Challenges and Role of Stakeholders

1. Sustainability of
Kerala Tea Industry in the fast
changing geo-political scenario
of the world
Presentation by
Rakesh Kumar
Asstt. Director of Tea Development
2014
TEA BOARD INDIA
Ministry of Commerce & Industry, Department of Commerce
14, B.T.M Sarani, Kolkata – 700 001
www.teaboard.gov.in

2. 304.04
104.44
12.29
106.85
Area under Tea (in Th. Ha.)
India
Assam
West Bengal
Other North
Indian States
South India
629.05
312.1
23.92
243.71
Tea Production 2013-14
(in Million Kgs)
Assam
West Bengal
Other North
Indian States
South India
24244.87
549.11
529.76
802.38
817.49
6732.29
Area under Tea (in Ha.)
Kerala
Idukki
Kollam
Trissur
Trivandrum
Palakad
Wayanad
21%
7%
19%
53%
Major Tea Growing Zones in Idukki District
Vandiperiyar
Peermade
Elappara
High range or
Munnar
Tea Statistics

3. 46%
22%
15%
9%
8%
Major cost component in
Tea
Cultivation
Processing
Social
Overhead
General
0
20
40
60
80
100
120
140
2010 2011 2012 2013
119.51 117.19
135.59 139.95
67.69 70.17
87.39
98.75
North India
South India
Auction Prices during 2010-13(in
Rs/Kg)

4. PROFILE OF KERALA TEA INDUSTRY
PLANTATION
DISTRICT
TOTAL NO.OF BIG
TEA GARDENS
(AREA IN HA)
TOTAL NO.OF
SMALL TEA
GROWERS/AREA
IN HA.
TOTAL NO. OF
ESTATE
MANUFACTURING
UNIT
TOTAL NO. OF
BOUGHT LEAF
MANUFACTURIN
G UNIT
IDUKKI 56
(21947.57 Ha)
3679
(2297.35Ha)
42 07
KOLLAM 02
(548.71 Ha)
01
(0.40 Ha.)
01 00
TRISSUR 01
(529.76 Ha)
00 01 00
KOTTAYAM 0
(0.00 Ha.)
50
(79.74 Ha.)
00 00
TRIVANDRUM 04
(802.38 Ha)
00 01 00
PALAKAD 04
(817.49 Ha)
00 04 00
CALICUT
(KOZHIKODE)
00 06
(27.02 Ha.)
00 00
WAYANAD 25
(5367.62 Ha.)
2009
(1364.67 Ha.)
11 03
TOTAL 92
( 30013.53 Ha)
5745
(3769.18)
60 10
Source: TMS

5. GOOD AGRICULTURAL PRACTICES
CONSERVATION OF THE BIO DIVERSITY BY
SUSTAINABLE METHOD OF CULTIVATION
QUALITY & SAFETY
ADHERENCE TO THE SAFETY STANDARDS FOR PRODUCTION
OF TEA
ECONOMICS : RISING COST OF PRODUCTION
SOCIAL ISSUES:LABOUR INTENSIVE
Sustainability in Tea: Back to Nature

6. CHALLENGES BEFORE THE TEA INDUSTRY: ALL INDIA
Labour Intensive Industry
Global Scenario: Losing position due to high cost and poor to average quality
Competition with other beverages like soft drinks, Horlicks, bournvita, coffee etc.,
Linking production to market
Emergence of new grower country like Vietnam, Indonesia & Kenya
High Percentage of ageing bushes leading to low productivity and low rate of uprooting & replanting
High Production Cost: almost 80% of the cost alone is on fixed expenses like fuel, power & Labour
Ignorance of consumer about market structure
Improper Marketing of Tea : The current auction system mainly controlled by the “brokers” and proper price
realization is doubtful
Tea is ready to drink item, the downstream stages such as blending, packaging and ultimate marketing are the
most profitable one and in Tea all such profit margins are collected by the handful of stakeholder
Tea producer are ignorant of the market demand which has a direct impact on the long term sustainability of tea
Industry
Birth of small tea growers & BLFs who is now contributing almost 32% of the total tea production are mainly
scattered, un-organized and devoid of technical know-how , lack of extension services, poor farm practice &
logistic ,affecting the quality of tea
Environment Loss- Significant bio-diversity loss, High Energy Consumption, application of pesticides & fertilizers
affecting the large no. of different species, leading to pollution to water etc.,

