The Hindu Business Line : Tracing the Indian tea story

Though the first tea bush planted in India was in a hilly region of Assam called Sadiya in early 19th century - incidentally Sadiya disappeared into Brahmaputra in the devastating flood of 1952 - by Charles Bruce, a Scot, no one can deny that the subsequent plantation activities and the growth of the corporate world around it took place in Kolkata under the guidance of the British rulers and patronage from the local entrepreneurs.

Tea history

Charles Bruce, however, was not the first planter. He got the tea plant seeds from the chief of Assam's Singpo tribe. Samples of the plant were later sent to Kolkata's Botanical Gardens for testing, the finding being that the plant belonged to the same family of Chinese tea plants. Even at that time, Chinese tea was a popular beverage and China was an established tea grower. Fresh experiments started with Chinese tea seeds but it was a failure in several parts of Assam and North East India. The same seeds, however, grew well in Darjeeling. Meanwhile, in 1834, Lord Bentinck formed a committee for the introduction tea culture in India. Based on the committee's reports, the British government sent a scientific mission to Assam to study more on this indigenous plant and also select a suitable place for growing it. By 1837, the first sample of tea was ready in Assam and next year, the first shipment consisting of eight chests was exported to England. In 1839, Sibsagar and Lakhimpur districts of Assam came under the British administration and it paved way for private enterprises to get into the tea business. Entrepreneurs soon approached the British government, both in London and Kolkata, for plantation rights. In fact, the first attempt to compete with the British was made by Maniram Dewan and the world's first tea company was formed in 1839 with Dwarakanath Tagore, grandfather of Rabindranath Tagore, as one of its directors. In the same year several companies, which were formed by then were brought under a common umbrella called Assam Company. The Jorhat Tea Company was incorporated in June 29, 1859, with gardens in Assam. In the early 1860, Rameswar Barua started six gardens in the Sibsagar. Later he sold it off to the British during the economic recession of 1866. By 1856, plantations activities started in Darjeeling and Cachar too. In West Bengal, outside Darjeeling, tea production started at Terai in 1862 and in 1874 at the Dooars. Before 1857, tea cultivation also started at the foot of Western Himalayas in Dehra Dun and Kangra. Tea was also reported to be growing in South India's Nilgiri Hills and the plant was similar to that of Assam's. Commercial production in this region started in 1854. Tea plantations were also there at Wayanad and Travancore. According to some statistics, in 1893 the area under tea cultivation was around 1,200 hectares in Nilgiris, 100 hectares in Wayanad, 130 hectares in the high range Kerala and 2,000 hectares in Travancore.

Little did the Singpo tribals knew that the plant that was wildly growing in Assam would play such a significant role in the economic growth of the country with India becoming the world's largest producer and consumer. Today, India has 39,700 tea estates (32,000 in the south and 6,700 in north) covering almost 520,000 hectares and a tea-producing workforce of more than a million people, of which 50 per cent are women. The annual turnover of the industry is over Rs 10,000 crore. Since independence, tea production has increased by more than 250 per cent and may soon touch the 1,000 million kg mark. A hot cup of Darjeeling orthodox or Assam CTC tea became the most sought-after drink for the tea connoisseurs of the world and India was the largest exporter of tea with huge consignments been shipped to Europe, Russia and Iraq.

Falling fortunes

Tables turned and fortunes started falling in the last two decades. Emergence of new producers like Sri Lanka, Kenya, Vietnam, Indonesia and the resurgence of Chinese tea sector dealt severe blow to India's monopoly over this commodity. Indian tea industry suddenly found itself uncompetitive in the global market. Its huge workforce (and several labour beneficiary programme) and ageing tea bushes reduced productivity and increased production cost. Indian tea started losing its flavour among the connoisseurs. At around the same time, the Russian federation disintegrated and the Rupee-Rouble trade stopped. Exports to Russia, which used to average over 100 million dropped each year dropped to 35-40 million kg. Annual exports, which hovered around 210 million kg, kept on falling to 170-180 million kg.

Even in the domestic market, Indian tea suffered because the cola MNCs gave the Indian youth the taste of global soft drinks. Hence, tea drinking became an old-fashioned habit. In the early nineties, with the advent of small growers and bought leaf factories, the total dynamics changed. Production increased and so too was profitability because of the high prices in the auction centres. The year 1998 became the golden year for the Indian tea sector. There after, it was a downward journey. Domestic and export market failed to absorb the increased tea production. Inventories increased, prices dropped and profitability suffered.

Positive signs

After seven years, there are signs of a turnaround. Auction prices are moving up because global tea inventories are shrinking due to a drought in Kenya. Tea Board along with industry has started generic promotion and it is yielding results. Domestic consumption is growing and the compounded annual growth rate is pegged at 3.3 per cent per annum. Per capita intake had increased to 733 grams from 630 grams in 1996-97. Exports are also showing signs of a renewed interest in Indian tea among the global tea drinking nations. Indian Tea Association has already predicted that the industry will resume its growth momentum and surpass the record it had set seven years back. Union government is floating a special fund for the replantation and rejuvenation of the tea bushes and the industry is waiting to take the advantage. It appears that tea industry will regain its status of a leader in the economic growth of the country.

Some highlights in the history of tea industry

2737 B.C. - Shen Nung, Emperor of China discovered tea. It became a drink of the nobility. (It is unclear whether this date is accurate)

A.D. 729 - First tea reported in Japan during Emperor Shomu's reign. Japan became the first country outside China to grow tea, and it became a vital part of the culture, finding its finest expression in the tea ceremony.

800 - Lu Yu wrote the Ch'a Ching, the first book on tea and regarded as an authoritative volume.

1560 - Portugese made first mention of tea and thus began a recorded contact between the Western people and tea

1612 - Tea first came to Europe

1658 - Tea arrived in England after cocoa and coffee and soon became the national drink. Initially expensive, it was soon welcomed as an alternative to the alcoholic breakfast, lunch, and dinner that came before!

1820 - "Afternoon tea" invented by Anna, Duchess of Bedford

1823 - Tea discovered in Assam, before which all tea came from China. A tea plant was discovered in the then British colony of Assam, in India. Also known as "a bitter tea" because of the large number of planters who succumbed to illness, insects, and tigers while clearing the jungles.

1835 - Tea first planted in Darjeeling. Well, this brings to light that tea is not native to Darjeeling. The high altitude and clear air was found optimum to produce a very delicate leaf, and many of the original estates are still in operation.

1838 - First Assam tea arrived in England. The first consignment was just a few chests, but Assam production grew to become the largest in the world at one point.

1839 - Tea first planted in Ceylon, which was well known for coffee until the 19th century. What was a trial by a few planters has become one of Sri Lanka's major industries today.

1903 - Tea first planted in Kenya. Among the largest tea producers, its history of tea is not as long as commonly assumed!

21st century brought innovation to tea that included teabags, instant tea, canned tea & flavoured tea, much against the scepticism of tea purists.

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