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Challenges in India’s Tea Industry - Coggle Diagram
Challenges in India’s
Tea Industry
Introduction
Key concerns include stagnant prices, oversupply, demand-supply gap, and a trend towards cheaper teas.
Echoes of the 2002-07 "dark phase" revisit India's tea industry, notes the Tea Association of India (TAI).
Previous crisis during 2002-07 due to regulatory challenges, falling demand, competition, and export quality concerns.
Indian Tea
Industry
Direct employment for 1.16 million workers regulated by the Tea Board of India.
Major tea-growing regions include the Northeast (Assam and north Bengal) and the Nilgiris in south India.
India is the second-largest tea producer and fourth-largest exporter globally with a substantial domestic consumption market.
Key Statistics
and Trends
Tea imports rose from 27 million kg in 2021 to 30 million kg in 2022.
Exports till October 2023 decreased by 2% compared to 2022.
Current scenario marked by stagnant prices, increasing input costs, estate closures, and reliance on subsidies despite India's economic strides.
Production increased by 39% from 2008 to 2022, with a slight projected increase in 2023.
Challenges
and Issues
Pest problems, especially bacterial black spot disease.
Low wages for laborers, leading to workforce shortages.
Unfavorable climatic conditions affecting plantations and laborers.
Quality deterioration due to a focus on production over quality improvement.
Financial problems, power issues, labor disputes, inadequate communication, pollution fees, and low subsidies impact production.
Government
Initiatives
Tea Development and Promotion Scheme launched in 2021 to enhance productivity and quality.
Subsidies for domestic exporters participating in international fairs and exhibitions.
Formation of SHGs, FPOs, and FPCs to assist small tea growers.
Promotion for packaged Indian tea with assistance in promotional campaigns, display in international stores, website development, and inspection charge reimbursement.
Way Forward
Infrastructure creation for boosting exports, concentrating on high-value markets, promoting GI tea, and organic tea.
Modernization for strengthening local supply networks and promoting self-sufficiency.
Support for small farmers, emphasizing production, quality, and sustainability for high-value markets.
Adaptability to climate change with a focus on sustainable solutions for tea plantations.
Focus on 'AROMA': Assistance to small growers, Re-energizing infrastructure, Organic and GI tea promotion, Modernization of supply chains, and Adaptability to climate change.