The Hindu Business Line : 2.12 lakh ha tea bushes identified for rejuvenation

He said the detailed costing and modalities of funding such a large programme, including the setting up of a special purpose tea fund, was under the Government's consideration.

However, in an oversupply situation, certain doubts had been raised over the wisdom in large-scale replantation, said Mr Das.

The objective was to address the issue of ageing tea plantations and the progressive reduction in yield level, he said. About 40 per cent of the area (both in the South and the North) has been targeted for replanting over the next 15 years.

Better synergy between partners and stakeholders would go a long way in improving the situation in tea, according to Mr Das.

The Tea Board Chairman said for many years now, the focus was on increasing quantity, which undermined the profitability of many producers.

Mr Das added that consumers worldwide were moving up the value chain from loose to packaged and RTD teas.

In his presentation on `Outlook on Indian Tea 2005', Mr Das said the fundamental oversupply in the world market will in all likelihood persist and this would have a consequential effect on prices.

Pointing to the gap between production and consumption, Mr Das said it had widened from two million kg in 1997 to 50 million kg in the next seven years and this was expected to widen further to 98 million kg by 2014.

"This oversupply situation has largely been blamed for depressed market prices and the challenges in the years to come could be more demanding."

The FAO IGG Tea projections for 2014 indicate a rise in the world black tea production to reach a high of 2.7 million tonnes, and the Indian production to grow by 1.6 per cent annually to touch 1.01 million tonnes.

"When world supplies are increasing, should India really embark on increasing tea production?" Mr Das asked, emphasising the need for promoting domestic tea consumption.

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