Quality tea now finding takers in smaller cities

KOLKATA/GUWAHATI: Tier-II and Tier-III cities are emerging as major growth drivers for domestic consumption of tea. The increase in purchasing power is prompting people living in these cities to buy quality teas. In fact, buyers from Ahmedabad have camped in Assam gardens for the first time to pick their teas of choice. Ahmedabad is one of the major centres from where tea is distributed to western India.

"Outlook for tea is very strong this year and Indian tea should do well. What is interesting is that people from tier-II and tier-II cities are also asking for quality teas and they are ready to shell out a little for a good cuppa," said Azam Monem, director of McLeod Russel India, the world's largest tea producer. CK Dhanuka, chairman of Dhunseri Tea, corroborated Monem's views. "We are seeing demand coming for quality teas from tier-II cities particularly. Markets in tier-III cities are also developing a taste for quality teas. States like Gujarat, Maharashtra, Rajasthan and Delhi are leading the race in quality tea consumption," he said.

Gujarat, one of the leading consumers of quality teas, will increase the volume of tea it takes from Assam. Officials from the state's tea trade department have recently been to Assam to make deals with tea producers. Presently, Gujarat consumes around 55 to 60 million kg of tea annually of which at least 50% to 60% comes from Assam. Tea traders from Gujarat are looking to scale up procurement from Assam by at least 15% - 20%.