Syllabus: GS3/ Agriculture
In News
- India has become the largest importer of tea from Kenya, with imports rising by 288%, from 3.53 million kg (January-October 2023) to 13.71 million kg during the same period in 2024.
India’s Tea Industry: Present Status
- Global Ranking: India is the second-largest tea producer after China, contributing 21% of global tea production.
- Exports:
- India is the fourth-largest exporter, with a 12% global export share.
- India’s tea exports also increased from 184.46 million kg from January to October in 2023 to 209.14 million kg during the same phase in 2024.
- Top export destinations include the UAE, Russia, Iran, U.S., and U.K..
- Domestic Market:
- Domestic consumption accounts for 80% of total production, driven by India’s tea-drinking culture.
- Regional Production:
- Assam produces 55% of India’s tea, making it the largest tea-producing state.
- However, India’s total tea production dropped by 50 million kg in 2024, with Assam facing a loss of 20 million kg.
Significance and Potential of Indian Tea
- Economic Contributions: The Indian tea industry provides numerous direct and indirect job opportunities, especially in rural areas.
- It generates significant foreign exchange and government revenue.
- Global Reputation: Strong geographical indications, advanced tea processing facilities, and innovative products have positioned Indian tea as one of the best globally.
- Strategic Growth Areas: Expanded product mix, value addition, and strategic market growth have enhanced Indian tea’s competitiveness.
Challenges Facing India’s Tea Industry
- Stagnant Prices and Oversupply: A widening demand-supply gap has led to stagnant prices, impacting profitability.
- Cheaper Imports: Entry of low-cost teas from other countries has caused quality concerns and a decline in exports.
- Rising Input Costs: Many tea estates are struggling due to increased costs, leading to closures or reliance on subsidies from parent companies.
About Tea
- Botanical Background: Tea is an evergreen flowering plant, prized for its leaves and leaf buds, which are used to produce one of the world’s most popular beverages.
- Cultivation Requirements:
- Soil: Well-drained soil with high organic content and a pH of 4.5 to 5.5.
- Climate: Grows best in tropical and subtropical climates.
- Origin in India: Tea plants were introduced by British colonialists from China and Southeast Asia around three centuries ago.
- Geographic Spread:
- Primarily grown in Northeast India and West Bengal, but also in Karnataka, Kerala, Tamil Nadu, and Uttar Pradesh.
- Darjeeling Tea is one of India’s most coveted products and the first GI (Geographical Indication) registered product.
| Tea Board of India – Overview: A statutory body under the Ministry of Commerce, established under the Tea Act of 1953. 1. Succeeded the Central Tea Board and the Indian Tea Licensing Committee. – Composition: Consists of 31 members, including a Chairman.Members include MPs, tea producers, traders, brokers, consumers, state representatives, and trade unions. – Functions: Promotes Indian tea domestically and internationally. 1. Regulates tea cultivation and exports, ensuring compliance with global standards like the International Tea Agreement. |
Recommendations
- Boost Exports: Focus on value addition to improve pricing and attract premium international markets.
- Technology Integration: Strengthen blockchain technology for supply chain transparency and enhance research and development in cultivation techniques.
- Global Marketplaces: Establish a global e-marketplace to directly connect tea growers with buyers.
- Sustainable Practices: Encourage eco-friendly cultivation methods to ensure long-term viability.
- Policy Support: Provide targeted subsidies, skill development, and financial incentives to sustain tea estates.
Source: TH
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