I.

Introduction

Tea is a regular export item of Bangladesh. But due to slow growth of
production growing consumption and stiff competition from other tea
exporting courtiers, tea export of the country has declined. Export of tea to
different countries by Bangladesh witnessed substantial changes over time. In
order to cope with such changes, it is necessary to look for new buyers and
pursue an aggressive policy in the world tea market. This paper examines the
present position and contains several suggestions for raising tea export.
Domestic consumption of tea has steadily increased. This trend is likely to
remain and even may gain momentum.
II. Objectives
The paper aims at
i! Examination of the present status of production, domestic
consumption and export of tea of the country"
ii! Exploration of the prospect of new areas for tea production" and
iii! #olicy measures to increase production and export as well as
$uality improvement, and roles to be played by the government and
national bodies.

III. Production
#roduction of tea in Bangladesh registered steady growth rising from %&.'(
million kg in (&') to *%.+( million kg in ,))(. -any of the tea bushes in
Bangladesh are well over *) years old. This has resulted in loss of vigor and
production. In the past, for achieving short.term gains, planting efforts were
more concentrated on new areas than on replacements. /s a result, the old
areas did not receive proper care and attention. The result has been a sharp fall
in the yield from these gardens. Infilling may be most profitably carried out in
tea up to the age of ,).,* years. But infilling of young tea plants should get
priority.
The world production of tea has increased tremendously over the last *) years.
It is interesting to note that the production increases in the ma0or tea producing
countries have been due to large increase in the yield per hectare. In the
nineties, the yield per hectare in India was around (*)) kg, in 1ri 2anka this
was (3)) kg and in Bangladesh it was only ())) kg. The net outcome has been
a relatively high per kg cost in Bangladesh due to low yield and a conse$uent
unfavorable competitive position in the world market.
2ater on poor $uality of Bangladesh tea has turned into a problem. / number
of reasons account for this. 4irst, the standard of leaf plucking is not
satisfactory. To increase production, the producers resort to rough plucking.
The second one is the age.old 56rthodox7 method of processing in the out.
modeled factories and machines. Besides, the presence of high vacancies, poor
$uality plants, unchecked propagation of pests and diseases in the tea bushes,
absence of shade trees, etc. are some other constraints to the yield of $uality
tea in Bangladesh.
Besides, there are too much fallow land in the tea estates. It can be said without
hesitation that even half of the potentiality of the land under tea cultivation has
not been exploited.
IV. Domestic Consumption
/mount of tea used for domestic consumption stood at (*.&% million kg in
(&') that declined to '.8, million kg in (&'+, and then rose to ,+.%( million
kg in (&&+. The figure stood at %3.'& million kg in ,))(. The wide fluctuation
is due to the fluctuation in tea export.
India and 9hina are the largest tea consuming countries in the world and the
amount of their consumption was 3(*.%% and +,).+% million kg in (&&3
respectively. :hereas consumption of tea in Bangladesh was only ,*
million kg at the same time.
9onsumption of tea has decreased in the ;.k., Ireland <ep., /fghanistan,
#akistan, =enya, /ustralia and >ew ?eeland in (&&& in comparison to (&&*.
:hile in other countries, consumption has increased at normal degree, but it
increased tremendously in Bangladesh, Turkey and 9anada. Increasing rate of
consumption was the highest +&.+*@ in Bangladesh, while in Turkey and
9anada it increased at +%.%8@ and %).(8@ respectively. This high rate of
consumption in Bangladesh gives the opportunity to the tea producers to fetch
the captive market with the relative high prices of the tea of any $uality. But in
an open economy, good $uality and low price are the main factors for the
