1. J. D. Birla Institute Department of Management
Name : PRASHANT MADHOGARIA
Year : 3 rd Year 6 th Semester
Roll No. : 87
Mentor : MS. S. LAKSHMY
Topic : PRODUCTION POTENTIAL OF THE
INDIAN TEA INDUSTRY
.

2. DECLARATION
Declaration
To include plagiarism and ethical statements and word count is a
formal requirement.
Declaration:
I declare the following:
1. That the material contained in this dissertation is the end
result of my own work and that due acknowledgement has been
given in the bibliography and all references to ALL sources be
they printed electronic or personal.
2. The word count of this project is around 17548 words.
3. That unless this Project has been confirmed as confidential, I
agree to an electronic copy or sections unless of the dissertation
to be placed on the e-learning portal, if deemed appropriate, to
allow future students the opportunity to see examples of past
dissertations. I understand that if displayed on the e-learning
portal it would be able to print off copies or download. The
authorship would remain anonymous.
4. I agree to my project being submitted to a plagiarism
detection service, where it will be stored in a database and
compared against work submitted from this or any other school or
from other institutions using this service.
In the event to my service detecting a high degree of similarity
between content within the service this will be reported back to
my supervisor and second marker, who may decide to undertake
further investigation that may ultimately lead to discipline
actions, should instances of plagiarism be detected.
I declare that ethical issues have been considered, evaluated and
appropriately addressed in this research
Signed:
2

3. ACKNOWLEDGEMENT
I would like to thank my mentor, Ms. S. Lakshmy, with heartiest
respect and gratitude, for guiding me through my term paper.
I express my thanks to the Director of J.D. Birla institute, Dr.
Asit Dutta, for giving me the opportunity to gather such
wonderful learning experience.
I am also obliged to my college librarians Mr. Santanu Mondal,
Mr. Masiur Rehman and Mr. Swapan Kr. Ber who have assisted me
in finding various references for data collection.
I also thank my friends at college for their assistance, on and
off campus .
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4. INDEX
TABLE OF CONTENTS PG NO.
1. INTRODUCTION 01-04
2. LITERATURE REVIEW 05-24
3. HYPOTHESIS 25
4. RESEARCH METHODOLOGY 26-27
5. DATA ANALYSIS 28-34
6. RESULT
a. Findings 35
b. Recommendation 36
7. CONCLUSION & LIMITATIONS 37
8. ANNEXURE 38-54
9. BIBLIOGRAPHY 55
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5. ABSTRACT
This project aims to shed light on the production potential of Indian Tea and whether
there exists a scope for further increase in the production of Indian Tea. From the various
sources we may see how much Indian production of Tea contributes to the global demand
of the same, also to find a relation between the production of tea in India and its exports,
import, domestic consumption. We may also find a relation between the total tea
production and its consumption to decipher how much tea is exported and how much
consumed domestically. Hence by the difference of the production and the consumption
and with an understanding of international demand we may find out the production
potential of Indian Tea.
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6. 1.INTRODUCTION
Looking back at the History of tea, it is said that tea was discovered
accidentally by Emperor Shen Nung back in 2700BC. After a lot of trial
and error the Chinese were able to find out the required technique to
grow tea. But being a closed colony they did not share their secrets of
cultivating tea. Hence it was long before other countries were exposed to
tea.
The first tea used in England and China , and it wasn’t until the 19 t h
century that tea growing spread to other countries and indigenous tea was
discovered in Assam. The UK is the largest importer of tea.By the early
1900’s tea was being cultivated in India, Indonesia, Kenya and other parts
of Africa. Presently the United States has been added to the list of tea. 1
Tea is one of the most important agricultural as well as manufacturing
products, like other products it also needs a proper marketing channel for
disposal. The three main modes referred for the disposal of tea are: (a)
through auction (b) ex-factory or ex-garden sale and (c) forward contract.
In India marketing process of tea can be divided into two parts, i.e.,
primary and secondary markets. Primary marketing channels help in
moving made-tea from the grower to the bulk tea buyers. It also explains
the movement of tea directly from producers to national or international
buyers. This channel is used to carry tea from producer to auction centers’
where it changes hands from the producers to the large buyers through
brokers. Secondary marketing channel includes the movement of bulk tea
through auction trading to ultimate consumers. In this chain tea passes
through wholesalers, commission agents, blenders, packers and retailers. 2
Tea is one of the most refreshing and popular beverages of the world.
