Tea is one of the most popular and widely consumed hot
Scientific name of tea is Camellia Sinesis.
Tea is an aromatic beverage.
Commonly prepared by pouring hot or boiling water over
cured leaves of the tea plant.
After water, tea is the most widely consumed beverage in the
It has a slightly bitter, and astringent flavor that many people
Tea is consumed in both hot & cold ways
Tea was likely originated in Yunnan, China during the Shang
Dynasty (1500 BC–1046 BC) as a medicinal drink.
Tea was first introduced to Portuguese priests and merchants
in China during the 16th century.
Drinking tea became popular in Britain during the 17th
The British introduced tea to India, in order to compete with
the Chinese monopoly on tea.
More than 30 countries grow tea.
Indian Tea Industry is about 172 years old.
Tea is the country's primary beverage, with almost 85% of
total households in the country consuming tea.
Tea Industry has seen a lot of changes in the past few
India, lost its first position as tea producer to China for
the first time, in the last 110 years.
Despite its fluctuating position in the world market, India
is a key source for tea as well as the largest market.
India accounting for 27% of the world tea production.
In India, tea cultivation on
commercial scale was first started in
Assam in 1839.
it was extended to other parts of the
country between 50’s and 60’s of the
However, due to certain specific soil
and climatic requirements its
cultivation was confined to only
certain parts of the country.
Major tea producing states in the
country are Assam, West Bengal,
Tamil Nadu & Kerala.
75% of the total tea produced in India
is accounted by Assam and West
Some of the world’s finest teas are produced in India.
India accounting for around 12-13% of world tea exports
Assam teas are famous for their strong, brisk and full bodied
Nilgiri teas are well known for their delicate flavor, strength and
Certain varieties of tea (for example Darjeeling) are grown only
They have great demand across the world.
All Darjeeling teas possess the lightness of flavour and fine
colouring that set them apart from all other teas
Production of the famous Darjeeling tea is aided by the low
temperature in the hills of Darjeeling
In India , tea industry is one of the oldest agro based
well organized industries.
Indian Tea Industry is one of the largest in the world
with over 13,000 garden
More than a million workers get direct employment
from this industry
A sizeable number of workers are women.
A large number of temporary workers are also engaged
during the plucking season
Workers who pick and pack tea on plantations in
developing countries like India are facing harsh working
Workers are earning below the living wage
The total turnover of the tea industry is around Rs.
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.
Indian Tea Industry is having 1692 registered tea
manufacturers, 2200 registered tea exporters 5548
number of registered tea buyers
Tea trading in the domestic market is done in two
ways- Auction and Private Selling
There are 9 auction centers- Calcutta ,Guwahati,
Siliguri, Cochin, Coonoor ,Coimbatore and N.I.
Bulk trading is done through the auctions held in
Packaged tea market is 213 million kg in volumes &
valued at Rs.60 billion.
Urban:Rural split of tea consumption is 56:44
TOP 10 LEADING
COMPANY IN INDIA
Tata Tea Ltd
Wagh Bakri Ltd
Goodricke Group Ltd
Hasmukhrai & Co
Girnar Food & Beverages
The labor cost is the largest cost overhead accounting for
about 60% of the total cost of production.
Tea production units in India are not just economical units
but rather social institutions
It controls the lives of the work force to a large extent.
Apart from employment, the plantations are also
responsible for providing house, water, welfare and many
other facilities to the workers
This is because most of the employees come from socially
and economically weaker sections of the society
Majority of employees are women who work and reside in
an ideal industrial community.
Their livelihood is directly linked with the prosperity of the
The industry faced steep decline in prices during 1999
Around 130 gardens were closed, abandoned or
suspended their operations for some time.
Majority of tea gardens have reopened with the
gradual improvement in tea prices from 2008 onwards.
The decline in the prices has mainly been due to strong
growth in supply in the face of sluggish demand.
In the past, tea prices have shown brief periods of
boom followed by longer periods of depression.
This fluctuating trends of pricing are due to agricultural
nature of the operations, eg. long gestation periods,
dependency on rainfall etc.
Gardens were inherently weak .
Suffered from low productivity .
Lack of investment on developmental activities.
Inadequate technical support.
Cost effectivity was not present.
Scattered nature of holding.
Inefficiency in value chain management i.e land
management , plucking efficiency and manufacturing cost.
Lacks properly organized production systems.
The additional duty excise of Re. 1 per kg on tea has been
withdrawn in the Union Budget for 2005-06.
Subsidy for the production of orthodox teas.
Assistance to the two tea Research and Development
A Special Tea Term Loan (STTL) for the tea sector was
Implementation of a price sharing formula between small
tea growers and manufacturers of tea
Reduction in the import duty on items of machinery used
to improve productivity and quality of tea
Plan for rejuvenation and re-plantation of old tea bushes
with a view to raise productivity
Strong research backed by well established research institutes.
Availability of modernized &upgraded facilities .
Strong domestic market.
Second consistent supplier after China.
Production of wide range of teas- black, (ctc, orthodox), organic
teas, green teas.
High quality specialty teas- Assam, Darjeeling, high range
Nilgiris, orthodox etc.
Poor communication facilities.
Low level of Professionalism
Plantation Labor Acts.
Environmental degradation- floods and soil erosion
Different Climatic conditions
Lack of mechanization
Lack of infrastructural facilities in terms of power
Erratic supply of inputs such as fertilizers, gas etc.
No control over price realization
Lack of vision.
Low level of motivation of staff.
Poor health of work force.
High fixed cost.
Low productivity levels.
High cost of production.
Research & Development transfer too slow.
Poor operations of Tea Board.
Disregard in quality.
Trade front issues.
Inefficient auction system.
Poor infrastructure for transportation.
Sales and taxation.
No effective cost management system
Slow increase in yield
According to ASSOCHAM ,the apex industry body the total turnover of
the tea industry in India is likely to reach Rs 33,000 crore by 2015 from
the current level of about Rs 19,500 crore
Tea industry is growing at a compound annual growth rate (CAGR) of
Estimate the tea production during the current year is likely to stay
over 950 million kilograms as against 966.4 million kilograms in 2010.
Health benefit associated with tea is a very significant factor in
increasing the demand of tea.
With rapidly changing market scenario and technological advancement
in agri business there is tremendous scope and potential for growth
and development of tea industry
To improve the quality of black tea.
To expand the domestic market .
To diversify the product portfolio.
To add value in Packaged and Blended teas
Focus on quality improvement.
Revitalization of image of India Tea in the international market .
Tailor made marketing activities specific toindividual country’s
Propagation of health benefits of black tea.
Keeping a check on the quality of tea exported.
Reduction in cost of production.
Introduction of new laws to discourage the price movements by
Improving supply chain management by fullutilization of e-
Redefining Tea Board activities and duties.