effor t s in va lu e
added, mediu m priced t ea in major market s of UK and Ireland. Over
r id in g a ll t h es e p h a s es , t h er e a r e a t lea s t t wo con s id er a t ion s t o
pon der over .
Fir s t , r es ea r ch in t o n ew t ea pr odu ct s a n d t ea blen din g con t in u es .
Secon d, t o s u ppor t expor t of va lu e a dded t ea a br oa d in t h e for m of
p a ck et s , b a gs a n d in s t a n t t ea , we s h ou ld fir s t en cou r a ge a n d
organis e market s at home. It was not ed by t he Commit t ee t hat exact
s t r a t egy wou ld d ep en d on t h r ee fa ct or s lik e cr ea t in g fa vou r a b le
ma r ket con dit ion s , in cr ea s in g in ves t men t on expor t pr omot ion a n d
bu ildin g of or ga n is a t ion a l ma r ket in g s t r en gt h s .
As r ega r d s t ea b a gs , t h e Commit t ee h a s r ecommen d ed t h a t t h e
fa cilit ies for ma n u fa ct u r in g u n it s in In dia wit h t ea ba ggin g fa cilit ies
s h ou ld be ca r efu lly exa min ed a n d ma ximu m en cou r a gemen t s ma y
be given . It h a s a ls o been obs er ved t h a t t o a cqu ir e ma r ket fa cilit ies
an d s kills abroad, t h e cos t will be h igh an d will h ave t o be s t an dar-
dis ed. Th e pu blic s ect or a gen cies like Tea Tr a din g Cor por a t ion a n d
St a t e Tr a din g Cor por a t ion will be a ble t o wor k on t h e pr oblem of
ext er n a l ma r ket in g of va lu e a dded it ems of t ea . As r ega r ds in s t a n t
t ea, t h e Commit t ee recommen ded t h at t h e exis t in g compan ies in t h e
field a s well a s n ew en t r a n t s s h ou ld be en cou r a ged. Th e compa n y
s h ou ld in ves t capit al in pr omot in g t ech n ical an d mar ket in g s kills by
encou raging only or part acqu is it ion of R&D equ ipment s and s haring
in t er n at ion al pr omot ion expen dit u r e on t ime bou n ds wh ich mu s t be
r es u lt or ien t ed a n d mon it or ed a ga in s t expect ed r et u r n s .
151
1 2 4 . Pot e nt ial and Sc ope for Ins t ant Te as
Tea is pr oba bly on e of t h e mos t widely con s u med bever a ge in t h e
wor ld a n d is a ccept ed a n d a ccla imed ever ywh er e. Th e wor ldwide
a ccept a n ce of t ea is beca u s e of it s zer o a lcoh ol con t en t , s t imu la t in g
e ffe c t a n d a r om a e t c . Ma n y t yp e s l i k e b l a c k , gr e e n , or a n ge ,
fla vou r ed , gold en , p ek oe, et c. gr a d es of t ea a r e a va ila b le in t h e
ma r k e t . Th e s e t yp e s a r e ma i n l y c l a s s i fi e d a c c or d i n g t o t h e i r
ma n u fa ct u r in g p r oces s , comp iled wit h s p ices a n d ot h er fla vou r
r en der in g s u bs t a n ces . Br ewin g of in s t a n t t ea is a common a n d old
pract ice. Black and green t eas are only produ ct s obt ained on a large
s ca le fr om t h e t ea bu s h a n d a t pr es en t n on e of t h e ot h er pr odu ct s
men t ion ed a bove a r e bein g exploit ed on a commer cia l s ca le. Effor t s
will be ma de for developin g a n d s t a n da r dis in g s u it a ble a n d effect ive
t ech n ologies for t ea in du s t r y t o keep pa ce wit h ot h er t ea pr odu cin g
cou n t r ies like Ch in a , Sr i La n ka a n d Ken ya wh o h a s a lr ea dy ma de
t h eir ma r k in t h e wor ld expor t ma r ket for t ea .
1 2 5 . Te a Powde r
Alt h ou gh commer cia l pr odu ct ion of in s t a n t t ea bega n in t h e 1940s ,
lit t le in for ma t ion is a va ila ble a s t o wh a t s or t of pr oces s is s u it a ble,
a s t h es e t ech n iqu es h a ve been kept a s ecr et by pa t en t r igh t s over
t he manu fact u red produ ct s. Generally, t ea powder, t he basic mat erial
is der ived fr om t h e fer men t ed lea f. Th e u s u a l s t eps a dopt ed in t h e
p r ep a r a t ion of p owd er a r e ext r a ct ion of t ea s olid s followed b y
con cen t r at ion of ext r act s an d fin ally dr yin g of t h es e con cen t r at es , t o
con ver t t h em in t o powder . Ext r a ct ion is gen er a lly ca r r ied ou t by
r ecover in g t h e s olids in wa t er . Con cen t r a t ion of ext r a ct s is effect ed
by eva por a t ion of t h e wa t er a t low t emper a t u r e a n d u n der r edu ced
pr es s u r e. Th e fin a l s t ep of dr yin g t h e con cen t r a t ed lea f is a ch ieved
by s u bject ing t he concent rat e t o eit her low t emperat u re, s pray, fridge
or foa m d r yin g. Th e s olid t h u s ob t a in ed is b r own in colou r a n d
a mor ph ou s in n a t u r e bu t on br eedin g it t u r n s in t o br own powder .
On e s u ch s t u dy wa s con du ct ed in t h e t ea r es ea r ch la bor a t or y in
Himach al Pr ades h Kr is h i Vis h wa Vidh yalaya, Palampu r . Th e yield of
powder fr om t h e fer men t ed t ea wa s gen er a lly bet t er t h a n t h a t of
ma de t ea . At pr es en t a n u mber of la bor a t or ies a r e s et u p wh ich
h a ve in ven t ed t h e t ech n ologies for pr epa r a t ion of t ea powder .
153
Pa rt Thi rt een : S m a l l Te a Gr o w e r s Pr o b l e m s
a nd Pros p ect s
1 2 6 . Int roduc t ion
In dia is t h e wor lds la r ges t pr odu cer , con s u mer a n d expor t er of t ea
a ccou n t in g for 30%, 20% a n d 11% of globa l pr odu ct ion , con s u m-
pt ion and export s respect ively. India has 112 t hou sand regist ered t ea
es t a t es cover in g a n a r ea of 5 , 0 7 , 1 9 6 h a wit h es t ima t ed a n n u a l
pr odu ct ion of 840 million kg in 2004. Sma ll ga r den s (u p t o 10. 12
h a ) con s t it u t e 98.38 % of t ot a l t ea es t a t e, 16.92% of t ot a l a r ea a n d
16.21% of t ot a l pr odu ct ion .
As s am h as 39390 regis t ered t ea garden s occu pyin g an area of 2.67
la kh h a (53% of a r ea ) wit h a n a n n u a l pr odu ct ion of 452 million kg
(55% of t ot a l). Amon gs t t h em t h er e a r e 30,174 s ma ll es t a t es ( 84.64
% of t h e en t ir e Nor t h In dian es t at es ) cu lt ivat in g 30,717 h a (74.13%)
a n d pr odu cin g 49, 487 kg (75. 26%). Bes ides , t ea in du s t r y pr ovides
employmen t t o n ea r ly 5.55 la kh wor k for ce. Th ou gh t ea cu lt iva t ion
is s pread t hrou gh ou t t he es t at e, t he major dis t rict s are Dibru gragh,
Tin s u kia, J or h at , Golagh at , Sibs agar , Dar r an g, Son it pu r an d Cach ar
Valley. The average produ ct ivit y of t he es t at e is 1,850 kg per ha and
is at par wit h all In dia pr odu ct ivit y at 1,865 kg per h a. Th e h igh es t
produ ct ivit y is obs erved in Darran g (1,984 kg per h a.) an d lowes t in
Ka r bi An glon g (866 kg per h a ). Tea cu lt iva t ion in s ma ll h oldin gs in
As s a m r a n ges fr om 0. 13 t o 3. 0 h a or mor e a r e s pr ea d over a lmos t
a ll t h e d is t r ict s . However , t h e h igh es t con cen t r a t ion is in t h e 5
dis t r ict s viz. Dibr u ga r h , Tin s u kia , Sivs a ga r , J oh r a t a n d Gola gh a t .
1 2 7 . Conc e pt of Small Te a Cult ivat ion
Th e con cept of s ma ll t ea cu lt iva t ion in h ome s t ea d ga r den s a n d
u n u t ilis ed la n d a lon g wit h ot h er cr ops t o s ell t h e gr een lea f t o t h e
exis t ing big fact ories for enhancing farm income was init iat ed du ring
t he s event ees by t he t hen J anat a Government in As s am. Encou raged
by t h e Gover n men t .
Pa t r on a ge a few fa r mer s of er s t wh ile Sibs a ga r dis t r ict in it ia t ed t ea
cu lt ivat ion in t heir high land ranging from 0.13 hect are t o 3 hect are.