India is one of the largest Tea producers in the world mainly because it
accounts for 31% of global production. It is perhaps the only industry
where India has retained its leadership over the last 150 years. Indian tea
is the finest quality in the world 3 . Tea is being cultivated in the high
ranges of northern and southern India. The best quality tea is CTC and
orthodox Assam Tea respectively. Tea consumption is approximately
above 600 million kgs annually. The market consists of both leaf and dust
teas in both the CTC and orthodox grades. 4
India is the Second largest producer of tea, the largest consumer and the
fourth largest exporter (after Sri Lanka, china and Kenya) in the world.
Four-fifths of the Tea produced in India is consumed domestically. The
major tea growing areas of India are: North Bengal, Assam, Tamil Nadu
and Kerala. Tea is grown by 130,000 small and large Tea growers under a
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7. gross area of over half a million hectares. Tea gardens employed
approximately 1.3 million laborers in 2007.
Tea is an essential item of domestic consumption and is the major
beverage in India. Tea is also considered as the cheapest beverage
amongst the beverages available in India. Tea industry provides gainful
direct employment to more than a million workers mainly drawn from the
backward and socially weaker sections of the society. It is also a
substantial foreign exchange earner and provides sizeable amount of
revenue to the state and Central Exchequer. The total turnover of the
Indian Tea industry is in the vicinity of 9000 crores. 5
On the production front India has been the major producer of the Tea in
the world. Other major producing countries include china, Srilanka ,
Kenya and Indonesia. During 1951-1960, India was producing around 40
percent of world production. , declined to 26 percent during 2004. China
and Kenya are able to increase their share in world production
considerably. The share of china and Kenya during 1951-1960 was 13.59
percent and 2.67 percent respectively, increased to 24.90 percent and
10.30 per cent in 2004. In recent years china emerged as major tea
producer in the world. 6
The export markets for Indian Teas are mainly Russia and the CIs
countries with almost 90 million kgs of export. This is equivalent to 43%
of India’s Tea exports. India exports Tea to most of the European
countries, the USA, Japan, west Asia and the Asia Pacific Region. In fact,
there is hardly any country where Indian Tea is not found. Exporting Tea
has been very profitable for India since the exporting prices are much
higher when compared to the Domestic Indian Tea prices. It is also very
helpful in selling of the surplus production that has not been consumed
domestically. 7
Indian tea industry as it is on a comeback stage with an increase in its
production and export during the first 8 months of 2008. Moreover output
between January-august, 2008 have shot up to 599.73 million kg in
comparative of 576.07 million kg , of what it was in the previous year.
Tea export of India has triggered by 4 per cent in volume of august, 2008
due to the diminishing of output in Kenya. Similarly shipments during the
first eight months have also risen up by nearly 20 percent.
OVERVIEW OF THE INDIAN TEA INDUSTRY
Tea is one of the most refreshing and popular beverages of the world.
India is one of the largest tea producers in the world mainly because it
accounts for 31% of global production. It is perhaps the only industry
where India has retained its leadership over the last 150 years. Indian tea
is the finest quality in the world. Tea is being cultivated in the high
7

8. ranges of northern and southern India. The best quality tea is CTC and
Orthodox Assam Tea respectively.
Tea consumption is approximately above 600 million kgs annually. The
market consists of both leaf and dust teas in both the CTC and Orthodox
grades. 8
Tea manufacture is the process of converting and treating the tea. Tea,
which is to be used as loose leaf, will normally be rolled gently to create a
twisted appearance. In contrast, tea, which is to be used for tea bags, is
shredded and crushed to produce a small granular product. That is why
loose tea usually has a better flavour than the tea in a tea bag. For
preparing different types of teas, different methods of preparation are
used. But the most commonly used method is to make it in a pot. The
brewing temperature for green tea differs from other teas. A temperature
of 165-185 degrees is ideal for steeping green tea. 9 The different types of
tea are white tea, green tea, oolong tea, black tea.
At the time there had been claims that tea was growing wildly both in the
Manipur district and in Nepal. This news and the need for a reliable
source of tea resulted in the formation of a ‘committee of tea culture’.
This was formed in Kolkata and consisted of people who were thought to
be of great intelligence and even greater class.
