‘Investment key to tea estates survival’

A steady and judicious investment in tea estates is critical for survival of the tea industry, according to M.G.V.K. Bhanu.

Talking to Business Line here recently prior to relinquishing charge as Chairman of the Tea Board, Bhanu observed, “When the going is good, as it is now, the tea companies must set aside a sizeable portion of their surpluses for ploughing back in replantation and irrigation”.

An officer of the 1985-batch Indian Administrative Service and belonging to the Assam cadre, Bhanu took over as Chairman in November 2011 on a five-year term. However, he has been called back to Assam on completion of only two years.

In the absence of regular investments on maintenance of tea estates, the production of green leaves would continue to decline putting the crop prospects at stake. As he pointed out, the production at most of the big gardens has virtually reached saturation level.

Take care of your workers

The former Tea Board Chairman also drew attention to the need for larger spending on welfare of workers in North Indian tea estates.

“The garden owners in North India must take care of their workers; otherwise, there will be shortage of manpower as it has happened in South Indian gardens.”

With alternative opportunities emerging, retaining workers was already proving to be a big challenge to growers in several tea growing states, he observed.

Turn focus to small growers

As small tea growers have started playing a big role in the country’s tea production, accounting for an estimated 35 per cent of the total, a larger allocation of government funds to these growers, in his view, has become imperative to ensure their growth and well-being, more so when the bulk of the projected increase in the country’s tea production in coming years is to come from them. The Tea Board, he felt, would be required to pay more attention to it.

The Board, according to him, should consider larger allocation of funds also for tea promotion in the domestic market.

Exports thrust needed

“The size of the country’s annual tea exports has remained stagnant at around 200 million kg for the past half a century or so whereas the domestic demand is booming,” he said. “Every year, an estimated 30 million kg of additional demand is being created within the country”.

However, exports would continue to be important particularly for quality and value-added tea and the focus should be on countries like United States, Russia, Iran, Egypt and Kazakhstan. The opportunities held out by Pakistan should also be carefully explored. “Unfortunately, the production of quality tea is not increasing much because of the drop in plucking standards,” he said adding, “the climate change too is posing a major threat”.

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