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Friday, December 28, 2007

Tea prices increased

AHMEDABAD: Your daily cuppa has just got tad a more expensive. Leading branded tea players including HUL, Tata Tea, Girnar, Wagh Bakri and Jivraj Tea have increased their prices and others are expected to follow suit. While tea leaf plucking ends in December every year, this year the branded tea prices have increased as the companies are facing high pressure on profit margins due to higher demand, reduced production and higher procurement prices across low, medium and premium segment.

The price of branded tea has increased in the range of Rs 1-7 per pack. According to industry sources, Tata Tea has increased the price by Re 1 and HUL has increased the price of its brand ‘Brooke Bond Red Label by Rs 7 (from Rs 98 to Rs 105 for 500 gm pack). When contacted HLL spokesperson said: “We have witnessed continued cost pressures in the tea category for sometime now. We are managing the cost pressures through a combination of cost effectiveness programmes, scale benefits and judicious price increases. We have taken selective price increases in our portfolio.” We do not comment on future/proposed price changes (increases or decreases) as a policy as it is competitive information, he further added.

HUL and Tata Tea, jointly control half of the branded tea market and the rise in both premium, medium and low segment tea categories compelled the firms to increase prices. Smaller players whose profit margins have already been affected due to rise in mid and low-segment tea are also implementing a price rise.

“We plan to up our prices as the cost of production has gone up. But the price-rise will be very marginal,” informed chairman and managing director of Jivraj Tea Viren Shah. The prices of several branded teas are expected to further increase in January and February due to off-season. The tea production too is not keeping pace with rising demand.

Total tea production of India is already expected to dip from 956 million kg last, to around 930 million kg this year. “The increase in demand is bound to put pressure on the branded players,” says chairman of Tea Board of India Basudeb Banerjee. The price of premium tea has increased from Rs 80-85 a kg to Rs 100-105 per kg. And the price of relatively lower-quality tea has jumped from Rs 62-65 per kg to Rs 80-82 per kg.

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Thursday, December 27, 2007

29-week low offerings at Coonoor tea auctions

Coonoor: For the last auctions of 2007 to be held by the Coonoor Tea Trade Association (CTTA) through Sale No: 52 on December 27 and 28, the volume catalogued is the lowest of the past 29 weeks. An analysis of the catalogues shows that only 8.41 lakh kgs will come for auctions. This is some 60,000 kgs lower than last week. For the sixth consecutive week, the volume is lower than the 10-lakh kgs level.

Frost effect
Frost in many tea growing pockets has reduced the harvest and restricted the arrivals. Arrival totals 7.25 lakh kgs out of 8.41 lakh kgs catalogued now. The balance comprises teas remaining unsold in the previous weeks. Of the 8.41 lakh kgs, as much as 6.02 lakh kgs belong to the leaf grades and 2.39 lakh kgs belong to the dust grades.

Source: Sify

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Saturday, December 22, 2007

Assam politics shadowed by tea votes

Politicians in Assam are at their wits' end trying to woo voters belonging to the reservation-seeking tea garden workers' community ahead of the staggered panchayat elections that begin on December 31.

Influential tea workers' groups like the All Adivasi Students' Association of Assam (AASAA) and the All Assam Tea Tribe Students' Association (AATTSA) have clamped a ban on the entry of politicians across party lines in areas dominated by the community.

The political class in the state of 26 million people has drawn the ire of this community, which decides or influences the poll verdict in 20 of Assam's 126 assembly constituencies, for not pushing their demand for Scheduled Tribe (ST) status for the Adivasis and the tea tribes in the state.

"We shall not allow politicians to campaign during the panchayat polls," Justin Lakra, leader of the AASAA, said.

The ruling Congress, that has been a favourite party of choice among the tea workers' community, too has been flayed by these groups for not doing enough to ensure ST status that would bring them reservation in jobs and educational institutions like their kinfolk in states like Jharkhand.

The Congress-led state government, however, has gone all out to convince the community that it was in favour of doing everything it can to improve their socio-economic status.

"The Congress wants that the Adivasis, along with five other communities in Assam, should get ST status. We are in fact backing their demand and are in favour of working towards the overall uplift of the Adivasis and other communities," senior minister Himanta Biswa Sarma, who is also an Assam government spokesman, told IANS.

All of a sudden, political parties have started fielding more candidates belonging to the tea workers' communities for the coming panchayat polls. The Bharatiya Janata Party (BJP), that already has some penetration in the tea garden areas, has fielded 21 candidates belonging to the tea workers' community in the eastern Jorhat district alone.

Assam has 800 tea gardens, producing more than 50 per cent of India's total tea production of around 900 million kg.

The Adivasis and other tea workers had migrated to Assam more than 150 years ago when the British brought them here to work in plantations from present day Jharkhand, Bihar, Orissa and Chattisgarh.

The central government has rejected the community's plea for ST status saying they were not indigenous to Assam and had lost their tribal characteristics after their migration to a new area.

The tea workers have rejected this argument and are bent on leading a sustained agitation to force the government to concede their demand, leading to a volatile situation in Assam ahead of the rural polls.

Source: The Hindustan Times

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Tea faces pricing pressure

AHMEDABAD: As tea production takes a dip, leading tea majors such as HUL, Tata, Sapat and Wagh Bakri seem to be facing pricing pressure. The jump in procurement price of tea in medium and lower segment is making things difficult for companies selling packed tea under this segment. The price of tea in this segment has increased by around 20-30% compared to last year.

The prices have increased due to lower production and higher demand. Unlike last year, which witnessed 3% jump in production, tea production is expected to dip to around 920 million kg. “As the economy continues growing at a fast pace, the tea consumption is rising.

However, the supply is not keeping pace with the demand. And the production is expected to drop by 30 million kg this year, thus increasing the prices of even cheaper teas,” says chairman of the Tea Board of India Basudeb Banerjee. Indian tea production has been rising consistently since 2000 except in 2002. Last year the total tea production was 956 million kg.

The tea production season is nearing an end in north India as over 75% of the area stops production by December. The tea estates in southern India, however, continue the production but the production goes down due to winter.

“December being the last month for tea procurement, we procure tea till May. However, as the prices of cheaper teas have gone up, we are procuring teas at higher prices for our mid-segment brands like Navchetan and Mili,” informed Wagh Bakri group’s tea tester Partha Mazumdar.

The companies selling packed tea under different categories, including premium and mid-segments, are paying significantly higher price. The price of premium tea has increased from Rs 80-85 a kg to Rs 100-105 per kg. And the price of relatively lower-quality tea has jumped from Rs 62-65 per kg to Rs 80-82 per kg.

“The tea growers have not got good returns in the last few years. So, even while companies end up paying more, high-price might help producers sustain and avoid closure of tea gardens and further ensure continued supply to the market,” says chairman and managing director of Jivraj Tea Viren Shah.

Source: The Economic Times

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Thursday, December 13, 2007

Economic Survey says India one of largest tea producer and consumer

India is the world’s largest producer and consumer of tea. According to the Economic Survey 2006-07, tea production, after stagnating between 1997-98 and 2004-05 at around 830-850 million kg, increased by about 12 per cent in 2005-06 (930.9 million kg). Tea consumption in quantitative terms is growing steadily by three per cent a year.

The tea sector is one of the oldest and largest employment providers. More than a million people are directly and indirectly dependent on the tea industry for their survival. According to the Labour Bureau, GOI Occupational Wage Survey (Sixth Round, 2006), the total permanent workforce in tea plantations is 8.12 lakh with 54.24 per cent women workers. In the report, female employment reported the highest with 63.07 per cent in the tea plantations of Tamil Nadu.

Tea plantations in India were first set up by British colonizers in select climes for their vested interest. At present, tea is largely produced in Darjeeling, the Terai and Dooars region of West Bengal, Upper and Lower Assam, Peermade, Wayanad in Kerala and the Nilgiri Hills of Tamil Nadu. Types vary with the region.

Given the nature of an "enclave economy", where workers are dependent on tea estates for their income and survival, workers are thrown into situations of closure, abandonment, lockout and work suspension that deprive them of not just their daily income but also access to medical and other benefits such as maternity, drinking water and electricity.

In West Bengal and Kerala, the precarious situation has resulted in starvation deaths and suicides among tea workers’ families. This has accentuated their vulnerability as a marginalized community. Historically, workers have merely shifted from a situation of “total deprivation” to a situation of “bare subsistence”.

In Jalpaiguri, there are 13 abandoned and closed tea gardens. In Idukki district of Kerala, seven tea estates and six factories are abandoned, in Thiruvananthapuram district, one tea estate and two tea factories are abandoned. In Tamil Nadu, there are four closed tea gardens. In many of the tea gardens, owners do not declare the tea gardens as closed. They abandon them. The company has to apply for closure to close a garden. These companies owe huge dues not just to the workers in terms of Provident Fund and gratuity but also to the respective state governments and banks concerned.

Though certain pockets of tea growing states are in a crisis situation, the overall performance of tea as an economic product is improving. The annual average domestic price for tea was Rs 63.62 a kg last year and has been categorized as “Normal Year For Tea”. This sector is dominated markedly by big multinational companies that have amassed huge profits. For example, Tata Tea recorded an increase in profit of 40.8 per cent between the years 2003-04 and 2004-05.

The plantation sector is being restructured. Various stakeholders have analyzed the crisis in West Bengal and Kerala but a comprehensive understanding is yet to be reached. There are various factors responsible for the crisis that include poor quality of tea bushes or their neglect, change in the ownership pattern, monopoly and cartelisation of a few buyers, retailers and blenders. These factors influence prices at tea auction centers, contribution of the small tea growers' sector to production, absence of value-addition to tea and other structural reasons that are tea-garden specific. Violation of labor and basic livelihood rights is a reality.

