TEA
Submitted By:
Megha Gupta(056)
Saumya Goel(260)
Sakshi Gulati(458)
Introduction
• First authentic references to tea and tea
drinking was in China in the fourth century
A.D. The first person to drink tea was a man
named, Shen Nung.
• The first written reference of tea made and
consumed appeared in 350 A.D. Kuo P’o’
updated an old Chinese dictionary to include
the description of tea as “a beverage made from
boiled leaves.”
http://www.aboutcoffeeandtea.com/coffee-time/history-of-coffee
HISTORY OF TEA
• The first public sale of tea in England was
conducted by Thomas Garway in 1657.
• In India, there are 3 distinctly different tea
growing regions. These regions produce 3
entirely different teas both in style and in
flavor. The 3 regions are: Darjeeling (North-
Eastern India), Assam (far North-East India)
and Nilgiri (South India).
http://www.aboutcoffeeandtea.com/coffee-time/history-of-coffee
OVERVIEW
• Tea Industry provides gainful direct employment to more than a
million workers mainly drawn from the backward and socially
weaker section of the society.
• It is also a substantial foreign exchange earner and provides sizeable
amount of revenue to the State and Central Exchequer.
• The total turnover of the Indian tea industry is in the vicinity of
Rs.9000 Crs.
• Presently, Indian tea industry is having (as on 18.12.2009 )
• 1692 registered Tea Manufacturers,
• 2200 registered Tea Exporters,
• 5848 number of registered tea buyers,
• Nine tea Auction centres.
http://www.teaboard.gov.in/pdf/teaindustry.pdf
OVERVIEW
• Tea is grown in 36 tropical and semi-tropical countries. The six largest
producing countries - China, India, Kenya, Sri Lanka, Indonesia and Turkey (in
that order) - account for around 80% of world output. Less than half of
production is exported, as China and India, in particular, are major consumers
as well as producers.
• After some 40 years of declining in real terms, tea prices more than doubled
between 2002 and September 2009, rising from 154 US cents a kg in 2003, to
238 US cents in 2008, and to 318 cents a kg in September 2009.
• The largest of the companies, Unilever, grows 35,000 tones of tea a year on its
estates in Kenya, Tanzania and India, and buys and sells a much larger quantity
- 290,000 tones - from other estates and sources . Its major brands, which
include Lipton, PG Tips and Red Label, are available in more than 100
countries
http://www.teaboard.gov.in/pdf/teaindustry.pdf
PRODUCTION CENTRES
In India
• Darjeeling
• Assam • Bihar
• Nilgiri • Arunachal Pradesh
• Kerala
• Karnataka • Tripura
• Himachal Pradesh • Manipur
• Uttaranchal •
•
Nagaland
Sikkim
• Orissa • Mizoram &
Meghalaya
• Dooars and Terai of
West Bengal
http://www.teaboard.gov.in/pdf/stat/Exports.pdf
PRODUCING NATIONS
The most important tea-producing nations are
(by percentage of world production):
• China : 25%
• Kenya : 10.25%
• Sri Lanka : 9.65%
• Turkey : 6.42%
• Indonesia : 5.31%
• Malawi : 1.56%
http://www.teaboard.gov.in/pdf/stat/Exports.pdf
TEA PRODUCTION
Production in 2008 (tonnes) (http://www.teaboard.gov.in/pdf/stat/Export
s.pdf)
China 1,257,384
India 922,205
Kenya 345,800
Sri Lanka 318,470
Turkey 198,046
Indonesia 150,851
Malawi 46,000
Uganda 44,923
Zimbabwe 22,300
Tanzania 34,800
Rwanda 19,000
World Total 3,832,650
Domestic Industry
• The tea industry in India is about 172 years old.
• In 1780 – Tea cultivation experimented in India with seeds
from China by Robert Kyd.
• Robert Bruce in 1823 discovered tea plants growing wild
in upper Brahmaputra Valley.
• In 1838 the first Indian tea from Assam was sent to United
Kingdom for public sale.
• India has dual manufacturing base. India produces both
CTC and Orthodox teas in addition to green tea.
• Orthodox teas are manufactured with the help of orthodox
roller in the process of rolling.
• CTC machine/Rotervan is used in rolling process in
manufacturing CTC teas. CTC stands for Crushing,
Tearing & Curling.
http://www.teaboard.gov.in/pdf/teaindustry.pdf
Domestic Industry
• Orthodox tea production is balanced basically with the export demand.
• Production of green tea in India is small.
• The competitors to India in tea export are Sri Lanka, Kenya, China,
Indonesia and Vietnam.
• There has been a dramatic tilt in tea disposal in favour of domestic
market since fifties.
• While at the time of Independence only 79 M.Kgs or about 31% of
total production of 255 M.Kgs of tea was retained for internal
consumption.
• In 2008 as much as 802 M.Kgs or about 82% of total production of
981 M.Kgs of tea went for domestic consumption.
• Tea is an essential item of domestic consumption and is the major
beverage in India.
