Tea industry set to come out of recession: ITA
After a prolonged recessionary phase, the country's tea industry was now set to be on the high growth path with the Indian Tea Association (ITA) forecasting higher exports, production and domestic consumption during the year.
By PTI |
KOLKATA: After a prolonged recessionary phase, the country's tea industry was now set to be on the high growth path with the Indian Tea Association (ITA) forecasting higher exports, production and domestic consumption during the year.
Releasing the status paper for 2006 here on Tuesday, ITA, the apex body of tea growers, said with the equilibrium in demand and supply, the industry had gathered growth momemtum, which would help in ending the seven years of recession.
For the year 2006, ITA had projected that production of tea would touch 930 million kilograms, consumption at 805 million kilograms, and exports at 195 million kilograms.
The status paper revealed that owing to lower availability of crop during the first six months, average prices in all the auction centres had improved.
This according to ITA, was opposite to the trend, which prevailed in 2005 characterised by lower price realisation, particularly in the CTC category.
The paper had also cautioned that the Indian tea industry would have to gear up for meeting global challenges. This, was only possible by lowering cost of production, ITA said.
The paper stressed the need for boosting replantation activity, which would raise productivity and improve quality of tea.
Regarding exports, the Tea Industry had identified three potential markets of Pakistan, Egypt and Iran.
Some of the suggestions, which ITA had forwarded to the government for boosting exports were branding and tea promotion activities in overseas markets and transport subsidy for tea movement from the North East.
Indian tea exports during 2005 declined by six million kilograms particularly due to loss in the Iraq market.
Regarding imports, ITA had projected that during 2006, it would be 20 million kilograms as compared to 16 million kilograms in the previous year.
One worrying feature, which had been noticed by ITA, was that retention of imported tea had increased in 2005. While only one per cent was retained in 2001, this proportion had gone up in 2005 to as much as 22 per cent in the country.
On the domestic consumption front, ITA suggested that Tea Board should carry out a detailed mapping exercise to judge the correctness of available estimates and projections.
Tea Board had recently commissioned IIM Calcutta to do a study on domestic consumption in India.
Releasing the status paper for 2006 here on Tuesday, ITA, the apex body of tea growers, said with the equilibrium in demand and supply, the industry had gathered growth momemtum, which would help in ending the seven years of recession.
For the year 2006, ITA had projected that production of tea would touch 930 million kilograms, consumption at 805 million kilograms, and exports at 195 million kilograms.
The status paper revealed that owing to lower availability of crop during the first six months, average prices in all the auction centres had improved.
This according to ITA, was opposite to the trend, which prevailed in 2005 characterised by lower price realisation, particularly in the CTC category.
The paper had also cautioned that the Indian tea industry would have to gear up for meeting global challenges. This, was only possible by lowering cost of production, ITA said.
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The paper stressed the need for boosting replantation activity, which would raise productivity and improve quality of tea.
Regarding exports, the Tea Industry had identified three potential markets of Pakistan, Egypt and Iran.
Some of the suggestions, which ITA had forwarded to the government for boosting exports were branding and tea promotion activities in overseas markets and transport subsidy for tea movement from the North East.
Indian tea exports during 2005 declined by six million kilograms particularly due to loss in the Iraq market.
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Regarding imports, ITA had projected that during 2006, it would be 20 million kilograms as compared to 16 million kilograms in the previous year.
One worrying feature, which had been noticed by ITA, was that retention of imported tea had increased in 2005. While only one per cent was retained in 2001, this proportion had gone up in 2005 to as much as 22 per cent in the country.
ADVERTISEMENT
On the domestic consumption front, ITA suggested that Tea Board should carry out a detailed mapping exercise to judge the correctness of available estimates and projections.
Tea Board had recently commissioned IIM Calcutta to do a study on domestic consumption in India.
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