PRESENTATION ON EXPORT
OF TEA
SIBMITTED BY:
PRASHANT MAKKER
NANDIT PASSEY
DARPAN BAJAJ
INTRODUCTION
The most popular drink, tea has and continues to play
an important role in almost all world cultures and
customs.....
The most popular drink worldwide, Tea comes in
several varieties. In India, black Tea is most popular.
In Asia or Europe or in the Americas, Tea is
associated both with simplicity and grandiose
ceremonies.
Recently, however, a new dimension to its nutritive
properties has given it the necessary boost. Its
medicinal values have also been recognised. Black
Tea like Green Tea, it is now being established, has
medicinal values worth researching.
HISTORY
First authentic references to tea and tea drinking is in China in
the fourth century A.D.
The first person to drink tea was a man named, Shen Nung .
The first written reference of tea made and consumed
appeared in 350 A.D. Kuo P’o.
An old Chinese dictionary describes tea as “a beverage made
from boiled leaves.”
From 350 to 600 A.D., the demand for tea dramatically
increased and outstripped the supply of wild tea trees.
Contd…..
Soon tea cultivation had spread throughout
China.
In the western world tea was brought first to the
notice of the Europeans in the mid of the 16th
century by Ramusio, the famous Venetian writer.
The first public sale of tea was in England,
which was conducted by Thomas Garway in
1657.
INDIAN HISTORY
Around 1774 Warren Hastings sent a selection of
China seeds to George Bogle, the then British
emissary in Bhutan
In 1776, Sir Joseph Banks was asked to prepare a
series of notes and it was recommended by him to
undertake the cultivation of tea in India.
In 1780, Robert Kyd experimented with tea cultivation
in India with seeds, the consignment of which was
stated to have arrived from China
Contd…..
A few decades later it was Robert Bruce in
1823 discovered tea plants growing wild in
Upper Bramhaputra valley
In May 1838 the first Indian tea from
Assam was sent to England for public sale
THE TEA PLANT
To begin with it is perhaps desirable to define ‘Tea’. ‘Tea’ has been
clearly defined in the Tea Act,1953. As per provision of Tea Act, ‘Tea’
means the plant Camellia Sinensis (L) O. Kuntze as well as all varieties
of the product known commercially as tea made from the leaves of the
plant Camellia Sinensis (L) O.Kuntze including green tea
Camellia sinensis is indigenous to China and parts of India. The wild tea
plant can develop into a tree 30 metres high
To produce tea on a commercial scale, saplings are planted close to
each other and repeatedly pruned or clipped to induct a luxuriant leaf-
growth sideways as well as to avoid blossomingThe height of tea
bushes is rarely allowed to exceed 100 cm and their number per
hectare ranges between 4,000 to 15,000. A hectare can yield anywhere
between 800 to 4,000 kgs annually. The Indian average yield per
hectare in 1998 was 1996 kgs. To make one kg of tea requires 4.5 kgs
of tender green leaves.
PRODUCTION CENTRES
There are three distinctly different tea growing regions:
DARJEELING
ASSAM
NILGIRI
Apart from the above three distinct tea growing regions,
tea is also grown in Kerala, Karnataka, Himachal Pradesh,
Uttaranchal, Sikkim, Orissa, Bihar, Arunachal Pradesh,
Tripura, Manipur, Nagaland, Mizoram & Meghalaya and in the
adjacent plain areas of Dooars and Terai of West Bengal
PRODUCTION CENTRES IN INDIA
SOURCE
http://teaboard.gov.in/images/teamap.gif?
param_link_id=730&mem_link_name=The%20Map%20of%20India
INDIAN TEA INDUSTRY
The tea industry in India is about 172 years old
Unlike most other tea producing and exporting countries, India has dual
manufacturing base. India produces both CTC and Orthodox teas in addition to
green tea.
Indian tea export has been an important foreign exchange earner for the
country. There was an inherent growth in export earnings from tea over the
years.
Tea Industry is an agro based labour intensive industry
10 million persons derive their livelihood from tea
In Northeast India alone, the tea industry employs around 900,000 persons on
permanent rolls
The Tea Industry is one of the largest employers of women amongst organized
industries in India .
