The Hindu Business Line : Trade body seeks steps to improve Indian tea image

THE Tea Trade Association of Kochi has urged the Tea Board to take positive and urgent steps in changing the impression that Indian tea is of poor quality in comparison to other countries.

There is a general perception in the Russian market that the quality of Indian tea is poor compared to that from Sri Lanka and this was the general view of a high-profile Russian delegation that visited the auction centre here in May.

"It is high time that the impression is changed and the Tea Board as well as producers and exporters should take immediate measures to correct this notion," said Mr George Pothen Poothicote, Chairman, Tea Trade Association of Kochi.

Addressing the 12th AGM of the association, he said that Sri Lankan tea currently accounts for 50 per cent of Russian imports, followed by China with a share of 25 per cent.

Indian tea, which accounted for 80 per cent during the Soviet era, has now only 20 per cent of the market share.

Referring to the tea industry, he said that the all-India production has shown a substantial decline of 23.62 million kg during the first six months of the calendar year, at 280.45 million kg compared to the corresponding previous period's figure of 314.07 million kg.

For more than four years now, the tea industry has been witnessing tumbling fortunes. The average price realisation from the Kochi Auction Centre during 2003 was Rs 45.78 per kg, compared to the previous year's figure of Rs 47.21.

In Coimbatore, the price was Rs 38.30 per kg in 2003 and Rs 40.46 in 2002, while in Coonoor it was Rs 34.55 per kg and Rs 36.78 respectively for 2003 and 2002. The average price realised in the South during 2003 was 33.80 per kg, whereas in north India the price realisation was Rs 58.69.

The price prospects for the coming period seems to be promising with a possibility of improvement of exports to Iraq, Pakistan, etc., and the expectation of more internal consumption; the Indian tea market has the potential to be more buoyant this year, he said.

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