North Eastern Tea Association (NETA) Chairman Ajay Dhandharia has proposed a significant boost in domestic tea consumption to tackle the challenges faced by India’s tea industry. Speaking at the prestigious Chairman’s Dinner in Golaghat, Assam, Dhandharia highlighted a recent study that revealed India’s per capita tea consumption remains lower than several other countries. His goal is to increase it to 1 kilogram per person per year, which could lead to a more sustainable and thriving tea industry.
Dhandharia stressed that the Indian tea sector, which plays a crucial role in the country’s economy, needs to adopt strategic measures to enhance production, pricing stability, and market reach. He noted that increased domestic consumption could act as a buffer against fluctuating exports and international competition.
The Growth of NETA and Assam’s Tea Industry
NETA, which started with just 11 member tea estates in 1981, has expanded to over 179 members today, contributing nearly 20% of Assam’s annual tea production. This remarkable growth reflects the importance of Assam in the global tea market. However, challenges such as fluctuating tea prices, high production costs, and changing consumer preferences have posed difficulties for industry stakeholders.
Dhandharia acknowledged these concerns and urged policy changes and industry-wide collaboration to ensure sustainability. He emphasized that Assam’s tea industry must adapt to new market dynamics to maintain its competitive edge.
Challenges in the Indian Tea Industry
Dhandharia outlined several pressing issues affecting the tea sector, including:
1. Need for Higher Domestic Consumption
- India is one of the largest tea producers in the world, yet its per capita tea consumption remains low.
- Encouraging tea as a healthy and lifestyle beverage could attract younger generations and help stabilize the market.
- A nationwide campaign to promote regular tea drinking habits could create a positive impact on the industry.
2. Issues with Tea Auction Policies
- The mandatory routing of 100% dust-grade tea through public auctions has sparked debates among producers.
- While the auction system ensures transparency, Dhandharia believes that producers should have the freedom to choose their preferred method of selling tea.
- Striking a balance between regulated auctions and direct sales could be beneficial for both producers and buyers.
3. Price Fluctuations and Imports
- Tea prices are often impacted by crop shortages, international market trends, and imports from other countries.
- These fluctuations create uncertainty for producers, making it difficult to predict profits and plan production efficiently.
- Strengthening domestic demand can help stabilize prices and reduce dependence on exports.
4. Pest Resistance and the Need for New Chemicals
- The tea mosquito bug has developed resistance to traditional pesticides, posing a serious threat to tea plantations.
- Dhandharia called for new, effective chemicals to be introduced into the Plant Protection Code to combat pest infestations.
- Improved pest management techniques will ensure better yields and higher-quality tea production.
5. Enhancing Green Leaf Quality through Mechanization
- To overcome labor shortages, especially among small tea growers, the industry is encouraging the use of mechanical harvesting machines.
- Mechanization can increase efficiency, maintain consistent quality, and reduce production costs.
- By modernizing harvesting techniques, tea producers can enhance productivity and competitiveness in the market.
Strengthening India’s Tea Market
Dhandharia’s proposals align with long-term industry goals aimed at making the tea sector more resilient and profitable. His emphasis on increasing domestic consumption, allowing flexibility in auction policies, and addressing production challenges through technological advancements reflects a comprehensive approach to revitalizing India’s tea industry.
To achieve these goals, collaboration between government bodies, industry leaders, and tea producers is crucial. Implementing effective marketing campaigns, consumer awareness programs, and policy adjustments can pave the way for a stronger and more sustainable tea market.
By focusing on domestic growth and modernization, India can ensure that its tea industry remains a global leader while providing economic stability to millions of workers who depend on tea cultivation and production.