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Wednesday, February 13, 2008

Assam Co plans investment in oil & gas, tea

Tea maker Assam Co Ltd. plans to invest 4.3 billion rupees over three years in oil and gas and tea sectors, a senior official said on Wednesday.

The company is eyeing 3 billion rupees in revenue in 2008, up from 1.7 billion rupees in 2007, on higher oil production, chief financial officer Abhay Chawdhry told Reuters in an interview.

It hopes to complete digging 35-40 wells at its oil and gas blocks in Assam by 2010, and increase oil production to 35,000 barrels per day, from 1,000 barrels per day now.

The company is working in six blocks in the northeastern state. "Major part of the investments will go into development of oil blocks, that will boost our revenues," he said.

It plans to invest 400 million rupees for replanting tea bushes and development of processing units at its estates in Assam, Chawdhry said.

It has 19 tea estates and 16 processing units. The gardens produced 16 million kilograms of black tea in 2006.

The firm is re-introducing packet tea brands and plans to open more tea bars, which serve a variety of teas and tea-based drinks.

It plans to set up 100 tea bars in 2-3 years, from nine now, to capture the market for the ancient brew in India, the world's largest producer and consumer of tea.

"We hope tea industry will capitalise on firm international prices and increasing orthodox production," he said.

It also plans to increase orthodox tea production to 5 million kilograms in three years from 1.6 million kilograms now.

NEW VENTURE

The company, which recently forayed into the infrastructure sector, plans to develop a special economic zone for products and services for the energy sector in Gujarat.

It is forming a joint venture with state-run Gujarat State Petroleum Corporation Ltd for the SEZ, estimated to cost about 20 billion rupees.

The company's shares ended 4.89 percent lower at 33.10 rupees in the Mumbai market.

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Wednesday, February 6, 2008

Orthodox tea output seen up 47.4 pct by 2012

MUMBAI (Reuters) - India's orthodox tea output may rise 47.4 percent by 2012 on good export demand and incentives by the state-run Tea Board, a top official said on Wednesday.

Production is expected to increase to 140 million kg from 95 million kg last year, Basudeb Banerjee, chairman, Tea Board, told Reuters in an interview.

"We are positively encouraging the production of orthodox tea. We have schemes which provide up to 40 percent subsidy for installing machinery for orthodox production," he said.

Orthodox tea, which constitutes about 10 percent of the country's total tea output, is made from the top two leaves of each plant and manufactured with the help of an orthodox roller.

The Tea Board is also taking up quality upgradation and product diversification schemes to convert more CTC (curled-torn-crushed) plantations to orthodox variety.

Besides providing subsidies to growers, the Board spends about 200 million rupees a year to encourage production of orthodox tea, Banerjee said.

The Tea Board provides a subsidy of 3 rupees for every kg of orthodox tea produced, he said.

Orthodox tea is of a higher quality than CTC and is mostly exported.

EXPORTS TO RISE

Orthodox tea exports are likely to rise in the next few years due to higher demand from Russia and other European countries and stagnant production in Sri Lanka, a major exporter.

"I see excellent prospects in next few years. Sri Lanka's production is stabilising...opportunities are there for India and we can get greater share in the export market," Banerjee said.

Sri Lanka's tea production fell 2 percent in 2007 to 304.6 million kg due to insufficient use of fertiliser.

Russia is now shifting towards orthodox from CTC and India is trying to increase its exports to the country to regain its lost share. Currently, Russia imports about 20 percent of its orthodox requirement from India.

"We are looking at 130 million kg of orthodox tea export by 2012," Banerjee said.

In 2007, orthodox tea exports are estimated at about 93 million kg.

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Monday, February 4, 2008

Tea output likely to rise by 4 pc

New Delhi (PTI): The country's tea production is expected to rise by 4.25 per cent to about 980 million kg in calender 2008 compared to last year's output, according to the government's promotion body for the commodity.

"We expect the tea production to be about 980 million kg this calendar year," Tea Board Director (Development) G Boriah said.

