Production potential of indian tea industry
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    Production potential of indian tea industry Production potential of indian tea industry Document Transcript

    • J. D. Birla Institute Department of ManagementName : PRASHANT MADHOGARIAYear : 3 rd Year 6 th SemesterRoll No. : 87Mentor : MS. S. LAKSHMYTopic : PRODUCTION POTENTIAL OF THE INDIAN TEA INDUSTRY.
    • DECLARATIONDeclarationTo include plagiarism and ethical statements and word count is aformal requirement.Declaration:I declare the following:1. That the material contained in this dissertation is the endresult of my own work and that due acknowledgement has beengiven in the bibliography and all references to ALL sources bethey printed electronic or personal.2. The word count of this project is around 17548 words.3. That unless this Project has been confirmed as confidential, Iagree to an electronic copy or sections unless of the dissertationto be placed on the e-learning portal, if deemed appropriate, toallow future students the opportunity to see examples of pastdissertations. I understand that if displayed on the e-learningportal it would be able to print off copies or download. Theauthorship would remain anonymous.4. I agree to my project being submitted to a plagiarismdetection service, where it will be stored in a database andcompared against work submitted from this or any other school orfrom other institutions using this service.In the event to my service detecting a high degree of similaritybetween content within the service this will be reported back tomy supervisor and second marker, who may decide to undertakefurther investigation that may ultimately lead to disciplineactions, should instances of plagiarism be detected.I declare that ethical issues have been considered, evaluated andappropriately addressed in this researchSigned: 2
    • ACKNOWLEDGEMENT I would like to thank my mentor, Ms. S. Lakshmy, with heartiestrespect and gratitude, for guiding me through my term paper. I express my thanks to the Director of J.D. Birla institute, Dr.Asit Dutta, for giving me the opportunity to gather suchwonderful learning experience. I am also obliged to my college librarians Mr. Santanu Mondal,Mr. Masiur Rehman and Mr. Swapan Kr. Ber who have assisted mein finding various references for data collection. I also thank my friends at college for their assistance, on andoff campus . 3
    • INDEXTABLE OF CONTENTS PG NO.1. INTRODUCTION 01-042. LITERATURE REVIEW 05-243. HYPOTHESIS 254. RESEARCH METHODOLOGY 26-275. DATA ANALYSIS 28-346. RESULT a. Findings 35 b. Recommendation 367. CONCLUSION & LIMITATIONS 378. ANNEXURE 38-549. BIBLIOGRAPHY 55 4
    • ABSTRACTThis project aims to shed light on the production potential of Indian Tea and whetherthere exists a scope for further increase in the production of Indian Tea. From the varioussources we may see how much Indian production of Tea contributes to the global demandof the same, also to find a relation between the production of tea in India and its exports,import, domestic consumption. We may also find a relation between the total teaproduction and its consumption to decipher how much tea is exported and how muchconsumed domestically. Hence by the difference of the production and the consumptionand with an understanding of international demand we may find out the productionpotential of Indian Tea. 5
    • 1.INTRODUCTIONLooking back at the History of tea, it is said that tea was discoveredaccidentally by Emperor Shen Nung back in 2700BC. After a lot of trialand error the Chinese were able to find out the required technique togrow tea. But being a closed colony they did not share their secrets ofcultivating tea. Hence it was long before other countries were exposed totea.The first tea used in England and China , and it wasn’t until the 19 t hcentury that tea growing spread to other countries and indigenous tea wasdiscovered in Assam. The UK is the largest importer of tea.By the early1900’s tea was being cultivated in India, Indonesia, Kenya and other partsof Africa. Presently the United States has been added to the list of tea. 1Tea is one of the most important agricultural as well as manufacturingproducts, like other products it also needs a proper marketing channel fordisposal. The three main modes referred for the disposal of tea are: (a)through auction (b) ex-factory or ex-garden sale and (c) forward contract.In India marketing process of tea can be divided into two parts, i.e.,primary and secondary markets. Primary marketing channels help inmoving made-tea from the grower to the bulk tea buyers. It also explainsthe movement of tea directly from producers to national or internationalbuyers. This channel is used to carry tea from producer to auction centers’where it changes hands from the producers to the large buyers throughbrokers. Secondary marketing channel includes the movement of bulk teathrough auction trading to ultimate consumers. In this chain tea passesthrough wholesalers, commission agents, blenders, packers and retailers. 