Efforts are on by the Central and state governments to address the issues of closure and abandonment. The Center appointed the Ferguson Committee to give details of the problems and causes of closures/abandonments.

The Cabinet Committee on Economic Affairs cleared a Special Purpose Tea Fund in January under the 2006-07 Budget. The amount is estimated to be Rs 4,716 crore over a 15-year period. A process of setting up a plantation department by the Union commerce and industry minister Mr Kamal Nath is in the pipeline.

It was recently announced by his ministry that nine tea estates had reopened in Kerala and one in West Bengal after the government declared its rehabilitation package. It provides for the restructuring of outstanding bank dues, provision for fresh working capital, waiver of outstanding dues to the Tea Board and settlement of Provident fund dues in installments.

It is not clear, however, how the government will ensure proper utilization of funds without a transparent monitoring mechanism of the Special Purpose Tea Fund in places where trade unions are involved.

A monitoring committee represented by both state and Central governments and the Tea Board has been formed but has excluded workers’ representation from trade unions.
Every year, 15 December is observed as International Tea Day with the objective of affirming the rights of tea plantation workers. With the involvement of key labor research organizations in India and other tea-producing countries, International Tea Day has emerged as a global activity of workers and small-grower representatives. The countries include Sri Lanka, India, Bangladesh, Nepal, Vietnam, Uganda, Kenya, Malawi, Tanzania, Zambia, Malaysia and Indonesia.

The first International Tea Day was held in New Delhi in 2005 and the second in Sri Lanka, last year.

International Tea Day observations and deliberations have contributed towards an international alliance and attracted the attention of the governments of India and Sri Lanka to address issues in the tea sector.

There is need for further collaboration and action, besides addressing larger concerns vis-a-vis multilateral institutions such as the Food and Agriculture Organization of the UN and the International Labour Organization.

The International Tea Day network affirms the principle of a living wage. It states that the living wage should not be less than the minimum wage and de-linked from tea prices. Wage increment should be in congruence with the cost of living across countries. A campaign for an international commodity agreement for tea would ensure price stabilization of raw and manufactured tea. The International Tea Day is attempting to address the inequities in the global tea trade. Trade unions have historically played a vital role in implementing labor legislation in the plantation sector. There is the need for all workers and trade unions to take a united position and International Tea Day is an important occasion to affirm workers’ rights.
It is relevant to observe International Tea Day across all tea-producing areas in India as it would provide a common platform to discuss issues common to tea workers. Indian tea trade unions demand the immediate reopening of closed and abandoned tea gardens in Kerala and West Bengal. More than 30,000 workers have been affected.

(The author is general secretary, United Trades Union Congress, West Bengal state committee.)

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Country could close down with low tea production and tea exports

KOCHI: Downturn in production and export has hit Indian tea’s prospects in the current year. As activity in the tea industry slows down during winter, the country could close 2007 with lower production and exports, industry sources said.

Most major global tea producers, except India and Sri Lanka, have shown an increase in tea production during the year. Kenya has recorded the maximum increase, which has affected Indian exports.

Industry sources attributed the lower production in India to the prolonged rains during the year. Production is down 17.53 million kg at 689.26 million kg for January-September, compared with the same period in the previous year. For the same period, Kenyan production is up 63.48 million kg.

With just three months to go, production is unlikely to touch the level of 956 million kg achieved in 2006, sources said. In fact, Indian tea production has been rising consistently since 2000 except for a bad year in 2002. All-India tea production was 847 million kg in 2000, as per Tea Board figures.

The situation is far worse on the export front. Till September, exports were down 37.16 million kg even as Kenyan exports rose 28.75 million kg. Indian exports for the nine-month period stood at 118.74 million kg. Lower exports to Iraq, coupled with the rupee’s appreciation, have been instrumental in pulling down total exports, which had touched 203 million kg in 2006.

“Indian exporters have not been sending tea to Iraq since March as the payment for the earlier consignments are still due. Iraq is now buying more from Sri Lanka and Vietnam,’’ said leading tea exporter Krishnakumar J Shah. Last year, Iraq was the largest purchaser of Indian tea at 40 million kg. This year, till June, exports to Iraq were down 20 million kg. Purchases by Pakistan have also gone down. With an improved crop situation, Kenya is supplying more tea to Pakistan. With lower production and exports, the average price of Indian tea in auctions was down Rs 1.27 per kg at Rs 65.14 per kg till September.

Source: The Economic Times

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Monday, November 12, 2007

Low volumes take Coonoor tea prices up

Coonoor : Prices rose on an average of Rs 3 a kg at the auctions of the Coonoor Tea Trade Association (CTTA) here on Saturday when the demand strengthened to absorb the low offer at high bids.

The volume of 11.24 lakh kg offered was the lowest of the last seven weeks even as the demand was competitive due to the Diwali festival in the North Indian States.

Buyers from Maharashtra, Gujarat, Rajasthan and Uttar Pradesh picked up quality teas.

Strong demand prevailed for categories of orthodox teas.

Brokens

"Leafy brokens fetched an additional Rs 2 to 3 a kg. Smaller brokens and fannings among the CTC leaf grades were dearer by Rs 1 to 2. Bolder CTC dust teas sold higher by Rs 1 to 2 a kg,” an auctioneer told Business Line.

But, primary orthodox dust grades lost Rs 3 to 4 a kg.

Export segment

On the export front, Pakistan reduced its purchases as the exporters showed reservation in the context of the political uncertainty.

CIS picked up bolder varieties for up to Rs 38 a kg, but most purchases were for the plainer grades at Rs 33.

Egypt bought well made fannings for Rs 40.

Poland shippers showed interest for some bolder brokens.

Leaf factories

Among the CTC teas from bought-leaf factories, Homedale Estate RD grade sold by Global Tea Brokers got the highest price of Rs 92 a kg.

This is the second highest price for the factory so far in 2007, the highest being Rs 93 in August.

Darmona Estate got Rs 85, Vigneshwar Estate Rs 80 and Hittakkal Estate Rs 78.

Among the orthodox teas from the corporate sector, Kodanaad and Corsley got Rs 108, Kairbetta Rs 106, Prammas Rs 105, and Curzon Rs 102.

Bid range

Quotations held by the brokers indicated bids ranging from Rs 32 to 35 a kg for the plain dust grades and Rs 60 to 80 for the brighter liquoring teas.

They ranged Rs 30 to 31 for the plain leaf grades and Rs 55 to 67 for the brighter liquoring teas.

Source: Sify

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Wednesday, November 7, 2007

Sabari tea sales go up

KOCHI: Sales of the Sabari brand of tea from the Kerala State Civil Supplies Corporation Limited (Supplyco) went up 18.34 per cent during the first half of the current year in comparison with the same period last year.

During the first six months of the year, Sabari brand tea sales stood at 1,711.29 tonnes, a 240 tonnes increase over the first half of last year. The demand for Sabari brand of tea has been boosted by sustained quality and a competitive price, said a press release from Supplyco here. The Corporation expects to sell a total of 3,165 tonnes of tea under the Sabari brand during the current financial year. The tea division of the Corporation has been earning a profit of Rs. 4 crore.

There will be new variants of Sabari tea in December with the Corporation planning to launch Sabari Extra Fresh next month. The new variant will come in duplex cartons in 250 gram packs. Sabari brand is also planning to target the customers who look for premium quality tea, said the release.

Source: The Hindu

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Tuesday, November 6, 2007

Kolkata tea prices firm

Kolkata : Last week, CTC teas at the North Indian tea auction centres at Kolkata, Siliguri and Guwahati met with very good demand and sold at all round fully firm to dearer rates with active support from the blenders and domestic buyers, according to J. Thomas & Company Pvt Ltd, tea auctioneers.

Orthodox varieties also saw a good demand. The whole leaf grades and fannings held levels while brokens recorded a slight easing. The CIS and West Asia continued to be the main operators.

Darjeeling teas witnessed better all round enquiry and sold readily at firm levels. The blenders lent good support with selective enquiry on better sorts. The local dealers were active.

Weather conditions were seasonal and crop intakes normalised during the week.

International
In Colombo, Sri Lankan teas, after having witnessed a continuous appreciation for several weeks, recorded a slight decline following an easing in demand.

Kenyan teas at Mombasa auction saw improved demand at generally firm to dearer rates, following strong enquiry from Egypt, Pakistan and West Asia.

Source: Sify

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Friday, October 26, 2007

Tea exports likely to slip below 203-m kg

Kochi : Payment defaults, rise in global production and appreciation of rupee have combined to pull Indian tea exports this year. The exporters feel that the tea export from India is likely to close much below 203-million kg achieved last year. The India tea export in January to August stood at 103.09 million kg compared with 122.50-million kg in the same period of the previous year. The decline has been for the South Indian tea, which fell by 26.5 million kg.

North Indian tea exports gained by over 7-million kg as it comprised mostly Orthodox variety of tea going to Russia and CIS, which are still active buyers. It was Iraq’s change from hero to villain in a matter of months that hit the South Indian tea industry most. The largest buyer of Indian tea in 2006, the country is being shunned by Indian tea exporters now due to heavy payment defaults.

Iraq had purchased 40-million kg of Indian tea in 2006, which was higher than that bought by Russia and CIS, which have been traditionally the largest buyer of Indian tea. “Exporters are avoiding Iraq as payment arrears of previous exports run into crore of rupees. Even when the country floated fresh tenders, exporters were reluctant to participate,” says tea exporter Krishnakumar J Shah.

For the six-month period of January to June, Iraq’s purchase of Indian tea amounted to 3.35-million kg against 23.42-million kg in the same period last year. If Pakistan turned out to be a promising destination for Indian tea last year, the general rise in global production particularly in Kenya, has put paid to that hopes. In the January –August period, Kenyan production has jumped by 34% to 244 million kg.

