tea

Tea industry in India

1

WORLD TEA SCENARIO 2013

World Production -- ~4819 million kg
o Indias share 1200 m.kg 25% : 2nd position

Global Area under Tea 3.69 million hectare

o Indias share 0.56 m.hec 15% : 2nd position

World Exports 1865 million kg

Exported % of Total Production: World: 39%: India 18%
o Indias Share 219 m.kg 12% : 4th position

World Consumption -- ~ 4663 million kg

o Indias Share 1003 m.kg 22% : 2nd position

Production, Export and Domestic retention

since 1950
Volume of exports hovered around 200 million Kgs over last six decades

TYPE OF TEAS PRODUCED

During last 5 years (in M.Kgs)
2009-10 2010-11 2011-12 2012 -13 2013-14
CTC
Orthodox + Green
Total

883

856

987

1023

1086

108

111

109

112

123

T O TAL

991

967

1096

1135

1209

% Share of
Orthodox + Green

10.9 11.4
10.1
3
9 9.92 9.90
4

EXPORTS TO MAJOR COUNTRIES DURING 2013-14

Top Ten Destinations
Volume
Value
Country
M.Kgs.
Rs.Cr.
Russian Fed
38.62
639.91
U.A.E
23.33
473.03
Iran
22.9
603.85
Pakistan
19.92
196.01
United Kingdom
17.64
338.13
U.S.A
14.09
396.55
Bangladesh
13.94
131.42
Kazakhstan
10.26
207.69
Germany
7.77
259.25
Egypt (ARE)
7.45
89.54
Total for top ten 175.92
3335.38
Total for > 25
countries
225.76
4509.09
74 %
%share of top 10 78 %

Export of Value added Teas over past five years

Year

Qty
(M.Kgs.)

Value
(Rs.Crs.)

2009-10

30.16

709.96

149.01

14.13

2010-11

30.99

775.25

170.23

14.50

2011-12

23.96

725.31

151.46

11.18

2012-13

25.6

879.64

161.59

11.84

2013-14

26.22

974.73

161.36

11.61

Average

Value
% Share in
( M. US$) total Exports

27.38
6
812.978 158.73

12.65

IMPORT OF TEA INTO INDIA

EMPLOYMENT PROFILE
Direct Employment 1.1 Million
55% are women workers
Dependants of the workers -1.9 million
The indirect employment is around 3 times the
direct employment.
Thus > 4 million people are dependant on tea for
their livelihoods
Indirect employment in allied activities
warehousing, transport, farm and factory inputs
food grain supply and
tea machinery
8
manufacturing and servicing etc.

Current Thrust areas

The main focus is on maintaining a healthy balance between supply
and demand for meeting the domestic demand in full and maintain
current level of Exports
Thrust Areas:
1. Increasing Production & Productivity through
Replanting
and extension Planting.
2. Special focus on development of small holdings
3. Quality Assurance through Certification, value addition
4. Market Promotion - domestic and international
5. Plantation Workers welfare
6. Integrated R & D - climate change- Pesticide Residue issues
7. Regulatory measures for safeguarding the quality image of
Indian teas
9

Challenges
Stagnant Productivity
Increasing Labour Costs- shortage & absenteeism
Adverse effect of climate change &increasing cost
of Pest Control
Small Tea Growers- quality risks
Quality related regulatory issues
R&D to keep pace with the new challenges
Stagnant export need for value addition, product
and market diversification

Stagnant Productivity
Declining yield - owing to aging of tea bushes .
crop and revenue loss during gestation period.
A comprehensive survey of all big tea gardens
carried out
148305 ha 37% of the bushes are >50 years of
age
It is targeted to renovate 47,000 ha during XII Plan
period ending 2017

Labour related issues

Increasing Labour cost, shortage and
absenteeism
Tie up with IITs for development of mechanical
aids for improving the working efficiency &
reduce drudgery.
Tea Industry continues to bear the social cost
rendering Indian teas uncompetitive in the
international markets.

