Tea Industry

Piyush Goyal interacts with representatives of tea industry in Guwahati

Union Minister of Commerce and Industry Piyush Goyal on Saturday interacted with representatives of the tea industry, and assured them that the Centre will take necessary steps to resolve the issues faced by the sector. Assam Chief Minister Himanta Biswa Sarma and Industry Minister Bimal Bora were also present on the occasion along with stakeholders, including buyers, producers and small tea growers from various states. Goyal said he has taken cognisance of the challenges faced by the industry, and he will hold further consultations to resolve the issues. Sarma said the state government is cognisant of the macro challenges confronting Assam's tea industry and its solutions require a collaborative approach. I am extremely grateful to Hon'ble Union Minister Shri @PiyushGoyal ji for patiently hearing the stakeholders of the tea industry and taking a positive approach to resolve their issues. Thank you Piyush Goyal ji for your valuable time, the chief minister wrote on X. North Easter

Asian tea producers eyeing 'untapped' African mkt for exports: ATA chairman

Tea producers of Asia are now targeting the 'untapped' African market to shore up exports for which they plan to work out a strategy in this regard. Hemant Bangur, chairman of Asian Tea Alliance (ATA), said there is a need to tap the African market. ATA countries include India, Bangladesh, Indonesia, Nepal, and Sri Lanka. "Africa is a huge untapped and unpenetrated market. The existing export markets of Europe have become saturated. Asian tea producers consider Africa as a focussed market and we will work towards this", Bangur, also the chairman of the Indian Tea Association (ITA), told reporters. Bangur said that the ATA also strongly discourage the promotion of genetically modified clones in the tea industry. "The alliance countries will collaborate to produce more climate resilient clones to produce sustainable tea. The industry also plans to promote regenerative agriculture which will focus on water retention and carbon sequestration," he said. Bangur said that there is a glo

Tea industry on edge as Iran-Israel tensions threaten export revival

The biggest worry for Indian tea exporters when the Israel-Hamas conflict flared up in October 2023 was that it would spill over to other West Asian countries, particularly Iran

Tea garden workers in north Bengal's Dooars, Terai to get 16% bonus

Tea garden workers in north Bengal's Dooars and Terai regions will receive a 16 per cent bonus for the 2023-24 financial year, an industry body said on Monday. The Tea Association of India, in a statement, said that the industry-wide bonus agreement was reached after due deliberations between trade union representatives and members of the Consultative Committee of Plantation Associations (CCPA), which represents employers. TAI said that the industry has been passing through a severe financial crisis for a prolonged period. In the previous 2022-23 fiscal, the tea industry in north Bengal had settled for a bonus payout of 19 per cent. According to TAI, the economic sustainability of tea gardens in north Bengal is in "jeopardy". The adverse weather conditions have affected the health of bushes, leading to a considerable drop in production during the year. The crop of the first and second flush, which produce the best quality tea, has suffered a loss, affecting cash flow of the garde

Tea industry seeks higher Rodtep rates to make exports competitive overseas

The tea industry has sought higher rates under the RoDTEP scheme to make exports more competitive in the overseas markets. Leading industry body Indian Tea Association (ITA), in its pre-budget memorandum, said that the present RoDTEP rate for bulk tea is 1.7 per cent (free on board) subject to a cap of Rs 6.70 per kilogram. The association urged the government to increase the reward base rate under the Remission of Duties and Taxes on Exported Products (RoDTEP) for black tea in bulk to remain competitive in the international markets. The RoDTEP scheme ensures that exporters receive refunds on embedded taxes and duties that were previously non-recoverable. Another industry body Tea Association of India (TAI), in its pre-budget proposal submitted to the government, said the RoDTEP rate for tea should be higher than the earlier MEIS (merchandise exports incentive scheme) of five per cent to enable Indian tea to retain its competitiveness in the global market. Since its inception in .