Kenya, a regular supplier of tea to Pakistan, was not able to meet the full quota last year because of a drought. This led Pakistan to look towards India. But this year Kenyan supply to Pakistan has improved considerably much to the disappointment of India.

Source: The Economic Times

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Wednesday, October 24, 2007

Indian Tea industry challenges faced

Tea - easily identifiable with India, immediately brings to mind the lush tea gardens of Darjeeling, Assam and the Nilgiris. The tea plant that was first discovered growing indigenously in Assam in 1815 by a traveller is today a well established industry in the country, producing more than 850 million kgs of tea annually.

The tea industry is one of the oldest organized industries in India with a large network of tea producers, retailers, distributors, auctioneers, exporters and packers and employs one of the largest workforces in the country.

It is a well-known fact that next to water, tea is the most widely consumed non-alcoholic beverage world over. It is grown in more than 32 countries among which India is the largest producer. Located in backward, rural and hilly areas, the tea plantations supplement the economic life of these regions through employment generation and social welfare and provide a higher standard of living at the grassroots level.

The industry provides direct employment to more than a million workers of which a sizeable number are women. More than two million persons derive their livelihood from ancillary activities associated with production, value addition and marketing of tea. The tea trade is a major contributor to the country’s economy. Substantial foreign exchange earnings with negligible import content, contribution to the State and Central exchequers, preserving a pollution free biosphere and soil conservation. are some of the important features of this industry.

Production and Export
With a history of tea making and tea drinking, it is not surprising that world over, Indian teas are appreciated for their unique flavor and aroma. India produces three specialty teas - Darjeeling, Assam and Nilgiris which are exported world over. Green and organic teas are also produced in India but in small quantities. Tea is grown in 13 States and Assam, West Bengal, Tamil Nadu and Kerala are the largest producers. Though the major part of the tea production comes from big estate gardens, the contribution of the small grower segment has shown an increase in recent years with many small farmers in Assam, North Bengal and Bihar switching over to its production.

In 1998, the country produced the highest ever 870 million kgs of tea. Of this, 758 million kgs was Crushed-Torn-Curl (CTC), 104 million kgs was Orthodox (leaf tea) and 8 million kgs was accounted for by other types, which included green, organic and instant teas. Exports at 210 million kgs in 1998, were also the highest ever in the past decade. Despite being the world’s largest producer, India’s share both in world production and exports has declined over the years.

The country today accounts for 27.16 per cent of the global tea production and 13.09 per cent of the world trade. While production of tea during 2004-05 (April-July), estimated at 310 million kgs, has registered a substantial decline of about 29 million kgs as compared to the corresponding period of the previous year, tea exports, estimated at 56.06 million kgs during 2004-05 (April-July), have shown an increase of 9.79 million kgs over the same period of the previous year.

Almost every tea-drinking nation in the world imports some variety of Indian tea! Due to an existing large domestic market for Indian tea, exports, however, account for less than 20 per cent i.e. domestic production.

Some of the constraints facing the Indian tea industry which directly affect production, productivity and quality, include the old age of bushes with more than 30 per cent of the tea area being above the economic threshold age limit, slower pace of re-plantation with the rate of replanting being less than 0.5 per cent as against the desired level of 2 per cent and the consistent fall in its auction prices which has adversely affected the investment in the plantations. The consequent decline in productivity along with increasing input costs have led many gardens to become sick or close down.

The share of Indian tea in the world market, on the other hand, has suffered in recent years due to the stiff competition from other producing and exporting countries like Sri Lanka, China, Indonesia, Vietnam and Kenya. Some other factors that have adversely affected the export potential of Indian tea include - various tariff and non-tariff measures imposed by some tea importing countries, lower off take by Russia due to change in consumer preferences, lower production of orthodox teas which have a larger demand worldwide, quality problems and the higher cost of production and prices of Indian tea.

Initiatives
The Tea Board of India, a statutory body of the Government has been entrusted with the task of the development of the tea industry. It has taken several initiatives to support the tea industry and overcome the challenges it is facing today. During the 10th Plan period, the Board is implementing a number of developmental schemes for enhancing the productivity, quality and marketability of the teas produced in the country. These include financial and technical assistance to various plantation development activities, such as replanting, rejuvenation, and creation of irrigation facilities. Export is also being focused upon with the implementation of a medium term export strategy. The production of quality teas, especially orthodox type of teas is being encouraged.

Media campaigns have been launched to increase consumer awareness for Indian teas besides extension of promotional support to Indian exporters in marketing Indian brands in principal export markets. The total 10th Plan outlay for the Tea Board is Rs.350 crore which is being utilized to rejuvenate the tea industry.

Special efforts are also being made to address the problems of the small growers of tea. These include measures like fixation of a price sharing formula between small tea growers and the manufacturers to enable the small growers to get a reasonable share of the price obtained for the made tea, implementation of a price subsidy scheme and carving of a Special Tea Term Loan package. One of the most important initiatives taken by the Government in the small sector has been the quality upgradation program, which was launched in South India in July 2000 and is continuing successfully so far.

The Tea Board has also followed it up by launching a full-fledged scheme for quality upgradation and product diversification, aimed at modernizing the tea factories. The measures taken not only seek to alleviate the income related problems of the small growers, but also recognize the inherent advantages and immense potential of the small grower sector in driving Indian tea exports.

Though in the last few months, there has been a recovery in the prices of tea and exports have also started looking up, it is now evident, that with the emerging trends in the globalized economy, markets can no longer be protected. The Indian tea industry, would have to gear itself up to counter the new forces unleashed by globalization.

Courtesy: PIB Features

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Tuesday, October 23, 2007

Tata Tea's Tea drive

Bangalore : In an attempt to woo back the growing breed of youngsters who are turning to coffee, Tata Tea is launching a nationwide 360 degree re-branding campaign.

The campaign will focus on the demographically young crowd and also focus on a key social message. “We are trying to show tea as a youth drink not just for people who are demographically young but also for people who aspire to remain young. The demographically young account for 40% of the population right now,” said Sangeeta Talwar, executive director, marketing , Tata Tea.

“Our last campaign with Sania Mirza brought about an emotional connect with the brand. We are moving one step forward and bringing in awareness of social causes. The brand is now wearing the mantle of social responsibility,” she added.

Apart from 10-second commercials across TV channels on social issues like water, responsibility of cops, role of politicians and women in sports, the company also plans to start a website. “We are launching a website, jagoindia.org, that will allow young people to chat about social issues . Through this forum , they can discuss relevant social issues,” she said.

With the tag line, Har subah sirf utho math... Jago re, the company is also focusing on retail points, multiplexes and shopping malls to increase awareness. “While it is a nationwide campaign , we are focusing on 8-10 cities with all our campaign,” said Ms Talwar. “While tea has 91% penetration in the country, in the case of coffee width of penetration has increased but not the depth,” she added.

Source: The Economic Times

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Monday, October 15, 2007

Indian tea exports to Russia increases

KOLKATA , India (Reuters) - India expects to boost tea exports to Russia by a quarter in 2007 as it battles stiff competition in other markets such as Britain and Germany, the head of an industry body said on Monday.

Basudeb Banerjee, chairman of state-run Tea Board, said exports to Russia were expected to reach 41.25 million kg this year, up from 33 million kg in 2006.

Sales to Russia in the first half rose 22 percent from a year earlier to 18 million kg, he said.

"The rising exports to Russia are a very good sign for us," Banerjee told Reuters in an interview, adding India had stepped up the production of orthodox tea the Russians favour.

India, the world's largest tea producer after China, has been looking to step up exports after sales were hit in the first half due to a rupee that has risen more than 12 percent against the dollar this year and stiff competition from rivals such as Kenya.

Russia, a tea-drinking country that consumes about 170,000 tonnes a year, was India's main export market before 2001 but sales dropped to about 30,000 tonnes in 2006 from 113,000 tonnes in 2000 as Sri Lanka, China, Indonesia, Kenya and Vietnam increased their market share.

Total exports from India during the first half were down 19.3 percent at 86.03 million kg from 106.6 million kg in the year earlier period, Tea Board officials said, due to the stronger rupee and tough market conditions in Germany, Britain and Iraq.

"Sales are picking up now and we are hopeful that exports will catch up in the next few months," Banerjee said.

Exports rose 6.9 percent in August to 17 million kg from 15.9 million kg a year earlier, the Tea Board said.

India was also pursuing new markets such as Egypt and Australia, Banerjee said.

However, sales to Iraq, a traditional buyer, slumped to 3 million kg during January to June from 23 million kg in the same period last year as the war-torn country was unable to meet payments, officials said.

India's tea production this year has been hit by bad weather, with the output during January to August easing to 576 million kg from 582 million kg a year earlier, they said.

Source: Reuters, India

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Friday, October 12, 2007

Lower tea volume on offer at Coonoor sale

Coonoor : An analysis of the catalog's of various brokers indicates that a volume of 11.71 lakh kg has been offered for sale this week at the auctions of the Coonoor Tea Trade Association (CTTA).

This is nearly 30,000 kg lower than the volume offered last week. But, it is almost 2.57 lakh kg more than the volume offered this time last year. Of the 11.71 lakh kg, 8.32 lakh kg belong to the leaf grades and 3.39 lakh kg, dust grades. Again, as much as 11.05 lakh kg belong to CTC variety and only 0.66 lakh kg, orthodox variety.

Orthodox share
The proportion of orthodox continues to be low in both the leaf and dust grades. In the leaf counter, only 0.22 lakh kg belong to the orthodox while 8.10 lakh kg, CTC. Among the dusts, only 0.44 lakh kg belong to the orthodox while 2.95 lakh kg, CTC.

Around 9.67 lakh kg is fresh tea. The balance comes from the volume remaining unsold in the previous auctions.

With exporters taking a subdued approach, producers are keeping their fingers crossed on the volume that could be sold at fair prices, the auctioneer said.

