Tea industry to benefit from new govt steps
The commerce ministry has come up with a slew of measures to increase domestic production and enhance the presence of Indian tea in the international market.
To increase production, the Tea Board will finance the setting up of five factories exclusively for small tea growers. These low-cost units will cost Rs 40 lakh each. A sum of Rs 4,700 crore will be used for rejuvenating the country’s ailing tea industry. Nearly 50% has been ear-marked for Asom by the ministry.
India has identified Iran, Pakistan and Egypt as potential markets for tea. Union minister of state for commerce, Jairam Ramesh, said the factories will be maintained by small growers on a co-operative basis or by forming self-help groups.
“The Tea Board will identify locations soon,” he added. The commerce ministry said only 43% of Asom tea enters the market through tea auction centres. It will set up two more such centres in the tea-producing hubs of Jorhat and Dibrugarh to encourage sale of tea.
Currently, the state has one auction centre in Guwahati. Small growers produce 25% of Asom’s tea and contribute 14% of India’s total production. Asom produces about 450m kg of tea per year. It has 400 registered small tea growers but the number is over 50,000 unofficially.
The minister asked the state to give ownership rights over the land to small tea growers. Mr Ramesh said the factories will be in three categories, where production will be in the range of 200 kg, 500 kg and 1,000 kg per day. He added that the Tea Board would set up a separate directorate for small growers. “The ministry will take small tea growers of Asom on a tour to Kenya, Sri Lanka, Vietnam and Indonesia,” he added.
The Tocklai Experimental Station, Asom Agricultural University (AAU) and the Regional Research Laboratory have formed a consortium for carrying out integrated and systemic research in the tea sector. “Tea, water-logging and genetic engineering are areas in which these institutes are working,” Mr Ramesh said.
India’s annual tea production rose by 13% to 928m kg in ‘05, while it exported 180m kg last year. “We are now going all out to focus on tapping the tea market in countries like Pakistan, Egypt and Iran, besides trying to increase the volume of exports to existing markets like the UK,” Mr Ramesh said.
The Tea Board will open offices in capital cities of the three countries to promote sales of the beverage.
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