7. CHALLENGES BEFORE THE KERALA TEA INDUSTRY
More than 75% of the total tea cultivation is confined to only one district – Idukki
Loss of Biodiversity :50% of the area under Idukki District falls under reserved forest. Conversion of Forest land into
plantation results a threat to the Bio-diversity
Change in climate due to ecological deterioration
Degrading ecology exacerbated with large scale Eucalyptus plantation to meet the high thermal energy requirement
in processing unit and loss of Biomass too
Large numbers of concentration of small tea growers in Idukki District scattered mainly in the four tea growing zones
who lacks the basics of technical know-how of tea growing vis-à-vis conservation of environment
High Percentage of ageing bushes leading to low productivity and low rate of uprooting & replanting
High Cost of production and low productivity (70% of the total tea area is above 50 years of age)
Mismatch between tea prices and Labour wages including social welfare cost
High Agriculture tax – levied @ 50% which is the highest for any tea growing State
Lack of soil conservation method leading to soil erosion , loss of top soil & landslides
Almost 80% of the landscape of Idukki District falls under High Range Mountain Landscape represents the Western
Ghats in terms of its ecological attributes, socio-economic profile and development trajectory. Tea occupies an
extent of 142 Sq. Km of the total land use under HRML
Environment Loss- Significant bio-diversity loss, High Energy Consumption, application of pesticides & fertilizers
affecting the large no. of different species, including pollution to water etc.,
Tourism:. This has increase the demand of land use, new infrastructure, encroachments, pollution, overcrowding,
intensive resource use viz., water and electricity, etc. thus becomes a threat in conserving the biodiversity & the
environment

8. INITIATIVES TOWARDS SUSTAINABILITY OF KERALA TEA INDUSTRY
Good Agricultural Practices
Conservation of Bio-diversity by adopting sustainable approach in cultivation process
Planting alternative and different species of shade trees and energy plantation other than Eucalyptus species
Adopt alternative source of thermal energy to reduce the dependency of bio-mass. Saving energy by adopting proper
energy efficient option by doing energy audit assessment at regular interval in Each tea factory
Back to the Nature Plantation -The uprooting & Replanting of tea bushes as well as replacement planting may be done
by adopting only “Organic method of Cultivation”
The unproductive /old senile tea bushes shall be uprooted @ of minimum 2% of the total tea area so as to follow a
cycle of renewing the entire tea estate in every 50 years.
Selection of Planting Material – High yielding good quality clones which are suited for the region viz., resistant to pest
& disease , drought resistance shall be preferred for planting
Reduction in the use of chemicals, pesticides, weedicide etc., which has an adverse affect on the climate and bio-
diversity. The banned chemicals shall not be used in plantation sector. Follow the Board’s Trustea and PPC Code.
Linking production with market so as to maintain the Demand – supply of the product
Value addition
Tourism- The new tourism destination in the High Range Mountain Landscape shall be discouraged
Training & Capacity building to tea farmers & groups towards sustainability in tea and organizing the small tea growers
into SHGs
Geographical Indication of the teas grown in Kerala /Idukki for Quality enhancement and enforcement on tea is
important for trade promotion as done in case of Darjeeling, Assam & Nilgiris tea
Improvement in the present marketing system of Tea viz., Maximum participation of the buyers in purchasing from
any part of India, redefining the role of broker in the present auction systems etc.,
Field Mechanization to overcome the shortage of Labour and to reduce the cost of production

9. Sustainability in
Kerala Tea Sector
Role &
Responsibilities
Tea Companies
Owners
STG
Research &
Development
Government
Central & State
Consumers
NGOs
Buyers, Tea
Traders & Pack
tiers
Role Of Stakeholders towards sustainability of Kerala
Tea Industry

10. Role of Stakeholders towards sustainability in Kerala Tea Industry
Owners/Tea Companies/STG/BLFs
Plough back the profits back to garden
Adopt GAP in the tea gardens
Follow the Government guidelines and different Act in
spirit viz., Plantation Labour Act, Factories Act, Tea Act &
TMCO, FSSAI etc.,
Improve the working condition in garden
Maintain transparency in every step from cultivation to
marketing
STG shall improve the quality of leaf and form SHG/Co-
operatives to get the benefits of Govt. initiatives/setting
up own T.F
BLFs shall take only good quality leaf for processing and
shall provide advisory service to the STGs towards GAP
Conserve the environment and Bio-diversity in every step
All Processing Unit shall go for Quality Certification
ISO/HACCP and the estate shall also go for Organic
Method of cultivation
Check for the Quality parameter before getting out of the
tea from factory premise/commercial use
Buyers/Tea Traders/Packetiers
Maintain the transparency in the entire value chain
Pass on/distribute the profit margin equally to all value
chain
Provide additional price for the tea produced by way of
sustainable approach
Do not lobby to dilute the social protections or the
welfare measures meant for the workers
Conduct Multi-stakeholder meetings and appraise them
about the market preferences and the quality and
quantity requirements
Do market research both domestic & International and
share the outcome to all the value chain
Maintain the demand-supply margin to keep the prices
under control
Do not stock tea for future marketing
Obtain quality certification for packaging or blending
units as well as for the brand
Check for the quality parameters by sending the sample
to NABL accredited Laboratories before commercial use
for FSSAI parameter & MRLs