Du r in g t h e en d of eigh t ies t h e Dep a r t men t of Tea Hu s b a n d r y of
As s am Agricu lt u re Indu s t ry s u rveyed t he pos s ibilit y of growing t ea in
s mall s cale and Advis ory Cell was es t ablis hed t o promot e s mall s cale
t ea cu lt iva t ion by pr ovidin g t ech n ica l kn ow-h ow. In t h e mea n wh ile,
154
t h e for ma t ion of a ll As s a m Sma ll Tea Gr ower s As s ocia t ion du r in g
1987 was anot her landmark for ext ension of Small Tea Cu lt ivat ion in
Assam. In 1991, t he Tea Board of India approved t he proposal of t he
Agr icu lt u r e Un iver s it y t o pr ovide fin a n cia l s u ppor t t o t h e Advis or y
Cell of t h e Depa r t men t of Tea Hu s ba n dr y a n d Tech n ology a n d t h e
Cell wa s r econ s t it u t ed a s Sma ll Tea Gr ower s Advis or y Pr ogr a mme
t o t he broad mandat e. Apart from Self Employment t he cu lt ivat ion of
t ea h a s open ed a wide vis t a of bu s in es s oppor t u n it ies by pr ovidin g
n ot on ly in dir ect employmen t bu t a ls o cr ea t in g a s ou n d ba s e for
farm income. In a nu t s hell t ea cu lt ivat ion cou ld act as a cat alys t for
t h e ove r a ll e c on omic c h a n ge s in t h e r u r a l s c e n a r io of As s a m
es p ecia lly in t ea gr owin g d is t r ict s . Th er e a r e 3 8 , 3 9 3 s ma ll t ea
gr ower s in t h e St a t e. Th e Sma ll h oldin gs a r e s pr ea d over a ll t h e
dis t r ict s , h owever con cen t r a t ion is in t h e five u pper As s a m dis t r ict s
viz. Dibr u ga r h , Tin s u kia , Sibs a ga r , J or h a t a n d Gola gh a t .
1 2 8 . Soc io e c onomic Profile of t he Se le c t e d Borrowe rs
Sma ll Tea Gr ower s of As s a m h a ve been ca t egor is ed in t o 6 s ocio -
econ omic ba ckgr ou n d viz. (i) Sedemen t a r y cu lt iva t or s , (ii) Edu ca t ed
r u r a l you t h , (iii) Edu ca t ed u r ba n you t h , (iv) In s er vice per s on n el,
(v) Tea ga r den wor ker s / s u per vis or s , a n d (vi) Sleepin g gr ower s .
1 2 9 . Fie ld Prac t ic e s and Cult ural Ope rat ions
i . Cl i ma t e a nd Soi l In Br ah mapu t r a valley, t ea is cu lt ivat ed
on flat lands at an alleviat ion of 50-120 ms l. In Barack valley,
t ea is gr own in s ma ll h illock s a n d t o s ome ext en t p la in s
a djoin in g t h e h illocks . Th e a llu via l s oils a r e gen er a lly deep
fer t ile, h a ve good wa t er loggin g ca pa cit y a n d r es pon d well t o
man u r e. Th e an n u al r ain fall of t h e St at e var ies fr om 210-290
cm.
i i . Va r i e t y Th e s ma ll t ea gr ower s a r e gen er a lly u s in g a
mixt u r e of clon a l pla n t s a n d s eedlin gs of s eed or igin . Th ey
als o u s e approved plant ing mat erials recommended by t he Tea
Boa r d.
i i i . La nd p r e p a r a t i on a nd p l a nt i ng Deep Cr os s Plou gh in g
followed by h a r r owin g a n d levellin g is don e a n d s ma ll dr a in s
a r e d u g a s p er s p ecifica t ion (4 5 cm x 3 0 cm) a t 1 0 5 cm
spacing bet ween drains. The rehabilit at ion crops are also sown
wit h s a me s pa cin g a s t h a t of t ea a ft er 18-24 mon t h s . Th e
p la n t in g d en s it y va r ies fr om 1 4 , 0 0 0 t o 1 7 , 0 0 0 b u s h es p er
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h ect are. Abou t 2 kg of farm yard man u re, 30 gm SSP, 30 gm
r ock ph os ph a t e a n d 2 gm t h yma t e a r e mixed wit h exca va t ed
s oil a n d t h e pit s a r e r efilled wit h n a t u r a l compa ct ion .
i v. Ma nuri ng a nd Fert i l i s er Th e you n g t ea is ma n u r ed wit h
10:5:15 NPK mixt u r e. Th e ma t u r ed t ea cr ops of mor e t h a n 5
yea r s of a ge is given fer t ilis er in t h e r a t io of 110 t o 140 kg :
30 t o 35 : 110 t o 140 kg per h ect a r e of NPK. Gen er a lly, r in g
met h od is a dopt ed for ma n u r in g a n d fer t ilis er . However , in
s ome ca s es br oa dca s t in g met h od is a ls o a pplied.
v. Sha d e Con ven t ion a lly, t ea is gr own u n der s h a de. Th es e
s h a de t r ees h elp in r egu la t in g t h e t emper a t u r e a n d h u midit y
a t t h e bu s h level a n d min imis in g t h e los s of wa t er t h r ou gh
eva por a t ion a n d t r a n s pir a t ion .
vi . Pr uni ng Th e bu s h es a r e pr u n ed t o ma in t a in t h e des ir ed
s h a pe a n d h eigh t in t h e pla n t a t ion , r evit a lis e t h e veget a t ive
vigou r a n d a t t a in good yield of cr ops . Pr u n in g is ca r r ied ou t
in pr e-mon s oon or pos t mon s oon per iod s in ce a dequ a t e s oil
mois t u r e is pr e r equ is it e. Gen er a lly, 4 yea r pr u n in g cycle is
followed in As s a m. Th e pr u n in g cycle followed by s ma ll t ea
gr ower s is a s follows : (a ) 1 s t yea r : Pr u n e a t 3 0 cm a n d
cen t r e, (b) 2n d yea r : Cu t a cr os s a t 75 cm a n d r ecen t r e, (c)
3rd year : Pru n e 28-40 cm/ level s kiff at 60 cm, (d) 4t h year :
Pr u n e a t 50 cm, (e) 5t h yea r : Deep pr u n e/ t op pr u n e a t 35
cm, a n d (f) 6t h yea r : Un pr u n e
vi i . Weed cont rol Weeds a r e r es pon s ible for con s ider a ble los s
t o t h e cr op. It is es t ima t ed t h a t dicot weeds ca n ca u s e 12%
los s in t h e cr op wh ile gr a s s es a r e r es pon s ible for 20% cr op
los s . Weed con t r ol is a ch ieved by u s e of pa r a qu a t dich lor ide,
2 , 4 - D a n d glyp h os p h a t e . Ap p lic a t ion of we e d ic id e s in
different doses du ring 3-5 years and hand weeding for 2 years
a r e a ls o ma de t o con t r ol weeds .
vi i i . Pes t cont r ol Tea is pr on e t o a t t a ck by va r iou s pes t s like
mit es , cat erpillars , t hrips , et c. Mit es are cont rolled by s praying
Ac a r i c i t e wi t h wa t e r a n d ot h e r p e s t s a r e c on t r ol l e d b y
s praying t hiodan or ekalu x, et c. Fu ngal and bact erial dis eas es
a r e con t r olled by s pr a yin g fu n gicides .
i x. Irri gat i on Th er e is defin it e in cr ea s e in cr op yield du e t o
ir r iga t ion eit h er by s pr in kler s or by dr ip s ys t em. Some s ma ll
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t ea gr ower s a r e n owa d a ys a d op t in g s p r in k ler ir r iga t ion t o
in cr ea s e t h e gr een lea f yield du r in g t h e dr y per iod. It is don e
in t h e mor n in g or n igh t .
x. Dr a i n a g e Th e d r a in s of 2 ft wid e a n d 3 ft d e e p a r e
sprayed over t he area of 40 ft int ervals along wit h t he slope of
t h e la n d.
xi . Ha rves t i ng a nd p os t ha rves t ma na gement Harves t in g of
t ea in volves r egu la r r emova l of you n g s h oot s compr is in g a n
a pica l bu d a n d t wo or t h r ee lea ves immedia t ely below it . Th e
s h oot s a r is in g ou t of t h e s t icks (fr a me) of pr u n ed bu s h es a r e
called primaries . Tea s hoot s are plu cked in t he mont hs of mid
Febr u a r y t o mid December a n d plu ckin g r ou n d (t h e n u mber
of da ys bet ween t wo s u cces s ive plu ckin g) of 4 - 14 da ys is
followed by s ma ll t ea gr ower s a n d 7 da y plu ckin g r ou n d is
mos t common . Ha r ves t in g is ca r r ied ou t wh en t h e s h oot s
a t t a in ma ximu m weigh t wit h ou t compr omis in g t h e qu a lit y.
1 3 0 . Infras t ruc t ure Support
Th e S m a l l Te a Gr owe r s Ad vi s or y Pr ogr a m m e i n t h e As s a m
Agricu lt u re Universit y, fu nded by Tea Board, impart requ ired t raining
a n d pr ovide t ech n ica l in pu t s fr ee of cos t . Tea Boa r d h a s r ecen t ly
s a n ct ion ed a n ot h er s ma ll Tea Advis or y Cell a t Tockla i Exper imen t a l
St a t ion for t h e b en efit of s ma ll t ea gr ower s . Fu r t h er , s ma ll t ea
growers h ave in formal acces s of in format ion from t h e big garden s in
t h e or ga n is ed s ect or , loca t ed n ea r er t o t h em. For pr oces s in g gr een
leaf t h er e ar e s u fficien t n u mber of bou gh t leaf fact or ies oper at in g in
t h e dis t r ict . Bes ides , mos t of t h e ga r den s in t h e or ga n is ed s ect or s
h a ve t h eir own fa ct or y.
