The Hindu Business Line : ‘Orthodox teas gaining ground’

Coonoor, Sept. 16 “The Indian tea industry is progressively shaping to address the orthodox-CTC mix, which has been impacting the country’s ability to service global markets and putting an end to the oversupply of CTC teas in the domestic market,” the Tea Board Chairman, Mr Basudeb Banerjee, said here today.

Addressing the 114th UPASI annual conference session on Commodity Outlook, he said the orthodox tea production had shot up to around 90 million kg over the last two years from about 65 million kg. This was mainly due to the incentive scheme for the orthodox variety, he said, and added that a proposal has been put forth to the Government for continuing this scheme in the Eleventh Plan Period. The proposed allocation (incentive for orthodox production) is Rs 100 crore.

On the export front, he said the Board stood committed to providing thrust to key export markets such as Pakistan, Iran, Russia and Egypt.

A market overview however revealed a perceptible decline in exports to the Russian Federation and CIS block in 2006 and a significant increase in exports to Iraq, Kenya and Pakistan. “The appreciation of the rupee against the dollar by as much as 12 per cent over the last year has impacted our exports in the current year,” he said, and added that the bulk of exports was dollar denominated.

Reducing costs is key

According to him, the key to increasing exports would be in achieving the targeted reduction in cost of production and enhancing competitiveness. “Exports are also about building and consolidating marketing relationships,” Mr Banerjee said.

The Board was also working with the industry on the prospect of Assam orthodox and Nilgiri teas getting GI status on the lines of Darjeeling tea.

Electronic Auction

Mr Banerjee said the Board after completing the listing would commence the eAuction on a pilot basis sometime next year. “The full-fledged eAuction would be up and running by 2009.”

On the Special Purpose Tea Fund, Mr Banerjee said: “The response from the South has been very poor.” The Board has received 355 applications for replanting in 8,667 hectares during the current fiscal against the target of 11,000 hectares.