Daily Hot Topic
Topic : Tea Plantation Industry in India
GS-3 Mains : Economy
Overview
- India: World’s 2nd largest tea producer, largest black tea producer, and 4th largest exporter.
- Employment: 1.16 million direct jobs, equal number indirect.
- Production: Assam contributes 55%, production increased 39% from 2008 to 2022.
Challenges
- Rising costs: Input costs (gas, coal) increased faster than tea prices.
- Demand-supply imbalance: Overproduction, weak exports due to Iran market decline.
- Export dependence: Vulnerable to global market fluctuations and trade policies.
- Competition: Substandard tea from Nepal.
- Sustainability: Pressure for eco-friendly practices.
- Other factors: Stagnant prices, market concentration, declining tea quality.
Tea Board of India
- Role: Statutory body under Ministry of Commerce, promotes tea cultivation, processing, and trade.
- Initiatives: Education stipend for small tea growers, SHG, FPO, FPC formation, “Chai Sahyog” app.
Government Interventions
- Export promotion: Better infrastructure, increased RoDTEP rate, reduced interest rates.
- Market regulation: Regulate tea waste, restrict low-quality imports, promote tea’s health benefits.
Geographical Conditions
- Climate: Tropical and subtropical, warm, moist, frost-free.
- Soil: Deep, fertile, well-drained, rich in humus.
- Temperature: 15-23°C average annual temperature.
- Rainfall: 150-200 cm annually.
- Major tea-producing states: Assam, West Bengal, Tamil Nadu, Kerala.
- Other states: Himachal Pradesh, Uttarakhand, Meghalaya, Andhra Pradesh, Tripura.