The Tea Board, which is the government's promotion body for the commodity, has estimated the country's tea production at 940 million kg for calender 2007.

Boriah also said tea production in the current financial year is estimated at about 932 million kg compared to 947.17 million kg in 2006-07.

"The drop in tea output last year was mainly due to flood in the north-eastern parts of the country while the southern states were affected because of drought," he said.

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Friday, February 1, 2008

Tea Times at Tocklai

Nearly 100 years ago, the world’s first experimental tea research station was launched in a remote corner of India. The Tocklai Experimental Station was founded by the Indian Tea Association (ITA) at Jorhat, Assam, as early as 1911. Subsequently, several other tea research institutes sprung up in Sri Lanka, Kenya and even in South India. But Tea Research Association, as the Tocklai-based station is called today, remains the parent body of all such institutes in the w orld.

Interestingly, however, the seeds of tea research were sown even before 1911. The scientific department of the ITA, then entirely controlled by European tea-planters, was launched in 1900 with the appointment of Dr H.H. Mann, who worked out of the laboratory of the Economic Chemist to the Government of India at Indian Museum in Calcutta. At the initiative of Dr Mann, a field experimental station was set up at Heelaleak, Mariani. In 1906, an entomologist was appointed at Cachar, the tea-growing area in the Barak Valley, Assam. The experimental station at Tocklai was set up to centralise the work of various branches.

During World War I, the scientists were called upon to participate in active service. After the war, some of the scientists came back and decided to increase the number of European staff at the station. Accordingly bacteriologist, chemist, biochemist, botanist and agricultural officers were appointed. In 1930, the Empire Marketing Board agreed to bear half of the cost of botanical research at Tocklai for five years.

But the Great Depression of 1931 dealt a blow to the tea industry and with it Tocklai was also hit. The Calcutta central office was closed and the services of some of the scientists were dispensed with. In 1935, a Commission headed by F.L. Engledow, Professor of Agriculture, Cambridge, was appointed to inquire into the functioning of Tocklai. Its findings fully endorsed the policy of the Indian Tea Association. Between 1937 and 1939, several recommendations were implemented, including formation of the London Scientific Advisory Committee, initiation of an annual conference of planters’ representatives, and appointment of new staff. But work at Tocklai suffered again during World War II.

In 1948, ITA broke into two and Pakistan Tea Association was formed following the Partition of India in 1947. In 1951, the ITA’s chemical laboratory was set up in London to investigate the chemistry of made tea.

Tocklai boasts several achievements down the decades, right from introduction of annual prune and pest-control prior to 1950, down to the development of bio-pesticides, package for pest control and establishment of pesticide residue laboratory during the 1990s.

The achievements in the past three years have been many. A model tea factory functions within the TRA campus in Jorhat, processing technique has been modified to enhance brightness of tea liquor and a scattered matrix developed based on withering and fermentation behaviour which help blend different cultivars having uniform behaviour during processing. TRA also has to its credit several laurels in the fields of diversification, field practices, plant improvement and biotechnology.

It has been identified as the nodal institute for five multi-institutional projects funded by the Department of Biotechnology to the tune of Rs 5 crore. One of these projects would help release clones in four years. At present, nearly 60 per cent of the tea gardens in the North-East are covered by TRA-developed clones. The Ministry of Chemicals and Fertilisers has for the first time awarded Neem Mission Mode Project to develop neem kernel extract formulation to reduce pesticide load in tea.

TRA is also associated with several international projects, including one on understanding the molecular mechanism of Darjeeling flavour in association with Kyoto University, Japan; and a project on remote sensing and GIS inputs for pesticide scheduling, fertiliser scheduling, and drainage and irrigation planning in partnership with ITC, Netherlands. Discussions are on with Cranfield University for a project on soil health. It is also exploring EU funding for certain projects. “Our standard of research is at par with that in any other top-class research institute but our problem is that we’re not articulate enough to market ourselves,” says Dr M. Hazarika, Director of TRA.