Tea is also considered as the cheapest beverage amongst the beverages
Available in India. Tea Industry provides gainful direct employment to
more than a million workers mainly drawn from the backward and socially
weaker section of the society. It is also a substantial foreign exchange
earner and provides sizeable amount of revenue to the State and Central
Exchequer. The total turnover of the Indian tea industry is in the vicinity
of Rs.9000 Crores. Presently, Indian tea industry is having (as on
18.12.2009).
1692 registered Tea manufacturers
2200 registered Tea Exporters
5848 number of registered tea buyers,
Nine tea Auction centres.
The Tea industry is an agro based labour intensive industry. It provides
direct employment to over 1 million persons. Through its forward and
backward linkages another 10 million persons derive their livelihood from
tea. In northeast India alone, the tea industry employs around 9,00,000
persons on permanent basis. The tea industry is one of the largest
employers of women amongst organized industries in india. Women
constitute nearly 51% of the total workforce. There is no longer gender
bias with respect to employment benefits.
8

9. The apex body of the tea growers in India is the Tea Board Of India. The
Tea Board of India performs many financial and marketing functions for
the Indian Brand tea as a whole. They even account for the collection of
statistics pertaining to this industry. The Tea Board has wide functions
and responsibilities under the direction of the central government.
The primary functions of the Tea board are as under:
• Rendering financial and technical assistance for cultivation,
manufacture and marketing of tea
• Export promotion
• Aiding research and development activities for augmentation of tea
production and improvement of tea quality.
• Extend financial assistance in a limited way to the plantation
workers and their wards through labour welfare schemes.
• To encourage and assist both financially and technically the
unorganized small growers sector.
• Such other activities as are assigned from time to time by the
central government.
The project has been chronologically been described in the following order:
Section 1 describes the Introduction.
Section 2 describes the Literature Revi
Section 3 describes the Hypothesis
Section 4 describes the Research Methodology
Section 5 describes the Data Analysis
Section 6 describes the Results
Section 7 describes the Conclusion
Section 8 describes the Annexure
Section 9 describes the Bibliography
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10. 2. LITERATURE REVIEW
According to the provisions in the Tea Act 1953, Tea Board is conducting and
Supporting tea research. The Board is granting financial support (grant-in-aid) to the
Tea research institutes managed by the private sector, namely - Tea Research Association
(TRA) and United Planters’ Association of Southern India – Tea Research
Foundation (UPASI –TRF). Tea Board is also having its own Darjeeling Tea Research
And Development Centre at Kurseong for which full financial support is provided from
The budget of the Board.
Tea Research Association (TRA) and United Planters’ Association of Southern India
– Tea Research Foundation (UPASI – TRF) are historically managed by the private
Sector. Both the institutes have their own Council of Management and Trustee Board
respectively to manage the affairs of the organization. The Board is granting
Financial support to the expenditure on the identified items of research which are mainly
Concerned to field and laboratory research activities and transfer of technology. In the 23
Member Council of Management of TRA, where members are mainly drawn from the tea
Industry, four nominees of the Ministry of Commerce and Industry and two nominees
from the Tea Board are participating. The tea industry in the North-East is getting
Technical support from TRA and its seven sub centers spread over in the entire North
East India. Similarly, tea industry of South India is getting technical support from the
UPASITRF, Valparai, Tamil Nadu and its six sub-centers located in different tea growing
regions in South India.
TRA have its sub centers and field laboratories in the North East India located at
Nagrakata, Darjeeling, Siliguri in West Bengal, Silchar, Tezpur, Dikom in Assam and
Agartala in Tripura. The sub centers of UPASI-TRF are located at different tea growing
areas like; Coonoor, Gudalur in Tamil Nadu, Meppadi, Munnar, Vandiperiyar
in Kerala and Koppa, in Karnataka. The sub centers are manned by senior Advisory
Officers who are providing service to the tea gardens in tea cultivation along with
Laboratory support like soil analysis, plant protection information and new technology.
The Board’s Darjeeling Tea Research and Development Centre (DTR&DC) at Kurseong
is conducting research which gives support to the Darjeeling tea industry in the field of
soil, agronomy, biochemistry and plant protection. In addition to grant-in-aid, the Board
also has its own sponsored research schemes hosted at different institutes under the 10th
Plan. Need based specific schemes are also sponsored for carrying out research at
different institutes and universities, especially when the major tea research institutes do
not cover such areas.
