Guwahati: The tea industry will have to adopt a two-pronged approach not only to regain our lost markets, but also to explore and secure footholds in newer markets.

Speaking on the issue of tea exports, which has been dwindling due to pandemic and unresolved payment issues Chairperson of the Indian Tea Association, Ms. Nayantara Palchoudhuri said A two-pronged approach is necessary where traditional markets need to be protected through periodic delegations, interaction with trading bodies and growing markets should be tapped through sustained promotional drives and activating interaction with trading bodies and govt agencies of these countries.

She said this recently at the 131st annual general meeting of the Assam Branch Indian Tea Association at Jorhat.

"The pandemic and the unresolved payment issues concerning Iran, which is our largest orthodox market have pulled down exports substantially in the last two years. India’s export in 2021 is 196 mkg" she said.

"The conflict in Eastern Europe between Russia and Ukraine does force the industry to keep its fingers crossed as more than 45 mkg is exported to the CIS countries. Russia is a traditional and largest Indian tea market for Orthodox and CTC teas. However, this is generally a lean period of exports to Russia and it usually picks up from August/September.
The Association in a recent meeting with Union Commerce Ministry and DGFT has submitted for provisions of financial assistance to exporters to defray additional costs" she said.

She said it is well known that our scope for higher export hinges on higher production of orthodox given the popularity and demand of Assam orthodox abroad.

"Forty per cent of global export market distribution is skewed towards orthodox. Thus, in a scenario where the scope to bolster CTC exports is little, India has to produce more Orthodox to increase exports and secure stability in the domestic market through correction of product mix.

To encourage Orthodox production, the orthodox incentive needs to be not only restored but also revised upwards from Rs 3 to at least Rs 20 per kg and our pleas to the Union Commerce Ministry subsists. The Association has made its submissions to the Parliamentary Standing Committee on Commerce in Kolkata and Delhi recently.

The drop in India’s production for two successive years – 2020 & 2021 has helped in correcting the demand-supply mismatch with the wiping out of the huge surplus stock. In 2021, Assam has seen a decline of 8%, which is almost 54 mkg when compared to 2019. In the global context, the total world output estimated at around 6470 mkg in 2021 is higher by 3% and 5% in comparison to 2020 and 2019 respectively.

"With production increasing, prices are getting affected as predicted by the Food and Agricultural Organisation some time back," she said.

In India, while on one hand, the organised sector's production is showing a declining trend - (-0.7%), the small tea grower sector production is up by nearly 200 % since 2005 and has surpassed 50% of overall production. "Unfettered addition of new areas into tea should not be allowed so that both the organised sector and STG sectors coexist amidst economic viability," she said.

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