Women constitute nearly 51% of the total workforce.
The total turnover of the Indian tea industry is in the vicinity of Rs.9000 Crs.
Production of green tea in India is small
Indian Tea Plantation Industry is able to maintain substantial growth in
relation to volume of Indian tea production during the last one decade.
There has been a dramatic tilt in tea disposal in favour of domestic
market since fifties
Tea is an essential item of domestic consumption and is the major
beverage
in India. Tea is also considered as the cheapest beverage amongst the
beverages
available in India. Tea Industry provides gainful direct employment to
more than a
million workers mainly drawn from the backward and socially weaker
section of
the society.
The total turnover of the Indian tea industry is In the
vicinity of Rs.9000 Crs. Presently, Indian tea
industry is having (as on 18.12.2009 )
• 1692 registered Tea Manufacturers,
• 2200 registered Tea Exporters,
• 5848 number of registered tea buyers,
• Nine tea Auction centres.
Reasons for increase in domestic consumption
Increase in population,
Greater urbanization,
Increase in income and standard of living etc.
SPECIALITY TEAS FROM INDIA
Black tea: These teas are fermented and fired to bring out the inherent
taste, flavour and aroma. The tea that is so popular throughout the
world is available everywhere in India.
Instant Teas: India has modern manufacturing units, where instant tea
is produced mainly for exports.
Green Teas: Green leaf is steamed or roasted as soon as possible
after it is plucked, to halt fermentation. Research shows that green teas
contain antioxidants which are good for health. Green teas from
Darjeeling and Kangra are popular worldwide.
Oolong Teas: This is a semi-fermented or semi-oxidised tea. The time
of picking being crucial for Oolong tea – the leaves should be neither
too young nor too mature. Soon after plucking, the leaves are allowed
to wilt in direct sunlight or dried with warm air to remove moisture and
then rolled. After oxidisation the l eaves turn reddish brown and adds to
fragrance.
Bio-dynamic Teas: A holistic approach based on the lunar calendar,
is used to make bio-dynamic teas. Fresh spring water, natural
fertilizers, even herbs like oak bark, yarrow, chamomile, valerian
etc. are put to use.
White Teas: The new buds are plucked before they open, then
withered to allow the natural moisture to evaporate. Sun dried and
unfermented, these teas are silvery in appearance and give a pale
and straw coloured liquor.
Flavoured teas: Flavoured teas are gaining popularity in the west.
India too manufactures flavoured teas for the export market.
TEA GRADES
Teas are essentially of three grades – leaf, broken and
dust.
In each of these main grades, the tea is further classified
according to size and final grades generally bear fancy
names
Leaf Grades :Orange Pekoe (O.P) , Pekoe (P )
Broken Grades :Broken Orange Pekoe (B.O.P), Fannings
or Pekoe Fannings
Dusts
EXPORT OF TEA FROM INDIA
North India South India All India
Year Qty Value Qty Value Qty Value
(M.Kgs.) (Rs.Crs.) (M.Kgs.) (Rs.Crs.) (M.Kgs.) (Rs.Crs.)
