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Declining domestic demand, exports, and erratic weather have hurt the sector. There is an urgent need to set up a 'tea park'.
Indian tea industry faces the triple whammy of sluggish domestic demand, uncertain exports, and unpredictable weather. In the domestic market, the growth in tea consumption is mainly due to population growth; per capita consumption isn’t rising. It remains below 850 gm a year — in most tea-consuming countries, it’s over 1 kg. This causes a surplus in the market, leading to a dampening of prices. To add to the woes, tea is imported from many countries.
Fortunately, the Tea Board’s directive for 100 per cent dust tea auction with simultaneous random testing of samples against FSSAI-accredited quality norms is showing positive results. Dust tea prices have moved up on the confidence of getting quality tea.
There is a need to boost demand in the domestic market; around 64 per cent of the population drinks at least one cup of tea a day. Consuming just one more cup will create demand for 25 million kg a year, which will exhaust the entire surplus. Research shows that tea has many health benefits. The Tea Board may need to take the lead in promoting the beverage.
Source: Online/GFMM
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