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P.S. Sundar

Still teas are imported as part of tradition, globalisation

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Coonoor March 4 Indians drank an estimated 780 million kg (mkg) of tea in 2006 - some 23 mkg more than the previous year. They drank some 81 per cent of the total tea produced in the country. Once again, they proved that India was the world's largest tea consumer.

But, tea marketing cannot be taken for granted. It is not that consumers will buy teas for any value just because Indians drink a lot of tea. At the current reckoning, producers have to find market for some 190 mkg of teas outside India. In other words, India is a surplus market for tea.

Imports

On top of this, teas are imported as part of tradition and globalisation. Tradition because exporting units have been allowed historically to import tea for value-addition and re-exports. Globalisation ensures Indian consumers have a choice to drink Indian or foreign teas just as the producers have a choice to sell their teas within the country or abroad. So, imports cannot be stopped just because there is a surplus, unless the case is strong enough to invoke anti-dumping provisions under the WTO.

In the 10 months of 2006 itself, more than Rs 96 crore worth of teas had been imported - equivalent to the total import bill for all the 12 months of 2005. In 2004, Rs 141.32 crore was spent on tea imports.

Consumption

Given the vast consumption base India has, several producers are aiming at selling more of their teas to the Indians in the year ahead. To that extent, the Indian tea industry has to sharpen its marketing strategy to survive the competition not only abroad but in the domestic market itself. At the same time, if every Indian drinks just one more cup of tea daily, that would create an additional demand for 2 mkg every day. This works out to an additional demand of 730 mkg a year!

Already in 2006, Indians spent an estimated Rs 4,800 crore on tea while the foreigners gave Rs 1,700 crore for importing the Indian teas. If more money has to be spent on tea drinking, the industry has to convince the consumers as to what they gain by drinking the Indian teas. Tea should be sold on its merit, rather than growers' mercy.

Selling tea focussing on the advantage to the consumers' means promoting tea as a wellness drink. That's why, the Tea Board should declare 2007 as the `year of wellness with tea' and concentrate on promoting the positive impact of tea on the physical, mental and ecological health of the people at large.

The Tea Board has to explode the myth that tea drinking is a bad habit such as alcohol drinking, smoking or chewing tobacco!

With such an approach, tea should gain prominence as a premium product sold through exclusive kiosks, airport duty-free and gift shops etc., even as it continues to be a dhaba drink as the cheapest beverage to the poorest man.

Of course, only quality tea should be in the market for, wellness comes with quality, not otherwise.

More Stories on : Tea | Exports & Imports | Plantation Panorama | Health

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