2Tea is one of the most refreshing and popular beverages of the world.India is one of the largest Tea producers in the world mainly because itaccounts for 31% of global production. It is perhaps the only industrywhere India has retained its leadership over the last 150 years. Indian teais the finest quality in the world 3 . Tea is being cultivated in the highranges of northern and southern India. The best quality tea is CTC andorthodox Assam Tea respectively. Tea consumption is approximatelyabove 600 million kgs annually. The market consists of both leaf and dustteas in both the CTC and orthodox grades. 4India is the Second largest producer of tea, the largest consumer and thefourth largest exporter (after Sri Lanka, china and Kenya) in the world.Four-fifths of the Tea produced in India is consumed domestically. Themajor tea growing areas of India are: North Bengal, Assam, Tamil Naduand Kerala. Tea is grown by 130,000 small and large Tea growers under a 6
    • gross area of over half a million hectares. Tea gardens employedapproximately 1.3 million laborers in 2007.Tea is an essential item of domestic consumption and is the majorbeverage in India. Tea is also considered as the cheapest beverageamongst the beverages available in India. Tea industry provides gainfuldirect employment to more than a million workers mainly drawn from thebackward and socially weaker sections of the society. It is also asubstantial foreign exchange earner and provides sizeable amount ofrevenue to the state and Central Exchequer. The total turnover of theIndian Tea industry is in the vicinity of 9000 crores. 5On the production front India has been the major producer of the Tea inthe world. Other major producing countries include china, Srilanka ,Kenya and Indonesia. During 1951-1960, India was producing around 40percent of world production. , declined to 26 percent during 2004. Chinaand Kenya are able to increase their share in world productionconsiderably. The share of china and Kenya during 1951-1960 was 13.59percent and 2.67 percent respectively, increased to 24.90 percent and10.30 per cent in 2004. In recent years china emerged as major teaproducer in the world. 6The export markets for Indian Teas are mainly Russia and the CIscountries with almost 90 million kgs of export. This is equivalent to 43%of India’s Tea exports. India exports Tea to most of the Europeancountries, the USA, Japan, west Asia and the Asia Pacific Region. In fact,there is hardly any country where Indian Tea is not found. Exporting Teahas been very profitable for India since the exporting prices are muchhigher when compared to the Domestic Indian Tea prices. It is also veryhelpful in selling of the surplus production that has not been consumeddomestically. 7Indian tea industry as it is on a comeback stage with an increase in itsproduction and export during the first 8 months of 2008. Moreover outputbetween January-august, 2008 have shot up to 599.73 million kg incomparative of 576.07 million kg , of what it was in the previous year.Tea export of India has triggered by 4 per cent in volume of august, 2008due to the diminishing of output in Kenya. Similarly shipments during thefirst eight months have also risen up by nearly 20 percent.OVERVIEW OF THE INDIAN TEA INDUSTRYTea is one of the most refreshing and popular beverages of the world.India is one of the largest tea producers in the world mainly because itaccounts for 31% of global production. It is perhaps the only industrywhere India has retained its leadership over the last 150 years. Indian teais the finest quality in the world. Tea is being cultivated in the high 7
    • ranges of northern and southern India. The best quality tea is CTC andOrthodox Assam Tea respectively. Tea consumption is approximately above 600 million kgs annually. Themarket consists of both leaf and dust teas in both the CTC and Orthodoxgrades. 8Tea manufacture is the process of converting and treating the tea. Tea,which is to be used as loose leaf, will normally be rolled gently to create atwisted appearance. In contrast, tea, which is to be used for tea bags, isshredded and crushed to produce a small granular product. That is whyloose tea usually has a better flavour than the tea in a tea bag. Forpreparing different types of teas, different methods of preparation areused. But the most commonly used method is to make it in a pot. Thebrewing temperature for green tea differs from other teas. A temperatureof 165-185 degrees is ideal for steeping green tea. 9 The different types oftea are white tea, green tea, oolong tea, black tea.At the time there had been claims that tea was growing wildly both in theManipur district and in Nepal. This news and the need for a reliablesource of tea resulted in the formation of a ‘committee of tea culture’.This was formed in Kolkata and consisted of people who were thought tobe of great intelligence and even greater class.Tea is also considered as the cheapest beverage amongst the beveragesAvailable in India. Tea Industry provides gainful direct employment tomore than a million workers mainly drawn from the backward and sociallyweaker section of the society. It is also a substantial foreign exchangeearner and provides