Tea Board is giving financial support for generation of R&D information for the
Small growers of Himachal Pradesh, sponsoring a research scheme at the Himachal
Pradesh Krishi Viswa Vidyalaya, Palampur. Similarly a research scheme is in operation
at Uttaranchal for the development of the tea industry in the state. G.B. Pant University of
10

11. Agriculture, Pantnagar, is providing technical support for operationalizing the scheme
and Tea Board is giving 50% financial support to it.
Tea Board is giving financial support to the centrally sponsored research schemes like
application of biotechnology in tea by the Dept. of Biotechnology, Govt. of India.
Similarly, Ministry of Information and Technology has also supported a scheme hosted
by TRA for automation in tea manufacturing using electronic sensors and the scheme has
been completed.
Assam Agricultural University, Jorhat hosted a scheme supported by the Board, for
Technical manpower generation at graduate level. The technical manpower so far
generated helped in capacity building for the tea industry in general. Small project on
chemical evaluation of teas was organized by the Board under inter laboratory ring test
programme.
The technical support from the Board is always given to the tea industry by way of
feedback on standards/regulations.
Quality requirements of tea particularly in export front, are changing often with the
adoption of new sanitary and phytosanitary (SPS) measures like in the EU, US, Japan and
other countries. Such information is scrutinized for scientific validation through the
research institutes and standards were circulated to the trade. Simultaneously, feedback
information were also provided to various regulatory authorities about the Indian
standards and efforts were made to harmonize such information to overcome the
technical barriers in tea trade.
According to the Tea Board of India, Net work programme on automation and
integration in manufacture of tea.
Plan Schemes (10th Plan)
During 10th Plan, eleven research schemes as approved and sanctioned by the Govt. were
launched at TRA and UPASI-TRF. These research schemes are designed to give special
support in booting tea research activities in the North East and South India.
Achievements under each of the plan scheme are given as under.
Networking of Regional Centers of UPASI TRF and tea gardens for better
communication.
As per objectives of the scheme, networking programme of all the TRF centers in South
India has been completed installing V-SATS. Data generation on the field aspects of tea
cultivation from the garden has been undertaken and setting up of the data bank at each of
the advisory centers is under progress. Such data bank will be utilized for developing
future schemes at micro level on need based for the benefit of the tea industry in South
India. The outlay of the scheme is Rs.113.81 lakhs.
Studies on different irrigation systems and critical evaluation of secondary and
micronutrient status in tea soils of south India.
11

12. The influence of different irrigation systems on hydrology are being studied at four
different regions in South India like central Travancore, Karnataka, Nilgiris and Wynaad
regions. Similarly, studies on the effects of fertigation with respect to different sources of
NPK fertilizers have also been continued. Metallic contamination in tea and status of
secondary micronutrients in soil and made tea are being looked into. The equipments
have been purchased and installed. The samples of soil and made tea are collected from
different experiments and these are being analyzed in the laboratory. The pattern of
treatment influence on the variable agro conditions could not be estimated as yet. The
scheme will be completed by the end of the 10th Plan.
Studies on the residues of insecticides, fungicides, weedicides and heavy metals
in South Indian tea.
The tea samples were drawn for estimation of presence of iron particles and other
metallic contents, estimation of residue in the tea liquor. The methodologies have been
established and the training of the scientific staffs was completed. Elaborate survey work
for heavy metals and pesticide residue in South India tea has been undertaken for the
commercially used pesticides like ethion, dicofol, endosulfan, quinalphos, fenpropathrin
and lambda cyhalothrin. Simultaneously, field experiments also helped to estimate the
residue content of pesticides in tea at different harvest intervals. It has been found that
pesticide residues in made tea is highly influenced by the harvest intervals and the dose
of the chemicals. For the calculation of MRL under Good Agricultural Practice, 7-day
harvest interval was considered and samples were analyzed. Data bank generated so far
under this scheme would help in future support for harmonization of MRLs.
Biotechnological and Bio-control studies on tea blister blight pathogen
Biotechnology laboratory has been established with modern scientific equipments for
undertaking different biotechnological studies of tea clones. The equipments have been
imported and installed. Methods of DNA extraction and marker identification have been
considered. Protocol for isolation of genomic DNA from fungus spores has been
Standardized. Genetic transformation studies are also being initiated and once the method
is standardized, it will help in the transfer of beneficial marker gene in future breeding
works. Related studies in the characterization of tea clones are in progress. It is expected
that the protocol development will be completed by the end of the plan period when the
markers can be successfully identified and ready for transfer in future breeding works.