1 3 1 . Cre dit flow
Ou t of t h e fa r mer s vis it ed on ly a few s ma ll t ea gr ower s h a d a va iled
of loan from banks. All ot hers raised plant at ion wit h t heir own fu nds
or borrowed from relat ives . Many of t hem did not approach bank for
loa n wit h t h e a ppr eh en s ion t h a t t h ey will h a ve t o wa s t e t h eir t ime
r u n n in g a ft er b a n k officia ls wit h ou t a n y effect ive r es u lt s . It wa s
learnt t hat mos t of t he t ea growers did not have pat t a land. Fu rt her,
in many cas es t it le was not clear which was a handicap in obt aining
loan . Th e growt h of s mall t ea s ect or h as s lowed down on accou n t of
limit ed a va ila bilit y of fu r t h er s u it a ble la n d a s ma jor por t ion of t h e
land has already been pu t u nder cu lt ivat ion. Fu rt her, as mos t of t he
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pla n t a t ion s a r e 8 t o 10 yea r s old, t h er e is h a r dly a n y pos s ibilit y of
r eju ven a t ion or r epla n t a t ion . Requ ir emen t of loa n s for s u ch oper a -
t ion s ma y a r is e a ft er a n ot h er 5-6 yea r s . A field s t u dy r evea ls t h a t
farmers expres s ed t heir requ irement for working capit al for pu rchas e
of fer t ils er , p es t icid es a n d p a ymen t of wa ges in clu d in g a d va n ce
du r in g pu ja s ea s on .
1 3 2 . Input s (Raw mat e rials ) and Out put (Produc t ion)
In pu t like pla n t in g ma t er ia ls , fer t ilis er s , pes t icides , in s ect icides , et c.
a r e loca lly a va ila ble. Gen er a lly, s ma ll gr ower s pu r ch a s e fer t ilis er s ,
et c. fr om t h e wh oles aler s in n ear by t own s an d als o pu r ch as e clon es
fr om big es t a t es or pr iva t e n u r s er ies beca u s e of low r equ ir emen t .
Aver age yield r epor t ed by t h e far mer s r an ged fr om 1200 kg t o 2000
k g gr een lea f p er b igh a wh ich is equ iva len t t o 1 8 5 0 t o 3 0 0 0 k g
ma de t ea per h ect a r e.
1 3 3 . Cos t of Cult ivat ion
Th e fa r mer s h a ve r epor t ed t h a t a ver a ge cos t of pla n t a t ion u p t o 4
year is Rs 76,750 wh ile it was Rs . 45,000 per acre in t h e firs t year.
1 3 4 . Market ing
All t h e s ma ll t ea gr ower s s ell t h eir gr een lea f eit h er t o n ea r by big
ga r den s or t o bou gh t lea f fa ct or ies a n d a ver a ge pr ice va r ies fr om
Rs . 6. 70 t o Rs . 9. 35 for depen din g u pon t h e qu a lit y. It wa s lea r n t
t h a t du r in g 1998-99, t h e gr een lea f wa s ma ximu m a t Rs . 11. 50 t o
Rs . 12.00 per kg. a n d in s ome ca s es it wa s Rs . 13.00 per kg.
Th e ma jor pr oblems in ma r ket in g of gr een lea f is t h e poor h a n dlin g
in t r a n s por t a t ion , et c. Th e fa ct or y own er s bu y on fir s t come fir s t
s er ved ba s is or a t compet it ive pr ice a n d gr ower s h a d t o be a t t h e
r eceivin g en d.
The sit u at ion has now been solved t hrou gh t he price sharing scheme
of Tea Boa r d. Th e s ch eme s t a t es t h a t t h e gr ower s mu s t be pa id
min imu m @ 60% of t h e average au ct ion price u pt o Rs . 70 per kg of
ma de t ea . Beyon d t h is , if a u ct ion pr ice is mor e, t h en t h e a mou n t
s h ou ld be s h a r ed @ 50:50 ba s is .
1 3 5 . Proble ms of Small Te a Growe rs
i . Unor ga ni s e d Gr ow t h Th e pr odu ct ion of gr een lea f fr om
s ma ll t ea gr ower s is n ot ma t ch ed wit h t h e dema n d for t ea
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ma r ket . Fu r t h er , t h e pr odu ct ion of gr een lea f is n ot pr oper ly
c h a n n e lis e d t o t e a p r oc e s s in g fa c ilit ie s . In ma n y c a s e s ,
u n s u i t a b l e l a n d a n d m a r gi n a l l a n d s we r e u t i l i s e d for
cu lt ivat ion of t ea affect in g t h e qu alit y as well t h e pr odu ct ivit y
of t h e pla n t a t ion s .
i i . La n d Pa t t a a n d Ti t l e Mos t of t h e s ma ll t ea ga r d en s
es t a blis h ed on gover n men t la n d, ceilin g s u r plu s la n d, gr a zin g
la n d or a n n u a l pa t t a la n d a r e depr ived of bein g r egis t er ed
wit h t ea boar d. As a r es u lt t h ey cou ld n ot avail t h e ben efit of
plant at ion su bsidy scheme and t he bank loan. Alt hou gh, t here
is a p r ovis ion for is s u in g p r ovis ion a l r egis t r a t ion t o t h e
gr ower s wit h a n n u a l pa t t a , n or ma l la n d, et c. on t h e ba s is of
cer t ifica t e of en joymen t of h old in g for t ea p la n t a t ion , t h e
r even u e a u t h or it ies a r e ma k in g in or d in a t e d ela y in t h is
r ega r d.
i i i . Te c h n i c a l Ba c k u p Th er e is a vid e t ech n ologica l ga p
bet ween t h e t r a in ed a n d u n t r a in ed s ma ll t ea gr ower s . Sma ll
t ea gr ower s ma y be impa r t ed t r a in in g in cer t a in a r ea s like
drainage, manu ring, weed/ pest cont rol, pru ning, et c. This may
h elp in en h a n cin g t h e pr odu ct i-vit y of t ea cr op.
i v. Ec ol ogi c a l Imba l a nc e Th e mu s h r oomin g gr owt h of t ea
pla n t a t ion h a s r epor t ed a la r ge s ca le ecologica l pr oblem by
wa y of clea r in g villa ge wood lot s . Th e commer cia l for es t r y
(bamboo plan t at ion , et c.) h as van is h ed an d cr ops like or an ge,
pin ea pple, s u ga r ca n e, cit r on ella h a ve been r epla ced by t ea .
Th e in dis cr imin a t e u s e of pes t icides a n d a gr o ch emica ls h a ve
br ou gh t in h a voc t o r iver a n d wa t er lin e popu la t ion .
v. Fi n a n c e Ab ou t 9 8 % of s ma ll t ea cu lt iva t ion h a s b een
developed t h rou gh s elf fin an ce or fin an ce arran ged by growers
t hemselves from informal sou rces. In absence of financial back
u p mos t of t he plant at ion cou ld not be developed on s cient ific
lin es .
vi . Ma rk et i ng In t h e a bs en ce of well kn it ma r ket in g ch a n n el
for t h e pr odu ce of s ma ll t ea gr ower s , t h e t er m is , ma n y a
t ime, d ict a t ed b y fa ct or y own er s a n d gr ower s a r e a t t h e
r eceivin g en d. Th e pr oblem is aggr avat ed du e t o t h e fact t h at
s ome gr ower s t en d t o s u pply in fer ior lea f.
vi i . Unca reful ha nd l i ng The growers and t he t rans port agent s
do not appreciat e t he u t mos t need of maint aining t he u lt imat e
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pr odu ct qu a lit y t o r ea lis e bet t er opt ion ma r ket a n d t a ke lit t le
ca r e t o ma in t a in h igh s t a n da r d in pa r kin g a n d a void da ma ge
in h a n dlin g a n d t r a n s por t .
1 3 6 . Conc lus ion and Re c omme ndat ions :
(a) Conc lus ion
The small t ea sect or has come u p in t he dist rict s of Assam since t he
la s t 15-20 yea r s a n d pr es en t ly con t r ibu t es 25-30% of t h e St a t e Tea
pr odu ct ion . Th e s ect or s u ffer ed du e t o r eces s ion in gr een lea f pr ice
du r in g t h e la s t fou r yea r s commen cin g fr om 2000.
Th e s c i e n t i s t s i n t h e Te a Hu s b a n d r y d e p a r t m e n t of As s a m
Agr icu lt u r e Un iver s it y opin ed t h at t h e oper at ion al cos t of pr odu ct ion
in a mat u r ed plan t at ion wou ld n ot be mor e t h an Rs . 5.00 per kg.
Du e t o u n s cien t ific cu lt iva t ion , pr ice flu ct u a t ion s , et c. s ma ll t ea
gr ower s a r e fa cin g difficu lt y in r epa ymen t of loa n s .
Mu s h r oomin g gr owt h of t ea pla n t a t ion h a s br ou gh t in la r ge s ca le
ecologica l pr oblem.
Alt hou gh, a Small Tea Growers Advisory Programme has been set u p
in As s am Agricu lt u re Un ivers it y at t h e in s t an ce of Tea Board, it can
h a r dly meet t h e r equ ir emen t s of la r ge n u mber of gr ower s , pr ima r ily
du e t o in a dequ a t e s t a ff s t r en gt h .
Th e ben efit s of Tea Boa r d Pla n t a t ion Su bs idy Sch eme, Pr ice St a bili-
s at ion Scheme of Government of India et c. have hardly been gone t o
t he growers du e t o defect in t he prevailing s ys t em of land owners hip
a n d t imely in a ct ion of Gover n men t .
At pr es en t , a gen t s a r e in volved in t r a n s por t in g of gr een lea f fr om
farmers t o bou ght leaf fact ories in many areas . This has res u lt ed in
r edu ct ion of n et gain t o t h e gr ower s an d qu alit y of made t ea is als o
n ot ma in t a in ed.
