Crisis Management: Tea Board India’s Response to Challenges Faced by Tea Exporters

The Indian tea industry, a cornerstone of the nation’s agricultural economy, has long been a symbol of India’s rich cultural heritage. However, in recent years, it has grappled with numerous challenges, including economic downturns, geopolitical tensions, and environmental adversities. In response, the Tea Board of India has implemented several strategic measures to support tea exporters and ensure the industry’s resilience.

Economic Challenges and the Tea Industry

The Indian tea industry has faced significant economic hurdles, notably rising production costs and stagnant tea prices. Over the past decade, input costs have surged by 10-12% annually, while tea prices have seen a modest increase of 2.88% per year. This disparity has placed immense pressure on producers, leading to financial instability.(Economic Times)

Geopolitical Tensions Impacting Tea Exports

Geopolitical tensions have further complicated the export landscape. The conflict in Ukraine, for instance, has disrupted traditional export routes and markets, prompting the Tea Board to seek alternative avenues and bolster existing partnerships to mitigate the impact on tea exports.

Environmental Adversities Affecting Tea Production

Environmental factors, such as adverse weather conditions, have also taken a toll on tea production. In 2024, the industry faced a significant decline in production, with output expected to fall by over 100 million kilograms due to unfavorable weather and early garden closures.(KNN India)

Tea Board India’s Strategic Measures

In response to these multifaceted challenges, the Tea Board of India has implemented several strategic initiatives:

1. Tea Development & Promotion Scheme (2023-24 to 2025-26): Launched on October 3, 2024, this scheme has an overall budget of ₹664.09 crores. It encompasses seven major components aimed at holistic development, including Plantation Development & Quality Upgradation, Tea Promotion and Market Support, Technological Intervention, Research and Development, and Welfare and Capacity Building measures.

2. Support for Replantation and Nursery Development: The scheme provides assistance for replantation in large tea gardens and supports the establishment of nurseries with recommended quality cultivars, benefiting individual entrepreneurs, small tea growers, start-ups, self-help groups (SHGs), farmer producer organizations (FPOs), and farmer producer companies (FPCs).

3. Federation of Small Tea Growers: Assistance is offered to SHGs and FPOs/FPCs to federate small tea growers, enhancing their collective bargaining power and operational efficiency.

4. Establishment of Mini Tea Units: The scheme encourages SHGs, FPOs, and FPCs to set up new mini tea units for the production of orthodox, green, and specialty teas, diversifying product offerings and catering to niche markets.

5. Annual Awards for SHGs/FPOs: To incentivize excellence, the Tea Board has introduced annual awards for SHGs and FPOs in four regions, recognizing outstanding contributions to the tea industry.

6. Technological Intervention: The scheme allocates funds for upgrading efficiency and productivity through technological interventions, ensuring that stakeholders remain competitive in a rapidly evolving market.

7. Research and Development: Focused on product development and diversification, the Tea Board supports research on blends for international markets, maximum residue limits (MRL), and pest and disease management, addressing quality concerns and enhancing export potential.

8. Capacity Building: The initiative includes scientific seminars, workshops, and training programs for Board officers and stakeholders, promoting best practices and knowledge dissemination across the industry.

9. Educational Support and Welfare Measures: The scheme provides educational support to the wards of big tea garden workers and small tea growers, along with grants for books and uniforms, fostering community development and worker welfare.

Impact on Tea Exporters

These comprehensive measures aim to bolster the competitiveness of Indian tea in the global market, enhance quality standards, and support the welfare of workers and growers. By addressing production challenges, promoting diversification, and facilitating market access, the Tea Board’s initiatives are designed to mitigate the adverse effects of economic downturns, geopolitical tensions, and environmental adversities on tea exporters.

How Altus Exports Can Assist Indian Manufacturers

In the face of these challenges, partnerships with experienced export facilitators can be invaluable. Altus Exports specializes in assisting Indian manufacturers in navigating the complexities of international trade. By partnering with Altus Exports, manufacturers can benefit from:

• Market Expansion: Access to a broader range of international markets, leveraging Altus Exports’ established networks and expertise.

• Regulatory Compliance: Guidance on adhering to international trade regulations and standards, ensuring smooth export operations.

• Logistical Support: Efficient management of export logistics, including shipping, documentation, and customs clearance.

• Financial Assistance: Assistance in securing financing options and understanding export-related financial instruments.

By collaborating with Altus Exports, Indian manufacturers can enhance their export capabilities, mitigate risks associated with global trade, and achieve sustainable growth in international markets.

Collaborative Initiatives: Tea Board India’s Partnerships with Export Associations

Crisis Management: Tea Board India’s Response to Challenges Faced by Tea Exporters

Regulatory Support: Tea Board India’s Role in Simplifying Export Procedures

Training and Capacity Building: Tea Board India’s Efforts in Skill Development for Exporters

Research and Development: Tea Board India’s Contribution to Export Quality Improvement

Market Promotion Strategies: How Tea Board India Enhances the Global Appeal of Indian Tea

Financial Support and Incentives: Tea Board India’s Initiatives for Exporters

Quality Assurance and Certification: Tea Board India’s Role in Ensuring Export Standards

Navigating Global Markets: How Tea Board India Facilitates International Trade for Tea Exporters

Empowering Tea Exporters: An Overview of Tea Board India’s Support Mechanisms