The micro flora present on tea leaves has been studied and several antagonists of the
blister blight pathogen are identified. They are being evaluated in the laboratary and field.
Optimisation of processing parameters to maximize the quality of South
Indian black teas.
Quality of tea is a variable parameter influenced by numerous factors like environment,
factory condition, tea clones, soil, and climate and so on. To visualize the quality
situation of tea as prevailing in the South India tea factory, a detailed survey was
undertaken by UPASI-TRF under the 10th Plan. So far about 50 tea factories have been
surveyed in different areas to draw the samples and to see the manufacturing conditions.
It was observed that manufacturing of tea is done under a wide range of factory
conditions right from the standard of plucking, withering, rolling and fermentation
process in respect of time and machineries. Fermentation and drying conditions were
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13. highly variable. The CTC and orthodox tea manufacturing steps were different; also
precisions were important at every step. It was reported that highly variable and
uncontrolled manufacturing steps have resulted to poor quality of tea in many of the
factories. Variations were also reported in withering temp., CTC rpm, rolling of tea,
and in drying temperature which ranged from 120 - 160° C. A cooling system for the
an orthodox roller has been developed by UPASI-TRF. Compilation on the survey work
would reveal the key factors in manufacturing of South Indian tea for suggesting
updating of manufacturing technology in future.
Establishment of Chain of Quality testing laboratories and strengthening of
existing analytical facilities at Regional Centre.
According to target, TRA has established three quality testing laboratories, one each at
Jorhat, Nagrakata and Cachar. All the centers have started functioning after procuring
scientific equipments and imparting training to the scientific assistants involved in the
work. The total out lay of the project is Rs.96.00 lakhs including recurring expenditure
for 5 years for conducting quality testing of teas. All the laboratories are preparing a
database on quality parameters for the respective region. The field laboratories will
analyze the garden tea samples and advise them on the quality of tea. These centers will
also help in routine testing of teas being exported.
Development of catchments-wise integrated drainage system through remote
sensing towards solving water logging problem at macro level pilot area.
The outlay of the scheme is Rs.70 lakhs for 5 years for undertaking studies in pilot areas
in Assam and North Bengal using satellite pictures for hydrology mapping. Drainage
relief map for different catchments in the tea gardens was the ultimate objective of this
project for giving ready information to the garden management so that drainage action
plans can be taken up by them. Implementation of the scheme is being done in a phase
manner after procuring topo sheets from the survey of India office for a number of digital
terrains in Assam. Works are progressing.
Development of technology for product diversification and value added items
in tea.
This envisaged project is having an outlay of Rs.125 lakhs for 5 years. The targets were
to standardize and develop methodologies for the production of value added products and
by-products of tea. A number of value added products like tea tablets, flavoured tea,
canned tea (RTD) have been standardized which are awaiting commercial exploration
after patenting. Tea aroma has also been successfully extracted from tea and this product
will be tested for adding of such flavour in different food items like sweets. The
remaining items of works will be completed within the tenure of the project. These
developments will help in product diversification in tea to a great extent.
Influence of soil organic mater on productivity of tea under North Bengal
condition.
This scheme was launched to study the soil fertility conditions in North Bengal area.
Important soil parameters contributing to soil fertility were identified and studied to
change the concept of fertilization. Organic matter is one such important parameter which
helped in assimilation of all inorganic fertilizers into the tea plant. Studies were continued
13

14. for thorough investigation and to find out its effect in uptake of nutrients. The study
helped to identify key factors like organic carbon in soil and its minimum requirement for
optimum uptake of chemical fertilizers. The study will also help to understand the
physical parameters of the soil in overall fertility and in new planting.
Special Grants
Tea Board was also giving special grants for specific activities like supporting advisory
services to the small tea growers in Tripura by TRA. On this account, Tea Board
disbursed Rs.3.00 lakhs per annum sharing the cost on 50:50 basis with the state govt.
Sponsored Projects
Tea Board was also sponsoring research projects in different areas. The details of which
are given as under:
Grant-in-aid to Assam Agricultural University for specialized course in tea at
B.Sc Agriculture level.
