teaTea industry in India

*

1.pdf

WORLD TEA SCENARIO 2013

World Production -- ~4819 million kg

Indias share 1200 m.kg 25% : 2nd position

Global Area under Tea 3.69 million hectare

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

World Exports 1865 million kgExported % of Total Production: World: 39%: India 18%

Indias Share 219 m.kg 12% : 4th positionWorld Consumption -- ~ 4663 million kg

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

Production, Export and Domestic retention since 1950Volume of exports hovered around 200 million Kgs over last six decades

*

TYPE OF TEAS PRODUCED During last 5 years (in M.Kgs)

2009-102010-112011-122012 -132013-14C T C88385698710231086Orthodox + Green Total108111109112123T O T A L991967109611351209% Share of Orthodox + Green10.9311.499.929.9010.14

EXPORTS TO MAJOR COUNTRIES DURING 2013-14

Top Ten DestinationsCountry Volume M.Kgs.Value Rs.Cr.Russian Fed38.62639.91U.A.E23.33473.03Iran22.9603.85Pakistan19.92196.01United Kingdom17.64338.13U.S.A14.09396.55Bangladesh13.94131.42Kazakhstan10.26207.69Germany7.77259.25Egypt (ARE)7.4589.54Total for top ten175.923335.38Total for > 25 countries225.764509.09%share of top 1078 %74 %

Export of Value added Teas over past five years

YearQty (M.Kgs.)Value (Rs.Crs.)Value ( M. US$)% Share in total Exports2009-1030.16709.96149.0114.132010-1130.99775.25170.2314.502011-1223.96725.31151.4611.182012-1325.6879.64161.5911.842013-1426.22974.73161.3611.61Average27.386812.978158.7312.65

IMPORT OF TEA INTO INDIA

*

EMPLOYMENT PROFILE

Direct Employment 1.1 Million 55% are women workersDependants 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 livelihoodsIndirect employment in allied activities warehousing, transport, farm and factory inputs food grain supply and tea machinery 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 ExportsThrust Areas:Increasing Production & Productivity through Replanting and extension Planting.Special focus on development of small holdingsQuality Assurance through Certification, value additionMarket Promotion - domestic and internationalPlantation Workers welfareIntegrated R & D- climate change- Pesticide Residue issuesRegulatory measures for safeguarding the quality image of Indian teas

ChallengesStagnant ProductivityIncreasing Labour Costs- shortage & absenteeismAdverse effect of climate change &increasing cost of Pest ControlSmall Tea Growers- quality risksQuality related regulatory issuesR&D to keep pace with the new challengesStagnant 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 ageIt is targeted to renovate 47,000 ha during XII Plan period ending 2017

*

Labour related issuesIncreasing Labour cost, shortage and absenteeismTie 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.

*

Fixed cost in COP is over 70%. Recommendations by the Central Government Committees on sharing of Social Welfare Costs presently borne by the industry is a constructive proposal that should be implemented with suitable modifications to relevant Schemes for Health, Sanitation, Education, specially girls education, Housing, Women and Child Development, Skill Training being implemented by the Panchayats so as to make them applicable for the Tea estates. The Schemes in their present form are targeted for the BPL population and cannot be made applicable for Tea estates workers in all cases. The Government may also consider suitably amending the Plantation Labour Act (PLA) to facilitate implementation of these Schemes.*

Adverse effect of climate change & increasing cost of Pest Control

Prolonged droughts, incessant pest attacks adversely impacting productivity and cost of productionCost effective pest management, harmonization of Pesticide residue issuesA 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 ISSUESRainwater 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 CodePlant 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 :

Use of only approved Plant Protection Formulations (PPFs)

by Central Insecticide Board, GoI

Adherence to MRLs for pesticides laid down by the FSSAI

SUSTAINABILITY - INITIATIVESRAIN WATE COLLECTION**

Ground water recharging

Rain Water Harvesting ReservoirAfforestation

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 conservationMechanisation especially for harvestingNon 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 Tea2. Engagement with the local trading community3. Consumer-oriented promotion4. Utilisation of Social Media5.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 addition-packaging/blending/tea baggingSetting 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

*

The Tea industry has initiated B2C campaign in partnership with the Tea Board to boost domestic consumption. This initiative needs to be sustained with higher outlays so that the per capita consumption of tea in India can be increased from its present level of around 733 gms per head per year. B2C campaign were held recently in Gurgaon and Ahmedabad which had the urban youth in large numbers. Our plan is to take the road show to 100 cities in phases and for this Tea Boards continued support is essential.

E-Auctions have led to improvement in the price discovery. The system needs to evolve to a paperless transaction paradigm. We would request the Tea Boards financial support in this regard.

*

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

*

*Fixed cost in COP is over 70%. Recommendations by the Central Government Committees on sharing of Social Welfare Costs presently borne by the industry is a constructive proposal that should be implemented with suitable modifications to relevant Schemes for Health, Sanitation, Education, specially girls education, Housing, Women and Child Development, Skill Training being implemented by the Panchayats so as to make them applicable for the Tea estates. The Schemes in their present form are targeted for the BPL population and cannot be made applicable for Tea estates workers in all cases. The Government may also consider suitably amending the Plantation Labour Act (PLA) to facilitate implementation of these Schemes.*

The Tea industry has initiated B2C campaign in partnership with the Tea Board to boost domestic consumption. This initiative needs to be sustained with higher outlays so that the per capita consumption of tea in India can be increased from its present level of around 733 gms per head per year. B2C campaign were held recently in Gurgaon and Ahmedabad which had the urban youth in large numbers. Our plan is to take the road show to 100 cities in phases and for this Tea Boards continued support is essential.

E-Auctions have led to improvement in the price discovery. The system needs to evolve to a paperless transaction paradigm. We would request the Tea Boards financial support in this regard.

*