11. Role of Stakeholders towards sustainability in Kerala Tea Industry
NGOs
Shall undertake the Social Welfare Program , educate the
workers towards good health and better working environment
Impart trainings on sustainable method of cultivations,
conservation of environment and bio-diversity
Improve the workers by developing their skills , other livelihood
method other than dependency on pay roll to the gardens so as
to overcome the situation of crisis of closure of the gardens
Encourage the owner/planters/tea traders to implement
effective code of conduct
Impart training to workers towards safety measures while doing
work in garden, handling hazardous chemicals for spraying etc.,
Support for broad based rural development, including the
development of local processing capacity and producer
association, and measure to improve credit and risk
management facilities
Educate the growers about the different social & welfare
measures and unite them to get the facility
Assist the small tea growers in formation of the SHGs/Societies
and help in necessary tie up with the producer for selling their
tea leaves at reasonable price
Arrange the stakeholder meeting for sharing their experience to
the entire value chain and to work out a model for
sustainability on Tea
Consumers
Shall buy the products that are manufactured through
sustainable approach
Shall participate in the awareness program call for all
the stakeholders to have an overall knowledge of the
entire value chain of tea industry
Shall look for the different certification which have a
guarantee on different quality aspect of Tea
Shall visit the official site to acquaint themselves of the
product
Always look on the details printed on the product for
their quality and in case of any doubt shall report to the
concerned authority for action
Must devote some time to fill up the feedback form
which help in the improvement of the product
Shall buy the product from genuine shop and retailer
only
Shall promote such teas which have a larger social value
and that have produce keeping the environment value
in every step of production
Shall undertake a self assessment on the Health Aspect
of Tea in compare to all the beverages available in the
market

12. Role of Stakeholders towards sustainability in Kerala Tea Industry
Government
Shall develop a module cum policy for overall growth of the tea
industry and its sustainability
Shall review all the different Acts implied to Tea Estate under the
present Scenario and ensure that those Acts are implemented in
spirit without violation at any stage
Shall act as a Friend, Philosopher and Guide to the Tea Industry
Ensure safety of the product by way of regular monitoring,
evaluation and review
Improve the marketability of the product both in Domestic as
well as International platform
Shall conduct regular stakeholder meeting to know the problems
of the Tea Industry and its solution
Strengthen the relationship between STGs and BLFs and proper
sharing of the prices
Make preferential procurement of tea possible for different
government departments
Ensure that the tea produced had follow the sustainable
approach and by way of different conservation method for the
environment & Bio-diversity
Ensure transparency in all value chain
Ensure proper credit facility and financial assistance schemes to
encourage the value chain to take up all the development &
quality measures to set a guarantee towards sustainable growth
of product and it’s safety
Research & Development
The research wing shall undertake the research on the
basis of the necessity of the entire value chain
Shall evolve the Planting Material that are best suited for
the different climatic condition and shall resistant to the
diseases and pest as well as the condition like drought
/waterlogged
Shall undertake the research on the safety of the product
Shall regularly conduct the stakeholder meeting and
appraise the scientific findings to the entire value chain
which helps in improving the overall quality of made tea
Impart regular Training / Workshops / Seminars for the
benefit of the different stakeholders
Impart regular training to the STGs/ SHGs to create an
awareness towards Good Agricultural Practices ,
conservation of soil in hilly terrains etc.,
Conduct Lab to Land program, mobile advisory service
Find alternative shade trees other than mono cropping
Find alternatives of the thermal energy in Tea Factories to
reduce the pressure on the biomass
Forecast different weather condition and the field
operation suited in defined regions

13. TEA BOARD INDIA & ITS DIRECTORATE : ROLE
Tea Board
India
Tea
Development
Research
Licensing
Tea
Promotion
Establishment
Statistics

14. INITIATIVES TAKEN BY TEA BOARD OF INDIA TOWARDS SUSTAINABILTY OF TEA
Good Agriculture Practice: Engage UPASI-KVK & Boards’ Official to provide free advisory service to
the Tea Estate , Factories, STGs and SHGs on different cultivation/manufacturing process
Old & Senile Tea Bushes: Design & Implemented SPTF Scheme to uproot & Replant the Old
unproductive tea bushes with elite clones, Replacement of Old Tea Areas with better productive land
and Rejuvenation of the Tea Bushes for which the Subsidy @ 25% of unit cost is being paid
Plantation Development Scheme: Subsidy @ 25% of the unit cost for the other field activity viz.,
Irrigation, New Planting for small tea growers etc.,
Improvement in Quality: In addition to field, subsidy @25% of the unit cost is being paid for
modernizing the tea factory and for product diversification, value addition and for obtaining quality
Certification (@50% of cost or Rs.1.00 Lakhs)
Social Issues: Design & Implemented Labour Welfare Scheme to provide education, training and
better Health to the workers of Tea Garden and its dependent
Introduce TRUSTEA code and Plant Protection Code as a policy towards ensuring GAP and Safety of
the Indian Teas. Registered Geographical Indication & Logos for better tea trade
Organizing fairs in India & Abroad for promoting Indian Teas
Organizing Buyer-Seller meet for better market research and to create a demand for Indian teas
Set up Small Growers Development Directorate to look after the rising entrepreneurs who shares
almost 32% in the total tea production (Globally 70% approx.)
Monitoring, Evaluating & Reviewing all the initiatives taken for upgrading and effecting
implementation of the policy initiatives

15. THANK YOU
END OF PRESENTATION