sizeable amount of revenue to the State and CentralExchequer. The total turnover of the Indian tea industry is in the vicinityof Rs.9000 Crores. Presently, Indian tea industry is having (as on18.12.2009).1692 registered Tea manufacturers2200 registered Tea Exporters5848 number of registered tea buyers,Nine tea Auction centres.The Tea industry is an agro based labour intensive industry. It providesdirect employment to over 1 million persons. Through its forward andbackward linkages another 10 million persons derive their livelihood fromtea. In northeast India alone, the tea industry employs around 9,00,000persons on permanent basis. The tea industry is one of the largestemployers of women amongst organized industries in india. Womenconstitute nearly 51% of the total workforce. There is no longer genderbias with respect to employment benefits. 8
    • The apex body of the tea growers in India is the Tea Board Of India. TheTea Board of India performs many financial and marketing functions forthe Indian Brand tea as a whole. They even account for the collection ofstatistics pertaining to this industry. The Tea Board has wide functionsand responsibilities under the direction of the central government.The primary functions of the Tea board are as under:• Rendering financial and technical assistance for cultivation,manufacture and marketing of tea• Export promotion• Aiding research and development activities for augmentation of teaproduction and improvement of tea quality.• Extend financial assistance in a limited way to the plantationworkers and their wards through labour welfare schemes.• To encourage and assist both financially and technically theunorganized small growers sector.• Such other activities as are assigned from time to time by thecentral government.The project has been chronologically been described in the following order:Section 1 describes the Introduction.Section 2 describes the Literature ReviSection 3 describes the HypothesisSection 4 describes the Research MethodologySection 5 describes the Data AnalysisSection 6 describes the ResultsSection 7 describes the ConclusionSection 8 describes the AnnexureSection 9 describes the Bibliography 9
    • 2. LITERATURE REVIEWAccording to the provisions in the Tea Act 1953, Tea Board is conducting andSupporting tea research. The Board is granting financial support (grant-in-aid) to theTea research institutes managed by the private sector, namely - Tea Research Association(TRA) and United Planters’ Association of Southern India – Tea ResearchFoundation (UPASI –TRF). Tea Board is also having its own Darjeeling Tea ResearchAnd Development Centre at Kurseong for which full financial support is provided fromThe budget of the Board. Tea Research Association (TRA) and United Planters’ Association of Southern India– Tea Research Foundation (UPASI – TRF) are historically managed by the privateSector. Both the institutes have their own Council of Management and Trustee Boardrespectively to manage the affairs of the organization. The Board is grantingFinancial support to the expenditure on the identified items of research which are mainlyConcerned to field and laboratory research activities and transfer of technology. In the 23Member Council of Management of TRA, where members are mainly drawn from the teaIndustry, four nominees of the Ministry of Commerce and Industry and two nomineesfrom the Tea Board are participating. The tea industry in the North-East is gettingTechnical support from TRA and its seven sub centers spread over in the entire NorthEast India. Similarly, tea industry of South India is getting technical support from theUPASITRF, Valparai, Tamil Nadu and its six sub-centers located in different tea growingregions in South India. TRA have its sub centers and field laboratories in the North East India located atNagrakata, Darjeeling, Siliguri in West Bengal, Silchar, Tezpur, Dikom in Assam andAgartala in Tripura. The sub centers of UPASI-TRF are located at different tea growingareas like; Coonoor, Gudalur in Tamil Nadu, Meppadi, Munnar, Vandiperiyarin Kerala and Koppa, in Karnataka. The sub centers are manned by senior AdvisoryOfficers who are providing service to the tea gardens in tea cultivation along withLaboratory support like soil analysis, plant protection information and new technology.The Board’s Darjeeling Tea Research and Development Centre (DTR&DC) at Kurseongis conducting research which gives support to the Darjeeling tea industry in the field ofsoil, agronomy, biochemistry and plant protection. In addition to grant-in-aid, the Boardalso has its own sponsored research schemes hosted at different institutes under the 10thPlan. Need based specific schemes are also sponsored for carrying out research atdifferent institutes and universities, especially when the major tea research institutes donot cover such areas. Tea Board is giving financial support for generation of R&D information for theSmall growers of Himachal Pradesh, sponsoring a research scheme at the HimachalPradesh Krishi Viswa Vidyalaya, Palampur. Similarly a research scheme is in operationat Uttaranchal for the development of the tea industry in the state. G.B. Pant University of 10
