‘Global meltdown might affect internal market’

Arun N Singh, MD & CEO, Goodricke Group Limited, discusses the industry initiatives taken to keep the tea sector buoyant.

What are your views on the current scenario in the Indian tea industry?

Tea is a commodity the price of which is governed by the demand and supply scenario. As of now, there is shortage in the supply line from anything between 50-80 million kilos.

I also expect prices to remain buoyant for the time being. However, the global meltdown may change the export scenario, which in turn might affect the internal market in the future.

How is the industry trying to keep the sector buoyant?

Two major initiatives have been taken in the recent past. First is the quality upgradation scheme to make the Indian teas better in quality and thus more competitive in the global market. For this many modernisation programmes have been undertaken that have been supported by the Tea Board.

The second initiative is large scale uprooting and replanting of the tea gardens, again with the support of the Tea Board. I am sure these initiatives will go a long way in keeping the industry in good shape in the future.

How do you think events like the India International Tea Convention 2009 in Kochi will help generate awareness among tea lovers in the country and abroad?

Forums such as these can be used as a brand-building exercise for Indian teas. It serves as a meeting point for a major cross-section of stakeholders to interact with each other and trade. So obviously, their importance cannot be undermined.