Struggling Tea Industry Seeks Government Support For Export Promotion

Dispur, Jan 29 (KNN) Nalin Khemani, Chairman of Bharatiya Cha Parishad, has emphasised the need for concerted efforts to revive the struggling tea industry in Assam, particularly through enhanced overseas promotion.

“The commerce ministry must ensure that our exports improve; they promote our tea. There is an oversupply in our domestic market, and the export demand is tepid,” he stated ahead of the Union interim budget, as reported by ANI.

Khimani mentioned, “If the government takes up with the Tea Board to introduce a tea promotion policy, we can tap new overseas markets.”

Addressing the post-Covid scenario, Khemani noted that tea prices in Assam have remained relatively stable but with low sales realisation.

He emphasised, “The industry is in stress. For any industry to be sustainable, there has to be a self-sustainable model. Subsidies can’t help the industry. If the government can take over our social cost burden, it will help the industry.”

Khimani further said, “When the Assam tea industry came to being 200 years ago, the tea estate management used to set up infrastructure– schools and hospitals.”

“Now the government is doing a commendable job, and they should now take over the garden hospitals, which will reduce our social cost burden,” he added.

“It will be a win-win situation for both tea garden management and the workers, as it will ensure workers have quality medical facilities,” Khimani further added.

India, holding an 11 per cent share, stands as the fourth-largest tea exporter globally, trailing behind China, Kenya, and Sri Lanka. The entire nation contributes 23 per cent to global tea output and employs around 1.2 million workers in the tea plantation sector.

Assam alone produces nearly 700 million kg of tea annually, constituting around half of India's total tea production.

Despite these contributions, the Indian tea industry is grappling with challenges. A recent Crisil Ratings report from 2023 predicts an 8 per cent decrease in revenue for the industry in the current financial year, primarily driven by a decline in exports.

(KNN Bureau)