    • Agriculture, Pantnagar, is providing technical support for operationalizing the schemeand Tea Board is giving 50% financial support to it. Tea Board is giving financial support to the centrally sponsored research schemes likeapplication of biotechnology in tea by the Dept. of Biotechnology, Govt. of India.Similarly, Ministry of Information and Technology has also supported a scheme hostedby TRA for automation in tea manufacturing using electronic sensors and the scheme hasbeen completed. Assam Agricultural University, Jorhat hosted a scheme supported by the Board, forTechnical manpower generation at graduate level. The technical manpower so fargenerated helped in capacity building for the tea industry in general. Small project onchemical evaluation of teas was organized by the Board under inter laboratory ring testprogramme. The technical support from the Board is always given to the tea industry by way offeedback on standards/regulations. Quality requirements of tea particularly in export front, are changing often with theadoption of new sanitary and phytosanitary (SPS) measures like in the EU, US, Japan andother countries. Such information is scrutinized for scientific validation through theresearch institutes and standards were circulated to the trade. Simultaneously, feedbackinformation were also provided to various regulatory authorities about the Indianstandards and efforts were made to harmonize such information to overcome thetechnical barriers in tea trade. According to the Tea Board of India, Net work programme on automation andintegration in manufacture of tea.Plan Schemes (10th Plan)During 10th Plan, eleven research schemes as approved and sanctioned by the Govt. werelaunched at TRA and UPASI-TRF. These research schemes are designed to give specialsupport in booting tea research activities in the North East and South India.Achievements under each of the plan scheme are given as under. Networking of Regional Centers of UPASI TRF and tea gardens for bettercommunication.As per objectives of the scheme, networking programme of all the TRF centers in SouthIndia has been completed installing V-SATS. Data generation on the field aspects of teacultivation from the garden has been undertaken and setting up of the data bank at each ofthe advisory centers is under progress. Such data bank will be utilized for developingfuture schemes at micro level on need based for the benefit of the tea industry in SouthIndia. The outlay of the scheme is Rs.113.81 lakhs.Studies on different irrigation systems and critical evaluation of secondary andmicronutrient status in tea soils of south India. 11
    • The influence of different irrigation systems on hydrology are being studied at fourdifferent regions in South India like central Travancore, Karnataka, Nilgiris and Wynaadregions. Similarly, studies on the effects of fertigation with respect to different sources ofNPK fertilizers have also been continued. Metallic contamination in tea and status ofsecondary micronutrients in soil and made tea are being looked into. The equipmentshave been purchased and installed. The samples of soil and made tea are collected fromdifferent experiments and these are being analyzed in the laboratory. The pattern oftreatment influence on the variable agro conditions could not be estimated as yet. Thescheme will be completed by the end of the 10th Plan.Studies on the residues of insecticides, fungicides, weedicides and heavy metalsin South Indian tea.The tea samples were drawn for estimation of presence of iron particles and othermetallic contents, estimation of residue in the tea liquor. The methodologies have beenestablished and the training of the scientific staffs was completed. Elaborate survey workfor heavy metals and pesticide residue in South India tea has been undertaken for thecommercially used pesticides like ethion, dicofol, endosulfan, quinalphos, fenpropathrinand lambda cyhalothrin. Simultaneously, field experiments also helped to estimate theresidue content of pesticides in tea at different harvest intervals. It has been found thatpesticide residues in made tea is highly influenced by the harvest intervals and the doseof the chemicals. For the calculation of MRL under Good Agricultural Practice, 7-dayharvest interval was considered and samples were analyzed. Data bank generated so farunder this scheme would help in future support for harmonization of MRLs. Biotechnological and Bio-control studies on tea blister blight pathogenBiotechnology laboratory has been established with modern scientific equipments forundertaking different biotechnological studies of tea clones. The equipments have beenimported and installed. Methods of DNA extraction and marker identification have beenconsidered. Protocol for isolation of genomic DNA from fungus spores has beenStandardized. Genetic transformation studies are also being initiated and once the methodis standardized, it will help in the transfer of beneficial marker gene in future breedingworks. Related studies in the characterization of tea clones are in progress. It is