• Tea is also considered as the cheapest beverage amongst the
beverages available in India.
http://www.teaboard.gov.in/pdf/teaindustry.pdf
QUALITY STANDARD
• The use of HACCP (Hazard Analysis & Critical Control
Points) has also gained in significance with respect to
tea exports.
• With regard to food safety, there are challenges for
developing country exporters to comply with differing
pesticide Maximum Residue Levels (or MRLs)
established in importing countries. The harmonization
of MRLs for tea on a global scale has also been under
discussion. Harmonization of organic certification
requirements across importing countries would also help
developing countries.
www.tradeStandards.org
• Tea Board of India advises that all the empanelled
inspection agencies approved by Tea Board under the
provision of Tea ( Distribution & Export) Control Order,
2005 may obtain the accreditation from National
Accreditation Board for Certification Bodies (NABCB)
of Quality Council of India (QCI).
• QUALITY UPGRADATION AND PRODUCT
DIVERSIFICATION SCHEME (QUPDS)
The main objective of QUPDS is to serve as a catalyst for
tea factories/blending/packaging units to undertake
investments in modern technologies/processes ,which
would eventually enable quality improvement, and
higher realizations through the production of better
quality/value added teas.
Major Export Destinations
http://www.teaboard.gov.in/pdf/stat/Exports.pdf
Major Competitors in the Global market
• The major competitive countries in tea in the world are
Sri Lanka, Kenya, China and Indonesia.
• China is the major producer of green tea while Sri Lanka
and Indonesia are producing mainly orthodox varieties of
tea.
• Kenya is basically a CTC tea producing country.
• While India is facing competition from Sri Lanka and
Indonesia with regard to export of orthodox teas and
from China with regard to green tea export.
• It is facing competition from Kenya and from other
African countries in exporting CTC teas.
http://www.teaboard.gov.in/pdf/teaindustry.pdf
Trends in Exports
YEAR N.INDIA(IN S.INDIA(IN ALL INDIA(IN
RS.CRS) RS.CRS) RS.CRS)
2004 1203.86 637.28 1841.14
2005 1161.15 669.83 1830.98
2006 1191.70 814.83 2006.53
2007 1215.84 594.27 1810.11
2008 1592.41 800.50 2392.91
http://www.teaboard.gov.in/pdf/stat/Exports.pdf
Export from 2001-2004:
http://www.teaboard.gov.in/pdf/stat/Exports.pdf
Provisions for Tea in FTP
• Minimum value addition under advance
authorization scheme for export of tea has been
reduced from the existing 100% to 50%.
• DTA sale limit of instant tea by EOU units has
been increased from the existing 30% to 50%.
• Export of tea has been covered under VKGUY
Scheme benefits.
Schemes
Promotion Scheme for packaged teas of Indian origin
• To help Indian exporters, to market teas of Indian origin in
overseas markets on a sustained basis, Tea Board proposes a
promotion scheme.
Eligibility
• 1. All Indian registered exporters exporting value added tea
would be eligible.
• 2. All registered exporters exporting for the past 3 years and
holding valid exporters license and submitting regular
monthly export returns to Tea Board
• 3. All registered Associations of tea producers and exporters
are eligible to apply for assistance for promotion of Indian
tea brands owned by their members.
http://www.teaboard.gov.in/pdf/teaindustry.pdf
Promotional Support to Exporters for participating in
Exhibitions and buyer-seller-meets with Tea Board, as
per MDA guidelines.
• Exporting companies with an f.o.b value upto Rs. 15.00
crores, in the preceding year, will be eligible support for
participation in Commodity Board / Authority led Trade
fair/ Exhibition
• Eligibility
– All registered exporters holding valid exporters licence and
submitting regular monthly export returns to Tea Board will be
eligible to apply for assistance.
– Only one application will be entertained for group companies
where the entire group will be considered as one applicant.
Promotional Support to Tea Association
• To encourage Tea Associations undertake
promotional activities aimed at (a) creating greater
awareness of India’s origin teas and (b) expanding
India’s market share overseas, certain promotional
expenditures are proposed to be shared by Tea
Board.
• All registered Associations of tea producers and
exporters are eligible associations
Problems/Challenges faced by
exporters
• With demand rising, however, some predictions are for a possible
10-15% price rise. By 20 April 2010 the average price of African
teas at the Mombasa auction had fallen to 270 cents a kg
compared with 297.7 cents a kg in December 2009
• Cost of production challenges tea sector : One of the main
challenges Sri Lanka faces in becoming the number one orthodox
tea exporter is the cost involved in the production especially when
withering and drying tea.
• The effect of the global meltdown since September this year is
fast spilling over to the Indian tea industry. Major tea exporters
are facing difficulties as fund flows from overseas markets have
slowed down significantly over the last few months. Tea industry
officials said banks have become overcautious owing to this
global recession, which is affecting tea exports from India.
THANK YOU
