to
offer our international buyers an opportunity to interact
with the entire segment of the tea industry under one
roof…This Convention would aim to focus India's strategic
response to the new global challenges and to refurbish
India's image as a dependable supplier of tea. Also pervading
deep through this exercise is a strong bond of understanding
between the Government of India and the Indian tea industry."
Mr.
N. K. Das began his presentation by highlighting India's
tea situation vis-à-vis the world scenario. World production
in 2001 was 3,078 mkgs and India ranks first with 28 per
cent contribution. With respect to area under tea, India
ranks second with 28 per cent and in the international
export arena our country ranks fourth with 13 per cent
share.
Mr. Das observed that the annual average increase in global
tea production stands at 58 mkgs. In contrary, the average
annual increase in global consumption is 34 mkgs. Hence,
he said, the world tea situation manifests a general oversupply
leading to increasing uncertainties in the market conditions
and greater price volatility. World average tea price
declined in 2002 by $0.17/kg against 2001 and as much
as $0.51/kg over 1998.
Thereafter Mr. L. V. Saptharishi took over the dais and
went straight to describing the government's concern over
the current crisis plaguing the tea industry. He called
for greater commitment to exports by both producers and
merchant exports. He criticised the industry, both producers
and exporters, for being extremely complacent about the
kind of fare they put on the shelves. "The industry
suffers from a 'yeh saab chalta rahta hai' attitude,"
he said.
He hoped the present crisis is part of the recurrent cyclic
phenomenon witnessed by the sector and is likely to erode
away like the earlier ones.
He said Indian tea which has held its image aloft over
the previous decades has been muddied in different ways
for which the Indian exporters alone are to be blamed.
"The image factor is something which only the person
who projects it has to account for himself… How
you project the image of your product or commodity depends
upon you. That is the basic homework you have got to do
and it is that, somewhere down the line, Indian tea industry
ha failed to do, the reason being complacency of a very
high order."
On the lack of concern for quality, he said: "It
is not a one-day cricket match… Quality consciousness
needs ongoing attention."
Mr. Saptharishi pointed out that logo promotions and media
campaigns are not enough because "at any point of
time the discerning consumer will evaluate what you have
actually done. More so since the consumer now has
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alternatives like coffee, health drinks, not to mention
the cola force."
Insulating his criticism with some optimism, he said the
industry must think that the cup is half full and over
time it will surely be full. "Effective consumer
survey will help us locate the vast untapped potential
of increasing the consumption level, both in India and
abroad."
The vote of thanks was given by IMTEF Chairman Mr. Anshuman
Kanoria.
FOCUS ON INDIA
Our country's tea image across the globe has been of being
the world's largest producer, making the widest variety
of the brew, always highly appreciated all over the world
by the connoisseurs of tea. On the other hand, the industry's
image has been of one, till very recently, being predominantly
driven by two major forces — one, the domestic market
which by far is the world's biggest and second, the dominant
presence of Russian buying.
The beginning of the last decade brought with it several
overwhelming changes. The industry had to adjust to many
so-far-unknown changes both at the domestic front as well
at the global level. With globalisation of the Indian
economy, the protective industrial environment within
the country disintegrated. The market determined every
course the industry took. Moreover, the breaking up of
erstwhile Soviet Union hurled the industry into a crisis
area from where it was forced to hunt for newer pastures
for export-existence.
The first session of the Convention,
titled 'FOCUS ON INDIA', chaired by Mr. R. K. Krishna
Kumar, Vice-Chairman, Tata Tea, was specially aimed at
highlighting the changes that have taken place in the
Indian tea scenario since the beginning of the last decade.
Mr. Kumar pointed out that the Indian tea industry which
has adhered to a traditional growth model for the past
100 years-or-so is no longer valid. On the significant
changes that have taken place, he said the Indian industry
has been very strongly impacted by technology and has
come to terms with market forces. Their constant endeavor
to be globally competitive and world class, he added.
The tea sector too has transformed itself into a market-driven
one.
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