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ITA plans quality drive to boost tea exports

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Crisil Marketwire Kolkata
Last Updated : Feb 06 2013 | 7:14 AM IST
Indian Tea Association (ITA) has said it would focus on improving the quality of tea produced by member gardens, to revive the flagging Indian tea exports. The apex body of the tea manufacturers is also planning a campaign to increase tea consumption in the country.
 
"We will have to set quality standards to regain the lost export market," said P T Siganporia, newly elected chairman of the association. Siganporia's quality drive is fuelled by the decline in India's tea exports for two consecutive years.
 
In 2004-05, exports stood at around 180 million kg. Tea exports in January-July this year slipped 11.28 per cent to 89.667 million kg. July exports were down 12.22 per cent to 14.441 million kg, he said.
 
The value of tea exports in July was also down 15.19 per cent to Rs 1.43 billion. The value of exports during January-July slipped 6.64 per cent on the year to Rs 830 crore from Rs 889 crore.The decline was due to reduced exports to Russia, West Asia, and the Commonwealth of Independent States nations.
 
Siganporia, who is also managing director of Tata Tea, said his agenda would involve all stakeholders to work for the betterment of the industry. He said he would actively scan growth opportunities for the industry, with the co-operation of all stakeholders.
 
"I will also focus on the marketing aspect. In fact it will be at the top of agenda. My attempt will be to create a situation where the export market relies on Indian tea and consider us (India) exporters of quality products," he said.
 
Siganporia said the association was also planning to launch a campaign in tandem with the Tea Board to boost consumption of tea.
 
India still remains the largest tea producer and consumer of tea, with 80 per cent of its output sold domestically.
 
However, India's per capita consumption is low compared with other countries. The annual growth rate of domestic tea consumption remained at 3.5 per cent even until the late 1990s, but declined to 1.8 per cent thereafter, he said.
 
Siganporia said the differences between the tea producers of North India and South India "would be solved soon."
 
Commenting on allegations that the ITA was focusing more on West Bengal based companies he said, "there are always going to be differences within a family."

 
 

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First Published: Sep 22 2005 | 12:00 AM IST

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