(b) Re c omme ndat ions
Th e in t e gr a t ion of s ma ll t e a gr owe r s a r e a wis e u n d e r a s in gle
ma n a gemen t t o s yn ch r on is e fa r m a ct ivit ies t o t h e t u n e of ma r ket
r equ ir emen t .
Set t in g u p of mu lt i poin t a dvis or y cen t r es a t differ en t loca t ion s is
es s en t ia l t o en cou r a ge s ma ll t ea gr ower s wit h pr oper s cien t ific a n d
t ech n ica l ba ck u p.
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Ar r a n gemen t s for t r a in in g on s cien t ific a n d cu lt u r a l oper a t ion s a s
well a s or ga n is a t ion of a wa r en es s ca mps .
Ma in t en a n ce of ecologica l ba la n ce t h r ou gh u t ilis in g h igh la n ds for
t ea pla n t a t ion a n d n ot des t r oyin g villa ge wood lot s .
Developin g via ble mixed cr oppin g s ys t em t o be a dopt ed by s ma ll
gr ower s .
Ca r r yin g ou t r es ea r ch on developin g a pr ot ot ype pr oces s in g u n it
ca pa ble of ma n u fa ct u r in g s ma ll qu a n t it y of gr een lea f.
St r ea mlin in g t h e ma r ket in g s ys t em a n d developin g ma r ket lin ka ges
in a s cien t ific a n d s ys t ema t ic ma n n er .
Allowin g on ly r egis t er ed agen t s t o t r an s por t an d s u pply gr een leaves
t o fa ct or y a n d imp lemen t a t ion of p r ice s h a r in g s ch eme d u r in g
s lu mps in t h e ma r ket .
In t egr a t ion of s ma ll fa r min g u n it s a n d it s a t t a ch men t t o a s in gle
pr oces s in g u n it for s a le of gr een lea f.
Ma r ket in g of s ma ll t ea gr ower s pr odu ct ion u n der a s epa r a t e logo or
b r a n d a s i n c a s e of Amu l or NOGA (Na gp u r Or a n ge Gr owe r s
As s ocia t ion ).
St r ict wa t ch on bou gh t lea f fa ct or ies for impr ovin g t h e qu a lit y of
ma de t ea .
Fa cilit a t in g t er m loa n / wor kin g ca pit a l loa n for expa n din g exis t in g
ga r den s .
Cr eat in g bet t er awar en es s amon g s mall t ea gr ower s abou t t h e cr edit
fa cilit ies , s u bs idies a n d ot h er fu n ct ion a l s ch emes of t h e Tea Boa r d.
Befor e s a n ct ion in g a n y fr es h loa n s , a dequ a t e ca r e t o be t a ken t o
ver ify la n d r ecor d s , t ech n ica l fea s ib ilit y of t h e la n d , ma r k et in g
facilit y, t ie u p arran gement wit h leaf fact ories and proper verificat ion
of t h e a pplica t ion .
1 3 7 . Polic y Is s ue s
* Th er e is a n eed t o fr a me Gover n men t policies for a llot men t of
la n d p a t t a s t o t h os e fa r me r s t a k in g u p t r e e p la n t a t ion on
gover n men t / qu a s i gover n men t la n ds t o en a ble t h e fa r mer s t o
r egis t er wit h t h e Tea Boa r d.
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* Gover n men t may is s u e lan d h oldin g cer t ificat es t o t h e effect t h at
t h e far mer is a s mall t ea gr ower h avin g h oldin g wit h gover n men t
land/ annu al pat t a land u nder his possession so as t o enable him
t o get pr ovis ion a l r egis t r a t ion wit h t h e Tea Boa r d. All t h es e will
h elp fa r mer s t o a va il of ben efit s of t h e pr ice s u bs idy s ch eme.
* Gover n men t may s t r en gt h en t h e mech an is m for pr ice fixat ion for
t h e s ma ll t ea gr ower s .
* For en s u r in g qu a lit y t ea fr om t h e s ma ll t ea gr ower s s ect or , a n
effect ive co-or din a t ion mech a n is m a mon gs t s ma ll t ea gr ower s ,
gr een lea f t r a n s por t er a n d bou gh t lea f fa ct or y ma y be evolved.
* Th e exis t in g Dir ect or a t e of Tea , Gover n men t of As s a m ma y be
en t r u s t ed wit h t h e t a s k of co-or din a t in g t h e en t ir e a ct ivit ies of
t h e s ma ll t ea s ect or in As s a m.
* The Small Tea Growers may t ake u p organic t ea cu lt ivat ion in a lat er
s t a ge a ft er ga in in g exper ien ce in t ea cu lt iva t ion for few yea r s .
* Set t in g u p of t ea n u r s er ies wit h t ech n ica l s u ppor t fr om As s a m
Agr icu lt u r a l Un iver s it y (AAU) a n d fin a n cia l s u ppor t fr om ba n ks
ma y be con s ider ed a t differ en t pla ces in t h e dis t r ict . Fu r t h er ,
s t r ea mlin in g of s ma ll t ea gr ower s a dvis or y pr ogr a mme by AAU
ma y be s t r en gt h en ed.
* Tea Board may redes ign it s s ch emes t o make it acces s ible t o t h e
fa r mer .
* Imp r ove co- or d in a t ion a mon g va r iou s s egmen t s of in d u s t r y,
Government (Cent ral & St at e), Univers it y/ Res earch Organis at ions ,
Fin a n cia l In s t it u t ion s , Tea As s ocia t ion s / Tea Fa ct or ies , et c. for
bet t er qu a lit y t ea a n d s t a bilis a t ion of fa llin g pr ices .
References
1. Ba n er jee Ba r u n dev (1993): Tea pr odu ct ion a n d Pr oces s in g, New Delh i Oxfor d,
IBH a n d Pu blis h in g Compa n y.
2. Ar u n a ch a la m K (1995), a h a n dbook of In dia Tea Coon oor , Th e Ta milNa du Tea
Pla n t a t ion Cor por a t ion Lt d.
3. Ba n e r j e e G D (1 9 8 3 ): S t r u c t u r a l Ch a n ge s i n Te a In d u s t r y s i n c e 1 9 5 6
u n pu blis h ed t h es is s u bmit t ed t o J a dh a vpu r Un iver s it y, Kolka t a .
4. Ban erjee G D (1996): Tea Plan t at ion In du s t ry in In dia bet ween 1815 an d 1992,
La wyer s Book St a ll, Gu wa h a t i, As s a m
162
5. Ku n io O, Tea In du s t r y in J apan , Tea Scien ce an d Hu man Help, pr oceedin gs of
t h e in t er n a t ion a l s ympos iu m Tea t ech n ology, Kolka t a 1950-54
6. Sarkar Gau t am K. 1972 , The World Tea Economy, New Delhi Oxford Univers it y
Pr es s
7. Ban er jee G D : Tea Mar ket in g is n o Lon ger a Fas h ion able Slogan , pu blis h ed in
IASSI J ou r n a l Apr il- J u n e 2001
8. Ba n er jee G D : Pr ima r y Ma r ket in g of In dia n Tea , In dia n J ou r n a l of Agr icu lt u r a l
Ma r ket in g,An n u a l Con fer en ce Is s u e, December 2000.
9. Banerjee G D and Km. Sarda Banerjee, Su s t ainable Tea Plant at ion Management
pu blis h ed in IASSI J ou r n a l J a n u a r y - Ma r ch 2004
10. FAO 1 9 9 5 , 1 9 9 9 : Im p a c t of Ur u gu a y r ou n d a gr e e m e n t on t h e Wor l d
Econ omis t s pos it ion t o 2005 a n d cu r r en t s it u a t ion a n d s h or t t er m ou t look,
pa per pr es en t ed t o In t er Gover n men t Gr ou p on Tea Ot t a wa Sept ember .