2004-2005 101.47 1228.7 104.34 696.01 205.81 1924.71
2005-2006 100.53 1160.14 96.14 633.44 196.67 1793.58
2006-2007 100.87 1223.2 117.28 822.52 218.15 2045.72
2007-2008 110.15 1291.18 75.17 597.5 185.32 1888.68
2008-2009 106.3 1560.96 84.34 820.83 190.64 2381.79
MAJOR COUNTRY WISE EXPORTS OF TEA FROM
Name of
INDIA
2008-2009 2007-2008 2006-2007
Country
Qty Value UP Qty Value UP Qty Value UP
(M.Kgs.) (Rs.Crs) (Rs/Kg) (M.Kgs.) (Rs.Crs) (Rs/Kg) (M.Kgs.) (Rs.Crs) (Rs/Kg)
Russia 36.75 392.65 106.84 44.22 377.54 85.27 39.36 322.21 81.86
Kazakhstan 9.76 131.49 134.79 10.81 111.05 102.71 9.69 104.67 108.07
Ukraine 1.58 15.31 97.23 1.46 11.03 75.52 1.15 8.75 76.15
Uzbekistan 0.06 0.71 120.66 0.07 0.81 114.44 0.22 1.65 73.76
Other CIS 0.55 8.50 153.34 0.35 7.13 202.11 0.21 3.06 149.56
Total CIS 48.70 548.66 112.67 56.91 507.56 89.09 50.63 440.34 86.98
UK 18.64 212.64 114.07 17.94 166.51 92.83 22.86 214.09 93.66
Netherlands 2.53 57.19 225.89 2.69 46.04 171.39 3.12 48.00 153.60
Germany 4.28 90.79 212.37 5.74 97.27 169.37 4.51 89.02 197.46
Ireland 1.49 33.58 225.97 2.15 38.56 179.78 2.37 46.73 196.84
Poland 2.99 38.33 128.11 4.45 38.09 85.68 3.94 35.00 88.81
U.S.A. 8.89 153.40 172.47 9.90 135.19 136.61 8.76 138.99 158.61
Canada 1.70 30.71 180.30 1.22 14.61 119.27 0.92 12.50 135.25
U.A.E. 21.66 275.85 127.37 25.91 253.89 97.99 22.77 231.22 101.55
Iran 13.92 196.22 141.00 14.04 154.70 110.15 9.91 105.79 106.73
Iraq 6.61 80.17 121.30 0.05 0.41 87.96 34.92 180.76 51.77
Saudi Arabia 3.11 35.93 115.50 1.99 17.13 86.04 1.12 11.04 98.91
A.R.E. 12.73 99.10 77.87 7.59 49.66 65.40 3.40 25.32 74.39
Turkey 0.08 1.05 129.17 0.06 0.70 111.87 0.20 1.27 64.39
Afghanistan 12.81 92.91 72.52 6.80 36.82 54.11 9.44 51.76 54.83
Singapore 0.30 7.03 234.26 0.38 6.96 181.28 0.47 7.22 154.41
Sri Lanka 4.37 48.28 110.51 4.86 39.82 81.98 3.08 29.14 94.72
Kenya 1.84 11.52 62.57 3.28 16.61 50.67 8.37 46.45 55.52
Japan 2.78 69.52 249.82 2.37 50.34 212.13 2.60 61.83 237.43
Pakistan 7.91 60.38 76.33 5.49 30.21 55.04 14.06 90.67 64.48
Australia 4.86 114.55 235.74 5.08 96.24 189.45 4.49 89.05 198.30
Other
Countries 8.44 123.98 146.82 6.42 91.36 143.72 6.21 89.53 144.05
TOTAL 190.64 2381.79 124.94 185.32 1888.68 101.91 218.15 2045.72 93.77
Estimated Value Earnings (in US$)
from Exports of Tea from India
Major Export Destinations
Till 70s’, UK was the major buyer of Indian tea
Since 80s’ USSR became the largest buyer of Indian tea due to
existence of the trade agreement between India and erstwhile USSR
USSR happened to be the major buyer of Indian tea accounting for
more than 50% of the total Indian export till 1991
With the disintegration of USSR and abolition of Central Buying
Mechanism, Indian tea exports suffered a set back in 1992-93
Indian Tea exports to Russia/CIS countries recovered from the setback
since 1993 under Rupee Debt Repayment Route facilities as also due
to long term agreement on tea entered into between Russia and India.
Depressed scenario again started since 2001 due to change in
consumption pattern, i.e. switch over from CTC to Orthodox as per
consumer preference . Thus India has lost the Russian market
Another reason for decline in export of Indian tea to Russia is offering of
teas at lower prices by China, South Asian countries like Indonesia and
Vietnam.
With the lifting of Common Market for Eastern and Southern Africa
(COMESA), prospects of tea exports to Egypt have also opened up.
The other countries for India's Tea exports include most of the European
Countries, U.S.A., Japan, West Asia and the Asia Pacific Region. In fact
there is hardly any country where Indian Tea is not found.
