The Hindu Business Line : Industry told to step up orthodox tea output

THE UNION MINISTER of State for Commerce, Mr Jairam Ramesh, and the Chairman and Managing Director, Premier's Tea Ltd, Mr. H.A. Shah, during the opening of the new outlet of the company in Kolkata on Sunday. — A. Roy Chowdhury

Kolkata March 18

Proposals from the trade union bodies such as the INTUC, the AITUCS and others, regarding reopening the closed tea gardens, have been received by the Commerce Ministry and these are being studied.

Briefing newspersons here on Sunday on discussions with the Tea Board, and the Indian Tea Association, the Union Minister of State for Commerce, Mr Jairam Ramesh, said there was a plan to follow the Kerala model, developed by Kanan Devan Hills Plantations Pvt Ltd, for reopening some nine closed gardens.

He said the model involved alternative use of tea garden land and encouraging worker participation in management. Workers hold some 30 per cent in KDHP, with the Tatas holding some 26 per cent.

He said there were 20 closed tea gardens in Kerala, involving some 11,000 families (roughly affecting some 35,000 people). He said the model has also been discussed with the Bengal Government for implementation in the State, which has as many as 17 closed gardens, affecting some 50,000 people.

Mr Basudeb Banerjee, Chairman of Tea Board, said the Board was examining a proposal for setting up a remote sensing geo-based data base in the non-tea land, besides growing of alternate crops including exotic ones, spices etc. He felt even rubber could be grown for mitigating the risk.

The Union Minister, in his meetings with the associations, has urged the tea industry to submit a proposal within a week, for raising the current production of 80 million kg of orthodox tea to 120 million kg in next five years.

Pointing out that the Tea Board would examine the proposal, he said this was the only way India can defend its market share in the traditional markets such as Russia, which was slowly switching to orthodox from CTC.

He said bulk of Indian tea was of the CTC variety. Splitting world consumption of tea into 60 per cent orthodox (which is costlier) and 40 per cent CTC, he said the share of orthodox in India's total tea production of 930 million kg now was barely 8 per cent.

A Tea Board delegation, comprising industry representatives and led by the Chairman, he informed, was leaving for Egypt next week for setting up an Indian Tea Marketing and Promotion Centre in Cairo, essentially to grow that market for Indian tea.

Indian tea exports to Cairo during 2006 was around 2.5 million kg from virtually a zero in 2005. The centre, to be developed on a PPP model, will be run by the private sector, with 75 per cent rental costs borne by the Board in the first year, and gradually tapering off. M Ramesh said the tea industry has agreed to give this venture its best shot.

Pointing out that the tea e-auction plan was on course and expected to get fully operational by November this year, he said an international consultancy firm was being appointed to manage the system.

A committee headed by Mr Percy Siganporia of Tata Tea has already been set to oversee this.

International Tea Festival

The Minister said the signature biennial India International Tea Festival would be held in Guwahati on November 16, 17 and 18, with a satellite event in Jorhat.