Challenges against Bought Leaf Factories sourcing Green leaves from Small Tea Growers in North Bengal, India, and a Way forward to improve the Supply Chain from Garden Fresh Leaves to Packet Teas at the nearest Retail Units.

1. Presented By,
Uttayam Bhattacharya
Assistant Manager (Operation)
Goodricke Group Limited

2.  One of the India’s Primary
beverages is TEA,
where around 85% of
households in the country are
consuming Tea.
 Out of the world’s total tea
production, 27% is being done by
Indians.
 As India is one of the
countries with largest consumer
base for tea, about threefourths
of the country’s total produce is
consumed by the
local people.
 Indian tea has its own taste and
quality that
makes it stand out in the market.

3. BLF
sourcing GL
from STG
3

4. 4
.

6. 6
Across the world, tea’s auction price has declined in
the recent past years. No proper steps were taken to improvise the
quality of green leaf being produced in India to raise the price margins.
With rising costs and lower prices, the BL Factories face difficult times.
In India theaverage price for teabetween 2012 to 2022 was -
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
141 135 143 145 140 142 141 140 138 133 128
.
141
135
143 145
140 142 141 140 138
133
128
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

7. 7
 As STG’s is giving importance to production increase and
not for quality improvement, Indian tea known for its
superior taste may lose its market in the international
arena if quality is not taken care of.
 Due to lack of standardization and stringent quality
measures in the sub-sector, the product of BLFs is often of
inferiorquality fetching lowprices. This is then passedto the
small tea grower as lower leaf prices.
.

8. Less Production -
 In order to
maximise the
profit BL
suppliers and
brokers mixing
Both quality of
(Fine & Coarse)
leaf, collected
from Field in
order to reduce
the average
price.
Resulting
mixed
uneven sized
leaf
Uneven
withered &
damaged leaf
Inferior
quality of tea
Fetching low
price from
market.
BL Factories
facing Loss.
As a result
Less
Production.
Both quality of
(Fine & Coarse)
leaf are
collected from
Field
Leaf getting
mixed in order to
reduce the
average price.
And to maximise
the profit.

9.  Now days the acceptation of BL by Retails
Giants totally depending on transparent
traceability of bulk tea.

10.  Now days Retail Giants
started publishing their
list of suppliers in their
Tea Packets.

12. 12
.
Possible
Solution

13. PROBABLE SOLUTION -
13
× .
One Central Organized BL Procurement Operation -
Indian tea industry is still unorganized and even though Government is
controlling this industry with Tea Board, it’s not that effective as expected. Thus it
is the Tea Board that has to undergo structural reforms in order to safeguard the
industry as well as so many
people who is dependent totally on tea for their survival.
Centralized
Green Leaf
Price Fixation
Centralized
Green Leaf
Receiving
Time fixation.
Proper
surveillance
for the
compliance of
above.
One Central
Price fixation
in a single
day.

14. PROBABLE SOLUTION -
14
× .
MiddleMan Accountability:
Now days Brokers are playing a
profitable role in BL Procurement.
So, Industry policy makers should
accountable them by giving
responsibilities for the betterment of the
industry.
 Regarding GL source details, it will help in
Traceability.
 Encourage suppliers, not to mix leaf in
order to maintain a decent of green leaf.

15. PROBABLE SOLUTION -
15
× .
Awareness Programs:
Growing STG’s become a biggest challenge for the Tea Industry that only production is
given importance by them because of ignorance. Thus to improve the standards of Tea
Production, Government and Tea board have to organize more awareness programs on
Tea plantations and on entrepreneurship skills, so as to run the business with better
profits.

16. Trinitea
Supporting
programs for
small tea
growers to help
them move up the
value
chain.
Trinitea
connecting local
growers to
increase
profitability by
leveraging
sustainability.
Trinitea
enabling
traceability and
fair-trade
practices
throughout the
supply chain.
Trinitea
Bringing/Providi
ng/
Supplying
sustainable tea
that is farm
fresh to tea
drinkers

17. .
 India being the second largest producer of Tea has numerous opportunities
to develop the Tea Industry as it is providing employment to a huge number
of people in the north eastern states.
 India now has the best opportunity to penetrate through the world market.
 And also this October and November Tea production of India has increased
from previous years thus showing a positive sign of reviving back as demand
is increasing that in turn leading to increased prices.
 It is the policy makers who have to formulate strategies to keep this industry
alive.
17
CONCLUSION -

18. Thank You
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