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WELCOME YOU ALL

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Tea Scenario in India

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INTRODUCTION

Tea is one of the most popular and widely consumed hot beverage

Tea is classified into three

TeaBlack tea

CTC

Orthodox

Herbal tea

Green Tea

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HISTORY

5000 years ago- Tea cultivation began in ancient China

About 172 years old in India

1823 - Robert Bruce discovered tea plants in upper Brahmaputra Valley

1838 - the first Indian tea market from Assam to United Kingdom

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PRODUCTION & DISTRIBUTION OF TEA IN INDIA

Mainly located - rural hills and backward areas of North-eastern and Southern States and to a small extent in Karnataka, Tripura, Himachal Pradesh, Uttaranchal, Arunachal Pradesh, Manipur, Sikkim, Nagaland, Meghalaya, Mizoram, and Bihar.

India produces both CTC and Orthodox teas in addition to green tea.

CTC solely accounts 82% of the Indian tea market

Relative decline has been perceived in the production of black tea and an increase in the production of green tea.

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INDIA’S EMINENCE AT GLOBAL TEA MARKET

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GLOBAL TEA PRODUCTION

Country 2012 (P) 2011 2010China 1761 1623.21 1475.06

India 1111.76 1115.72 966.4

Kenya 369.56 377.91 399.01

Sri Lanka 326.28 328.63 331.43

Vietnam 158 178 170

Turkey 147 145 148

Indonesia 130.5 142.34 151.01

Bangladesh 62.16 59.32 59.27

Malawi 42.49 47.06 51.59

Uganda 55.08 54.18 59.14

Tanzania 32.28 32.78 31.65

Others 330.87 345.16 349.45

Total 4526.98 4449.31 4192.01

Source : ITC Annual Supplement, 2012)

(Figs. in M.Kgs)

India is the world's second-largest producer and the biggest consumer of tea

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WORLD TEA EXPORT

Country 2012(P) 2011 2010

Kenya 430.21 421.27 441.02

China 321.79 322.58 302.53

Sri Lanka 304.49 301.27 296.38

India 201.08 215.42 222.02

Vietnam 135 143 127.97

Indonesia 71 75.45 87.1

Argentina 78 86.2 85.35

Malawi 41.83 44.89 48.58

Uganda 48.22 46.15 53.18

Tanzania 26.3 27.11 26.13

Zimbabwe 7 8.57 8.5

Bangladesh 1.51 1.45 0.91

Others 59.24 26.78 77.98

Total 1725.67 1750.14 1777.65

(Figs. in M.Kgs)

Source : ITC Annual Supplement, 2012)

The competitors to India in tea export are Sri Lanka, Kenya, China, Indonesia and Vietnam

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WORLD DEMAND AND SUPPLY OF TEA

Year World Production

Apparent Global Consumption

(+) or (- )

2008 3879 3724 155

2009 3960 3839 121

2010 4192 4038 154

2011 4449 4275 174

2012(P) 4527 4440 87

(Figs. in M.Kgs)

Source : ITC Annual Supplement, 2012)

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INDIAN TEA MARKET

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AREA AND PRODUCTION OF TEA

States Area ( in 000, Hectares)

Production (Million Kg.s)

Assam 322.21578.48

West Bengal 115.1300.92

Other North Indian States 22.321.13

Tamil Nadu 80.46162.91

Kerala 37.1463.31

Karnataka 2.14 5.71

Total 579.35 1132.46

*Other North Indian States (Includes Tripura, Uttarakhand, Bihar, Manipur, Sikkim, Arunachal Pradesh, Himachal Pradesh,

Nagaland, Meghalaya, Mizoram and Orissa) , Source: Tea Board of India, 2012

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Country's tea production increased by 6.5 per cent to 1,200 million kg in 2013, against 1,126.33 million kg in 2012

Total production of tea in the northern part of the country (Assam and West Bengal) stood at 957.44 million kg, in southern region at 242.60 million kg and (2013).

Assam and West Bengal are the two major tea-producing states, their combined production accounts about 83 per cent of the total output.

Source: (Indian Tea Association), The Economic Times(Newspaper)

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EXPORT OF TEA (2012-13)Name of the

Countries2012-13 2011-12

Qty (M.Kgs.)

Value (Rs. Crs.)

Value (M US $.)

UP (Rs/Kg) UP ($/Kg) Qty (M.Kgs)

Value (Rs. Crs.)

Value (M US $.)