acceptance of a commodity. That is why Bangladesh needs to raise production
of low priced and high $uality tea to meet her increasing demand and to
increase her export of tea.
Table 1
Number of Tea Estates, rea under Tea Cultivation !ield
of "an#lades$ Tea since 1%&'()***
+ear No. of Estates rea under Tea
,$ectare-
+ield.$ectare
,/#-
(&+8 ()% ,'8%+ 3*3
(&*) ()% %('&) ',8
(&** (,8 %),8+ '%)
(&3) (,8 %(+(' 3('
(&3* (*( %3*)) '%&
(&8) (*% +,3'* 8&'
(&8* (*% +,3'* 8+)
(&') (*% +%*,' &,3
(&'* (*3 ++3)& &83
(&&) (*' +8%'* ())&
(&&* (*' +8&%' ()'+
(&&3 (*' +'()) (((*
(&&8 (*' +'*8) ()+)
(&&' (*' +'3(3 ((+&
(&&& (*' +'&(% &8)
,))) (3) *)+8) ((+8
0ource1 -onthly 1tatistical Bulletin of Bangladesh Tea Board ABTB!
Table )
Production, E2port and 0urplus for Domestic Consumption
ABty in mkg!
+ear Production E2port 3eft for Domestic
Consumption
(&8%.8+ ,&.'& ,(.*% )'.%3
(&8+.8* %(.,' ,%.*) )8.8'
(&8*.83 %(.%) ,,.%% )'.&8
(&83.88 %*.3+ ,&.+, )3.,,
(&88.8' %3.%* ,'.3% )8.8,
(&8'.8& %3.8) ,8.() )&.3)
(&8&.') %&.'( ,%.'' (*.&%
(&').'( +(.&) ,&.'* (,.)*
(&'(.', %'.*+ %(.%, )8.,,
(&',.'% +,.'3 %).'( (,.)*
(&'%.'+ %&.+3 %).8+ )'.8,
(&'+.'* +,.'& ,*.'* (8.)+
(&'*.'3 %'.88 ,&.', )'.&*
(&'3.'8 +).%3 ,(.+( ('.'*
(&'8.'' +(.3, ,8.*3 (+.)3
(&''.'& +(.,8 ,*.(, (3.(*
(&'&.&) +,.*3 ,,.*8 (&.&&
(&&).&( ++.3( ,3.+* ('.(3
(&&(.&, +3.8& ,%.3+ ,%.(*
(&&,.&% +&.%) %%.)& (3.,(
(&&%.&+ *(.8% ,8.+, ,+.%(
(&&+.&* +8.)+ ,3.8, ,).%,
(&&*.&3 *,.(+ ,(.+% %).8(
(&&3.&8 *,.38 ,*.%& ,8.,'
(&&8.&' *(.,* ,+.+* ,3.')
(&&'.&& *).,3 ,%.*) ,3.83
(&&&.)) *).,, (,.3( %8.3(
,))).)( *%.+( (3.*, %3.'&
0ource1 Bangladesh Tea Board, 1tatistics on Bangladesh Tea Industry, ,)),
V. Tea E2port of "an#lades$
6verall tea export fluctuated considerably over the period. It stood between
,(.+( million kg in (&'8 to %%.)& million kg in (&&%. There is a need for an
aggressive tea selling policy for Bangladesh in order to stabiliCe this
fluctuation. This calls for holding exhibition of Bangladesh tea abroad and
granting special facilities like confessional shipment rate and tariff to exporter.
Bangladesh Tea Board and the -inistry of Trade and 9ommerce can design
some web pages in Internet 0ointly or separately to build up interest for
Bangladesh tea in the world market. 1eminars, symposiums and Bangladeshi
tea festival may be organiCed by the Tea Board and the Bangladesh #ar0atan
9orporation can also play a vital role in this respect.
VI. E2port of Tea to Different 4uslim Countries
There has been a very great chance for Bangladesh in tea export to different
countries. 1everal countries like Egypt, Ira$, 1audi /rabia and =uwait do not
either import Bangladesh tea or do so very irregularly. These are all -uslim
countries having good relations with Bangladesh. Efforts should be made at the
government level to raise tea export of Bangladesh to these countries both
through bilateral contract and interaction of the business community.
VII. Polic! 5ecommendations
4rom the above discussion it becomes clear that for expansion of tea
production and its export promotion, the following policy recommendations
may be put forward
i! / determined effort should be made to infill all tea gardens with
young tea plants immediately to increase production of tea.
ii! <ough plucking of green tea leaves is to be avoided for $uality
production of tea.
iii! To meet the local demand of low priced $uality tea and to increase
export of tea appropriate measures coupled with government
initiative should be undertaken.
iv! ;se of modern technology and machine is an imperative to produce
$uality tea and to keep the cost lower. Tea producers should be
encouraged to replace 56rthodox7 method gradually.
Conclusion
The suggestions made above, if carefully pursued, can bring about tangible
changes leading to a rise in both production and export of tea from
Bangladesh. The measures that should be followed would give Bangladesh an
edge in international competition.
The success of implementing these suggestions will can for government
support in terms of tax exemption, creation of ade$uate infrastructure
synchroniCed with an overall effort to moderniCe tea production and processing
and a greater drive to increase our tea export.