expectedthat the protocol development will be completed by the end of the plan period when themarkers can be successfully identified and ready for transfer in future breeding works.The micro flora present on tea leaves has been studied and several antagonists of theblister blight pathogen are identified. They are being evaluated in the laboratary and field. Optimisation of processing parameters to maximize the quality of SouthIndian black teas.Quality of tea is a variable parameter influenced by numerous factors like environment,factory condition, tea clones, soil, and climate and so on. To visualize the qualitysituation of tea as prevailing in the South India tea factory, a detailed survey wasundertaken by UPASI-TRF under the 10th Plan. So far about 50 tea factories have beensurveyed in different areas to draw the samples and to see the manufacturing conditions.It was observed that manufacturing of tea is done under a wide range of factoryconditions right from the standard of plucking, withering, rolling and fermentationprocess in respect of time and machineries. Fermentation and drying conditions were 12
    • highly variable. The CTC and orthodox tea manufacturing steps were different; alsoprecisions were important at every step. It was reported that highly variable anduncontrolled manufacturing steps have resulted to poor quality of tea in many of thefactories. Variations were also reported in withering temp., CTC rpm, rolling of tea,and in drying temperature which ranged from 120 - 160° C. A cooling system for thean orthodox roller has been developed by UPASI-TRF. Compilation on the survey workwould reveal the key factors in manufacturing of South Indian tea for suggestingupdating of manufacturing technology in future. Establishment of Chain of Quality testing laboratories and strengthening ofexisting analytical facilities at Regional Centre.According to target, TRA has established three quality testing laboratories, one each atJorhat, Nagrakata and Cachar. All the centers have started functioning after procuringscientific equipments and imparting training to the scientific assistants involved in thework. The total out lay of the project is Rs.96.00 lakhs including recurring expenditurefor 5 years for conducting quality testing of teas. All the laboratories are preparing adatabase on quality parameters for the respective region. The field laboratories willanalyze the garden tea samples and advise them on the quality of tea. These centers willalso help in routine testing of teas being exported. Development of catchments-wise integrated drainage system through remotesensing towards solving water logging problem at macro level pilot area.The outlay of the scheme is Rs.70 lakhs for 5 years for undertaking studies in pilot areasin Assam and North Bengal using satellite pictures for hydrology mapping. Drainagerelief map for different catchments in the tea gardens was the ultimate objective of thisproject for giving ready information to the garden management so that drainage actionplans can be taken up by them. Implementation of the scheme is being done in a phasemanner after procuring topo sheets from the survey of India office for a number of digitalterrains in Assam. Works are progressing.Development of technology for product diversification and value added itemsin tea.This envisaged project is having an outlay of Rs.125 lakhs for 5 years. The targets wereto standardize and develop methodologies for the production of value added products andby-products of tea. A number of value added products like tea tablets, flavoured tea,canned tea (RTD) have been standardized which are awaiting commercial explorationafter patenting. Tea aroma has also been successfully extracted from tea and this productwill be tested for adding of such flavour in different food items like sweets. Theremaining items of works will be completed within the tenure of the project. Thesedevelopments will help in product diversification in tea to a great extent. Influence of soil organic mater on productivity of tea under North Bengalcondition.This scheme was launched to study the soil fertility conditions in North Bengal area.Important soil parameters contributing to soil fertility were identified and studied tochange the concept of fertilization. Organic matter is one such important parameter whichhelped in assimilation of all inorganic fertilizers into the tea plant. Studies were continued 13