COST OF PRODUCTION
70% of CoP comprises of Fixed Costs
Price realization at the farm gate level is not keeping pace
with inflationary rise in the cost of inputs
High Social Welfare cost
High cost would be largely mitigated through improvement
of yields.

13

Adverse effect of climate change &

increasing cost of Pest Control
Prolonged droughts, incessant pest attacks adversely
impacting productivity and cost of production

Cost effective pest management, harmonization of

Pesticide residue issues
A Pesticide Code has been developed and notified.
It will come into force with effect from 1st
Septemebr 2014
Launched a Sustainability Tea programme
trustea for ensuring quality assurance and
compliance with food safety standards

SUSTAINABILITY ISSUES
Rainwater Harvesting
Recharging Groundwater
Effluent & Waste Management
Afforestation & Micro-Climate Management
Utilisation of Renewable Energy resources
Safe Use of Pesticides & Adoption of Sustainable Field
Practices
Trustea Code
Plant Protection Code (Version-2 in Tea Board website)

PLANT PROTECTION CODE

TheTea Board of Indiahas implemented a 'Plant Protection
Code' (PPC) for tea production.
The PPC is a best practice guide to sustainable and safe tea
production.

PPC covers :
o Use of only approved Plant Protection Formulations (PPFs)
by Central Insecticide Board, GoI
o Adherence to MRLs for pesticides laid down by the FSSAI

SUSTAINABILITY - INITIATIVES

Ground water recharging

RAIN WATE COLLECTION

17

Afforestation

Rain Water Harvesting Reservoir

Small Tea Growers- development

Mushrooming of small holdings and Bought Leaf Factories (BLF)
Green leaf price volatility reasonable price not being realised due
to indifferent quality
A New Directorate with adequate manpower set up in April 2013.
Opened field offices for closer interface with the growers and BLFs.
Enumeration of growers- smart cards
Better extension services for adopting GAP & GMPs
Improvement of quality & value addition
Price Sharing formula-for ensuring reasonable price for green leaf

Quality related regulatory issues

Thrust on compliance with GMP and
quality certifications such as ISO
22000/HACCP etc
e-auction Online auction of tea - moving
towards Pan India auction
Tea Councils of India for Mandatory
checking of tea exports & imports to
ensure compliance with the FSSAI norms

R&Dto keep pace with the new challenges

TRIs have initiated work on
the impact, vulnerability and adaptation of tea to
climate change.
Irrigation, water harvesting and conservation
Mechanisation especially for harvesting
Non pesticidal control of pests /Organic tea
Biotechnological studies for identifying potent
genes responsible for tolerance to drought and pest
attacks.

Stagnant export markets

Need for Value addition ,product & market diversification

Brand India promotion in targeted markets

1.Extensive promotion of India Tea
2. Engagement with the local trading community
3. Consumer-oriented promotion
4. Utilisation of Social Media
5.Focus on export of value-added teas

Promotion of Indian tea brands having 100% India tea

packed and exported from India.
Setting up of Specialty Tea Factories/value additionpackaging/blending/tea bagging
Setting up of Integrated Tea Parks for common facilities.

MARKETING : DOMESTIC
Domestic consumption is lagging at 733 gms per capita lower
than many countries like UK, Ireland, Pakistan, etc
Domestic promotion is needed to attract Youth & Young
Professionals with high disposable income and aspirational life
style
Industry & Tea Board jointly conducting B2C promotion
programme Tea Carnival : Chai Ho Jaye

23

INDIAN TEA CARNIVAL : CHAI HO JAYE

India's first ever Tea Carnival Chai Ho Jaye

was organised
in collaboration with Tea Board of India in
Gurgaon and
Ahmedabad.

More cities planned to be covered.

INDIAN TEA CARNIVAL CHAI HO JAYE

INDIAN TEA CARNIVAL : CHAI HO JAYE

Thank
you