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March - June 2003
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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

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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March - June 2003
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