CII to focus on tea sector

After setting up industrial clusters for small and medium enterprises (SMEs) in various parts of India, Confederation of Indian Industry (CII) is now looking at the tea industry.

The chamber is setting up two clusters in Assam to help improve quality and exports of tea.

CII, along with Indian Tea Association and Tea Board, has formed one cluster comprising 7 tea estates owned by one group in Assam.

Another cluster of 3 tea estates owned by Eveready will be formed in Assam in September. It is also conducting special workshops for Ambootia tea estate.

The chamber will be providing counselling and technical expertise to the smaller tea estates to help them improve work environment and workplace management.

CII will also tie up with various management and quality control experts to help the estates in cutting costs by reducing wastes and improve quality.

The chamber will also continue with increasing awareness and good hygiene practices to improve the health conditions of the workers.

Hazard Analysis and Critical Control Point (HACCP), food safety and quality of standards will be the other issues on which the chamber will provide expertise.

Tea Board officials added that the emphasis will be more on consistent quality and food safety to perk up exports to Iran which prefers 'orthodox' tea variety from India. This is line with Iran lifting its ban on tea imports recently.

There are other big companies like Tata Tea who have evinced interest in forming similar clusters.

CII is also inviting other estate owners to participate in the clusters in parts of Darjeeling and plans to replicate the model in other tea producing areas.

The tea sector in India has for the past few years being plagued by the continuous fall in prices. Prices have been declining since November 1996.

The average auction prices for tea has come down from about Rs 76 per kg in 1998 to about Rs 56 per kg in 2003.

The fall in prices coupled with high cost of production, sluggish domestic demand and increased age of tea bushes leading to closure and abandonment of some tea gardens.

Presently, 54 gardens are closed, out of which 20 are in West Bengal, 17 in Kerala, 11 in Assam and 6 in Tripura. About 28,000 workers have been affected due to the closures.

The central government is working on a revival package for the tea industry.