Source: Sify

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Tuesday, October 9, 2007

Weather played foul on Assam tea and Kerala tea production

Chennai : Adverse weather conditions in Assam and Kerala have cast a negative effect on tea production so far this year, while exports tended to look up in August.

Tea production during January-August this year has been estimated at 576.1 million kg (mkg) against 582.3 mkg during the same period last year. The crop has declined mainly in Kerala, where a prolonged dry spell until June affected the crop.

In fact, the dry spell has hit other plantation crops such as pepper and cardamom also. Among all the tea-growing States, Kerala has accounted for the major decline and it is the only State in the South to witness a fall. Production in Tamil Nadu witnessed a marginal rise, while it was flat in Karnataka.

On the other hand, production in Assam has slipped by four mkg this year, with August registering a 1.5 mkg fall. In Assam, it was heavy monsoon spell that affected the crop.

Heavy rainfall in West Bengal during August also resulted in production being adversely affected. In Bengal, the output in August declined four mkg but overall, it is up 2.4 mkg.

Exports, which have been witnessing a decline this year barring March and April, gained in August, though marginally by 1.15 mkg to 17.06.

Overall for the year, it is estimated to have declined by 19.41 mkg at 103.90 mkg.

Lack of orders from Iraq, a major buyer last year, and Pakistan, which has tended to buy more from India in the last two years, has been the main reason for lacklustre performance.

The other reason for export slipping is that Kenya, whose crop was hit by drought last year, is witnessing an improvement in production and consequently, its shipments have turned competitive in the global market.

Source: The Hindu

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Mixed tea prices at Coimbatore

Coimbatore : The prices of Orthodox leaf teas moved up marginally while that of others ruled lower by Re. 1 to Rs. 2 per kg in the Coimbatore auction held last week, trade sources Tuesday said.

With shippers to the CIS countries operating on orthodox leaf grade selectively, well-made Nilgiris clean larger teas and brokens quoted firm to occasionally dearer by Re. 1 to Rs. 1.50, while other grades eased by Re. 1 to Rs. 2 per kg.

Brighter liquoring CTC leaf met with some demand, but was easier by Re. 1, whereas medium and plainer brokens saw less demand and tended easier by Re. 1 to Rs. 2.

In the dust category, orthodox quoted Rs. 1 down, while CTC selected high priced propular marks were barely steady and others lower Re. 1 to Rs. 1.50 with some withdrawals, especially browner leaf appearance teas, the sources said.

Orthodox high grown brokens quoted Rs. 55 to Rs. 77, while good CTC brokens Rs. 42 to Rs. 50, fannings Rs. 43 to Rs. 50, medium brokens Rs. 36 to Rs. 40 and fannings Rs. 36 to Rs. 39 per kg.

Best CTC dust quoted Rs. 54 to Rs. 65, good Rs. 44 to Rs. 53, medium Rs. 36 to Rs. 42 and medium orthodox dust Rs. 30 to Rs. 42. Of the total offerings of 5.54 lakh kgs, dust comprised 3.63 lakh kgs, the sources said.

Source: PTI

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Monday, October 8, 2007

Steady trend at Kochi tea sale

Kochi : Arrivals to the Kochi tea auction was lower at 9.81 lakh kg of dust and 3.18 lakh kg of leaf this week. Best quality and popular CTC varieties remained barely steady. Good liquoring CTC varieties tended to be dearer while poorer quality CTC tended to ease. Orthodox dust high grown remained steady and medium orthodox barely held their price.

Good liquoring CTCs witnessed fair demand from blenders and the loose tea trade. Exporters were active on some select grades.

Best CTC varieties quoted Rs 65-75, medium CTC fetched Rs 50-58 while below medium ranged at Rs 30-35. High grown BOPD fetched Rs 100, medium BOPD quoted Rs 40 and secondaries were at Rs 27-32.

Leaf Sale
Despite the good general demand high grown orthodox bolder brokens and primaries just remained steady. Whole leaf grades were irregular. Medium orthodox grades were steady. Poor orthodox grades witnessed less demand and tended to quote lower. Good liquoring CTC were steady and sometimes dearer. Other CTC varieties tended to ease. Orthodox grades witnessed good export enquiry.

Best Nilgiri varieties quoted Rs 82-97, medium orthodox was at Rs 44-72 and plain orthodox fetched Rs 40-41. Best CTC leaf was at Rs 47-58 while medium CTC leaf ranged at Rs 40-45.

Top Prices
Kodanad BOPD fetched the to price in the dust segment at Rs 100 followed by Pasuparai SFD at Rs 78, Chinnar SFD at Rs 77 and Pasuparai/Monica SFD at Rs 76. In the leaf category Sutton GFOP quoted the top price at Rs 130, followed by Chamraj FOP at Rs 129, Craigmore FOP at Rs 126 and Craigmore FP at Rs 126.

Source: Sify

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Flood hits Assam tea gardens

India's tea production has been hit with heavy floods in the northeastern state of Assam inundating plantations and rampant pests eating away the crop in some areas, officials said.

'Floods have had an impact in some areas where plucking was suspended for sometime with plantations under water, besides erosion hitting a number of gardens,' Dhiraj Kakati, secretary of the Assam branch of the Indian Tea Association, told IANS.

According to estimates, there is a production loss of about 4 million kg of tea until August compared to the corresponding period last year, the official said.

India is currently the world's largest tea producer after China with a record crop of 955 million kg last year, Assam accounting for about 55 percent of the total produce.

At least 70 plantations of Assam's 800-odd gardens have come under floodwaters.

Three waves of flooding since July left over 100 people dead and nearly 12 million people displaced in 25 of Assam's 27 districts. The worst hit districts Are Cachar, Karimganj, Hailakandi, Dhubri, Morigaon, Barpeta, Lakhimpur, and Nalbari.

Close to 10,000 villages in an area of 825,000 hectares were affected by the raging floods that cut a swath across the state.

'Some of the factories were hit by the floods forcing the managements in those plantations to shut down operations,' said K. Sharma, a senior planter.

Adding to the woes of the cash-strapped tea industry are rampant pests that are eating away tea crops. A tea mosquito called helopeltis has attacked some 100 plantations in various parts of Assam.

'We saw a sudden outbreak of blisters in some plantations and have been battling the helopeltis outbreak ever since,' Sharma said.

'This time too, like in the past, there have been seasonal pest attacks in certain areas although the problem is not widespread,' Kakati said.

According to tea growers, the bugs tend to attack plantations when the young leaves brown.

The Indian tea industry had projected an estimated production of about 1,000 million kg this year.

'There is still time to make up the loss in production and it would all depend on the rainfall we get in the next few months,' Kakati said.

India's $1.5 billion tea industry was facing the worst crisis in the past century with prices dropping in the weekly auctions, besides facing a slump in export figures,

'Prices at the auctions are lower by about Rs.1.50 per kg compared to corresponding figures last year. Exports are also down by about 10 million kg in the same period (January to August),' the tea official said.

India exported 200 million kg last year.

The slump in prices and exports was largely attributed a glut in the world tea market.

Source: India PRwire

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Indian teas to recapture Russian market

Coimbatore : Indian teas are set to recapture the Russian market, the Tea Board Chairman, Basudeb Banerjee, said here on Friday.

He was in the city in connection with the 25th Annual General Meeting of the Tea Trade Association of Coimbatore.

Recalling his recent visit to Russia and the discussions he had with the Russian Agriculture Ministry and the trade associations there, Banerjee said, “We will soon be able to restore the No.1 position.”

“The board has signed an agreement for joint promotion of Indian tea in Russia. Under this agreement, at least 75 per cent of the packaged teas should be of Indian origin. Russia is proposing to pass a law on these lines and this is expected to be in place next year.”

The Russian offtake has, in the meanwhile, improved considerably for the orthodox and quality CTC grades of tea during the current year.

Asked when it would touch 100 million kg, Banerjee said, “We are not looking at volumes, but in supplying quality teas, as quality appears to be the prime concern out there.” The board would encourage marketing of packaged teas, he added.

While the Russian offtake showed signs of improvement, he admitted to the declining trend in exports to Iraq. “It has been a difficult market and we have encountered payment problems.”

Tea exports to Pakistan have also slipped during the current year, but the country has managed to overcome the mental block about importing teas from India. There is a lot of pent up demand in Karachi and the North West Frontier region.

Reverting to the domestic scenario, he said, “There is a marginal improvement in the per capita consumption (to 3-plus per cent), but the poor consumption in tea-producing regions of Assam and West Bengal is a matter of concern.”

The board has proposed to launch an ‘Iced’ tea campaign soon to trigger consumption.

Banerjee said the new electronic auction system would be introduced in a year’s time.

The consultative committee comprising a technical expert, broker, buyer, vendor and board representative are expected to meet in November for working out the strategy.

The TTAC Chairman, C. Sreedharan, while expressing concern about the poor performance on the export front attributed it to the change in taxation (VAT), appreciating rupee, non-availability of adequate quantities at auctions and difficulties encountered by exporters in realising payments from overseas buyers.

Source: Sify

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A positive welcome into China tea market

Beijing : China has offered a red carpet welcome to Indian tea majors, including Tata Tea, to substantially increase their market presence and investment in the world's most populous nation and break the near monopoly of multinationals like Unilever.

"We welcome more Indian tea companies to China and are willing to offer all assistance to expand their presence in the country's growing tea market," Deputy Executive Director of China Tea Expo (CTE), Wang Tong said.

Tata Tea's foray into China is a good move by the Indian tea giant, Wang said, hoping that more Indian companies would follow suit and explore mutually beneficial business relationship in the country with Chinese tea companies.

In May, Tata Tea signed a joint venture agreement with Zhejiang Tea Import & Export in east China's Zhejiang Province, taking a major step in penetrating the Chinese market.

