Focus on export of Assam tea can cheer up economy

Approximately 200 years back, the visionary Bruce Brothers – Robert and Charles and Assam stalwart, freedom fighter and martyr ManiramDewan, who pioneered tea plantation in the State, started what is today globally famed as Assam Tea. Singpho Chief Bessa Gam also contributed significantly in laying the foundation for tea plantation in Assam. Two centuries down the line, Assam tea’s global popularity remains phenomenally unparalleled. Seizing the initiative, India’s attention should be towards Marquee estates producing the best teas which are sustainably certified and can be promoted under the Assam logo of a gold standard in the international market.

After all, India is second largest tea producer in the world and Assam being its single largest tea-growing region. For nearly two centuries, the tea sector has been the backbone of Assam’s economy. Tea industry is also extremely important from the employment generation perspective. A substantial part of the north eastern state’s populace depends on it.

Even today, tea constitutes close to 90 per cent of the state’s exports.At a time when Assam, along with the rest of the country, seems well set to celebrate the two hundred years of Assam Tea, the state government, in a befitting move, has extended Assam Tea Industries Special Incentives Scheme (ATISIS) and Agriculture Income Tax exemption by another three years, electricity incentives for labour lines and several other announcements, including organising roadshows abroad to market ‘Brand Assam Tea’.

This has to be seen in light of the fact that production of tea in Assam in 2022 rose 9.52 million kg while the all India production of 1340 million kg was almost at par with the 2021 levels. Global Black Tea production in 2022 as per the latest available data has been adversely impacted by around 65 mkg, primarily on account of the dip in Sri Lankan tea production. Maintaining a healthy equilibrium of demand and supply is therefore critical for sustenance. Last year’s domestic tea consumption was estimated around 1,170 mkg, averaging an annual increase of about 2.32 per cent. Tea Board has estimated the current per capita consumption at 850 gm, an increase from the earlier 786 gm.

Industry analysts feel that the recent moves by the Assam government will bring more cheer for the consumers. This will result in good remunerative prices. Also, at present, Assam is beset with surplus tea and low consumption levels because of which the tea industry is facing innumerable problems. It is expected that the new initiative by the State government will augur well for Assam Tea.

One must also remember that for a country like India, which is a major producer of CTC tea, it is necessary to increase exports. In 2022, CTC tea comprised around 90 per cent of the total tea production of 1340.49 kg, while only 110 million kg were orthodox tea. Orthodox tea definitely fetches good prices abroad. But simultaneously, it is necessary to augment export of CTC tea and also increase the domestic consumption to ensure the sector’s sustenance.