11. As s a m Review a n d Tea News , Kolka t a - va r iou s is s u es
12. Tea St a t is t ics , Tea Boa r ds of In dia , va r iou s is s u es
13. Tea Dir ect or y, Tea Boa r ds of In dia , va r iou s is s u es
14. V N As op a - 2 0 0 4 Comp et it iven es s of Glob a l Tea Tr a d e - Oxfor d a n d IBH
Pu blis h in g Compa n y Pvt Lt d. New Delh i
163
ANNEXURE - I
i) Numbe r of Te a Es t at e s - a) Nort h India
Dis t ric t s / St at e 1 9 5 1 (+) 1 9 6 1 1 9 7 1 1 9 9 0 1 9 9 5 2 0 0 0 2 0 0 1
Da r r a n g 98 94 93 116 829 829
Goa lpa r a 10 10 13 13 249 249
Ka mr u p 15 14 15 13 54 54
La kh impu r 229 233 15 20 326 326
Dibr u ga r h @ @ 280 385 21388 22392
Nowgon g 22 23 24 34 213 213
Sibs a ga r (a ) 254 262 264 471 15735 16375
Ca ch a r 116 114 121 115 206 206
Nor t h Ca ch a r 9 9 8 8
Ka r bi An glon g 14 20 143 143
Tot al As s am 7 8 5 7 4 4 7 5 0 8 4 8 1 1 9 6 3 9 1 5 1 4 0 7 9 5
Da r jeelin g 99 97 102 83 85 85
Dooa r s 155 151 163 168 545 548
Ter a i (b) 47 48 82 92 910 921
Tot al We s t Be ngal 2 9 6 3 0 1 2 9 6 3 4 7 3 4 3 1 5 4 0 1 5 5 4
Tr ipu r a 55 55 53 58 57 292 292
Bih a r 9 3 3 1 17 244 244
Ut t a r Pr a des h 45 33 30 8 11 11 11
Hima ch a l Pr a des h 1115 1385 1385 1660 3679 3679 3679
Ma n ipu r 2 5 39 39
Sikkim 1 1 74 74
Ar u n a ch a l Pr a des h 6 21 50 50
Na ga la n d 1 8 94 94
Or is s a 1 2 1 1
Megh a la ya 15 15
Mizor a m 12 12
Nort h India Tot al 2 3 0 5 2 5 2 1 2 5 1 7 2 9 3 3 5 3 4 0 4 5 2 0 2 4 6 8 6 0
(a ) In clu din g Ka r bi An glon g & Nor t h Ca ch a r u pt o 1989,
(b) In clu din g Wes t Din a jpu r ,
(c) In clu din g Cooch Beh a r ,
+ Br ea k u p by dis t r ict a r e n ot a va ila ble
@ Figu r es pr ior t o 1981 in clu ded wit h La kh impu r ,
* Pr ovis ion a l
164
ANNEXURE - I c ont inue d
ii) Numbe r of Te a Es t at e s - b) Sout h India
Dis t ric t s / St at e 1 9 5 1 1 9 6 1 1 9 7 1 1 9 9 0 1 9 9 5 2 0 0 0 2 0 0 1
Ka n ya ku ma r i 6 7 7 7 7 7
Tir u n elveli 3 3 4 4 4 4
Ma du r a i 4 4 6 6 6 6
Coimba t or e 34 31 40 45 52 52
Nilgir is 4942 6405 6760 25749 60549 62145
Tot al Tamil Nadu 2 7 7 2 4989 6450 6817 25811 60618 62214
Ca n n a n or e 8 11
Pa lgh a t 5 5 32 33 33 33
Kozh ikode 22 19
Ma la pu r a m (d) 1 1 1 1 1
Tr ich u r 1 1 1 1 1 1
Tr iva n dr u m 6 6 6 6 6 6
Qu ilon 28 110 104 104 104 104
Er n a ku la m 4 16 2 2 2 2
Kot t a ya m 1902 2863 3705 953 954 954
Idu kki (e) 204 4978 4967 4967
Wyn a a d (+) 34 53 85 85
Tot al Ke rala 1 1 2 5 1976 3032 4089 6133 6153 6153
Ch ikma ga lu r 11 14 14 29 29 29
Coor g 1 1 6 7 7 7
Ha s s a n 1 1 1 1 1 1
Tot al Karnat aka 1 2 13 16 21 37 37 37
Tot al Sout h India 3 9 0 9 6978 9498 10927 31979 66808 68404
Tot al All India 6 2 1 4 9 4 9 9 1 2 0 1 5 13860 37319 112010 115264
(d) New Dis t r ict for med s in ce 1969 ou t of Kozh ikode Dis t r ict .,
(e) New Dis t r ict for med s in ce 1972 ou t of Kot t a ya m & Er n a ku la m Dis t r ict .,
+ Br ea k u p by dis t r ict is n ot a va ila ble
* Pr ovis ion a l
Not e: Sin ce 1998 figu r es a r e in clu s ive of Sma ll Gr ower s oper a t in g in differ en t t ea
pr odu cin g Dis t r ict / St a t es
165
ANNEXURE - I [c ont inue d)
ii) Are a unde r Te a in India - a) Nort h India
Dis t ric t s / St at e 1 9 5 1 (+) 1 9 6 1 1 9 7 1 1 9 9 0 1 9 9 5 2 0 0 0 2 0 0 1
Da r r a n g 25320 26509 30897 39989 40284 41037 41233
Goa lpa r a 1467 1603 2098 3141 3176 3460 3454
Ka mr u p 1881 2074 2713 3557 3013 3442 3436
La kh impu r 46926 50243 57297 4212 4494 4815 4727
Dibr u ga r h @ @ @ 68207 68998 93076 94080
Nowgon g 5064 5577 6372 7780 7723 7994 8001
Sibs a ga r (a ) 44571 46433 51930 63348 62810 74807 75864
Ca ch a r 30445 29928 31018 35075 29969 32008 32272
Nor t h Ca ch a r 3696 4263 4004 4047
Ka r bi An glon g 1358 1550 1869 1869
Tot al As s am 1 5 5 6 7 4 1 6 2 3 6 7 1 8 2 3 2 5 2 3 0 3 6 3 2 2 6 2 8 0 2 6 6 5 1 2 2 6 8 9 8 3
Da r jeelin g 16569 18605 18245 20065 18932 17228 17318
Dooa r s 54609 54756 59485 67760 69175 69703 70017
Ter a i (b) 8402 9344 10769 13345 13083 20548 21467
Tot al We s t Be ngal 79580 82705 88499 101170 101190 107497 108802
Tr ipu r a 4773 5055 5444 5778 5952 6623 6700
Bih a r 1644 534 460 22 76 1350 1445
Ut t a r Pr a des h 2605 2084 1818 876 1068 1068 1068
Ma n ipu r 140 347 907 950
Sikkim 171 172 296 300
Na ga la n d 13 256 1214 1270
Or is s a 213 219 214 214
Megh a la ya 351 370
Mizor a m 391 400
Nort h India Tot al 2 4 8 5 9 3 2 5 6 9 2 8 2 8 2 7 2 9 3 4 1 0 0 4 3 3 9 2 3 3 3 9 0 9 0 6 3 9 5 0 7 7
+ Br ea k u p by dis t r ict a r e n ot a va ila ble,
@ Figu r es pr ior t o 1981 in clu ded wit h La kh impu r ,
* Pr ovis ion a l
166
ANNEXURE - I [c ont inue d]
ii) Are a unde r Te a in India - b) Sout h India
Dis t ric t s / St at e 1 9 5 1 1 9 6 1 1 9 7 1 1 9 9 0 1 9 9 5 2 0 0 0 2 0 0 1
Ka n ya ku ma r i 451 484 434 434 434 434
Tir u n elveli 449 509 800 800 800 800
Ma du r a i 734 944 945 946 973 973
Coimba t or e 10249 10058 10187 11241 11764 11784
Nilgir is 20840 22651 26237 35537 60427 61634
Tot al Tamil Nadu 3 3 3 7 5 3 2 7 2 3 3 4 6 4 6 3 8 6 0 3 4 8 9 5 8 7 4 3 9 8 7 5 6 2 5
Ca n n a n or e 1448 1505
Pa lgh a t 574 635 681 829 850 850
Kozh ikode 4014 3874
Ma la pu r a m (d) 174 174 174 174 174
Tr ich u r 401 459 466 496 530
Tr iva n dr u m 1082 1057 1023 965 965 965
Qu ilon 3006 2673 1362 1348 1348 1348
Er n a ku la m 161 147 2 2 2 2
Kot t a ya m 29098 26747 2019 776 840 840
Idu kki (e) 23584 26710 26748 26748
Wyn a a d (+) 5375 5475 5483 5483
Tot al Ke rala 3 3 2 0 3 3 9 7 8 4 3 7 2 7 1 3 4 6 8 6 3 6 7 7 5 3 6 9 4 0 3 6 9 4 0
Ch ikma ga lu r 1168 1222 1320 1414 1428 1434
Coor g 178 205 261 290 299 299
Ha s s a n 448 443 395 395 395 395
Tot al Karnat aka 1 6 6 9 1 7 9 4 1 8 7 0 1 9 7 6 2 0 9 9 2 1 2 2 2 1 2 8
Tot al Sout h India 68247 74301 73787 75265 87832 113460 114693
Tot al All India 3 1 6 8 4 0 3 3 1 2 2 9 3 5 6 5 1 6 4 1 2 6 9 4 2 7 0 6 5 5 0 4 3 6 6 5 0 9 7 7 0
(e) New Dis t r ict for med s in ce 1972 ou t of Kot t a ya m & Er n a ku la m Dis t r ict .