    • for thorough investigation and to find out its effect in uptake of nutrients. The studyhelped to identify key factors like organic carbon in soil and its minimum requirement foroptimum uptake of chemical fertilizers. The study will also help to understand thephysical parameters of the soil in overall fertility and in new planting.Special GrantsTea Board was also giving special grants for specific activities like supporting advisoryservices to the small tea growers in Tripura by TRA. On this account, Tea Boarddisbursed Rs.3.00 lakhs per annum sharing the cost on 50:50 basis with the state govt. Sponsored ProjectsTea Board was also sponsoring research projects in different areas. The details of whichare given as under: Grant-in-aid to Assam Agricultural University for specialized course in tea atB.Sc Agriculture level.Tea Board was giving recurring grants of Rs.2.00 lakhs to Assam AgriculturalUniversity, Jorhat for running the specialized course in Tea Technology and Husbandryat graduate level. Twenty students were obtaining graduate degree under this courseevery year and they were absorbed in tea industry and also in the commercial banks andresearch institutes.MRL (Maximum Residue Limit) issues in teaFixation of MRL in tea at the national level and also at the international level is a matterof great concern at the moment since India is consuming large quantity of tea as well asexporting tea to many countries in the world. This issue of MRL has come up as nontariffbarrier. The scenario is two fold- (i) fixation of MRLs at the national level toprotect the consumers in the domestic sector; and (ii) internationalstipulations/regulations/standards fixed by EU and other countries. India is trying to copeup with the situation in both the fronts generating field data. TRA, UPASI-TRF andInstitute of Himalayan Bioresource and Technology are involved in fieldexperimentations supported by Tea Board and funded by National Tea ResearchFoundation. Data generated at the tea research institutes have been compiled and submitted tothe Ministry of Health for fixation of MRLs at the national level for commercially usedchemicals in tea crop. Such data are under scrutiny at different levels in the Govt. The listof MRL under the PFA (Prevention of Food Adulteration Act) has expanded by inclusionof new MRLs. This is a continuous process going on, so that new chemicals can beconsidered for fixation of MRL. Indian residue data has been formulated for the Codex Committee on PesticideResidue under WTO, and based on its recommendation; such data have been submittedto the Codex proposing MRL. Data for two chemicals namely Chlorpyriphos andParaquat have been accepted at the international level for fixing MRL. More data areunder process for submission to Codex.The process of finalization of the documents was a hard task since all drafts had to 14
    • be framed in line with the requirements of the Joint Meeting on Pesticide Residue(JMPR). This technical body was looking after the workings of the Codex. Follow upactions have also been taken as to how to make calculations after data generation forformulation of MRL. Actions were also taken to interact with the internationalorganizations of manufacturers of chemicals so that a message could be transmitted tothem for generating residue data for the products they are manufacturing. All such actionshad to be taken through IGG to the member countries. Circulars, workshops, discussions and special meetings have been arranged duringthe year. The messages on the latest stipulations were issued to the tea industry, researchinstitutes and chemical manufacturers. A number of lectures/presentations on the subjecthave been made in different forums. As a result of all such efforts, MRL issue is beingwidely publicized along with stipulations. Number of complaints in respect of pesticideresidue issue has come down since the Board has made awareness at all level.10According to the press release on 09 May 2002, New DelhiINDIA LEADS IN ORGANIC TEA PRODUCTIONIndia is the leading producer of both non-organic as well as organic Tea in the world. Theentire Indian Production of Organic Tea is exported. The major destinations are UK ,Germany , USA and Japan. The other major Organic Tea producing and exportingcountries of the world are Sri Lanka and China. The major Competitors of India in totaltea exports are Sri Lanka, Kenya, China and Indonesia. The Organic tea was introducedto the world market in the mid 1980s. Over the past decade, its consumption has grownby more than 10% per year globally. However in volume terms, the trading in OrganicTea is very insignificant when compared to Black Tea.At present there are 42 Tea gardens in the country that have given up organic teacultivation in an area of 6000 hectares and the current level production is around 3.5million kgs which marks an increase of twenty fold over ten years period, withtheproduction in 1990 being only 0.15 million kgs. National standards for Organicproducts have been formulated and Tea Board of India has been designated as theaccreditation agency for Tea. The Tea Board has also submitted a project proposalthrough the Food and Agricultural Organisations (FAO) aimed at development oftechnology and system of organic Tea production by setting up model Organic farms, forfunding by the common fund for commodities (CFC) . Financial assistance is also beingprovided by Tea Board for imparting training on organic methods of cultivation. Atpresent , there are no certified small growers in the Organic Tea Sector. However TeaBoards training programmes for development of Organic Tea cultivation will also coversmall growers in due course. 11According to the economic times, Small tea growers up share in outputThe Indian Tea Association says factories run by small growers have increased theirshare in the countrys tea production at a time when labour shortage and rising overheadcosts hit production at large estates. The association said in a report last month that 15