But not everything is hunky dory at TRA. What started as an industry-funded venture has now turned largely into a government institute with its usual problems. Industry funding is now limited to around 30 per cent of TRA’s resources. This is presumably because, as Dr Hazarika explains, tea industry is no longer homogeneous. Resource crunch remains a permanent headache, with 90 per cent of available funds going to staff salaries. Yet the employees are not happy because their retirement benefits do not include pension. “We need more funds and more young research scientists because the average age of our existing scientists is rising,” Dr Hazarika observes, adding, “the authorities concerned must take a proper view in this regard”.

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Tea tasting competition at Coonoor

Friday, 01 February , 2008, 09:54
Last Updated: Friday, 01 February , 2008, 10:23


Coimbatore: The fourth edition of the tea-tasting competition is being organised jointly by the United Planters Association of South India (UPASI) and the Tea Board at Coonoor on February 2.

This is the second time that the cupping competition is being held in Coonoor after 2005. The second edition took place in Dubai and the third at Kochi.

Tea samples drawn randomly from the different estates/gardens of South India would be tested for smell, colour, taste, infusion etc. by a national jury of buyers, sellers and brokers.

• Quarterly results of corporates: Check out

‘It would be an objective and stringent selection process. As in the earlier editions, there will be a multi-layer screening process with a scoring system to capture the various quality attributes, and the award winning entries showcased at the Global Tea Forum in Dubai,’ the Executive Director of Tea Board, Nazeem, told Business Line.

Rise in entries

The total number of entries this year has risen to 213 against 208 last year and 194 two years back.

Industry sources said there was an increase in both the entry and garden/estate participation this year compared to the earlier editions, demonstrating sustained improvement in the quality of teas manufactured.

The competition would be in the Orthodox and CTC grades and speciality teas as well.

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Thursday, January 31, 2008

Indian Bank to step up finance for tea sector

Coonoor: Indian Bank has launched schemes to finance the small scale tea sector in the Nilgiris. “Before March 31, we intend to improve our presence in the Nilgiri tea sector. Our package covers all players - growers, green leaf agents, women workers, factory owners, traders and auctioneers,” P.N. Patel, Deputy General Manager and Circle Head, in-charge of the Nilgiris, told Business Line here.

Financial inclusion


He said that a branch would be opened in Kotagiri tea belt before March. Recently, the extension counter in Muthorai Palada was upgraded into a branch. “We have already brought in 100 per cent financial inclusion in the tea belts in the rural areas. We will be opening ATMs in Coonoor, Udhagamandalam, Devarshola, Pandalur and Gudalur before March 3. These will serve the tea interests,” he said.

• Quarterly results of corporates: Check out

Patel said that the package for the small scale tea factories in the private sector ensures a loan at 11.5 per cent interest per annum. “We discover that most factories need working capital assistance and this scheme addresses this issue prominently,” he said.

“For growers, we are strongly supporting the Kundah Tea Revival Scheme, where the growers are helped to replant their age-old bushes with high-yielding clones. This spreads to a large area in the Nilgiris tea heartland of Kundah,” he added.

Rural artisans

On tea auctions, Indian Bank is a settlement banker for Tea serve. “We take care of the settlement needs at the e-auctions conducted in Coonoor every Wednesday,” he said.

Women workers are supported through Self Help Groups (SHG). “We are financing the members of SHGs to take on lease the harvesting of tea green leaves. In all, we have extended loans up to Rs 3 crore from the Coonoor branch to the SHGs. By March 31, we plan to increase this to Rs 5 crore. The repayment is 100 per cent,” said S. Panchalingam Senior Manager, Coonoor branch.

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Monday, January 28, 2008

Russian Ban on bulk tea imports

KOLKATA: Exports of bulk tea, coffee, rice, tobacco and sesame seeds to Russia have come under threat. The Russian authorities are reported to be considering a ban on imports of plant products from India on the basis of detection of kharpa beetle pest in an Indian consignment of sesame seeds that landed in Russia recently.

The ban is reported to become effective January 28. The Russian authorities have apparently taken the decision against Indian agri-items on the recommendation of the Federal Service for Veterinary & Phytosanitary Surveillance (FSVPS), under the agriculture ministry.