Tea prices soar as heatwaves, floods slash output in key producing regions

Production was also affected by the government's decision to ban 20 pesticides

Erratic rainfall brews challenges for North India tea output, prices up

Except for Darjeeling, the other categories have been on an uptrend since mid-May

North Indian tea output may be hit by 60 million kgs till June: TAI

The North Indian tea industry is facing a production shortfall of 60 million kgs till June of the current crop year over the corresponding period last year due to adverse weather conditions, according to an estimate by a tea body. The loss of the first and second flush crops, which produce the highest quality teas of the year, will undoubtedly impact the producers' revenue and may push tea prices higher, officials say. The states of Assam and West Bengal, which comprise the North Indian tea industry, are experiencing a precarious situation. Excessive heat coupled with a rain deficit in May, followed by excess rainfall and a lack of sunshine, has severely impacted production. Tea Association of India (TAI) president Sandeep Singhania estimated that the combined crop loss is estimated to be 60 million kgs by June compared to the previous year's output. "As reported by the member tea estates of the association, the tea estates of Assam and West Bengal are estimated to be behind by aro

International Tea Day 2024: Date, history, importance, and quotes

Being the world's most consumed drink, tea can bring health benefits and wellness due to its anti-inflammatory, antioxidant and weight loss effects. It also has cultural significance in many societies

ITA seeks financial aid from Centre to support Darjeeling tea industry

The Indian Tea Association (ITA) on Friday reiterated its plea for financial assistance from the Centre to support the struggling Darjeeling tea industry. According to the ITA, the situation in Darjeeling is critical due to decreasing yields and plummeting prices. Without a financial relief package, the survival of the Darjeeling tea industry is in jeopardy, the association said, adding that it has urged the government to consider and act upon a financial revival package endorsed by the Parliamentary Standing Committee on Commerce in March 2022. "The association has urged the government to extend a financial revival package to the Darjeeling tea sector which has been already endorsed by the Parliamentary Standing Committee on commerce in March 2022. This awaits consideration and action", the ITA said. The ITA, quoting Tea Board data, highlighted that adverse weather conditions have affected tea production in Assam and West Bengal, leading to a significant decrease in production. F

LS polls: Small tea growers fight for land rights in Assam's Lakhimpur

It has been a single-point agenda for small tea growers in Assam's Lakhimpur district, along the border with Arunachal Pradesh, before every government for several years allotment of garden land in their names. The repeated pleas have so far not yielded any positive result, though they remain hopeful whenever an election approaches that their demand will finally be met by the new regime. "Most of the areas under tea cultivation here fall under the tribal belt. And hence, we are not getting allotment. We have been repeatedly urging the government to de-notify the area or make provisions for allotment for us as the tribal population in this part is not even 10 per cent," Jatin Chandra Bora, advisor, Lakhimpur District Small Tea Growers Association, said. Mentioning specifically about Bholabari, Dhalpur, Rajgarh, Rangoti and Simojluguri panchayats in western part of Lakhimpur, he said, "As per information from the office of the deputy director of economics and statistics, these ...

Small tea growers voice concern over 'poor' quality teas flooding market

Confederation of Indian Small Tea Growers' Associations (CISTA), a body of small tea growers, has voiced concern over the alleged poor quality of teas flooding the market and urged the intervention of the Tea Board in this regard. In a letter written to Tea Board chairman A S Bhatia, CISTA president Bijoy Gopal Chakraborty said that a generic campaign focussed on the health benefits of drinking tea should be carried out to promote consumption among the young people who are more enticed to partake soft drinks and coffee. "We have observed that bad quality teas are flooded in the domestic market and these were being sold at a very low price. Poor quality tea manufacturing and packaging should be stopped immediately", the association said in the letter. CISTA said that the commerce ministry has enhanced the budget for a generic campaign of tea which is the need of the hour. "Young people in the age group of 18 years to 22 years are far away from tea drinking and have more affinity for

PM Modi spends time at tea estate in Assam, promotes tourism around it

Taking to his X handle, he urged tourists to visit Assam's tea gardens during their visits to the state

