tea
Tea industry in India
1
WORLD TEA SCENARIO 2013
• World Production -- ~4819 million kg
o India’s share 1200 m.kg 25% : 2nd position
• Global Area under Tea 3.69 million hectare
o India’s share 0.56 m.hec 15% : 2nd position
• World Exports – 1865 million kg
– Exported % of Total Production: World: 39%: India 18%
o India’s Share 219 m.kg 12% : 4th position
• World Consumption -- ~ 4663 million kg
o India’s Share 1003 m.kg 22% : 2nd position
Production, Export and Domestic retention
since 1950
Million Kgs
Volume of exports hovered around 200 million Kgs over last six decades
1400
1200
1000
800
600
400
200
0
Production
Export
Domestic Retention
1950
1970
1990
2000
2010
278
201
77
419
202
217
720
210
510
847
207
640
979
222
757
201314
1209
226
983
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
TOTAL
991
967
1096
1135
1209
9.92
9.90
10.14
% Share of
Orthodox + Green
10.93 11.49
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
%share of top 10
78 %
74 %
Export of Value added Teas over past five years
Year
Qty
(M.Kgs.)
Value
(Rs.Crs.)
Value
% Share in
( M. US$) total Exports
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
27.386
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
manufacturing and servicing etc.
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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 Worker’s welfare
6. Integrated R & D - climate change- Pesticide Residue issues
7. Regulatory measures for safeguarding the quality image of
Indian teas
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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
improvement of yields.
largely
mitigated
13
through
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
• The Tea Board of India has 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
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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&D–to 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
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”
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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