The Tea Board has asked for an assistance of Rs. 1000 crore for the tea industry in the next five years, starting in 2022–23. Chairman of the Tea Board Saurav Pahari said that in the budget submitted to the commerce ministry, the focus has been on handholding the small tea growers (STGs), which contribute 52 percent of the total production in the country.
Pahari said that the budget is mainly intended to support the STGs, which contribute 52 percent of the country’s production volumes, and that the Board has also pursued subsidies for orthodox tea production, which has a good export market.
“It is good to note that the tea industry on the whole now acknowledges the contribution of the STGs.” “It should be a collaborative effort between the big tea planters and the STGs for the development of the industry,” he said.
Tea exports had plummeted but are now picking up; however, domestic production has not picked up as expected. India needs to build the brand image of tea. Also, new technology has to be adopted to optimize the use of labour in the industry, while production costs have to be kept within control to ensure profitability.
The Chief Economic Adviser (CEA) to the government, V Anantha Nageswaran, said the share of India in global GDP has increased from 2.6 percent to 3.4 percent. The world is passing through multiple crises like high inflation, high interest rates, and an increase in commodity prices.
Nageswaran stated that India responded to the crisis by adjusting fiscal and monetary policies and providing significant stimulus over the last three years. The CEA credit guarantee scheme had provided assistance to the MSME sector.
While Chairperson of ITA Nayantara Pal Choudhuri said that tea exports during 2022 are expected to touch 230 million kilograms, as compared to 196 million kilograms in the 2021 calendar year, she also stated that low-quality tea from non-FSSAI-compliant countries must be addressed immediately. She said the financial stress of the Darjeeling tea industry was plagued by falling production due to reducing yields, rising input costs, and almost stagnant prices.
Nayantara Pal Choudhuri has also been appointed as the chairperson of the proposed Asia Tea Alliance, where the industry bodies of Sri Lanka, China, Indonesia, Nepal, and Bangladesh will be members. The alliance, in collaboration with Solidaridad Asia, will work on issues like trade promotion, boosting tea consumption, and technology exchange.