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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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