‘Demand takes into account conservative subsidies for small tea growers, industry, technology and research as well as promotion’
‘Demand takes into account conservative subsidies for small tea growers, industry, technology and research as well as promotion’
The Tea Board has sought ₹1,000 crore assistance from the commerce ministry for the tea industry over the next five years.
Tea Board Chairman Saurav Pahari said that the proposed five-year budget, starting from 2022-23, has taken into account conservative subsidies for small tea growers (STGs), industry, technology and research as well as promotion.
Shri Pahari said that 52% of the total tea production in the country comes from STGs and it is good to note that overall the tea industry accepts the contribution of STGs. He also said that the relationship between large tea garden owners and STGs “should not be hostile”.
Speaking at the 139th Annual General Meeting of the Indian Tea Association (ITA), Mr. Pahari said that Indian tea should be developed as a brand and not as a bulk commodity export. “Indian tea should be recognized across the world. Darjeeling tea should be recognized as an Indian brand. Industry not focused [branding Indian tea] abroad,” he said.
He said the assistance sought from the ministry includes a component on promotion of Indian tea.
The Speaker also stressed on the need to increase domestic consumption, especially when exports were low. “With exports slowing down, a lot of tea is being dumped in the domestic markets, which we are not consuming. We drink less than a kilo of tea [per capita] Per year. If the demand goes up by 1 kg, our producers will get a better price,” said Mr. Pahari. He also said that exports were not growing at the rate that the industry expects so domestic consumption should increase.
ITA Chairperson Nayantara Palachoudhuri said that the per capita consumption in India, despite rising to the current level of 850 grams, is low as compared to our neighboring countries. Ms. Palachoudhuri said that the export of tea during 2022 is expected to reach 230 million kg as compared to 196 million kg in the previous year. “We have to target a quantity of 350 Mkg (million kg) within the next 3-4 years,” he said.
The Chairman flagged the issues related to Darjeeling tea industry and said that for revival, financial interventions through a special financial package for the industry need to be considered without delay. Ms Palachaudhuri has also been appointed as the chairperson of the proposed Asia Tea Alliance, which has industry bodies from Sri Lanka, China, Indonesia, Nepal and Bangladesh as members.
She pointed out that the alliance was set up in 2019, but in view of the pandemic, the agenda of the alliance could not move forward in 2020 and 2021, but will now focus on creating a Memorandum of Understanding between the members.