Tea industry body welcomes move to sell dust tea through auction route

Tea Association of India (TAI), a body of planters, on Wednesday hailed the decision of the Tea Board for selling dust tea fully through the auction route. On February 26, the board issued an order saying that 100 per cent of dust grades of tea manufactured in a calendar year through the auction mode under Tea (Marketing) Control (Amendment) Order which will be effective from April one, 2024. President of TAI Sandeep Singhania said in a statement that dust grades constitute approximately 20 per cent of total production in North India. Therefore, transitioning to 100 per cent auction of dust tea will be a small step towards restructuring the existing system, he said. TAI said that the tea industry is facing unprecedented challenges and urgent action is required to revitalise the industry. The association is also committed to compliance with the maximum residue levels (MRL) of pesticides and market teas as a healthy beverage. TAI has urged all the stakeholders to collaborate with t

Centre directs 100% auction of dust tea grades from North India

Mohit Agarwal, Director, Asian Tea Company, said that the move would make the tea industry "robust and transparent"

McLeod Russel India submits fresh plan for debt resolution to lenders

It had earlier offered a one-time payment (OTS) of Rs 1,030 crore to lenders in settling the entire outstanding against the loans including interest

Tea exports dip 1.65% during Jan to Oct 2023, reach 182.69 million kg

Tea exports from the country dipped 1.65 per cent at 182.69 million kilogramme during January to October of 2023 as compared to 185.75 million kilogramme in the same period of the previous calendar. Exports from North India during the first 10 months of calendar 2023 stood lower at 110.33 million kilogramme, registering a decline of 4.62 per cent from the preceding similar period, according to Tea Board data. Similarly, exports from South India on the contrary increased 3.25 per cent at 72.36 million kilogramme during January to October of 2023, as against 70.08 million kilogramme in the similar previous period. During calendar 2022, exports of tea stood at 231.08 million kilogramme, registering a rise of 17.57 per cent over 2021 at 196.54 million kilogramme. Sources in the tea industry said that the export scenario remains grim as shipments to Iran are in jeopardy due to the payment problem with that country. Iran traditionally imports 20 per cent of India's tea exports, but that

Pricing to quality: West Bengal GoM to look into tea industry woes

The GoM would also be interacting with stakeholders of the industry to deliberate on the issues facing the industry and where the West Bengal government can help

Rising input costs, lower price realisation in 2023 trouble tea industry

The year witnessed the tea industry facing an uncertain future, plagued by rising input costs and lower price realisation at auctions, making operations unviable. The apex body of the planters, the Indian Tea Association (ITA), has estimated that while tea prices increased at a compounded annual growth rate (CAGR) of 4 per cent over the past decade, input costs of coal and gas have simultaneously risen at a rate of 9-15 per cent. Secretary general of ITA Arijit Raha said price realisation trends declined alarmingly in 2023 compared to 2022. "While inputs costs have risen, tea prices have not increased in a proportionate manner. This shows that the industry is passing through a crisis," Raha said. ITA said the emergence of small tea growers (STGs) resulted in an exponential rise in production. With internal consumption almost stagnant and the exports scenario depressed, surplus tea has remained in the system. According to Tea Board data, exports of the beverage during January to ..

Tea exports decline 4.93% to to 157.92 million/kg during Jan-Sep

Tea exports from India during January to September declined 4.93 per cent to 157.92 million kg, according to latest Tea Board data. During the first nine months of 2022, exports stood at 166.11 million kg. From North India, primarily the states of Assam and West Bengal, tea exports dropped 6.61 per cent to 96.28 million kg in the reporting period, compared with 103.09 million kg in the corresponding nine months a year ago, the data showed. In the southern region, shipments fell marginally by 2.19 per cent to 61.64 million kg from January to September. During the entire calendar year 2022, tea exports from India stood at 231 million kg. Sources in the Indian Tea Association (ITA), the apex body of planters, said the export scenario remains grim as shipments to Iran are uncertain due to payment issues. The Iran market constitutes nearly 20 per cent of India's total tea exports, followed by the CIS group of countries, they said.