UP (Rs/Kg)

UP ($/Kg)

Russian Federation

45.91 759.56 139.53 165.45 3.04 42.61 554.83 115.87 130.21 2.72

Kazakhstan 11.73 229.09 42.08 195.3 3.59 12 196.1 40.95 163.43 3.41Ukraine 2.42 36.04 6.62 148.93 2.74 1.82 21.87 4.57 119.86 2.5Other CIS 1.19 21.33 3.92 179.24 3.29 2.06 39.93 8.32 193.83 4.04United Kingdom 19.21 347.91 63.91 181.11 3.33 21.02 328.89 68.68 156.5 3.27Netherlands 2.68 72.27 13.28 269.66 4.95 4.03 84.88 17.73 210.5 4.4Germany 7.97 212.74 39.08 266.93 4.9 7.18 170.03 35.51 236.82 4.95Ireland 2.17 78.4 14.4 361.29 6.64 1.75 54.04 11.29 309.22 6.46Poland 3.48 52.02 9.56 149.48 2.75 3.88 52.84 11.04 136.25 2.85U.S.A. 11.71 317.63 58.35 271.25 4.98 12.77 333.16 69.57 260.98 5.45Canada 1.04 27.21 5 261.63 4.81 1.6 32.84 6.86 205.19 4.28U.A.E. 21.51 394.93 72.55 183.6 3.37 18.05 325.48 67.97 180.33 3.77Iran 18.73 389.77 71.6 208.1 3.82 11.05 216.82 45.28 196.24 4.1Iraq 0.09 1.09 0.2 121.11 2.22Saudi Arabia 2.57 63.01 11.58 245.18 4.5 3.57 52.6 10.98 147.41 3.08A.R.E. 9.66 107.53 19.75 111.31 2.04 6.57 59.4 12.4 90.48 1.89Turkey 0.38 6.63 1.22 174.47 3.21 0.1 1.3 0.27 133.98 2.8Afghanistan 0.74 8.63 1.59 116.62 2.14 0.69 7.14 1.49 103.44 2.16Singapore 0.35 10.35 1.9 295.71 5.43 0.34 6.92 1.44 202.03 4.22Sri Lanka 1.91 27.15 4.99 142.15 2.61 3.86 52.74 11.01 136.66 2.85Kenya 2.66 30.12 5.53 113.23 2.08 3.26 24.49 5.11 75.07 1.57Japan 3.46 140.69 25.85 406.62 7.47 2.91 102.89 21.49 353.54 7.38Pakistan 20.69 203.94 37.46 98.57 1.81 26.27 178.53 37.28 67.95 1.42Australia 3.66 129.19 23.73 352.98 6.48 3.52 107.91 22.53 306.35 6.4Other Countries 20.31 338.7 62.21 166.77 3.06 23.44 299.19 62.5 127.64 2.67Total 216.23 4005.93 735.9 214.35 3304.82 690.14

Source: Tea Board of India, 2012

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Exports during the period from January to September 2013 had seen an increase of 5 per cent at 147 million kg against 140.2 million kg in 2012.

During January to September 2013, CIS countries had imported maximum of 39.88 million kg of Indian tea followed by Iran at 16.47 milllion kg, Pakistan 12.35 million kg and the US 10.29 million kg, among other countries.

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IMPORT OF TEA

Year Quantity (M.Kgs.)

CIF Value ( Rs. Crores)

Unit Price (Rs. /Kg)

CIF Value (Mill US$)

Unit Price (US$/Kg)

2007 15.99 104.6 65.43 25.27 1.58

2008 20.28 161.97 79.9 37.31 1.84

2009 25.67 216.03 84.16 44.64 1.74

2010 20.04 184.94 92.26 40.46 2.02

2011 (R)

21.17 206.54 97.57 44.3 2.09

2012 (P)

20.5 253.6 123.71 47.45 2.31Source: Tea Board of India, 2012

India, the world's largest consumer of tea, imports the leaves solely for the purpose of re-export to other countries.

Tea majorly imported from China, Kenya, Malawi, Vietnam, Sri Lanka, Iran, Argentina and Nepal

The import of tea has been declined in 2012

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CONCLUSION The quantity of tea in the world market over the years is increasing,

which provides an opportunity to produce more.

India, despite being a largest producer of tea, lacks proper productions systems and channels in which small tea producers find a respectable place. The industry must have access to capital at globally competitive prices.

The industry also needs complete restructuring and reforming of the roles and regulations of various institutes like Tea Board and Producers’ organizations & companies and a healthy partnership has to be developed with the labour.

THANK YOU