    • production at bought leaf factories increased by 12.3% between 1998 and 2007 as againsta 0.9% drop in the output of large estates. Bought leaf factories are units that process teabut do not grow leaf. This sector has much lower cost of production which allows it tosell tea at cheaper rates.Industry observers say a large number of establishedmanufacturers are now approaching these factories for tea. "We do buy around 2 millionkg of green leaf from the small growers," said Aditya Khaitan, managing director ofMcLeod Russel India Ltd. "However, we have set our quality parameters and we procuretea according to that standard."Premium quality tea produced by small growers sells for over `100 a kg in Coonoorauctions, said Krishnakumar J Shah, an exporter. The tea association said Assam hasregistered the highest increase in bought leaf factory and cooperative production. Outputby small growers here has risen from 21.43 million kg in 1998 to 102.93 million kg in2007.Small growers in the Nilgiri region in Tamil Nadu are contributing 90 million kg of teafrom their 125 bought leaf factories, according to G Ramamurthy, a scientist with UnitedPlanters Association of Southern India. The yield is high in this area as most of the landis converted vegetable land, he added. The Nilgiri region, comprising Gudalur, Ooty,Coonoor, Kotagiri and Kundah, has 80,000 small growers and 40,000 hectares of landunder tea. The growers supply green leaves to bought leaf factories who manufactureblack tea and sell it at the auctions. The region has seen a 4% increase in crop this year."The less intensive north-east monsoon has led to good crop growth," said S Ramu,president of Nilgiri Bought Leaf Tea Manufacturers Association. "Last year, the growershad suffered severe damage due to floods."The Wayanad Agro Movement Tea Company in Kerala has over 400 small growersassociated with it. An increase in production at bought tea leaf factories has helped thecompany achieve an average daily production of 2,000 kg of CTC tea. CTC refers tocrush, tear and curl, a tea processing method.12Caffeine content and effectsTea: Tea has approximately 55 milligrams of caffeine per cup. Various teas containdifferent amounts of caffeine. Green tea contains the least, about one-third the caffeine asblack and oolong about two-thirds as much. The caffeine in tea is said to increaseconcentration, and enhance the sense of taste and smell. The effect of caffeine in teausually takes longer to enter the blood stream than coffee therefore, seems gentler to thesystem. About 80% of the caffeine in black tea can be removed easily at home.13Medicinal uses of tea 1. To cure loose motions: Lemon tea with biscuits made of husk in two to three doses. 2. To decrease Obesity: Honey tea first thing in the morning. 16
    • 3. To cure fire burns: Covering the burnt part with a cloth soaked in cold black tea [no milk, no sugar] and replacing and repeating every half an hour. 4. To remove Phlegm in the body: Basil / black pepper / ginger tea 5. To cure windy troubles: After light lunch, take black tea [very little sugar and milk, if a must for any individual to relish tea]. 6. Use of tea leaves in gardening: Add strained tea leaves / powder to soil and it is very good manure. It is being practiced by me with pronounced result for all kind of plants and especially very good for flower plants. 14According to the Telegraph, Tea output rises in march, 2011.Tea production in March saw an upswing of around 16 percent to 56.73 million kgcompared with 49 million kg produced during the same period last year. Exportshowever fell to 11.9 million kg from 23.49 million kg last year.According to the latest data published by the tea board, higher production was largelyon the back of higher output in Assam.Production in the Assam valley was 21.37 million kg against 12.67 million kg produced inMarch 2010. Cachar production was 2.2 million kg compared with 2.1 million kg lastyear. Total Assam tea production stood at 23.66 million kg in March against 14.8 millionkg during the same period last year.During march Darjeeling produced 0.5 million kg while the output in the Dooars andterai stood at 7.6 million kg and 6.1 million kg , respectively. Total production in Bengalregistered a minor dip at 14.36 million kg against 15 million kg during March 2010.Exports showed a negative trend and almost halved in March. In the first quarter of thisyear estimated exports tea are said to be 39.62 million kg – 22.70 million kg from northIndia and 16.92 million kg from the southern part of the country. In the January Marchquarter last year, exports had touched 53.99 million kg.ManufactureTea manufacture is the process of converting young fresh tea shoots intodry black tea. This involves a number of processes from plucking topacking. At the plucking stage, only the top leaf tips are picked every 6 to7 days. The tip leaves are younger and finer which produce a betterquality tea. The fresh green leaves now need to have the moisture removedfrom them. This is done by blowing air through the leaves for up to 14hours, leaving a soft and pliable leaf. There are then two ways of treatingthe tea. Tea which is to be used as loose leaf will normally be rolledgently to create a twisted appearance.In contrast, tea which is to be used for tea bags is shredded and crushed toproduce a small granular product. Rolling and crushing the leaves, resultsin the rupturing of the leaf cells which allows oxidation to occur. Thisgives the tea its distinctive black colour and flavour. The tea is then driedat high temperatures to achieve the correct taste. When it has been dried, 17
