Tea Industry

Efforts being made towards technology absorption. Adaptation and innovation which will increase efficiency of production 2. Reduction in energy consumption by the installation of proper voltage controlling equipment’s will help in cost reduction 3. Export to other south east Asian countries Threats 1. GO gave notice to surrender its land 2. Highly seasonal industry and thus demand fluctuates and capacity Is not utilized fully 3.

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Other beverages Like coffee, Juices and other regional traditional drinks pose threat to the demand for tea products 4. The Industry Is subjected to stringent labor laws 5. Shortage of labor during peak season is a cause of concern Strengths The diverse agro-climatic conditions prevailing In the tea growing areas of India lend themselves to the production of a wide range of teas – black, (CT, orthodox), green teas and organic teas. A one-stop-shop for high quality specialty teas e. G. Adrenaline, Assam, orthodox, high range Inklings, etc.

Strong production base with 75 per cent of the production being accounted for by organized sector covering 1,600 gardens owned by nearly 1 , 100 entities. Competent managerial manpower. Strong research backing from well established research institutions. Availability of modernized and upgraded manufacturing faceless. Labor welfare laws protecting workmen. Emerging small grower sector with young plantation profiles. Availability of training facilities for plantation managers, supervisory staff and workers for continuous upgrading of their skills.

Strong domestic market – by accounting for nearly 80 per cent of production offering demand cushion for the tea industry. Weaknesses age limit of 50 years and another 10 per cent on the verge of crossing this limit hourly. High cost of production mainly due to low productivity, high energy cost and high social cost burden. Diminishing availability of workforce particularly in South India. Remote location of the plantations and transportation of teas over long distances from tea gardens to sale points.

Poor infrastructure – approach roads to gardens, inadequate warehousing at ports, constrained availability of containers, placements of vessels and high ocean freight charges (due to feeder-mother vessel transfers). Difficulties in introduction of mechanization of field operations due to topographical and quality limitations. Inorganic nature of small growers with fragmented small and scattered holdings leading to production of poor quality teas mainly due to non-availability of technical know-how at the doorstep – weak extension service. Lack of quality monitoring mechanism for teas particularly sold through private sales.

Opportunities Good awareness level world over as to the health attributes of tea leading to growing demand for good quality teas and specialty teas such as organic teas, green teas. Narrowing down of the gap between supply and demand due to increased growth rate of consumption in the major producing countries. Producing countries reaching an agreement for forming an exclusive forum for resolving their differences over common issues. Positive response by the tea industry responding to the Government towards renovation of fields and processing factories. (Special purpose tea fund and quality upgrading initiative).