The joint venture plans to manufacture and market of green tea polyphenols, other green tea extracts, cold and hot water soluble instant tea, liquid tea concentrates and other value added tea beverage products.

Welcoming more Indian participation at the upcoming China Tea Expo 2007 to be held here from October 14 to 17, Wang said the exhibition would be a good opportunity for the Indian tea industry and exporters to meet with their Chinese counterparts and exchange views.

"With the standard of living of Chinese people steadily improving, their tastes are also changing fast," Wang said, noting that black tea is gaining popularity in China which was earlier dominated by locally produced green tea.

According to some estimate, Chinese consume 700,000 tonnes of tea per year.

Wang noted that multinational Unilever, which owns the Lipton brand has been enjoying huge success in China all these years, nearly monopolising the Chinese black tea market.

Unilever has also acquired some tea estates in east China's Anhui Province in an effort to further expand its tea production base, he said.

"If the Indian tea companies, with their exquisite variety of black tea, including Darjeeling tea, enter the Chinese market, I am sure they will also enjoy a good market share," Wang said.

However, he lamented that an experiment done by China Tea Company Limited, the biggest local player, in 2006 to market Indian black tea in China did not succeed.

At the same time, Wang, also General Manager of the state-run China National Native Produce and Animal By-products Import and Export Corporation, noted that the tea industries of China and India lacked proper communication channels to exchange views about market conditions and matters of mutual interest.

Wang said CTE plans to lead a high-level delegation of Chinese tea industry to India in 2008 to explore opportunities for mutually-beneficial cooperation, including finding market for green tea in India.

Source: The Economic Times

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Dutch film to promote Indian tea

A Dutch filmmaker is making a documentary on tea production in north Bengal to help promote Indian tea in the Netherlands and other European Union countries.

“Although the annual per capita consumption of tea in the Netherlands is 3kg (in India it is 750gm), Indian tea has a comparatively small share in it,” said Aad Van Helden, who was here till last week to shoot the documentary. “We intend to promote Indian tea in our country and also in some other European Union nations.”

Aad Van is here as a representative of Solidaritat, a Dutch NGO that has worked in countries in Asia, Latin America and Africa to promote, and sometimes highlight the problems of, plantation crops like banana and coffee.

For the Indian project, Solidaritat has tied up with the Institute of Plantation, Agriculture and Rural Workers (IPARW), a Jalpaiguri-based NGO working for sustainable livelihood of labourers engaged in these areas.

Aad Van’s wife Mieneke is a volunteer of Solidaritat and she came with him to Darjeeling and Jalpaiguri to shoot the 20-minute documentary. “They had been working since September 29 and finished their work on Friday,” said Samir Roy of the IPARW. North Bengal was the only tea producing area in India that the Dutch couple visited, Roy added.

“The target audience of the film will be the common people of India and the European Union, business houses, consumer groups, government officials, small producers and workers,” Roy added.

In course of their nine-day visit, Aad Van and Mieneke interviewed about 40-50 stakeholders of the Indian tea industry, including planters, workers, managing directors of big tea houses and trade union leaders.

“We tried to know from the stakeholders their take on the prospects of Indian tea in the international market. We also asked them about the present situation of tea industry and how they are trying solve the problems that are scourging it,” Aad Van said.

On Saturday, the husband and wife also interviewed Union minister of state for commerce and industry Jairam Ramesh, who arrived in the region primarily to pursue the Centre’s action plan regarding closed tea gardens.

Source: The Telegraph

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Friday, October 5, 2007

Tax hike, a big burden on the tea industry

Guwahati/Silchar : Usually preoccupied with getting bonus payments over with at this time of the year, Assam’s tea industry has found one more reason to be hassled this season.

The cabinet’s decision to hike land revenue by 80 per cent — up from Rs 12 to Rs 22 per bigha in the Brahmaputra Valley and from Rs 9 to Rs 16 in the Barak Valley — has had almost all associations of the industry crying foul. If the hike isn’t annoying enough for an industry looking for relief rather than pain, the government has pegged the rates with retrospective effect from June 2003.

The chairman of the Assam Tea Planters’ Association (ATPA), Raj Baruah, said the proportion of the hike was absurd and inopportune. “This hike is a big burden on the industry. Many gardens will have no option but to close down.”

The ATPA chief said the industry was already burdened by “mammoth social costs” that the government was loath to reduce.

Baruah’s counterpart in the North East Tea Association, Manoj Jalan, described the hike in land revenue as one of the biggest blows to the crisis-ridden tea industry in recent times. “We will fight against the move. We are not in a position to take such a big burden at this time.”

Jalan said the cabinet’s decision was all the more unfair because governments in other tea-growing states were trying to help the industry come out of a decade-long recession. West Bengal, Tamil Nadu and Karnataka, he pointed out, had waived the cess on green leaf recently. “But despite repeated appeals, our government has done nothing and, now, this added burden.”

The secretary of the Assam Branch of Indian Tea Association, Dhiraj Kakoti, said the industry would not take it lying down. “The government cannot take a unilateral decision. The industry should have been consulted on the issue.”

Tea associations intend to get together in this “hour of crisis” and devise a strategy to pressure the government into modifying, if not reversing, the decision.

Government spokesman Himanta Biswa Sarma argued that the hike was “modest” and “mutually agreed upon” during meetings with the Consultative Committee of Plantation Associations (CCPA).

Associations representing plantations in Assam, however, denied that the government ever held discussions with the CCPA on this issue.

Source: The Telegraph

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Friday, September 21, 2007

Tea Board signed MoU with Russia

Moscow : The Tea Board of India has signed a Memorandum of Understanding with Russia's 'Roschaikofe' association to promote export of premium quality tea to this country in an effort to restore the flagging image of the Indian beverage in the local market.

The MoU signed last night by the Chairman of the Tea Board Basudev Banerjee and Ramaz Chanturiya, the General Director of 'Roschaikofe' association of Russian tea and coffee traders and packers, provides for creating favorable conditions for activities of tea organizations to boost trade-turnover.

In a major drive to recapture dominant position lost over last five years to Sri Lanka, the Tea Board Chairman had brought with him over 20-member strong delegation of the Indian industry involved in growing, processing and exporting premium quality traditional tea from Assam, Darjeeling and Nilgiris.

In the Soviet days, India was the largest supplier of black tea to the Russia market. However, since the break up of the USSR the local consumers have shifted their preferences to premium quality orthodox (leaf) tea from CTC (granulated) earlier imported from India in large volumes.

Addressing the Indo-Russian tea traders’ business meet, the Tea Board Chairman underscored that quality has to be priority in exporting tea to Russia.

"Quality is the priority and not quantity and volumes," Banerjee said.

Source: The Economic Times

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New Neutralization scheme for tea exporters

The government is formulating an alternative duty neutralization scheme for tea exporters, commerce and industry minister Kamal Nath said here Monday. "The new scheme is in the final stage. It will be announced soon," he said, speaking at the 144th annual conference of United Planters' Association of Southern India (UPASI) being held in this southern India tea and coffee growers' hub.

The Duty Entitlement Pass Book Scheme expires on March 31, 2008. The commerce ministry has asked the National Council of Applied Economic Research (NCAER) and the Economic Law Forum to work out an alternative scheme, which will neutralize levies (customs and excise duties along with state levies) while being WTO compatible.

The minister also said that the government would set up a committee within two weeks to look into the problems of small tea growers and suggest remedial measures. The panel will include officials, representatives from the Tea Board and small growers.

Noting that the allocation for the plantation sector had been more than doubled to Rs.30 billion in the 11th Five Year Plan, Kamal Nath said the government would take a decision soon on whether small growers needed a special package or if it was necessary to fix minimum prices.

Source: India Interacts

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Tea diversification with the change in law

Coonoor : India's struggling tea sector is seeking changes in the law to allow for diversification into other crops to fight rising production costs and increase returns, officials said on Monday.

At present laws such as the Plantation labor Act, land reform acts of various states and Minimum Wages Act inhibit diversification and need drastic overhaul, said J.K. Thomas, president of the United Planters' Association of Southern India.

"Even while a plantation commodity is economically inviable, we cannot change over to alternate crop because of the restrictive and archaic laws which have outlived their purpose," he said.

It is high time that necessary legal amendments were brought about for allowing tea estates to diversify into other crops like bamboo, jatropha and palm, Thomas told a planters meet in Coonoor.

Indian tea prices remained almost steady at an average of 65 rupees per kg in the month of July, a gain of one rupee from the same time last year, according to data from the Tea Board.

But prices of other plantations crops such as rubber and coffee have increased 10-20 percent due to higher demand.

"In India the amount of money spent on wages and labor welfare are higher than other emerging countries like Vietnam," Basudeb Banerjee, chairman of the state-run Tea Board of India, told Reuters.

India, the world's largest producer and consumer of tea, has strong regulations to protect workers' rights and employees have powerful unions, which often guarantee them free electricity, water and food as part of their salary packages.

The area under tea plantation is estimated at about 521,500 hectares. About 130,000 growers and 1.26 million workers are associated with the industry.

Source: Reuters India

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Thursday, September 13, 2007

Flood affects tea gardens in Assam

Guwahati , Assam : Stranded without supplies for a fortnight, as many as eight tea estates in Assam’s flood-ravaged Barak Valley have shut down and many more could cease production over the next few days.

There has been no rail communication between the Barak Valley and the rest of the state since June 25, when a bridge near Lumding collapsed under the weight of a freight train. A fortnight ago, a massive landslide cut off the land route, too. The landslide at Sonapur in Meghalaya blocked a 300-metre stretch of National Highway 44, the valley’s lifeline.

Floods compounded the crisis, damaging interior roads linking estates in Cachar, Hailakandi and Karimganj districts beyond repair. The swirling waters of the Barak and its tributaries also caused extensive damage to tea bushes in about 30 plantations.

Tea estates of the valley today sent an SOS to the Tarun Gogoi government through their associations.