* Pr ovis ion a l
167
ANNEXURE - I {Cont inue d)
iii) Produc t ion of t e a - a) Nort h India
(in million kg. )
Dis t ric t s / St at e 1 9 5 1 (+) 1 9 6 1 1 9 7 1 1 9 9 0 1 9 9 5 2 0 0 0 2 0 0 1
Da r r a n g 26909 31194 41283 79632 80538 77030 78224
Goa lpa r a 1616 1717 2428 5027 5779 6297 6223
Ka mr u p 1157 1668 2557 4702 4766 4302 4585
La kh impu r 5996 73339 91949 8257 8678 9068 9113
Dibr u ga r h * * * 140047 143931 163426 166504
Nowgon g 3691 5643 7423 11690 13846 11788 11793
Sibs a ga r (a ) 41174 48569 55289 92331 98186 119978 119626
Ca ch a r 19827 20181 22736 40174 40180 49206 50296
Nor t h Ca ch a r 4873 5115 6179 5643
Ka r bi An glon g 1048 1598 1945 1929
Tot al As s am 1 5 0 3 7 0 1 8 2 3 1 1 2 2 3 6 6 5 3 8 8 1 8 1 4 0 2 6 1 7 4 4 9 2 1 9 4 5 3 9 3 6
Da r jeelin g 7838 10107 10293 14499 11298 9281 9742
Dooa r s 63944 66898 80840 114124 121420 128964 130739
Ter a i (b) 6376 9253 12954 21130 24804 43291 46395
Tot al We s t Be ngal 7 8 1 5 8 8 6 2 5 8 1 0 4 0 8 7 1 4 9 7 5 3 1 5 7 5 2 2 1 8 1 5 3 6 1 8 6 8 7 6
Tr ipu r a 1873 2689 2960 5205 5679 6431 6506
Bih a r 1098 55 41 76 130 538 543
Ut t a r Pr a des h 901 804 690 534 341 264 327
Ma n ipu r 18 102 96 101
Sikkim 90 83 105 110
Na ga la n d 74 43 45
Or is s a 31 17 105 105
Mizor a m 39 41
Nort h India Tot al 2 3 3 5 2 5 2 7 3 3 0 5 3 3 2 3 3 1 5 4 5 1 0 6 5 6 8 6 3 1 6 4 0 7 5 6 6 5 0 8 0 7
* Pr ovis ion a l
168
ANNEXURE - I (Cont inue d)
iii) Produc t ion of t e a - b) Sout h India
(in million kg. )
Dis t ric t s / St at e 1 9 5 1 1 9 6 1 1 9 7 1 1 9 9 0 1 9 9 5 2 0 0 0 2 0 0 1
Ka n ya ku ma r i 267 247 182 120 137 117
Tir u n elveli 444 858 2262 2447 990 1779
Ma du r a i 1062 1738 3397 2906 2660 3152
Coimba t or e 13913 18434 28210 28168 32831 31261
Nilgir is 24082 36254 76525 84274 95194 96092
Tot al Tamil Nadu 25225 39768 57531 110576 117915 131812 132401
Ca n n a n or e 1175 1441
Pa lgh a t 720 975 1697 1999 2267 1898
Ma la pu r a m (d) 138 97 NA NA NA
Tr ich u r 669 674 1503 1553 1896 1668
Tr iva n dr u m 1058 940 744 433 399 124
Qu ilon 1878 1648 423 438 364 364
Er n a ku la m 46 67
Kot t a ya m 29172 30706 324 140 308 245
Idu kki (e) 46697 49473 51406 46439
Wyn a a d (+) 9180 10742 12307 14413
Tot al Ke rala 25775 39545 42729 60665 64778 68947 65151
Ch ikma ga lu r 1157 2022 2701 2993 3521 3606
Coor g 192 273 497 606 687 797
Ha s s a n 430 582 793 1093 1199 1161
Tot al Karnat aka 8 7 4 1 7 7 9 2 8 7 7 3 9 9 1 4 6 9 2 5 4 0 7 5 5 6 4
Tot al Sout h India 5 1 8 7 4 8 1 0 9 2 1 0 3 1 3 7 1 7 5 2 3 2 1 8 7 3 8 5 2 0 6 1 6 6 2 0 3 1 1 6
Tot al All India 2 8 5 3 9 9 3 5 4 3 9 7 4 3 5 4 6 8 7 2 0 3 3 8 7 5 6 0 1 6 8 4 6 9 2 2 8 5 3 9 2 3
* Pr ovis ion a l
169
iv) Ave rage yie ld of t e a - a) Nort h India
(kg. / ha. )
Dis t ric t s / St at e 1 9 5 1 (+) 1 9 6 1 1 9 7 1 1 9 9 0 1 9 9 5 2 0 0 0 2 0 0 1
Da r r a n g 1063 1177 1336 1991 1999 1877 1897
Goa lpa r a 1102 1071 1157 1600 1820 1820 1802
Ka mr u p 615 804 942 1322 1582 1250 1334
La kh impu r 1193 1460 1605 1960 1931 1883 1928
Dibr u ga r h 2059 2086 1756 1770
Nowgon g 729 1012 1165 1503 1793 1475 1474
Sibs a ga r (a ) 924 1046 1065 1458 1563 1604 1577
Ca ch a r 651 674 733 1145 1341 1537 1559
Nor t h Ca ch a r 1318 1200 1543 1394
Ka r bi An glon g 772 1031 1041 1032
Tot al As s am 966 1123 1227 1685 1779 1686 1688
Da r jeelin g 473 543 564 723 597 539 563
Dooa r s 1171 1222 1359 1684 1755 1850 1867
Ter a i (b) 759 990 1203 1583 1896 2107 2161
Tot al We s t Be ngal 982 1043 1176 1480 1557 1689 1718
Tr ipu r a 392 532 54489 901 954 971 971
Bih a r 668 103 380 3455 1711 399 376
Ut t a r Pr a des h 346 386 212 610 319 247 306
Hima ch a l Pr a des h 261 284 572 588 536 440
Ma n ipu r 129 294 106 106
Sikkim 526 483 355 367
Na ga la n d 0 289 35 35
Or is s a 146 78 491 491
Mizor a m 100 103
Nort h India Tot al 939 1064 1175 1599 1676 1639 1647
@ Figu r es pr ior t o 1981 in clu ded wit h La kh impu r
* Pr ovis ion a l
170
iv) Ave rage yie ld of t e a - b) Sout h India
(kg. / ha. )
Dis t ric t s / St at e 1 9 5 1 1 9 6 1 1 9 7 1 1 9 9 0 1 9 9 5 2 0 0 0 2 0 0 1
Ka n ya ku ma r i 592 510 419 276 316 270
Tir u n elveli 989 1686 2828 3059 1238 2224
Ma du r a i 1447 1841 3595 3072 2734 3239
Coimba t or e 1357 1833 2769 2506 2791 2653
Nilgir is 1156 1601 2917 2371 1575 1559
Tot al Tamil Nadu 7 5 6 1 2 1 5 1 6 6 1 2 8 6 4 2 4 0 8 1 7 7 2 1 7 5 1
Ca n n a n or e 811 957
Pa lgh a t 1254 1535 2492 2411 2667 2233
Ma la pu r a m (d) 793 557
Tr ich u r 1668 1468 3225 3131 3577 3147
Tr iva n dr u m 978 889 727 449 413 128
Qu ilon 625 617 311 325 270 270
Er n a ku la m 286 456
Kot t a ya m 1003 1148 160 180 367 292
Idu kki (e) 1980 1852 1922 1736
Wyn a a d (+) 1708 1962 2245 2629
Tot al Ke rala 7 7 6 9 9 4 1 1 4 6 1 7 4 9 1 7 6 1 1 8 6 6 1 7 6 4
Ch ikma ga lu r 991 1655 2046 2117 2466 2515
Coor g 1079 1332 1904 2090 2298 2666
Ha s s a n 960 1314 2008 2767 3035 2939
Tot al Karnat aka 5 2 4 9 9 2 1 5 3 9 2 0 2 0 2 2 3 5 2 5 4 8 2 6 1 5
Tot al Sout h India 7 6 0 1 0 9 1 1 3 9 8 2 3 2 8 2 1 3 3 1 8 1 7 1 7 7 1
Tot al All India 9 0 1 1 0 7 0 1 2 2 1 1 7 3 0 1 7 7 7 0 1 6 7 9 1 6 7 5
* Pr ovis ion a l
1
7
1
ANNEXURE - II
Suppl y Sources
Cou n t r y Mar ket Pr ofile Sr i Lan ka Ken ya Ch in a In dia In don es ia Ar gen t in a Malawi Ban glades h Tan zan ia Viat n am Ugan da Tu rkey Zimbabwe
20.14% Sh ar e 18.16% Sh ar e 16.67% Sh ar e 16.12% Sh a r e 8.59% Sh a r e 3.99% Sh a r e 3.43% Share 2.22% Share 1.67% Share 1.62% Share 1.12% Share 1.10% Share 0.92% Share
in W. Export s in W. Export s in W. Export s in W. Export s in W. Export s in W. Export s in W. Export s in W. Export s in W. Export s in W. Export s in W. Export s in W. Export s in W. Export s
UK Da t a
UK 13.01% Sh ar e 145.99 mkg 6.16% Share 44.21% Share 4.58% Share 15.92% Share 6.48% Share 2.07% Share 6.47% Share 0.56% Share 1.99% Share 0.43% Share 0.13% Share 0.18% Share 2.22% Share
World Import s (Very Large) -3.44 ROG 0.03 ROG 0.81 ROG 1.03 ROG 2.74 ROG 11.40 ROG -4.22 ROG -5.44 ROG -8.89 ROG 21.76 ROG -16.64 ROG -7.56 ROG -7.26 ROG
ROG: -0.24 2.01 UVR 1.54 UVR 1.73 UVR 2.21 UVR 1.48 UVR 1.13 UVR 1.54 UVR 1.70 UVR 1.67 UVR 1.19 UVR 1.72 UVR 1.75 UVR 1.63 UVR
PHD: 2.52