Export from India for last three
years source:tea board of India, date:19/12/2010
EXPORT OF TEA FROM
VARIOUS COUNTRIES IN 1995
source: global tea corporation,date: 19/12/2010
EXPORT OF TEA FROM
VARIOUS COUNTRIES IN 2010
source: global tea corporation,date: 19/12/2010
Provisions in India’s Foreign Trade
Policy
Export of tea has been covered under Vishesh
Krishi and Gram Udyog Yojana (VKGUY)
scheme benefits.
Provision amended
Minimum value addition for availing of
advance authorisation scheme for export of
tea has been reduced from the existing 100-
50 percent.
The limit on domestic sale of instant tea by
Export Oriented Units has been increased
from 30-50 percent
QUALITY STANDARDS
In the context of the oversupply problem, the
use of the quality standard ISO 3720 has
acquired growing importance and is being
considered for adoption as a recognized
minimum quality standard for international trade.
The use of HACCP (Hazard Analysis & Critical
Control Points) has also gained in significance
with respect to tea exports.
COMPOSITION
Total tea catechins: 10% dry weight minimum
EGCG: (-)-epigallocatechin gallate: 7.1% dry
weight minimum.
Heavy metals: Lead residues not to exceed 5
ppm.
Pesticides: No detectable Organochlorines,
Organophosphates, Organonitrogens and
Carbamates by a certified laboratory in the USA.
Fluoride: Not to exceed of 240 ppm fluoride.
.
CHALLENGES FACED BY
EXPORTERS
Low quality of exporting tea.
Destruction of tea plants in the hilly areas of the
country.
Change in the policies of the home country or
the host country.
The fate of India's tea industry is largely
dependent on what happens to its eastern
sector of Assam and West Bengal.
India produces 27 percent of global tea output,
the quality of product is sadly doubted in the
global market.
High cost production and stagnant
productivity.
The most serious ailment remains not only
low productivity but also with quality of
produce due to low investment on
infrastructure and low managerial
efficiency.
News articles
AFTER THE HILLS, A LOGO FOR
DOOARS
The tea board of India has decided to go in for a
logo for brew produced in the gardens of the
Terai and Dooars.
The Dooars and Terai regions produce more
than 25% of the India’s total tea production.
All producers, packagers manufacturers,
blenders, exporters and traders need to apply
for the license to use the logo.
For this, they have to provide a sample of
product and proof that it was grown where they
claim it had been.
License is granted if the board assures
that the product is good enough and is
indeed genuine- for eg: Assam, tea and
Nilgiri tea.
Tata Global's U.K. unit Tetley could sell a
minority stake of around 12% to private
equity players.
Tata Global's U.K. unit Tetley could sell a
minority stake of around 12% to private
equity players.
The investment banker for the deal is
Rothschild.
The shares of Tata Global Beverages Ltd.,
are currently trading higher at Rs. 131.45
up Rs. 4 or 3.14% over the previous close
REFRENCES
http://teaboard.gov.in/pdf/Range_of_Teas.pdf
http://teaboard.gov.in/pdf/teaindustry.pdf
http://teaboard.gov.in/images/teamap.gif?param_link_id=730&mem_link_name=The%20Map%20of
%20India
http://www.indiatea.org/
TEA board of India –Data Bank-tea statistic ,19/12/2101
GLOBAL TEA CROP REACH A HISTORICAL HIGH IN 2010-global tea scene, 19/12/2101
Review of Foreign trade policy 2009-2014 ,19/12/2101
Quality Standards- trade standards.org- Home – Sectors – tea.
(http://tradestandards.org/en/Topic.15.aspx )
Challenges faced by tea exporters- nenanews.com- special report- Vol 3- Issue No.
15.
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Relevant News Articles-www.indiainfoline.com- Markets- News-Tata Global to raise
US dollar 200mn via stake sale in Tetley
(http://www.indiainfoline.com/Markets/News/Tata-Global-to-raise-US-dollar-200mn-via-stake-
sale-in-Tetley-report/4986993473)