The Russian watchdog for animal and plant health has recommended the ban after receiving reports of presence of kharpa beetle pest in an Indian consignment of sesame seeds. When contacted, a commerce ministry official said, “We have unofficially heard about the Russian decision. To get a confirmation on the report, the ministry is in touch with the Indian embassy in Moscow.”

The unconfirmed report also suggests that the proposed ban will apply to Indian plant products coming from Third World countries even as Indian cargoes carrying those items come with phytosanitary certificates issued by the National Quarantine & Plant Protection Organisation of India, he added.

However, the proposed ban will reportedly apply only to bulk consignments of tea, coffee, rice, tobacco and sesame seeds from India to Russia and not on their arrival in packaged forms as they are outside the watchdog’s jurisdiction.

This has come as a major blow to the Indian tea industry, which is trying to make a renewed entry into the Russian market. Russia imports nearly 30 million kg of tea annually from India.

“We have also heard of a ban on bulk tea imports by Russia. The Tea Board has taken up the matter with the commerce ministry. The ministry has said that the matter is being dealt with through diplomatic channels. The ministry is hopeful of an early solution,” Tea Board chairman Basudeb Banerjee told ET.

It may be recalled that Russia had earlier imposed a ban on the entry of rice, sesame seeds and groundnuts in May 2007. After much persuasion, the ban was lifted from Indian rice in July and that on oilseeds in September 2007.

As for rice, the ban was imposed on the purported detection of demethoate in an Indian container while imports of India’s sesame seeds and groundnuts faced the ban due to presence of aflatoxin B1 and metallomagnetic admixture in a sesame seed container. After much persuasion, the ban was lifted from Indian rice in July and that on oilseeds in September 2007.

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Tata Tea net jumps to Rs 1,307 cr

MUMBAI: Tata Tea Ltd on Monday posted over 11-fold rise in net profit at Rs 1,307.31 crore for the quarter ended December 2007 as compared to Rs 117.19 crore in the corresponding quarter last year.

The total income of the group stood at Rs 1,189.65 crore for the quarter under review as against Rs 1,119.32 crore during the same period last year, up 6.3 per cent, the company said in a filing to the BSE.

The standalone profit of the firm decreased 37.5 per cent to Rs 58.88 crore for the reviewed quarter from Rs 94.20 crore in the same period a year ago. Meanwhile, the income grew 34.4 per cent at Rs 401.38 crore for the latest quarter as against Rs 298. 72 crore in the corresponding quarter last year. Shares of the company were trading at Rs 790.60, down 0.35 per cent at the BSE.

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Tea Prices Set to Soar With India Ban

Tea prices were expected to rise by as much as 30 percent after a ban on Indian plant products came into effect Monday, although special regulations may be introduced for tea and coffee imports.

The Federal Service for Veterinarian and Vegetation Sanitary Supervision introduced the ban after a shipment of sesame seeds was found to contain Khapra beetles, Rossiiskaya Gazeta reported Saturday.

The country's tea stocks are sufficient to last a month, after which there would be significant difficulties because Russia gets one-third of its tea from India, the newspaper said.

Komsomolskaya Pravda reported Saturday that the insects could cause 5.5 billion rubles ($225 million) worth of damage if they infested the country's stocks and that prices could rise 20 to 30 percent.

Ramaz Chanturia, deputy head of the Russian Tea and Coffee Association, said Thursday that an agreement had been reached with the watchdog about special regulation for tea and coffee, Interfax reported. He said the relevant documents had been drawn up and that he hoped they would be approved Monday.

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Saturday, January 19, 2008

Tea shops downed shutters in Chennai

Chennai: About 10,000 licenced tea shops downed shutters here on Friday in Chennai protesting the "expensive LPG cylinder tariffs," and also pressing for some other demands.

At a time when the Central government is mulling hiking the prices of petroleum products, which also includes Liquified Petroleum Gas (LPG), the traders closed shops Friday, before putting up their own demands.

