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General Studies Prelims

General Studies (Mains)

Indian Tea Industry Booms as Exports Reach Record High

Tea, derived from the Camellia sinensis plant, is a popular beverage consumed globally, second only to water. Originating from northeast India, north Myanmar and southwest China, the exact location of its first cultivation remains elusive despite evidence of consumption in China dating back 5,000 years. The plant thrives well in hot, humid climates with an ideal temperature of 20°-30°C and requires 150-300 cm annual rainfall. Slightly acidic soil with porous sub-soil for proper water percolation forms the suitable base of tea cultivation.

Tea plays a critical role as a primary cash crop and source of income and employment in economically disadvantaged areas. Contributing to Sustainable Development Goals such as poverty reduction, hunger alleviation, women empowerment and sustainable terrestrial ecosystem use, it also holds cultural significance in many societies. With health benefits ranging from anti-inflammatory to antioxidant properties and weight loss effects, International Tea Day is commemorated on 21st May.

With the Geographical Indication (GI) Tag, Darjeeling Tea has earned worldwide recognition as the ‘Champagne of teas’ owing to its unique floral aroma. Other GI tag bearing variants include Darjeeling Green and White tea.

Unfolding the story of tea production in India

India ranks as the second-largest producer of tea in the world with the northern region contributing about 83% of the annual tea production in the financial year 2021-22. Assam and West Bengal are the primary producers, with major tea regions being Cachar in Assam and Dooars, Terai and Darjeeling in West Bengal. The southern region adds about 17% to the country’s total tea production, with Tamil Nadu, Kerala, and Karnataka as key contributors. The total tea production for the financial year 2020-21 was 1,283 million kg.

Consumption-wise, India emerges as one of the top tea-consuming countries with 80% of its national tea production consumed domestically.

Exporting Indian tea: A world-renowned reputation

India is also a global leader among tea exporters, contributing around 10% of total global exports. In 2021, the total value of Indian tea exports approximated to USD 687.9 million, with the exports reaching more than 25 countries globally. The major importers of Indian teas include Russia, Iran, UAE, USA, UK, Germany, and China. The total quantity of tea exported during the financial year 2021-22 was 201 million kg. Indian teas such as Assam, Darjeeling, and Nilgiri are recognized for their superior quality and taste. Black tea occupies the majority (96%) of total tea exports, followed by regular tea and green tea.

The Tea Board of India: A brief overview

Established in 1953, the Tea Board of India operates under the Ministry of Commerce and is dedicated to the development and promotion of the Indian tea industry. Comprising 31 members including the Chairman, the board constitutes Members of Parliament, tea producers, traders, brokers, consumers and representatives from principal tea-producing states and trade unions. With its headquarters in Kolkata and 17 other offices across India, the board also maintains overseas offices in Dubai and Moscow.

Government initiatives supporting the Indian tea industry

The Tea Board of India has launched several schemes to support domestic tea producers. These include the Tea Development and Promotion Scheme, initiated in November 2021 to enhance productivity and quality of tea production. Another notable initiative is the Chai Sahyog Mobile App which addresses various issues faced by small tea growers. The board also provides subsidies to domestic exporters for participation in international fairs and exhibitions.

Future prospects: Encouraging the growth of Indian tea industry

The One District and One Product (ODOP) scheme offers potential for promoting Indian tea. To ensure profitability, viability and sustainability of the tea sector, focus should be on supporting small growers for quality improvement and sustainable production, creating infrastructure for augmenting exports, promoting organic and GI tea through brand promotion and marketing, modernizing to enable self-reliance among tea farmers, and strengthening local supply chains. Addressing climate change challenges and building a resilient ecosystem is also crucial.

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