INDIAN TEA INDUSTRY

India is one of the largest producers and exporters of tea in the world, second only to China in total production and the largest producer of black tea. The ideal climate for tea cultivation is in tropical and subtropical climates, with major growing regions concentrated in Asia, Africa, and South America. The main tea-growing areas in India are in the Northeast, including Assam, and in north Bengal, including the Darjeeling district and the Dooars region. Tea is also grown on a large scale in the Nilgiris in south India. The market size of the tea industry in India is expected to grow further in the forecast period of 2022-2027, with the tea industry expected to attain 1.40 million tons by 2026.

The Tea Board of India, established under Section 4 of the Tea Act 1953, is a statutory body attached to the Ministry of Commerce and is responsible for developing and promoting the Indian tea industry. The Board is constituted of 31 members, including tea producers, traders, brokers, consumers, and representatives of governments from principal tea-producing states and trade unions. The Board's headquarters is located in Kolkata and is reconstituted every three years. The Board had offices in Cairo and Kuwait earlier, but these two offices were relocated to Dubai.

 Geographical Indication (GI)

  • The first GI tag product was Darjeeling Tea, also known as the “Champagne of teas” due to its floral aroma.
  • Green and white tea, the other two Darjeeling tea varieties, also have GI tags.
  • The Indian tea industry is being developed and promoted by the Tea Board of India.

About Tea Board of India:

  • The genesis of the Tea Board India dates back to 1903 when the Indian Tea Cess Bill was passed.
  • The present Tea Board was set up under Section 4 of the Tea Act 1953.
  • It is functioning as a statutory body of the Central Government under the Ministry of Commerce.
  • The Board is constituted of 31 members (including the Chairman) drawn from Members of Parliament, tea producers, tea traders, tea brokers, consumers, and representatives of Governments from the principal tea-producing states, and trade unions.
  • HQ: Kolkata
  • The Board is reconstituted every three years.
    • Earlier, the Tea Board had offices in Cairo and Kuwait.
    • But these two offices were relocated to Dubai.

Issues associated with the Indian Tea sector:

  • Stiff competition and improved standards in the world market – due to low product prices from Kenya and other countries – increasing demand for organic tea and quality assurance that entails environmental justice.
  • The decline in productivity and quality – Tea bushes must be replanted every five years, but most Tea bushes are older than 20 yrs.; uneven rainfall due to climate change – is affecting the productivity and quality of Indian Tea leading to lower prices at Tea auctions.
  • Poor working conditions and low wages – despite the provisions of the Plantation Labor Act, 1951 most workers and their families live in unsanitary conditions and receive low wages – this issue needs to be addressed because “starvation deaths” in North Bengal caught the international media attention.
  • Small Tea Growers – the challenges faced by the Small Tea Growers’ sector are as follows
    • Not getting the right green leaf price
    • Unlike large estates, STGs are not able to capitalize on the scale, and marketing the product as a collective is tricky – since it is unorganized
    • Issue of workers’ rights – since STGs are not governed by the PLA, 1951
  • Most of them are not recognized by the Tea Board of India due to land ownership regulations and related procedural problems – this means lesser data available on the state of the STG’s making it difficult for policy coordination
  • Some global factors like the decline in demand from European markets in the wake of the Russia-Ukraine war have compounded the problem.

Suggestive measures:

  • The One District and One Product (ODOP) program can aid in promoting Indian Tea’s fame.
  • The “AROMA” of tea needs to be improved in order for the industry to become profitable, viable, and sustainable.
  • Support small farmers to raise production to satisfy domestic and international demand while improving quality and sustainability.
  • Create infrastructure to boost exports and concentrate on high-value markets like the EU, Canada, South America, and the Middle East to re-energize.
  • Promote GI tea and organic tea using brand marketing and promotion.
  • Modernization: To help local supply networks be strengthened and tea producers to become self-sufficient
  • Adaptability: Focus on the importance of a risk-proof ecosystem, that is, the need for sustainable solutions to make tea plantations meet the challenges of climate change.

There are several challenges faced by the Indian tea sector, including stiff competition and improved standards in the world market, a decline in productivity and quality due to climate change, poor working conditions and low wages, and issues faced by small tea growers. To address these challenges, several measures have been suggested, including promoting Indian tea's fame through the One District and One Product (ODOP) program, improving the aroma of the tea to make the industry profitable and sustainable, supporting small farmers to improve production, creating infrastructure to boost exports and focusing on high-value markets, promoting GI and organic tea, modernizing local supply networks, and focusing on sustainable solutions to make tea plantations meet the challenges of climate change. Developing the tea industry can provide employment opportunities in the northeast states and create a sustainable and transparent model for the industry.


 With reference to the “Tea Board” in India, consider the following statements:

  1. The Tea Board is a statutory body.
  2. It is a regulatory body attached to the Ministry of Agriculture and Farmers Welfare.
  3. The Tea Board’s Head Office is situated in Bengaluru.
  4. The Board has overseas offices in Dubai and Moscow.

Which of the statements given above is correct? (2022)

  1. 1 and 3 only
  2. 2 and 4 only
  3. 3 and 4 only
  4. 1 and 4 only

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