The Indian tea industry is growing as its production level is rising. In spite of that, the industry is passing through a crisis.
Arun Kumar Ray, IPS, Deputy Chairman, Tea Board of India, told BE that the main problem is the demand for tea not growing commensurately with the level of production. Therefore, prices of tea had been more or less flat for some years. Actually, this is the prime problem of the tea industry in India.
Growth of production is coming, mainly, from West Bengal and Assam. This is due to the growth of small tea growers in these regions. Within two decades or more, the contribution of small tea producers has been close to 60% in West Bengal. India’s tea production grew by 6% in 201718 over the previous year and the total production reached 1,325 million kg. The Tea Board of India sources said that the annual production of tea in 2018-19 is expected to be around 1,334 million kg.
Specific problems
The tea owners’ bodies have been vocal about the ongoing stress. PK Bhattacharjee, Secretary General, Tea Association of India, said that the crisis of the tea industry would continue for some time. He pointed out that emergence of unorganised small tea growers and loss of traditional markets like the erstwhile Soviet Union is some of the prominent reasons behind this stress. Indian tea had a near monopoly over the former USSR market.
Another problem is inadequate price discovery and the problem is particularly acute for the organised tea sector. Therefore, even premium qualities of tea cannot fetch good returns. It is said that some of the big tea purchasers, in many cases, distort the tea market price. This is because they enjoy near monopoly in the market. Therefore even in auction selling, pricing is actually controlled by some of the very big tea traders of India. So proper price discovery has been a problem in the country. Actually, the prices are more or less static but cost of tea production is escalating.
Problems in exports
この記事は BUSINESS ECONOMICS の April 16-30, 2019 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は BUSINESS ECONOMICS の April 16-30, 2019 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
Deposit shortage: challenges facing India's banking ecosystem
In any macroeconomic framework, the household sector plays a critical role as a driver consumption, savings, and overall economic activity.
India's future dreams in Semiconductors & AI
A midst the gloom of the RG Kar affair or the Tirupati laddu scam or even the continued terrorist attacks in Jammu & Kashmir, even after the completion of the first general election in the state, we find hope and encouragement when the founder of Nvidia, Jensen Huang, in his recent visit to India says \"India will be a gigantic opportunity for us\".
The Ramayana: Justice and Modern Man
Consisting of Twenty-Four Thousand worthy Sanskrit verses, the Ramayana is one such epic, which provides a pathway to one committed to justice to establish himself as an ideal human being by following the exemplary life of its hero.
Vallabhbhai Patel: A Sardar of Farmers, A Matchless Social Reformer and the Maker of United India
Sardar Vallabhbhai Patel was instrumental in unifying the princely states to form the Union of India.
Understanding Prosperity: NOBEL Prize awarded for groundbreaking research on institutions and economic development
The Royal Swedish Academy of Sciences has awarded the Memory of Alfred Nobel to three US-based economistsDaron Acemoglu, Simon Johnson, and James A. Robinson\"for their studies on how institutions are formed and affect prosperity.\"
Sinking Resources: Groundwater crisis and sustainable solutions in Kolkata
Kolkata's underground water crisis is becoming a serious issue, driven by rapid urbanization and the construction of high-rise buildings.
Tourism Industry positively impacted by the festive season
Diwali transforms streets into a spectacle of festive lights, Diwali transforms streets into olis, and families gearing up for grand celebrations.
RBI's Shift to a Neutral Stance: Signaling a New Phase in Monetary Policy
For over a year, the Reserve Bank of India (RBI) has taken a firm stance against inflation, raising interest rates by 250 basis points between May 2022 and February 2023 in response to post-pandemic price pressures.
UK Budget
There _ he latest UK budget represents a departure from previous fiscal documents.
Han Kang's Historic Nobel Prize Win
The 2024 Nobel Prize in Literature has been awarded to T South Korean writer Han Kang, 53, known for her works including The Vegetarian, The White Book, Human Acts, and Greek Lessons.
