Submitted To:

Md. Asraful Islam Chowdhury

LecturerDepartment of

Business AdministrationLEADING UNIVERSITY

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Masum Ahmad1201010243

Syed Ali Hasan1201010248

Mahmudul Karim Newaz1201010205

Masum Hussain1201010202

Abdul Motin1201010219

Lovely Begum1201010244

Introduction to tea industry

Tea is a very popular beverage

Engagement of people

Tea trade

British built tea plantations

Influence of multinational companies

History of Bangladesh Tea Industry

Pioneer tea garden w was established in 1840

Malnicherra, Sylhet in 1854

Partition in 1971

Tea estates in Bangladesh

Sylhet-20Moulvibazar-90Habigonj-23Brahmanbaria-1Rangamati-1Chittagonj-22Panchagarh-9

Tea Sector Overview

Producers

Processing

Trade

Retail

Consumers

Bangladesh Tea Production

Tea production in Bangladesh maintained an upward trend with an annual average rate of increase of 1.03% and on an average produced 57.75 million Kg of tea annually during last ten years (2002-2011).

Internal Consumption of Tea in Bangladesh

• Demand for tea has been increasing in Bangladesh since its independence due to increased tea drinking habit, higher income, population growth and rapid urbanization. Trend of internal consumption has been shown in figure

Export Position of Bangladesh Tea

• Export of tea from has been declining @ 8.92% for the last 10 years (2002-2011) due to lack of exportable surplus. Bangladesh exported 31.91 million Kg of tea in 1993 as shown in figure

Human rights of the tea gardeners

• leading a life of untold misery

• most vulnerable groups

• government or non-government organizations

• deprived of all government facilities

• socio-economic condition

OccupationRespondents are involved in different types of occupation mostly working in the tea garden itself. Their life as usual, is different occupations of the respondents are presented in the following table:

EducationEducational status of the working people has been found frustrating in the tea gardens. Lack of schools in the premises of tea garden is most important factor. Low level of awareness regarding the value of education among the people is another reason for not getting educated.

IncomeAll the people earn an amount of money one way or the other. Some of them do not

have regular income others have a fixed income for each week. Many of them earn

on daily basis and a few earns a fixed amount of money monthly.

Problems of the tea industries in Bangladesh

There are many problems in the tea estates of Bangladesh, these problems can be furnished as follows:

1. Natural calamity

2. Law and order situation

3. Shortage of medical facilities

4.Lack of pure water

5. Addicted person

6. Lack of infrastructure

7. Lack of capital and modern machineries

8. Lower market value of made tea

9. Lack of educational institutions

10. Malnutrition

Remedies and recommendations

Problems in the tea estates of Bangladesh can be solved by taking

following steps:

– Law and order situation of the tea estates

– M.B.B.S. doctor and supporting staffs

– Set up sufficient number of deep and shallow tube wells

– Wine consumption

– Housing problems of the laborers

– The executives of the tea estates must be conscious

– Production cost variables

– Shortage of capital and modern machinery

– Solution of drought

– Establish sufficient number of educational institutions

Global scenario

Table: Comparative Production of world's major producer countries of tea

In the world thirty countries are producing more than 2.50 billion

kilogram of teas annually from 2.56 million hectares of plantation.

After meeting their domestic consumption, 28 countries export

about 1.02 billion kg of tea annually

Per Hectare Productivities of Some Tea Producing Countries

• The trend of annual per ha productivities of some tea producing countries along with world average production has been depicted in figure:

Global Market

Although the Camellia sinensis is originally native to mainland China, South and Southeast Asia, today the plant is cultivated across the world in tropical and subtropical regions

Figure: Main Tea Producing Countries Source: FAOSTAT (2008)

Production and Export (international market)

Although tea is produced in more than 35 countries, three-quarters of global production occurs in only a handful of these countries.

Figure: Estimated Production and Export values 2010 in metric tons of top 10 countries

Consumption and Import

Contrary to coffee and cocoa, the affluent populations of North America, Western Europe and Japan are not the largest markets for tea. Over 50% of global tea exports are destined to the Middle East, North Africa and the former Soviet Union countries.

Sustainability issues in the sector

In its current state, sufficient supply and quality of tea is not guaranteed for the sector. Several social, economic, and environmental issues, combined with the finite nature of natural resources and rapidly growing populations, lie at the root of this situation.

Table: Overview of the social, economical and environmental issues (Source: TCC 2010:6)

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