Kg/ Year Sr i Lan ka Ken ya Ch in a In dia In don es ia Ar gen t in a Malawi Ban glades h Tan zan ia Viet n am Ugan da Tu rkey Zimbabwe
Dat a Dat a Dat a Dat a Dat a Dat a Dat a Dat a Dat a Dat a Dat a Dat a Dat a
5.12% Sh are 34.32% Sh are 9.78% Sh are 13.50% Sh are 9.22% Sh are 7.66% Sh are 40.79% Sh are 2.74% Sh are 32.58% Sh are 6.05% Sh are 1.76% Sh are 48.40% Sh are
-6.15 ROG -5.00 ROG 4.63 ROG -1.33 ROG 5.35 ROG 6.67 ROG -1.15 ROG 8.77 ROG 2.75 ROG -27.00 ROG 8.54 ROG -10.33 ROG
1.97 UVR 1.80 UVR 2.23 UVR 1.16 UVR 0.69 UVR 0.97 UVR 1.34 UVR 1.23 UVR 1.20 UVR 1.29 UVR
Rus s i a n Fed era t i on Da t a
Ru s s ian Federat ion 145.23 mkg 18.69% Sh are 0.99% Sh are 4.64% Sh are 55.46% Sh are 3.71% Sh are 1.18% Sh are 1.73% Sh are 0.33% Sh are
12.87% Sh ar e in (Ver y Lar ge) -5.30 ROG 154.79 ROG 0.88 ROG 14.21 ROG -34.43 ROG -10.99 ROG -85.45 ROG -43.37 ROG
World Import s ROG: -1.70
Sr i Lan ka Ken ya Ch in a In dia In don es ia Ar gen t in a Malawi Ban glades h Tan zan ia Viet n am Ugan da Tu rkey Zimbabwe
1.48% Sh are 0.37% Sh are 13.48% Sh are 44.12% Sh are 10.76% Sh are 4.25% Sh are 11.48% Sh are 21.43% Sh are
-4.31 ROG -0.08 ROG -18.43 ROG 4.82 ROG -6.51 ROG
2.08 UVR 1.67 UVR 2.23 UVR 1.45 UVR 0.94 UVR 1.62 UVR
Pa k i s t a n Da t a
Pakis t an 110.03 mkg 5.71% Share 49.48% Share 2.51% Share 1.01% Share 18.64% Share 0.35% Share 2.74% Share 5.69% Share 5.44% Share 0.50% Share 0.28% Share 0.35% Share
9.82 Sh are in (Large) -6.62 ROG 5.25 ROG -20.79 ROG 6.14 ROG -3.67 ROG -8.32 ROG -4.54 ROG -8.12 ROG 34.72 ROG 4.64 ROG
World Import s ROG: -1.01 1.82 UVR 1.94 UVR 1.20 UVR 1.78 UVR 1.42 UVR 0.86 UVR 1.35 UVR 1.41 UVR 1.87 UVR 1.03 UVR 1.55 UVR 1.49 UVR
0.02% Share 25.85% Share 2.14% Share 0.49% Share 18.43% Share 0.67% Share 7.86% Share 25.48% Share 30.68% Share 1.01% Share 3.16% Share
-0.43 ROG -10.72 ROG 5.30 ROG -2.83 ROG -8.20 ROG -2.83 ROG -11.13 ROG
1.47 UVR 1.79 UVR 1.70 UVR 1.28 UVR 0.55 UVR 0.90 UVR 1.33 UVR 1.37 UVR 1.32 UVR
USA Da t a
USA 7.81% Sh are in 87.67 mkg 4.70% Sh are 4.51% Sh are 19.15% Sh are 3.83% Sh are 13.21% Sh are 29.12% Sh are 3.66% Sh are 0.57% Sh are 0.50% Sh are 0.11% Sh are
World Import s (Large) 1.06 ROG 0.48 ROG -5.08 ROG 3.58 ROG 4.75 ROG 7.60 ROG 11.04 ROG 23.23 ROG 34.72 ROG 0.80 ROG
ROG: 1.26 2.35 UVR 1.77 UVR 1.16 UVR 2.56 UVR 1.19 UVR 0.90 UVR 1.46 UVR 1.47 UVR 1.03 UVR 1.33 UVR
1.77% Share 1.75% Share 20.23% Share 1.98% Share 9.69% Share 53.78% Share 6.56% Share 2.36% Share 0.46% Share 0.88% Share
-0.31 ROG -2.97 ROG -18.93 ROG 8.41 ROG -3.47 ROG 4.93 ROG -1.79 ROG 20.27 ROG 17.06 ROG
2.24 UVR 1.86 UVR 2.29 UVR 1.08 UVR 0.68 UVR 0.88 UVR 1.36 UVR 1.59 UVR 1.17 UVR
1
7
2
ANNEXURE - II (Cont inue d)
Suppl y Sources
20.14% Sh ar e 18.16% Sh ar e 16.67% Sh ar e 16.12% Sh a r e 8.59% Sh a r e 3.99% Sh a r e 3.43% Share 2.22% Share 1.67% Share 1.62% Share 1.12% Share 1.10% Share 0.92% Share
Egy p t Da t a
Egypt 6.52% Sh are in 73.02 mkg 20.34% Sh are 51.72% Sh are 0.54% Sh are 8.37% Sh are 10.26% Sh are 1.28% Sh are 0.36% Sh are 0.24% Sh are
Wor ld Impor t s (Lar ge) -12.67 ROG 13.52 ROG -9.50 ROG -26.44 ROG
ROG: 1.21 1.22 UVR 1.49 UVR 1.26 UVR 1.77 UVR 1.42 UVR 1.39 UVR 1.12 UVR 1.33 UVR
6.54% Share 16.22% Share 0.41% Share 3.47% Share 7.22% Share 0.94% Share 2.16% Share 0.37% Share
-15.68 ROG 5.49 ROG -11.79 ROG -23.47 ROG 6.77 ROG
1.70 UVR 1.60 UVR 1.73 UVR 1.14 UVR 0.94 UVR 0.56 UVR
Ja p a n Da t a
J apan 3.81% Share in 42.98 mkg 15.22% Share 1.61% Share 55.25% Share 7.47% Share 2.95% Share 0.34% Share 0.31% Share 1.47% Share
World Import s (Med. Mediu m) -0.01 ROG 5.36 ROG 1.38 ROG 8.58 ROG -0.45 ROG 5.26 ROG 26.16 ROG
ROG: 4.39 3.60 UVR 2.22 UVR 3.16 UVR 5.33 UVR 2.53 UVR 1.84 UVR 1.54 UVR 2.30 UVR
2.75% Share 0.27% Share 1.67% Share 1.40% Share 0.84% Share 0.61% Share
0.50 ROG -1.20 ROG 15.26 ROG 2.14 ROG 12.84 ROG 110.6 ROG
2.83 UVR 1.91 UVR 4.08 UVR 1.68 UVR 1.41 UVR
Ira n Da t a
Iran 3.69% Sh are in 41.12 mkg 29.05% Sh are 5.29% Sh are 1.17% Sh are 15.42% Sh are 2.22% Sh are
Wor ld Impor t s (Med. Mediu m) -8.85 ROG -12.58 ROG 13.22 ROG
ROG: -6.84
6.16% Share 0.55% Share 3.81% Share 1.01% Share 7.39% Share 8.15% Share
-17.85 ROG -20.29 ROG 11.14 ROG
2.32 UVR 1.86 UVR 2.39 UVR 1.52 UVR
Morocco Da t a
Morocco 2.85% Sh are 32.07 mkg 1.07% Sh are 93.09% Sh are 2.40% Sh are 2.75% Sh are
in World Import s (Med. Mediu m) -17.46 ROG 0.55 ROG -2.13 ROG
ROG: 4.02 3.27 UVR 2.24 UVR 3.76 UVR 1.63 UVR
1.08% Share 0.28% Share 0.87% Share
-2.72 ROG
2.07 UVR 0.87 UVR
1
7
3
ANNEXURE - II (Cont inue d)
Suppl y Sources
20.14% Sh ar e 18.16% Sh ar e 16.67% Sh ar e 16.12% Sh ar e 8.59% Sh a r e 3.99% Sh a r e 3.43% Share 2.22% Share 1.67% Share 1.62% Share 1.12% Share 1.10% Share 0.92% Share
Pol a nd Da t a
Polan d 2.47% Sh are 27.82 mkg 6.49% Share 2.87% Share 7.09% Share 43.22% Share 5.22% Share 1.78% Share 3.55% Share 21.60% Share 0.41% Share 1.92% Share
in World Import s (Med. Mediu m) 9.92 ROG 174.94 ROG 21.96 ROG -2.67 ROG 4.27 ROG -25.84 ROG 113.16 ROG 10.35 ROG -6.70 ROG
ROG: -6.84 2.01 UVR
0.56% Share 0.26% Share 3.12% Share 6.96% Share 1.41% Share 1.05% Share 1.27% Share 26.15% Share 0.51% Share 4.03% Share
14.00 ROG 35.32 ROG 0.62 ROG 15.42 ROG -25.92 ROG 19.17 ROG
3.70 UVR 1.78 UVR 3.16 UVR 1.24 UVR 0.79 UVR 0.79 UVR 1.36 UVR 1.67 UVR
Germa ny Fed Rep Da t a
Germany Fed Rep 19.02 mkg 16.26% Share 1.12% Share 15.91% Share 3.14% Share 10.37% Share 5.03% Share 3.82% Share 0.28% Share 0.92% Sh are 3.03% Share 1.86% Share 0.98% Share
1.68% Sh are in (Med. Small) -0.96 ROG -3.03 ROG 8.83 ROG 2.28 ROG 8.21 ROG -6.78 ROG 8.16 ROG 1.89 ROG 13.64 ROG 6.00 ROG 1.52 ROG
World Import s ROG: 4.97 3.27 UVR 2.96 UVR 3.34 UVR 4.46 UVR 2.86 UVR 1.90 UVR 1.84 UVR 1.94 UVR 2.03 UVR 2.19 UVR 2.27 UVR 1.85 UVR
7.64% Share 0.47% Share 5.381% Share 3.14% Share 3.45% Share 4.64% Share 2.50% Share 1.10% Share 2.09% Share 12.53% Share 1.18% Share
0.79 ROG -15.62 ROG 4.47 ROG 2.28 ROG 1.51 ROG -14.18 ROG -7.26 ROG -27.44 ROG 0.92 ROG 21.31 ROG
Aus t ra l i a Da t a
Au s t ralia 1.47% 16.51 mkg 19.61% Sh are 6.52% Sh are 6.80% Sh are 7.20% Sh are 32.18% Sh are 0.06% Sh are 2.68% Sh are
Sh are in (Med. Small) -0.93 ROG -0.70 ROG -17.00 ROG -0.02 ROG -0.41 ROG -2.31 ROG
