Mr. K. S. David, Addl. Vice-Chairman, ITA stressed that reasonably-priced Orthodox teas are available from India and Darjeeling can be re-introduced in the Russian up-market and quality packets. Russian importers should cooperate in weeding off teas passing off as Darjeeling, he said. He added that the Goodricke Group, the largest producing group in Darjeeling district, could look at Russia to collaborate with importers to position Darjeeling packets on a sustained basis. He also mentioned that there were encouraging signs that Assam Orthodox teas were being sought after by importing companies in Russia.
Mr. Dharmaraj, representing South Indian tea industry, mentioned that 50 per cent of South Indian exports continue to be directed towards Russia and that the market was therefore very important. There were concerns among the South Indian industry over decline in volumes of teas from that region to the Russian market and the industry and trade were determined to overcome past problems.
There was specific mention of the concerted efforts being undertaken in terms of improving plucking and manufacturing standards. Significant efforts had also been undertaken in this connection by the small growers and the BLFs which account for a large volume of the South Indian tea output.
Mr. Dharmaraj mentioned that with this quality upgradation programme, South India could match Sri Lankan prices and that the Russian importers should take a closer look at their crop. The South Indian industry, like in the North, was also gearing up to enhancing the production of Orthodox tea. It was mentioned that while capacities stood at around 50 mkgs, the production of Orthodox tea is only 35 mkgs.
Mr. Alexei Igorov, General Director, Maeski Chai mentioned that it was heartening to know that India was looking at Russia aggressively. He expressed his country’s satisfaction that the preliminary discussions on promotion of Indian tea was on the verge of materialising and that he was looking forward to the Indian Tea Logo Promotion programme as had been worked out by the Tea Board.
Mr. Igorov sought details of the advertising company that was handling the Tea Board's promotion programme and mentioned that the strategies should be shared and exchanged with the Russian tea trade on an on-going basis so that they can be fine tuned with inputs from importers. Individual advertisement and publicity programmes being carried out by Russian importers could be dovetailed with the Logo Promotion to mutual advantage.
He specifically noted that TV programmes would highlight the quality image of Indian tea and the fact that packets bearing the logo would have the guarantee of a Tea Board assurance as regards quality standards.
It was mentioned that Russian importers had aggressively geared up to packeting larger volumes of tea in Russia as part of enhanced utilisation of domestic packaging facilities. Headvised that India would have to, in course of time, look at collaborating with Russian

Tea Board Chairman Mr. N.K. Das in a tea retail shop

importers to extend the eligibility of the logo to Indian teas packed in Russia. There was some apprehension that the logo, with its insistence on packeting, in India could be in initial conflict with Russian packets of Indian tea. He, therefore, advised that the logo usage by Russian companies would have to be addressed sooner or later.
Mr. Igorov felt that the usage of logo in Russia could be extended to established and reputed importers with a good track record and who may be willing to subject themselves to monitoring and inspection. He was aware that there had been some improvements in the quality of output from South India and that tea importers in Russia were looking to enhance their sourcing from the region.
The representatives of Grand Tea House mentioned that they were still regarding India as the main source for their tea although there were certain competitive forces that were inevitable given the opening up of trade in Russia. The need of the hour was to understand the significant changes taking place in the Russian market place and to react quickly with appropriate products.
He mentioned that given the aggressive marketing tactics employed by Sri Lanka and the large spread of packets from that country available in the retail counters, there was growing perception among the ordinary people that Sri Lanka is the home of superior teas. While the Russian tea importers are aware that there is a wide range of Indian teas which fit the quality bracket, market perception must be taken cognisance of while designing promotion strategies. He mentioned that Russia was a vast market and separate focus and strategies have to be developed for different regions.
He felt that the mechanism and modalities of eligibility regarding the logo usage should be shared with Russian importers so as to invite their participation in the programme. His company was interested in promotion of specialty teas and his firm would be amenable to discussing with Indian companies on targeting some Russian cities with such teas. Grand Tea House assured the delegation of their support and involvement in forging long-term strategic partnership with Indian tea companies.
On behalf of Accenture the full details of the Indian Tea Logo Promotion programme was explained to the members of ROSCHAI KOFE. The following were the highlights: