The Hindu Business Line : Geographical Indications label for Assam tea soon

ON TRACK AGAIN: A vendor selling tea packets in Kochi. Tea exports from the country topped the 200-million kg mark to reach total exports of 203.86 mkg in 2006, the highest in three years. — K.K. Mustafah

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Kolkata Feb. 21 Assam orthodox tea is all set to receive the Geographical Indications (GI) exclusivity, and the application-registration process is expected to be completed within a month from date.

GIs function as source-identifiers, guarantees of quality, besides protecting business interests.

The Union Minister of State for Commerce, Mr Jairam Ramesh, told Business Line that Assam orthodox now joins Darjeeling Tea and Kangra Valley which already have the GI stamp. He said Nilgiri Tea would be next in line for GI.

(A GI stamp identifies a certain product as emanating from the territory of a WTO member or region or locality in that territory, where a given quality, reputation or other characteristic of the good is essentially attributable to its geographic origin.)

Mr Ramesh said this would be valuable to tea producers of Assam, particularly the first generation small growers who account for 15 per cent of Assam's total tea production of 450 million kg. It is felt that GIs are valuable as marketing tools in the global economy.

New assistance cell

He said in a bid to provide suitable assistance to small tea growers for adoption of modern technology to improve productivity and quality, and also ensure a reasonable return from their green leaf, it is proposed to create a separate wing within the Development Directorate of the Tea Board.

The proposal already submitted by the Tea Board is now under consideration of the Union Government.

Record production

The Minister put tea production for 2006 at a record level of 970 million kg (mkg), showing an increase of 24 mkg in 2005. He said the average price realisation has gone up by Rs 8 a kg, auguring well for the tea industry.

Putting tea exports during 2006 calendar year at 185 million kg (net of import), he said Iraq has displaced Russia as a bigger market for Indian tea at 41 mkg, up from the 28 mkg in 2005. Tea exports to Russia have dropped slightly to 32 mkg from 35 mkg the previous year.

He said during 2006, Pakistan accounted for 16 mkg, markedly up from the 6-8 mkg average of the last 10 years. Assam teas, he said, contributed 2 mkg towards exports to Pakistan. Kenya and Egypt have accounted for 5 mkg and 2 mkg, respectively.

Tea marketing

The Minister said the Tea Board Chairman would be visiting Cairo in the second week of March to explore the Egyptian market for Indian tea and also for setting up a Tea Marketing Centre, as a joint venture between the Board and the Tea Association.

Asked on the revised timing of the visit of the Indian tea delegation to Pakistan, he said it was likely in April this year.

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