The secretary of the Tea Association of India (TAI) in Guwahati, D. Deka, told the Telegraph that most estates would close down unless the government intervened. “Plantations have had no rations, fuel and other items required to run a tea estate for a fortnight. The Barak Valley tea industry is truly in dire straits.”

About 60 of the 100-odd Barak gardens are affiliated to the association.

Their worst fear is not being able to pay Puja bonus to workers, leading to a potentially violent labour unrest. “We haven’t sold any tea in recent weeks, which has reduced cash flow to a trickle. We cannot pay bonus from empty coffers, can we?” a tea estate manager asked.

Since factories are not running, plucking has had to be stopped, too. Tea leaves have to be processed within a maximum of 20 hours of plucking to produce tea of good quality.

Deka said the number of trucks being allowed to ply on the damaged highway was inadequate for an industry that required a healthy supply chain. “The magnitude of the crisis would have been less had the rail network been functioning. Since trains are the main source of transport to these gardens, supplies have been erratic ever since the rail bridge near Lumding collapsed.”

Member estates of the TAI procure 4,906 quintals of rice and 3,720 quintals of wheat from the Food Corporation of India every month for distribution among their workers. Plantations affiliated to the Assam Branch of Indian Tea Association procure 4,030 quintals of rice and 2,770 quintals of wheat.

The bulk of these consignments is ferried to the valley by train.

“It is impossible to carry such huge quantities of food by trucks on a hilly road,” an official said.

The FCI has only one warehouse, in Silchar town of Cachar, for the entire valley.

Sources in Northeast Frontier Railway said repairs on the damaged rail bridge would not be completed until October.

Source: The Telegraph

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Thursday, September 6, 2007

International tea producer's forum set up

Bangalore : The world's leading tea-growing countries have decided to launch an International Tea Producers' Forum (ITPF), the equivalent of the Organisation for Petroleum Exporting Countries, the International Coffee Organisation and the Association of National Rubber Producing Countries.

The decision to set up ITPF was taken in principle on the sidelines of the just concluded International Tea Convention in Colombo. The meeting was attended by the 14 leading tea-producing nations, including India, China, Sri Lanka, Kenya, Indonesia, Malawi, Tanzania and Japan. The modalities and the by-laws will be finalised at the India International Tea Festival in Guwahati this November.

Tea Board vice-chairman and United Planters' Association of Southern India (Upasi) president J K Thomas told on Monday that one of the key objectives behind the setting up of ITPF was to address the problem of a global surplus, expected to continue till 2014 by the UN's Food and Agriculture Organization's Inter-Governmental Group on Tea.

ITPF is looking at boosting demand in both producing and populous markets, particularly developing nations like India (which has a per capita consumption of 690 gm) and China (below 600 gm), compared to 1.4 kg in Sri Lanka and 1 kg in Pakistan. India's present annual consumption is around 725 million kg and a production of 950 million kg. ITPF will seek to enhance consumption through generic promotion and by emphasising the health benefits of tea.

ITPF will also look at the possibility of curtailing expansion. ITPF will try and recommend other alternative crops to tea, depending on the cultivation pattern in each tea- producing country.

ITPF will also focus on the stringent maximum residue levels (MRLs) for pesticides and chemicals adopted by leading tea-importing markets like the EU, the US, Canada and Japan. Canada is even said to be considering a zero-tolerance MRL norm for tea imports. Some tea-producing nations have pointed out that the MRLs for tea are much lower than for other produce like fruit and vegetables in these very markets.

Source: The Economic Times

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Assam Tea coin in Canada

Guwahati , Assam : At a time when the tea sector is passing through rough patches, traditional communities engaged in brewing tea are experimenting with innovative tea products and methods.

The Singpho community, which is credited for being pioneers in the discovery of tea, have developed “Tea Coin”. This organic tea has already hit the stands of Canadian tea market and now the growers are making attempts to export it to the US.

Tea Coin is sold in Canadian market under the brand name of 'Phalap', as tea is known as phalap in Singpho language. Two gram of tea are packed in coin shape, which can be consumed by dissolving in hot water.

Tea Coin is marketed by Small Tea Co-operative, a Canada-based company. Rajesh Singpho, managing partner of an Assam-based firm, Singpho agro products, told ET: "Consignment comprising 10,000 pieces of Tea Coin have been sent to Canada. We have very good feedback from the customers. We have found that there is market for this variety of tea there. We have received feedback from North American companies on our traditional tea and they are keen to import Singpho tea.” He added tea manufactured in Margherita in Upper Assam, the heartland of this community, is based on the traditional method. It is chemical-free. Even the tea containers are made of bamboo which helps in retaining the aroma. “We produce tea without using modern machine that keeps entire nutrients of tea intact. From two grams of tea, at least two to four cups of tea can be prepared."

Mr Singpho further said about 200 young people are involved in tea farming. "We are presently plucking tea from around 100 bighas. We had a marathon presentation before the tea experts in Canada to establish our brand and we are now planning to expand our market in other places."

According to historical sources, it was in 1823 that Robert Bruce, a British trader, first discovered tea plants with the help of a local Singpho Bisagam chieftain.

Before his death in 1825, Bruce passed on his knowledge to his brother Charles, who sent seeds of the plant to Kolkata (then Calcutta) in 1831.

In 1833, the British lost the monopoly of tea trade with China and the tea committee dispatched secretary George Gordon to China to study the methods and begin tea plantation in Assam.

Gordon returned with the Chinese variety of tea and workers and imported labour from Bihar and Orissa. It was found that the local variety of the plant was more suited to the climate. Crossing it with the Chinese tea plant led to Indian hybrid tea, which has great variability and vigour. This has been called the most important evolution of the commercial tea planting.

Before the discovery, tea plants used to grow in the jungles with local people eating the leaves as a vegetable with garlic. After Robert’s death, his plan to establish a nursery was followed up his brother Charles who was then an employee of the East India Company. On May 8, 1838, 350 pounds (159 kg) of Assam tea were dispatched to London and sold at India House on January 10, 1839.

Source: The Economic Times

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Fight back strategy to boost production and sales

Guwahati , (AFP) : India's hard-hit tea industry has launched an aggressive "fight back" strategy to boost production and sales in the face of stiff challenges from rival nations churning out cheaper brews.

India is the world's second largest tea producer and Rangup a record 955 million kilogram (2,105 pound) crop last year with northeastern Assam state accounting for 55 percent.

China, the largest producer of the brew, made 1.02 billion kilos in 2006.

But prices have been under pressure since the 1990s.

"The new tea strategy now is to chase both volume and value in exports. We're getting positive results and 2007 is turning out to be a good year for tea," India's junior commerce minister Jairam Ramesh told AFP.

As part of its campaign to boost production and quality, New Delhi launched in June a 48-billion-rupee (1.2-billion-dollar) package to help the beleaguered industry replant aging tea bushes.

"The Special Purpose Tea Fund is a project covering about 200,000 hectares (494,210 acres) in 1,000 of India?s nearly 1,600 plantations," Ramesh said.

India?s production is expected to jump by close to 40 percent once aging bushes over 50 years old are replanted or rejuvenated -- a process involving cutting or pruning, officials said.

"We will also plant high-yielding clones which would nearly double production and give us premium tea," Dhiraj Kakaty, an official of the Indian Tea Association, the top tea administration body, said.

India?s 1.5-billion-dollar-a-year tea industry has been facing a crisis with prices dropping in weekly auctions since 1998 and exports plummeting.

The industry now is showing signs of resurgence, officials said in Assam, which has over 800 plantations that employ around one million people.

A kilogram of good quality tea fetched 73 rupees in recent weekly auctions compared to an average 68 rupees last year. And exports rose by eight million kilograms to 200 million kilograms in 2006 from the previous year.

"These are good indicators and we're sure prices will firm and exports increase," the minister said.

Prices, however, are still below those fetched in the late 1990s when a kilogram of good quality tea from Assam or South India got 95 to 100 rupees.

The slump in prices and exports is largely attributed to cheap, inferior quality teas produced by many new growers like Vietnam, Bangladesh, and Iran. This has meant Indian teas are facing stiffer competition in the global market.

"(But) the overall mood is vibrant with the Indian tea industry now beginning to look up," the tea association's Kakaty said.

"Overseas demand is on the increase mainly due to very good quality teas produced by us," he said. Pakistan, Egypt, Iran and Iraq and countries in the Middle East figure prominently in the export list.

Spurred by recent successes in boosting foreign buyer interest, India's commerce ministry is organizing a three-day International Tea Festival in Guwahati, the main city of Assam, in November.

The festival, dubbed the "Great Indian Tea Party," is expected to draw foreign buyers with 400 delegates set to arrive from around the world, including from Britain, Pakistan, Iran and Egypt.

Apart from meetings to showcase different kinds of Indian teas, the festival will also offer delegates a treat -- a tea made by Assam's Singpho tribal people.

Long before commercial production began in the late 1830s, tea plants grew wild in Assam's jungles. Singpho tribe members ate the leaves as a vegetable with garlic and also drank water brewed with the leaves.

Source: Google News

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Insurance cover for tea growers

Coonoor : Indcoserve, the apex body of the various industrial co-operative tea factories called the Indco factories, has decided to cover the members of these factories under a new insurance scheme being mooted by the Tea Board.

The scheme including life, medical, accident and education is expected to benefit some 20,000 small growers. The insurance companies have come out with attractive packages whereby a group of five members in a family is covered for at least Rs 30,000 per year in the best hospitals of the Nilgiris, Coimbatore and nearby districts.

The annual premium involved is just a few hundred rupees, said R.D. Nazeem, Executive Director, Tea Board. Tea Board would pay a part of the premium.

