2020 vision: How India can recapture its glory in global tea market

India has been exporting approximately 200 million kg (mkg) of tea annually for over 50 years. Unfortunately, we have not been able to raise exports beyond this quantity, mainly because of domestic demand. But a lot can be done to change this.

We have our unique 600 mkg of Assam teas, 30 mkg of Nilgiri teas and other high-grown orthodox teas, and 10 mkg of Darjeeling teas.

These teas sell well in the domestic as well as quality-conscious overseas markets. Flavoury Nilgiris with round liquors and a soft lingering after-taste are sought after in Europe and Japan and many estates have been successful in promoting single-origin teas on the lines of ‘single malts’.

The exquisite Darjeelings with their delicate flavour and bouquet deserve high prices, but need to be promoted aggressively in sophisticated markets.

Out of the Indian production of approximately 1,200 mkg per annum, the share of orthodox tea is a mere 90 mkg. Scaling up of the orthodox output will not only bring us higher returns, but also also reduce the number of cups of tea available in the market as orthodox teas yield fewer cups per kg of tea and thereby relieve the pressure on the market at the retail level.

An incentive scheme could be worked out to induce Assam producers to take one or two orthodox dhools during the first and second flush seasons and South Indian medium elevation producers to take up orthodox manufacture during the January-March period, when ideal conditions prevail.

Manufacture of green tea and speciality tea could also be thought of by the more enlightened producers.

Ex-estate sales of tea will have to be thought of and teas will have to be sold on the basis of samples drawn on the estates so that handling charges and warehousing at expensive locations are minimised.

Buyers will also get the teas in a fresher condition and at places of their choice, especially when GST comes into operation.

The area under tea is bound to come down, reversing the trend seen in recent years, more so in the hill districts of South India, where there is an increasing demand for real estate.

The shortage of workmen is also a sign of the times as the younger generation, having benefited from better education facilities, is migrating to the towns and cities.

This may be partially offset by bringing workers from even more backward areas and by mechanisation.

This is the second and final part of a series on the tea industry. The writer has worked in the tea industry for over 40 years. He has been a Director of Parry Agro Industries, Chennai, since 2006. Views are personal.