Tea Board was giving recurring grants of Rs.2.00 lakhs to Assam Agricultural
University, Jorhat for running the specialized course in Tea Technology and Husbandry
at graduate level. Twenty students were obtaining graduate degree under this course
every year and they were absorbed in tea industry and also in the commercial banks and
research institutes.
MRL (Maximum Residue Limit) issues in tea
Fixation of MRL in tea at the national level and also at the international level is a matter
of great concern at the moment since India is consuming large quantity of tea as well as
exporting tea to many countries in the world. This issue of MRL has come up as nontariff
barrier. The scenario is two fold- (i) fixation of MRLs at the national level to
protect the consumers in the domestic sector; and (ii) international
stipulations/regulations/standards fixed by EU and other countries. India is trying to cope
up with the situation in both the fronts generating field data. TRA, UPASI-TRF and
Institute of Himalayan Bioresource and Technology are involved in field
experimentations supported by Tea Board and funded by National Tea Research
Foundation.
Data generated at the tea research institutes have been compiled and submitted to
the Ministry of Health for fixation of MRLs at the national level for commercially used
chemicals in tea crop. Such data are under scrutiny at different levels in the Govt. The list
of MRL under the PFA (Prevention of Food Adulteration Act) has expanded by inclusion
of new MRLs. This is a continuous process going on, so that new chemicals can be
considered for fixation of MRL.
Indian residue data has been formulated for the Codex Committee on Pesticide
Residue under WTO, and based on its recommendation; such data have been submitted
to the Codex proposing MRL. Data for two chemicals namely Chlorpyriphos and
Paraquat have been accepted at the international level for fixing MRL. More data are
under process for submission to Codex.
The process of finalization of the documents was a hard task since all drafts had to
14

15. be framed in line with the requirements of the Joint Meeting on Pesticide Residue
(JMPR). This technical body was looking after the workings of the Codex. Follow up
actions have also been taken as to how to make calculations after data generation for
formulation of MRL. Actions were also taken to interact with the international
organizations of manufacturers of chemicals so that a message could be transmitted to
them for generating residue data for the products they are manufacturing. All such actions
had to be taken through IGG to the member countries.
Circulars, workshops, discussions and special meetings have been arranged during
the year. The messages on the latest stipulations were issued to the tea industry, research
institutes and chemical manufacturers. A number of lectures/presentations on the subject
have been made in different forums. As a result of all such efforts, MRL issue is being
widely publicized along with stipulations. Number of complaints in respect of pesticide
residue issue has come down since the Board has made awareness at all level.10
According to the press release on 09 May 2002, New Delhi
INDIA LEADS IN ORGANIC TEA PRODUCTION
India is the leading producer of both non-organic as well as organic Tea in the world. The
entire Indian Production of Organic Tea is exported. The major destinations are UK ,
Germany , USA and Japan. The other major Organic Tea producing and exporting
countries of the world are Sri Lanka and China. The major Competitors of India in total
tea exports are Sri Lanka, Kenya, China and Indonesia. The Organic tea was introduced
to the world market in the mid 1980s. Over the past decade, its consumption has grown
by more than 10% per year globally. However in volume terms, the trading in Organic
Tea is very insignificant when compared to Black Tea.
At present there are 42 Tea gardens in the country that have given up organic tea
cultivation in an area of 6000 hectares and the current level production is around 3.5
million kgs which marks an increase of twenty fold over ten years period, with
theproduction in 1990 being only 0.15 million kgs. National standards for Organic
products have been formulated and Tea Board of India has been designated as the
accreditation agency for Tea. The Tea Board has also submitted a project proposal
through the Food and Agricultural Organisations (FAO) aimed at development of
technology and system of organic Tea production by setting up model Organic farms, for
funding by the common fund for commodities (CFC) . Financial assistance is also being
provided by Tea Board for imparting training on organic methods of cultivation. At
present , there are no certified small growers in the Organic Tea Sector. However Tea
Boards training programmes for development of Organic Tea cultivation will also cover
small growers in due course. 11
According to the economic times, Small tea growers up share in output
The Indian Tea Association says factories run by small growers have increased their
share in the country's tea production at a time when labour shortage and rising overhead
costs hit production at large estates. The association said in a report last month that
15

16. production at bought leaf factories increased by 12.3% between 1998 and 2007 as against
a 0.9% drop in the output of large estates. Bought leaf factories are units that process tea
but do not grow leaf. This sector has much lower cost of production which allows it to
sell tea at cheaper rates.Industry observers say a large number of established
manufacturers are now approaching these factories for tea. "We do buy around 2 million
kg of green leaf from the small growers," said Aditya Khaitan, managing director of
McLeod Russel India Ltd. "However, we have set our quality parameters and we procure
tea according to that standard."