T Anandan, secretary, Chennai Metropolitan Tea Shop Owners' Association, said that Chennai has 10,000 licenced tea shops and another 5,000 of them without licence.

"The 19 kg LPG cylinders supplied to us are done under the commercial category, which costs Rs 1160 for a single unit. Star hotels in Chennai receive LPG cylinder supplies at the same rate, but we are not able to meet the expenses," he said while claiming one cylinder would not last for more than five days.

"A single shop requires 8-9 units a month," he said.

The 14 kg cylinders supplied to households at subsidised rates are priced at around Rs 258, Anandan said.

"We want the 19 kg LPG cylinder to be supplied at Rs 700 and the 14 kg one at Rs 500," Anandan said.

Presently, tea shops are not supplied with the 14 kg cylinder, he added.

In order to press for these demands, the traders on Friday took out a rally here and submitted a memorandum to the state goverment officials.

Chennai is a city which is dotted with tea shops at every nook and corner of the metro. More than a lakh people, directly and indirectly, are employed in the industry, Anandan claimed.

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Sunday, January 6, 2008

Loan and subsidy distributed to 34 tea estates

Loan and subsidy were distributed to 34 tea estates in Kerala, Tamil Nadu and Karnataka from the Special Purpose Tea Fund constituted by the Union government at a function here on Saturday.

Union Minister of State for Commerce Jairam Ramesh, who distributed the cheques, said the fund for revival of tea plantations had been launched in West Bengal and Assam. The money was intended for re-plantation and rejuvenation of tea plants which were more than 50 years old. Out of 1,600 tea estates in the country which were eligible for the scheme, 479 had applied for it. The rate for South Indian estates were increased in consideration of the higher labour cost. The area to be covered under the scheme every year was being increased. The pruning height of plants was also being raised to benefit estates in South India. Fewer applications from the South were on account of the large number of small estates present in Kerala and other South Indian States which were not eligible for the scheme.

Though South India accounted for only 25 per cent of the country’s tea production, it had a share of 50 per cent of the export of tea. About 40 per cent of India’s tea growing area would come under the scheme within 15 years, according to the government’s estimates. Accordingly, re-plantation would be done in 11,000 hectares every year. An amount of Rs. 4,700 crore would be spent under the fund in 15 years.

He said the government would publish a notice on expression of interest for takeover of the closed tea estates for finding new owners under the powers vested with the government. The Minister made it clear that nationalisation of tea estates was not on the agenda of the government and that the estates would be entrusted with new owners. The process had already begun in West Bengal, he said.

The Minister said the government would encourage production of orthodox tea as there was an increased demand for it from abroad. There would be more subsidy for orthodox tea. The Minister stressed the fact that the scheme would be the last chance for rejuvenation of tea plantations. Sri Lanka, Kenya and Vietnam would overtake India if the country failed to increase productivity.

Referring to exports, he said Iraq was a big market for Indian tea, but payment issues had come in the way. Though tea was exported to Iraq from Kolkata, the consignments originated mostly from Kerala and Tamil Nadu. The exports to Iran, another important market, too faced problems arising out of letters of credit. The issues were being sorted out.

The Minister said the Indian cashew sector was under threat from Vietnam where productivity was three to four times that of India. A recent study conducted by the Union government revealed that 25 per cent of cashew was produced in Maharashtra, while Kerala accounted for 12 per cent. But 50 per cent of the cashew was processed in Kerala. The government was actively considering the proposal for setting up a Cashew Development Board for integrated action to promote the sector. A Global Cashew Alliance consisting of India, Vietnam and Brazil was under consideration. It would be an intergovernmental consultative body.

Basudeb Banerjee, Chairman of Tea Board, said 60 per cent of the target under the scheme had been met during the current financial year. The tea industry was comparatively not big in terms of turnover, but it derived strength from the number of people employed by it. The sector employed more people than those in the software sector and 50 per cent of the workers were women.

Labour Minister P.K. Gurudasan said the amount being distributed under the scheme should be enhanced. He wanted the Union government to discuss the conditions for distribution.

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