Source: Sify.com

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Wednesday, August 29, 2007

Ninety million dollar investment in Ethiopian tea

The Kanan Devan Hills Plantations (KDHP), an Indian company, says it will invest more than 90 million dollars (N11.5 billion ) in Ethiopia to develop 10.000 hectares of tea plantation.

Commodity Online reports from India that KDHP officials said while the new project would have a 70:30 debt equity ratio, some foreign private companies have shown interest in the venture.

The participation of Tata Tea, which already holds 20 per cent equity in KDHP, would also be sought.

The debt component would be raised from Ethiopian banks, which have also shown interest in the project.

The aerial survey of the land have been completed along with queries on the employment and economic generation potential of the project.

According to KDHP officials, the project would create direct employment for close to 10,000 people and accelerate export and economic development in the region.

The land, which is given on a 90-year lease, will command a very nominal rent.

The suitability of the land is attested to by its proximity to Kenya and Tanzania, which are traditional tea growing countries.

The company is in the process of preparing a detailed project report.

KDHP succeeded Tata Tea Limited on April 1, 2005 when the latter exited most of its plantations in Munnar, to focus on the growth of its branded tea business.

Source: The Tide Online

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Plantation Labor Act for major changes

The Plantation labor Act 1951 is set for major changes. The inter-ministerial and intra-ministerial review committees formed by the Union ministry of commerce & industry and the labor ministry respectively, have narrowed in on the desired changes and the amendment bill is expected to come up in the Winter Session of the Parliament.

One of the proposed changes in the PL Act that enjoys the consent of both the review committees, is in the definition of "employer" with regard to the plantation industries. As of now, in the PL Act terminology, "employer" refers to one in command of the affairs of a plantation, practically the manager of a tea estate.

It has been proposed that the term "employer" be modified to include the lessee, partners and MD of a plantation in its ambit, as the manager is often a paid staff and not a owner.

"The proposed change, which would definitely sail through, would be a major step towards protecting the interests of plantation workers. For, the estate owners would not be able to shift the responsibility on managers and thus would become accountable to the workforce," said Mr Aloke Chakravorty, the workers' representative in the Union commerce & industry ministry's review committee.

The other major changes proposed are, extension of the employees' state insurance facility to the plantation workers, inclusion of contract workers in the scope of plantation workers by raising the wage ceiling to Rs 6,500 per month and inclusion of a widow sister in the scope of family of a plantation worker.

The commerce & industry ministry review committee, headed by Mr OP Arya, additional secretary in the ministry of commerce, has met five times so far to formulate the proposed amendments. Another crucial meeting of the review committee is scheduled tomorrow at Udyog Bhawan in New Delhi, which is likely to come up with the final draft proposal for the much-awaited amendment to the Plantation labor Act 1951.

Source: The Statesman

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Tuesday, August 28, 2007

Tea worker starvation deaths

Kalavati Barai of Raipur Tea Estate in Jalpaiguri has been watching the consistent deterioration of her family of six over the past four years. In March this year, her husband succumbed to severe anaemia and related complications. “I couldn’t feed him, so he died,” she states simply. Since the tea garden was abandoned by its owners in 2003, they have been subsisting largely on one meal of rice a day. Kalavati’s youngest son, 13-year-old Kartik, is now severely ill but she can’t afford his medicines. “He hasn’t been to school for three years now. The doctor says his kidney is damaged. What do I give him? I have nothing.” There are several others like her who are suffering because of closure of 14 tea gardens in North Bengal in 2003-04.

Most of the gardens closed after production fell and profits plummeted due to low yields from ageing tea bushes. Several gardens were abandoned by their owners, leaving behind large debts and dues of Rs 18. 69 crore in workers’ provident funds. More than 17,000 workers at these tea estates have been struggling; there are no other means of livelihood. An estimated 1,000 people—workers and family members—have died of malnutrition and related diseases since 2003 in the Dooars region.

The governor of the state, Gopal Gandhi, expressed shock four months ago at the dire situation of tea estate workers. The media in the state has regularly covered the workers’ plight, leading to red faces in the Left Front government of West Bengal as well as the Centre. The much-awaited response came on July 7 from the Tea Board of India, the Union ministry of commerce’s regulatory body on tea trade: an ultimatum to the 14 estate owners to reopen the plantations within a month, failing which the Centre would take over their estates and hand them over to new owners. The estate owners have until mid-August to respond to this ultimatum. Talks between government and tea industry officials also produced a package of Rs 119 crore to revive the tea industry. A senior tea board official said the package in June 2007, includes:

  • a five-year moratorium on damages for defaulting on provident fund and gratuity payments
  • waiver of all loans from the tea board and soft loans for five or six year terms to help with replantation
  • rejuvenation of old tea bushes
Surviving on rats
“No other organised sector has seen so many deaths from chronic malnutrition before,” says Anuradha Talwar of the West Bengal Network for Right to Food and Work, which has estimated the death count of 1,000 in its study. It found workers were eating wild grass, leaves and rats to survive. A survey by Paschim Banga Khet Mazdoor Samiti, a farm workers’ union, found the workers surviving on as little as 200 calories per day, compared to 1,000-2,900 calories before the estates closed down. An average adult is believed to require at least 850 calories per day.

The state government denies that food scarcity is responsible for the deaths; it did acknowledge in June that 571 people had died at the gardens between January 2006 and March 2007. The state health department had a long cause list for the deaths. It included tuberculosis, meningitis, cancer, malaria, hepatitis and septicaemia. It did not mention what is common knowledge: lack of nutrition makes the sick more vulnerable. Forty-six of those who died were children below the age of 10, and 465 died at home, unable to afford trips to a healthcare facility.

The media outcry led to the administration and several ngos distributing food and medicines, and conducting health camps in badly hit estates like Ramjhora and Bharnobari in Siliguri. Debashis Chakrobarty of Siliguri Welfare Organisation, a voluntary health service outfit, said the efforts are vastly inadequate.

In April, the state had announced a special interim grant of Rs 16 crore for the closed gardens as a stopgap solution while negotiations were going on. Media reports claimed little of this has reached the workers.

Most of the affected gardens are far from towns and villages, limiting employment options and healthcare services for the unskilled workers. Public transport to towns is infrequent and expensive—it costs Rs 60 for a 30-km bus trip to Jalpaiguri town from Raipur. The Plantation Labour Act of 1951 makes it the estate owners’ responsibility to provide the workers basic needs—food, education, healthcare. With the tea estates becoming unprofitable after the late 1990s, the owners abandoned their responsibility.

Ownership crises
Most estates are now run by ad hoc management committees set up by local trade unions. “We depend entirely on nature now,” says Kajal Ghosh, a former supervisor at Raipur tea estate, now helping out the committee. “December-March is the lean period when plucking is stopped, to start again in April. Things are a little better during the monsoon, and we can pay regular wages.”

The committees lack the expertise to run the processing plants, which can’t run anyway after the water and power connections were cut due to unpaid dues. So, the picked tea leaves are sold to the processing factories that have cropped up in the region. The day’s earnings are divided up among the workers. With no resources to spend on protection of the tea bushes, output is low. Workers pick about 3-4 kg of leaves per person per day, which was 10-12 kg earlier. The daily earnings vary from Rs 5-10 to nothing a day. Then, there are allegations against the committees, too. At the Kalchini Tea Estate in Jalpaiguri, the committee members have been accused of embezzling funds.

Compromised from all sides, workers are forced to sell household items, or crush stones in nearby riverbeds for daily wages. There are also occasional jobs of digging drains and widening roads under the National Rural Employment Guarantee Act (nrega). Officials claim the state government is carrying out several work-for-food schemes and distributing food for the children and the aged.

But the effectiveness of these schemes is questioned. A National Legal Services Authority report submitted to the prime minister and the chief justice says there is “rank mismanagement in distribution of job cards, pensions and the 100-day work scheme”. It says the workers’ are going hungry because of unemployment, absence of alternative income opportunities and limited access to social justice schemes.

Estate employees such as Ghosh have repeatedly suggested nrega funds would be better utilised to on running the gardens instead of peripheral development work. At Dehklapara Tea Estate near the Indo-Bhutanese border, also closed since 2003, an emaciated Rita Sonal has been given a job under nrega: cutting hard mud with a spade and loading it on to trucks. Though glad to have a job, Sonal has a hard time. “We don’t have strength left in our bodies for this kind of heavy work,” she says.

A troubled brew
The first wave of tea garden closures in North Bengal began in the late 1990s after managements shut down operations citing poor economic viability. There are an estimated 160 tea plantations in North Bengal, which account for about 30 per cent of India’s annual tea production of about 823 million kg. India is the world’s largest tea producer, but industry insiders say its us $1.5 billion a year tea business has been suffering over the past decade following a crash in tea auction prices and a slump in leaf exports.

According to a status paper by the Tea Association of India, declining productivity, rising input costs, low level of labour output and age profile of tea bushes contributed most to the decline of the industry. The North Bengal gardens, whose leaves were once considered among the best in the country, have been the worst hit.

Some garden owners, like Robin Pal of the Redbank group in Jalpaiguri, blame trade unions for the crisis, saying they made impossible demands regarding wages and benefits at a time when business was suffering. But others, like Sanjay Bansal of the Ambootia group point to other reasons: bad management practices, owners siphoning off money instead of investing it in the gardens, overuse of pesticides and indisciplined workers.

The other cause for decline is the proliferation of small growers and ‘bought leaf’ factories since the 1980s, says Naba Dutta of Nagrik Mancha, a Kolkata-based citizen’s group that investigates labour issues. According to government records, there are 6,000 small tea growers in Bengal (though the United Forum of Small Tea Growers’ Association pegs it at 15,000). These gardens, industry watchers say, has done more harm than good for the local tea business. They are run by businessmen interested only in quick profits, who don’t know the specifics of tea growing and don’t concern themselves much with quality control. As a result, the industry’s reputation has suffered. Both Dutta and Bansal believe the situation can be corrected by recognising that the bought leaf sector is the nemesis of the tea industry, work on making the soil healthy again, and by treating workers as assets.