World Import s ROG: -0.95 4.59 UVR 1.64 UVR 3.72 UVR 4.92 UVR 1.47 UVR 1.59 UVR
1.27% Share 0.52% Share 1.15% Share 0.44% Share 4.27% Share 0.04% Share 1.14% Share 0.35% Share
-3.60 ROG 3.87 ROG -15.93 ROG 5.56 ROG -2.56 ROG -4.43 ROG
Li by a Da t a
Libya 1.35% Sh are in 15.07 mkg 64.64% Sh are 20.06% Sh are 15.00% Sh are 32.18% Sh are
Wor ld Impor t s (Med. Small) 6.23 ROG 53.46 ROG 0.41 ROG
ROG: 5.02
4.00% Share 2.22% Share 1.15% Share
-3.58 ROG
2.25 UVR 1.87 UVR
174
ANNEXURE - III
(1 9 9 7 -9 9 ave rage )
Impor t er Ra n k Expor t er
Un it ed Kin gdom 1 Ken ya (43.82%)
11.99% Sh a r e in Wor ld Impor t s 2 In dia (16.67%)
3 In don es ia (6.57%)
4 Sr i La n ka (4.96%)
5 Sou t h Afr ica (2.75%)
Ru s s ia n Fed 1 In dia (66.66%)
12.28% Sh a r e in Wor ld Impor t s 2 Sr i La n ka (19.61%)
3 Ch in a (4.66%)
4 Geor gia (3.33%)
Pa kis t a n 1 Ken ya (58.44%)
8.45% Sh a r e in Wor ld Impor t s 2 In don es ia (14.60%)
3 Ba n gla des h (5.21%)
4 Sr i La n ka (4.12%)
5 Ta n za n ia (3.75)
USA 1 Ar ga n t in a (37.44%)
7.47% Sh a r e in Wor ld Impor t s 2 Ch in a (15.57%)
4 Ken ya (4.87%)
5 Ger ma n y (3.61%)
Egypt 1 Ken ya (69.16%)
3 In dia (5.68%)
4 Ma la wi (4.25%)
J a pa n 1 Ch in a (60.14%)
3 In dia (8.52%)
5 Ta iwa n (2.93%)
Mor occo 1 Ch in a (98.35%)
3.06% Sh a r e in Wor ld Impor t s 2 In don es ia (1.02%)
3 UK (0.15%)
4 Sr i La n ka (0.12%)
Ir a n 1 Per s ia n Gu lf St a t es (32.65%)
2.85% Sh a r es in Wor ld Impor t s 2 Sr i La n ka (20.71%)
3 Ken ya (13.41%)
4 In dia (9.38%)
175
ANNEXURE - III (Cont inue d)
(1 9 9 7 -9 9 ave rage )
Impor t er Ra n k Expor t er
Pola n d 1 In dia (34.90%)
2.39% Sh a r e in Wor ld Impor t s 2 Ba n gla des h (22.26%)
3 Ch in a (10.63%)
4 Sr i La n ka (6.99%)
Ger ma n y 1 In dia (22.92%)
1.80% Sh a r e in Wor ld Impor t s 2 Ch in a (19.68%)
3 Sr i La n ka (13.33%)
4 In don es ia (11.56%)
5 Viet n a m (5.39%)
Au s t r a lia 1 In don es ia (31.222%)
3 Pa pu a New Gu in ea (16.06%)
4 Ken ya (7.23%)
5 In dia (6.76%)
Ca n a da 1 UK (30.52%)
1.45% Sh a r e in Wor ld Impor t s 2 Ken ya (12.25%)
3 Sr i La n ka (9.92%)
4 USA (9.72%)
5 In dia (5.80%)
Libya 1 Sr i La n ka (71.78%)
3 Ch in a (9.69%)
Fr a n ce 1 Sr i La n ka (71.78%)
1.14% Sh a r e in Wor ld Impor t s 2 UK (13.58%)
3 Ch in a (11.96%)
4 Belgiu m & Lu xembu r g (8.58%)
Ir ela n d (Rep.) 1 Ken ya (54.46%)
4 Zimba bwe (5.91%)
5 UK (5.49%)
Net h er la n ds 1 In don es ia (22.94%)
3 Ma la wi (9.99%)
4 Tu r key (7.28%)
5 Ch in a (7.22%)
Source : Bas ed on the bas ic data from various is s ues of ITC Bulletin, London.
176
ANNEXURE - IV
QUANTITY AND VALUE OF TEA EXPORTS FROM INDIA
[EXCLUDING INSTANT TEA]
Ye ar Quan- Value Unit Ye ar Quan- Value Unit
t it y Th. Rs Pric e t it y Th. Rs Pric e
Th. Kgs Rs . / Kg Th. Kgs Rs . / Kg
1954-55 208462 1482316 7.11 1954 203195 1307523 6.43
1955-56 183769 1096448 5.97 1955 166708 1136132 6.82
1956-57 233088 1451344 6.23 1956 237484 1428249 6.01
1957-58 191755 1436435 7.49 1957 200786 1233859 6.15
1958-59 217322 1296953 5.97 1958 229503 1365859 5.95
1959-60 215459 1290846 5.99 1959 213680 1260135 5.9
1960-61 196473 1222549 6.22 1960 193063 1199883 6.21
1961-62 205329 1221680 5.95 1961 206292 1242513 6.02
1962-63 220800 1296000 5.87 1962 211826 1235339 5.83
1963-64 209328 1231885 5.88 1963 223542 1323710 5.92
1964-65 212325 1246657 5.87 1964 210523 1249012 5.93
1965-66 197385 1148374 5.82 1965 199365 1149747 5.77
1966-67 190383 1562189 8.21 1966 179205 1565921 8.74
1967-68 203333 1801974 8.86 1967 213676 1890384 8.85
1968-69 200824 1565092 7.79 1968 208440 1664825 7.99
1969-70 174112 1245029 7.15 1969 168709 1205371 7.14
1970-71 199139 1842470 9.25 1970 202016 1487533 7.36
1971-72 214317 1609204 7.51 1971 202052 1536678 7.61
1972-73 193228 1472935 7.62 1972 198195 1511439 7.63
1973-74 190268 1448490 7.61 1973 188192 1427072 7.58
1974-75 225057 2235355 9.93 1974 210583 1927972 9.16
1975-76 211409 2382948 11.27 1975 218128 2446592 11.22
1976-77 242418 2954777 12.19 1976 233611 2731364 11.69
1977-78 221522 5637117 25.45 1977 229637 5416157 23.59
1978-79 177327 3591193 20.25 1978 176051 3628916 20.61
1979-80 208448 3768961 18.08 1979 199639 3618401 18.12
1980-81 231736 4352730 18.78 1980 224026 4290277 19.15
1981-82 224200 4068252 18.15 1981 241246 4342541 18
1982-83 194090 3694482 19.03 1982 189933 3555525 18.72
1983-84 202312 5575549 27.56 1983 208476 5168145 24.79
177
ANNEXURE - IV (Cont inue d)
QUANTITY AND VALUE OF TEA EXPORTS FROM INDIA
[EXCLUDING INSTANT TEA]
Ye ar Quan- Value Unit Ye ar Quan- Value Unit
t it y Th. Rs Pric e t it y Th. Rs Pric e
Th. Kgs Rs . / Kg Th. Kgs Rs . / Kg
1984-85 217401 7713889 35.48 1984 217040 7404551 34.12
1985-86 214234 6479796 30.25 1985 214021 6952966 32.49
1986-87 196232 5794783 29.53 1986 203149 5808510 28.59
1987-88 201830 6277688 31.1 1987 201891 6392466 31.66
1988-89 204075 6352799 31.13 1988 200956 6126937 30.49
1989-90 210615 9047231 42.96 1989 211622 8400923 39.7
1990-91 198240 10620939 53.58 1990 209085 11041507 52.81
1991-92 215166 11964625 55.61 1991 201720 11203136 55.54
1992-93 178950 10316425 57.65 1992 173358 9717402 56.05
1993-94 153427 10398935 67.78 1993 173726 11325271 65.19
1994-95 150836 9635458 63.88 1994 149317 9652334 64.64
1995-96 166239 12184298 73.3 1995 167143 11908077 71.24
1996-97 167172 12568167 75.18 1996 160004 12070978 75.44
1997-98 208773 19453207 93.18 1997 200713 17218472 85.79
1998-99 203431 21288720 104.65 1998 207640 22383087 107.8
1999-2000 189837 18672822 98.36 1999 189092 19024369 100.61
2000-2001 200770 18066853 89.99 2000 204353 18270324 89.41
2001-2002 187407 16215897 86.53 2001 179857 16022060 89.08
Source : Tea Statis tics 2000-2001 is s ued by Tea Board of India, Kolk ata

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Cu r lin g a n d dr yin g [in h ot a ir a t 90 -100 C for 40-50 min u t es

Rollin g [wit h ou t h ea t for 15 min u t es ]

Pr es s in g a n d dr yin g [h ot a ir a t 50 -60 C for 30-40 min u t es ,

Cu r lin g [Dr yin g dir ect ly on a h ot pa n a t 80 - 90 C

Twis t in g [for 40 min u t es u n der pr es s in g a n d r ollin g by a

Dr yin g [a t 80 C u n t il mois t u r e con t en t of 6% is a ch ieved]

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