Premium quality tea produced by small growers sells for over `100 a kg in Coonoor
auctions, said Krishnakumar J Shah, an exporter. The tea association said Assam has
registered the highest increase in bought leaf factory and cooperative production. Output
by small growers here has risen from 21.43 million kg in 1998 to 102.93 million kg in
2007.
Small growers in the Nilgiri region in Tamil Nadu are contributing 90 million kg of tea
from their 125 bought leaf factories, according to G Ramamurthy, a scientist with United
Planters' Association of Southern India. The yield is high in this area as most of the land
is converted vegetable land, he added. The Nilgiri region, comprising Gudalur, Ooty,
Coonoor, Kotagiri and Kundah, has 80,000 small growers and 40,000 hectares of land
under tea. The growers supply green leaves to bought leaf factories who manufacture
black tea and sell it at the auctions. The region has seen a 4% increase in crop this year.
"The less intensive north-east monsoon has led to good crop growth," said S Ramu,
president of Nilgiri Bought Leaf Tea Manufacturers Association. "Last year, the growers
had suffered severe damage due to floods."
The Wayanad Agro Movement Tea Company in Kerala has over 400 small growers
associated with it. An increase in production at bought tea leaf factories has helped the
company achieve an average daily production of 2,000 kg of CTC tea. CTC refers to
crush, tear and curl, a tea processing method.12
Caffeine content and effects
Tea: Tea has approximately 55 milligrams of caffeine per cup. Various teas contain
different amounts of caffeine. Green tea contains the least, about one-third the caffeine as
black and oolong about two-thirds as much. The caffeine in tea is said to increase
concentration, and enhance the sense of taste and smell. The effect of caffeine in tea
usually takes longer to enter the blood stream than coffee therefore, seems gentler to the
system. About 80% of the caffeine in black tea can be removed easily at home.13
Medicinal uses of tea
1. To cure loose motions: Lemon tea with biscuits made of husk in two to three
doses.
2. To decrease Obesity: Honey tea first thing in the morning.
16

17. 3. To cure fire burns: Covering the burnt part with a cloth soaked in cold black tea
[no milk, no sugar] and replacing and repeating every half an hour.
4. To remove Phlegm in the body: Basil / black pepper / ginger tea
5. To cure windy troubles: After light lunch, take black tea [very little sugar and
milk, if a must for any individual to relish tea].
6. Use of tea leaves in gardening: Add strained tea leaves / powder to soil and it is
very good manure. It is being practiced by me with pronounced result for all kind
of plants and especially very good for flower plants. 14
According to the Telegraph, Tea output rises in march, 2011.
Tea production in March saw an upswing of around 16 percent to 56.73 million kg
compared with 49 million kg produced during the same period last year. Exports
however fell to 11.9 million kg from 23.49 million kg last year.
According to the latest data published by the tea board, higher production was largely
on the back of higher output in Assam.
Production in the Assam valley was 21.37 million kg against 12.67 million kg produced in
March 2010. Cachar production was 2.2 million kg compared with 2.1 million kg last
year. Total Assam tea production stood at 23.66 million kg in March against 14.8 million
kg during the same period last year.
During march Darjeeling produced 0.5 million kg while the output in the Dooars and
terai stood at 7.6 million kg and 6.1 million kg , respectively. Total production in Bengal
registered a minor dip at 14.36 million kg against 15 million kg during March 2010.
Exports showed a negative trend and almost halved in March. In the first quarter of this
year estimated exports tea are said to be 39.62 million kg – 22.70 million kg from north
India and 16.92 million kg from the southern part of the country. In the January March
quarter last year, exports had touched 53.99 million kg.
Manufacture
Tea manufacture is the process of converting young fresh tea shoots into
dry black tea. This involves a number of processes from plucking to
packing. At the plucking stage, only the top leaf tips are picked every 6 to
7 days. The tip leaves are younger and finer which produce a better
quality tea. The fresh green leaves now need to have the moisture removed
from them. This is done by blowing air through the leaves for up to 14
hours, leaving a soft and pliable leaf. There are then two ways of treating
the tea. Tea which is to be used as loose leaf will normally be rolled
gently to create a twisted appearance.