    • the leaf tea is of differing sizes and will also contain pieces of fibre andstalk. At this point it is processed to remove pieces of stalk which willthen leave tea suitable to be sold as loose tea. The tea is passed throughvarying sizes of meshes to sort it and has to be passed through very fineones in order to produce tea fine enough for tea bag production. Thisprocess of sorting is a harsh one and it can cause the tea to lose some ofits flavour. That is why loose tea usually has a better flavour than the teain a tea bag.Tea is indigenous to India and is an area where the country can take a lotof pride. This is mainly because of its pre-eminence as a foreign exchangeearner and its contributions to the countrys GNP.In all aspects of tea production, consumption and export, India hasemerged to be the world leader, mainly because it accounts for 31% ofglobal production. It is perhaps the only industry where India has retainedits leadership over the last 150 years. Tea production in India has a veryinteresting history to it.The range of tea offered by India - from the original Orthodox to CTC andGreen Tea, from the aroma and flavour of Darjeeling Tea to the strongAssam and Nilgiri Tea- remains unparalleled in the world.Here are some statistical facts about the Indian Tea Industry: • The total turnover of the tea industry is around Rs 10000 crores. • Since independence Tea Production has grown over 250% while land area has just grown by 40% • There has been a considerable increase in export too in the past few years. Total net foreign exchange earned per annum is around rs 1847 crores. • The labour intensive Tea Industry directly employs over 1.1 million workers and generates income for another 10 million people approximately. Women constitute 50% of the workforce.Tea trading in the domestic market is done in two ways: auction andprivate selling. Market reports are received from the six major Auctionscentres in India namely, Calcutta, Guwahati, Siliguri, Cochin , Coonoor ,Coimbatore and teaauction.com. 18
    • For many of us, a cup of tea is the best way to kick start a day. As themost loved beverage in India, tea has indeed become an integral part ofthe lives of its populace. Besides, India is the largest producer of tea inthe world with as much as 810 million kilograms being producedannually.There are three major tea-producing regions in India - Assam, Darjeelingand Nilgiris. Over the years, India has mainly been known to produceblack tea. However, there is a shift in the trend now as many tea estateshave started producing green, white and oolong teas.Assam:One of the largest tea producing regions of the world, Assam is known forgrowing the original Indian tea. Assam tea gardens feature impeccablypruned tea bushes covering about 2,16,200 hectares that produce morethan 360 million kgs of tea annually. The tea of Assam has a strongpungent taste that makes it famous the world over. The cropping season inAssam begins as early as March and extends almost to mid December. Darjeeling :One of the most famous teas in the world, Darjeeling tea is grown in thefoothills of the Himalayas at an altitude of six thousand feet above sealevel. Considered as one of the best, Darjeeling tea is also referred to asthe Champagne of teas. Tea with a class, Darjeeling tea has a strongcharacter and gentle disposition making it an all time favorite of tealovers.Nilgiri:Also known as the Blue Mountains, Nilgiris are spread across thesouthwestern tip of India and lies at an altitude of forty five hundred feet.Grown all the year round, Nilgiri teas are relatively mild and is a mellow,light and clean liquor. Besides, Nilgiri teas are often used in blends.Indian Tea Industry can be segmented into two geographical divisions –North India and South India.In North, or particularly, Northeast India,Assam and Sikkim are prominent in producing tea and are better knownfor representing Indian tea quality all across the globe. For South India, itis, Tamilnadu (Nilgiri), Kerala and Karnataka, who contribute to theremaining production of tea and majorly coffee.It is to be noted that in thecurrent tea production scenario, South India produced 129.29 mkg of totalvolume of 466.37 mkg in 2006 between January to July whereas, NorthIndia contributed three times higher productivity at 337.08 mkg.The Major Tea Regions 1. India 19India is the largest tea-producing country in the world. Although India
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