Tea Industry in India

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Source-This post is based on the article “Tea Association of India warns of return to ‘dark phase’ for industry” published in “The Hindu” on 10th January 2024.

Why in the News?

Recently the Tea Association of India (TAI) has cautioned about challenges reminiscent of the “dark phase” observed in the country’s tea industry from 2002-07.

What are the factors contributing to the current crisis in Tea industry in India?

1) Stagnant prices

2) Oversupply

3) Widening gap between demand and supply

4) Intense competition from other nations like Sri Lanka and Kenya.

Note– Over the past decade, the costs of essential inputs increased by 9-15%, while tea prices only saw a 4% rise.

What are the key details about tea & its production in India?

Tea cultivation in India
Source- ResearchGate
SpecificationsDetails
What is it?1. Tea is a popular beverage made by infusing cured or fresh tea leaves of Camellia sinensis, in hot water.
2. It is the second most consumed drink in the world.
OriginTea is believed to have originated in ancient China, northeastern India, north Myanmar
International DayMay 21 every year(Designated by UN General Assembly in 2019)
Growth Conditions1. Temperature– 16-32 degree C
2. Rainfall– 15-300 cm per annum
3. Relative humidity should be around 80% most of the time and should never be less than 40 %.
4. The area should not be prone to frost.
5. The soil should be acidic(around PH 5.0) with good drainage facility.
GI TagDarjeeling Tea known as the ‘Champagne of Teas’ was the first ‘GI product’
Production1. India is the second largest producer of tea after China globally(Largest black tea producer)
2. The majority of its annual production comes from Assam(55%) and West Bengal
ConsumptionIndia is among the world’s top tea consuming countries, with 80 % of its production consumed domestically
RegulatorTea Board of India

What is Tea Board of India?

1) It is a statutory body set up under section 4 of the Tea Act, 1953 was constituted on 1st April 1954.

2) The present Tea Board is functioning as a statutory body of the Central Government under the Ministry of Commerce.

3) Head office- Kolkata.

4) Overseas offices – Dubai and Moscow.

5) Functions- Rendering financial and technical assistance for the cultivation, manufacture and marketing of tea, export promotion, aiding Research and Development activities for augmentation of tea production and improvement of tea quality.

UPSC Syllabus- Indian Economy(Agriculture)

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