Dutta goes a step further and insists that though there’s a general idea that the entire tea industry in the country is ailing, nothing could be further from the truth. “A simple example – the price of tea hasn’t reduced in the domestic market,” he says. “Tea garden owners say that the market is fallen, consumption is decreasing, that young generation is drinking cold drinks, but a recent Indian Institute of Management, Kolkata, study has projected total domestic consumption of tea has increased from 737.13 million kg in 2006 to 789.49 million kg in 2007,” he says. The study projects consumption will increase further to 867 million kg by 2009. Also, only 30 per cent of tea produced comes to auction houses on which accounting of a garden’s profit is measured, so can never really know the actual profit/loss margin, he says. Dutta believes the current crisis developed because many garden owners are using their estates to take out huge loans and invest the money in other businesses rather than in the upkeep of the gardens and the workforce. Nagrik Mancha and several civil and labour rights’ groups are conducting an independent study into the “real cause” of the garden closures.

Ethnicity of the workers has also been a crucial reason why this abysmal situation has been allowed to drag on for so long, human rights activists allege. More than 85 per cent of the workers are tribals—fourth generation immigrants of migrants brought in by the British from Jharkhand, Bihar and Chhattisgarh or low-caste refugees from Bangladesh’s Jassore, Khulna and Barishal regions. A largely marginalised group, they lack the education or organisation to fight for their rights. Even when the estates are open, their daily cash wage is about Rs 48 and their standard of living is pathetically low. The trade unions, that purport to fight for their rights, have been so busy fighting among themselves and with the management, that they’ve paid scant attention to ensuring relief measures for workers at the closed gardens.

But anger at the injustice done to them is slowly building up among workers.

At Dehklapara Tea Estate, Dharamveer Bikuda, a young worker, threatens that if no action is taken soon, he and his friends will start blocking roads and robbing rich people driving by in cars. “We can’t go hungry for ever,” he says.

By Maureen Nandini Mitra
Source: Down To Earth

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Tea meet apprehensions

Guwahati , Assam : The Assam Tea Tribes Students Association has expressed apprehensions that the International Tea Convention, slated to be held in November, could end up doing more harm than good for the image of the state as well as the tea industry.

“When foreign delegates visit tea gardens — as they are scheduled to do — they will see for themselves the unhygienic living conditions of the tea garden laborers. This will not only give Assam a bad name, it might even have an adverse impact on business,” association general secretary Pallab Das said.

He pointed out that many developed countries just might not want to buy tea from a place where laborers lived and worked in such unhygienic conditions.

“These countries are very sensitive to such issues,” he argued, adding that given the tough competition faced by Indian tea in the international market, projection of such an image could very well ring the death knell for the industry.

Assam will host the International Tea Convention for the first time this year. The four-day convention will be held simultaneously in Guwahati and Jorhat.

A host of foreign delegates is expected to participate in the event. Hollywood actress Julie Christie, who was born in a tea estate in Assam, will be the guest of honor.

Source: The Telegraph

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Saturday, August 25, 2007

Ceylon teas in Bangalore

Bangalore : Our island neighbour of Sri Lanka is known for its top quality tea and one of its best known brands, Hyson Tea, has come to Bangalore. Twelve different flavours of tea will be distributed by Lekkad Exports and Events Pvt. Ltd across the country. At the media launch of Hyson Tea here on Friday, Hyson Tea Marketing Manager Sahampathy Dissanayake said his brand has a wide range of value added products to every taste, culture, mood and moment. Hyson Teas Pvt., Ltd., has been exporting Ceylon tea to over 25 countries, he added.

Mr. Dissanayake said that Hyson’s team of professionals and dynamic tea traders possess a collective experience of many years in international tea testing, blending, grading and trading. The tea comes in diverse forms of packets, tea bags, metal tins, gift items and canisters containing a variety of black and green teas ranging from regular, flavoured, fruit, specialty blends, herbal, cocktail and liquor teas.

Lekkad Director Sagar Lekkad said initially they would import Hyson tea in teabags (of two gram each) and their target would be major corporate houses. Later, they would also import loose tea, he added. The official launch will take place on Saturday with the Union Minister of State for Planning M.V. Rajashekharan releasing the Hyson tea products.

Source: The Hindu

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Friday, August 24, 2007

Tea to get e-auctions soon

Kochi : Soon, e-auction will be introduced in tea, chilli and tobacco. Inaugurating the country’s first e-auction in cardamom at Bodinaikkanur on Thursday, Union minister of state for commerce Jairam Ramesh said e-auction in tea will begin in September. The Spices Board will take care of the e-auction in chilli, he said.

He said e-auction in cardamom would help in stabilising prices and improve the financial conditions of farmers. The present system of payment to the farmers on 21st day by the auction centres will be changed to payment in 14 days, for which auction rules will be amended by the Spices Board. All farmers will also be given identity cards, he said.

The e-auction centre in Bodinaikkanur will be a standalone system with a local area networking of auction centres. The Spices Board will extend the e-auction facility to the other existing auction centres in Kerala.

Mr Ramesh said a Rs 2-crore facility will be set up for cardamom processing and grading in Bodinaikkanur to ensure clean and graded spices. He also said that the commerce ministry will set up spice parks for turmeric in Erode, for cardamom and pepper in Idukki, for mint in UP and for chilli in Guntur.

Source: The Economic Times

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Naga blow to tea growers

Guwahati , Assam : Phuleswar Gogoi has procured a land acquisition certificate from the government and is all set to apply for Tea Board benefits to develop his 70-bigha tea estate located in Jorhat district along the Assam-Nagaland boundary. But a letter from the neighbouring state has jeopardised his plans.

“Why are agricultural activities being taken up in these areas meant for jhum cultivation without prior permission from Nagaland?” the letter sent to him by Leriman Basti village council in Nagaland asked and directed him to stop tea cultivation by today.

“Who would want to invest in a tea estate having an uncertain future? What will happen if the Nagas take possession of the tea estate tomorrow?” Gogoi, the president of the Seleng unit of the Small Tea Growers Association, said.

Gogoi said the council had sent letters to seven small tea growers about 15 days ago. The letters have made all the small tea growers along the Assam-Nagaland boundary jittery about their future.

Most of these tea estates have come up on government land in the past two decades.

The All Assam Students Union (AASU), which has been spearheading the state’s fight against encroachment of land by neighbouring states, today staged a four-hour sit-in at Seleng Chariali, under Teok police station, to demand security for the small tea growers.

The Jorhat unit president of AASU, Biren Saikia, said small tea growers in the bordering areas should be encouraged since they were the ones keeping Naga encroachers at bay by taking up cultivation.

“It is unfortunate that the government is a mute spectator to such threatening letters from across the border,” he said.

Saikia said Nagaland has also asked Laujan High School authorities to hand over the school to Nagaland.

Purna Phukon, another small tea grower, said he had struggled to procure the last possession certificate and had begun the process to apply for Tea Board benefits. But the letter had jeopardised his plans.

With the small growers coming up as big players in the Assam tea industry, the commerce ministry has given stress on developing this sector. It directed the government to issue land acquisition certificates to small tea growers so that they could reap the benefits from the Tea Board.

Gogoi said he has apprised the border peace committee, comprising representatives from Nagaland and Assam, about the letter.

He, however, expressed doubts that he would get any support. “What is the use of having a peace committee when we receive such threatening letters from across the border?” he asked.

Source: The Telegraph

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Tuesday, August 21, 2007

12 varieties of Jap Tea included on demand for Japanese delegates

New Delhi : When Japanese prime minister Shinzo Abe comes calling today — leading a 140-plus delegation from his country — he is likely to feel more at home than he may have expected. Japan, after all, is quite the flavour-of-the-moment at the luxury hotel in New Delhi where the premier and the delegates are putting up.

Right from making sure that the okayu, or rice porridge (a special request apparently), is on the breakfast table for the PM along with elaborate omelettes, folded several times over and layered with the likes of nori sheets and flaked dry fish, to flying in 60 kg of fish from Tokyo, the hotel seems to have spared no effort in making its guests welcome.

A Japanese chef is being flown down from the hotel chain’s trendy Japanese restaurant in Mumbai, and apart from the likes of steamed black cod on the menu, the prime minister and his spouse will also be treated to some special creations.

On the other hand, it is not yet sure — breakfast apart — how many meals the couple will actually be having at the hotel. However, since “the news has filtered in” that they also like curries, the Indian kitchen has been kept in readiness. On the menu are chicken curry, mutton biryani and the master chef’s trademark galauti kebabs.

And if the visitors call for some beverage, a Japanese tea festival is fortunately underway too. About 12 varities of Japanese tea are on offer including Sencha, the most popular type, Macha, or powdered green tea, Hoji Cha, roasted leaf, and Genmaicha that is rice-flavoured. If you fancy a discerning sip, the hotel is likely to resemble a fortress these few days.

The prime minister and his wife are, of course, going to be put up in the super-plush presidential suite of the hotel, amongst the best in the country with its Napolean chairs, original artwork, gold-plated cutlery, IBM thinkpads, digital phones, weatherproof speakers in the bathroom, treadmill and the like.

A bevy of heads-of-states and corporate heads have availed of all these in the last few years but unlike the demands of some, the hotel says it has not received requests for anything special this time round — apart from the porridge.

One request, however, is to arrange for a ladies’ lunch at a tony club within the hotel to be hosted by Mrs Abe.

Needless to say, this too will be an all-Japanese affair but the menu, according to its executive chef, seems to be a trifle more eclectic: Green tea-flavoured noodles and, hold your breath, wasabi-flavoured creme brulee (all specials from the Mumbai restaurant)! Some would call it lunch diplomacy.

Source: Business Standard

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