In contrast, tea which is to be used for tea bags is shredded and crushed to
produce a small granular product. Rolling and crushing the leaves, results
in the rupturing of the leaf cells which allows oxidation to occur. This
gives the tea its distinctive black colour and flavour. The tea is then dried
at high temperatures to achieve the correct taste. When it has been dried,
17

18. the leaf tea is of differing sizes and will also contain pieces of fibre and
stalk. At this point it is processed to remove pieces of stalk which will
then leave tea suitable to be sold as loose tea. The tea is passed through
varying sizes of meshes to sort it and has to be passed through very fine
ones in order to produce tea fine enough for tea bag production. This
process of sorting is a harsh one and it can cause the tea to lose some of
its flavour. That is why loose tea usually has a better flavour than the tea
in a tea bag.
Tea is indigenous to India and is an area where the country can take a lot
of pride. This is mainly because of its pre-eminence as a foreign exchange
earner and its contributions to the country's GNP.
In all aspects of tea production, consumption and export, India has
emerged to be the world leader, mainly because it accounts for 31% of
global production. It is perhaps the only industry where India has retained
its leadership over the last 150 years. Tea production in India has a very
interesting history to it.
The range of tea offered by India - from the original Orthodox to CTC and
Green Tea, from the aroma and flavour of Darjeeling Tea to the strong
Assam and Nilgiri Tea- remains unparalleled in the world.
Here are some statistical facts about the Indian Tea Industry:
• The total turnover of the tea industry is around Rs 10000 crores.
• Since independence Tea Production has grown over 250% while
land area has just grown by 40%
• There has been a considerable increase in export too in the past few
years. Total net foreign exchange earned per annum is around rs
1847 crores.
• The labour intensive Tea Industry directly employs over 1.1 million
workers and generates income for another 10 million people
approximately. Women constitute 50% of the workforce.
Tea trading in the domestic market is done in two ways: auction and
private selling. Market reports are received from the six major Auctions
centres in India namely, Calcutta, Guwahati, Siliguri, Cochin , Coonoor ,
Coimbatore and teaauction.com.
18

19. For many of us, a cup of tea is the best way to kick start a day. As the
most loved beverage in India, tea has indeed become an integral part of
the lives of its populace. Besides, India is the largest producer of tea in
the world with as much as 810 million kilograms being produced
annually.
There are three major tea-producing regions in India - Assam, Darjeeling
and Nilgiris. Over the years, India has mainly been known to produce
black tea. However, there is a shift in the trend now as many tea estates
have started producing green, white and oolong teas.
Assam:
One of the largest tea producing regions of the world, Assam is known for
growing the original Indian tea. Assam tea gardens feature impeccably
pruned tea bushes covering about 2,16,200 hectares that produce more
than 360 million kgs of tea annually. The tea of Assam has a strong
pungent taste that makes it famous the world over. The cropping season in
Assam begins as early as March and extends almost to mid December.
Darjeeling :
One of the most famous teas in the world, Darjeeling tea is grown in the
foothills of the Himalayas at an altitude of six thousand feet above sea
level. Considered as one of the best, Darjeeling tea is also referred to as
the 'Champagne of teas'. Tea with a class, Darjeeling tea has a strong
character and gentle disposition making it an all time favorite of tea
lovers.
Nilgiri:
Also known as the Blue Mountains, Nilgiris are spread across the
southwestern tip of India and lies at an altitude of forty five hundred feet.
Grown all the year round, Nilgiri teas are relatively mild and is a mellow,
light and clean liquor. Besides, Nilgiri teas are often used in blends.
Indian Tea Industry can be segmented into two geographical divisions –
North India and South India.In North, or particularly, Northeast India,
Assam and Sikkim are prominent in producing tea and are better known
for representing Indian tea quality all across the globe. For South India, it
is, Tamilnadu (Nilgiri), Kerala and Karnataka, who contribute to the
remaining production of tea and majorly coffee.It is to be noted that in the
current tea production scenario, South India produced 129.29 mkg of total
volume of 466.37 mkg in 2006 between January to July whereas, North
India contributed three times higher productivity at 337.08 mkg.
The Major Tea Regions
1. India
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India is the largest tea-producing country in the world. Although India

20. 20