India’s Major Crops: Tea

Tea as well as tea consumption was prevalent in China (also in North East India) for thousands of years. Tea made inroads into Europe mainly via two routes. In Eastern Europe, it entered from China & Persia through Russia. In Western Europe, it entered by sea around the Cape of Good Hope through the Dutch and British East India company facilities.

East India Company and China Tea Trade

The pioneer work in the development of India tea was done by East India Company.  The efforts to encourage tea cultivation began as early as from the times of Governor General Warren Hastings, who in 1776 had instructed one of the officers to prepare notes on cultivation of new crop into India. But no one in the company bothered much until 1833 because till that time, East India Company enjoyed monopoly in tea & silk trade with China, making huge profits. China used to provide these two commodities to East India Company in return for silver and bullion. But in 1833, the Chinese did not renew the agreement with British and thus their monopoly ended. With this, one of the most lucrative businesses of East India Company ended. This was beginning of serious efforts to cultivate tea commercially in India.

The first discovery of a wild tea plant is ascribed to Robert Bruce, who found it in 1821 in interior Assam. But it is beyond doubt that it wild tea plants were abundantly available in India also in upper Assam jungles and there local tribes such as Singhpos and Khamtis used to drink brew from tea leaves, which was called Finap.

The first tea garden was started in 1835 in Lakhimpur district of Assam. England received first chest of Assam tea in 1838. However, the early years of tea plantations were marked by several failures including wrong selection of sites and wrong way of manufacturing. For 13 years, even the monopolistic Assam Tea Company (ATC) had provided no dividends. But by 1850s, there was a huge extension of tea cultivation and production. Gradually, Indian tea started making inroads not only into international but also domestic market. Slowly it entered into the food culture of India and increased domestic consumption gave a boost to development of tea.

Success of British Tea Gardens

Tea was not only planted in Assam but also many other sites. Tea gardens were developed all along Shivaliks and Lesser Himalayas from Assam to Himachal Pradesh wherever the climatic conditions and terrain lent itself to plantation of tea shrubs. But the success of plantations was in limited. The areas where tea plantation succeeded included the regions located in monsoon belt – Assam, West Bengal and the foot hills of the Himalayas in the North and the moist slopes and the plateaus of the Western Ghats in the south. Not much success was received in other areas such as Himachal Pradesh, Ranchi, Doon valley etc.  There were various geographical as well as other reasons of why the tea plantation was not successful in these areas.  The Ranchi gardens have poor soil not suitable for tea cultivation.  The rainfall, temperature and humidity needed by tea were not available in Himahchal Pradesh and Dehradun although soil in Dehradun is equivalent to that of Assam. Tea needs relatively low temperature for its growth, but not very low, that can adversely affect cultivation of tea. For example, the Kangra valley lies in the foot hills of Himalayas and here climate is too cold.  Additionally, tea requires high rainfall of around 150-250 cm along with well drained slopes. The combination of all these factors exists in the areas of North East, Assam and areas near Darjeeling; as well as in Nilgiri hills.

Further, there was one more reason of failure of tea plantation in Kangra valley. In Kangra, the first tea estate began in 1852. The quality of the Kangra tea was readily accepted in Europe and it was even awarded. But then in 1905, this area was struck by an Earthquake, which ruined the tea plantations. This caused panic into the British planters and they sold their estates to locals and move away. The local people could not maintain the plantations because of technical knowhow.

About Tea Plant

Botanical name of Tea is Camellia sinensis. After water, tea is the most widely consumed beverage in the world. Tea is an evergreen plant that mainly grows in tropical and subtropical climates. It is thought to have originated in East Asia somewhere between China and Burma. Commercial cultivation of tea started in India from British era when one Robert Bruce in 1823 discovered tea plants growing wild in Upper Brahmaputra valley. In May 1838 the first Indian tea from Assam was sent to England for public sale.

About  Tea Crop

Tea grows in a moderately hot and humid climate, which is preferred for better yield, crop distribution and quality. An ambient temperature within 13°C and 28-32°C is conducive for growth of tea. Temperature above 32°C is unfavourable for optimum photosynthesis. It is synergically disastrous for the crop if it is accompanied by low humidity.

In India, the temperature in winters is around or below 12°C and there is hardly any growth during this period. This is called Winter Dormancy. Flushing in the tea plants starts from March with the rise in temperature.

The Acidic Soil with around 4.5-5.5 pH is most suitable for Tea. Well-drained fertile acid soil on high lands with moderate to high rainfall.

Production Figures

India is world’s second largest tea producer after China. In 2013, India’s estimated tea production was 900 million kilograms, which rose to 1,267 million kg in 2016. In 2017, it was expected to give a record tea production of around 1300 million kilogram. In past few years, bulk of the growth in tea production is happening in South India. However, currently, Assam is largest tea producing state of India.

Currently, India counts for around 23% of global tea production. The top five producer countries of tea are China, India, Kenya, Sri Lanka and Turkey.

Important Tea Producing Areas of India

India is the largest producer and consumer of black tea in the world. Tea is grown in 16 states in India. Assam, West Bengal, Tamil Nadu, and Kerala account for about 95 per cent of total tea production.

India’s major Tea Producing Districts/ Areas are as follows:

• Assam: Darrang, Goalpara, Kamrup, Lakhimpur , Dibrugarh, Nowgong, Sibsagar, Cachar , Karbi Anlong , North Cachar
• West Bengal : Darjeeling, Terai (west Dinajpur), Doors (Cooch Bihar) .
• Tamil Nadu: Kanyakumari, Tirunelveli, Madurai, Coimbatore , Nilgiris
• Kerala: Cannanore, Palghat, Kozhikode, Malapuram, Trichur, Trivandrum, Quilon, Kottayam, Ernakulam, Idukki, Wynaad
• Karnataka: Chikmagalur, Coorg, Hassan

The Largest state with area under Tea Plantations in India is Assam.

Foreign Trade in Tea

India is world’s fourth largest tea exporter after China, Sri Lanka and Kenya. India exported 222 million Kg tea in 2010; but in recent years, these figures are slipping. In 2014, India exported 207.44 million kilograms of tea. Largest importers of Indian tea are Russia, UAE and Britain.

Despite being the world’s largest producer with a geographical indicator all to itself (Darjeeling Tea), India has been losing share to other aggressive players like Kenya and Sri Lanka. In 2006, India’s global market share was 14 per cent. Currently it stands ≈11%.  Kenya and Sri Lanka are able to sell the tea at cheaper price with the same quality level. This has been explained below.

India faces stiff competition from Kenya (which is world’s largest tea exporter) and Sri Lanka in tea exports. We note here that tea processing is of two kinds viz. orthodox and non-orthodox. The non-orthodox is also called CTC (crush, tear, curl). Kenya’s entire tea production is as CTC tea while Sri Lanka’s entire production is via orthodox method. Further, most of the tea prepared via orthodox method is consumed while via CTC method is exported. Thus, India’s Assam CTC Tea faces competition from Kenya while orthodox tea faces competition from Sri Lanka & Mozambique. Since qualities are similar, it’s the price and production which matter in exports.

Further, most of the tea (≈90%) exported from India is bulk tea (other is value added tea). Both bulk tea and value added tea earlier enjoyed 5% benefit by their inclusion in the Vishesh Krishi Gram Udyog Yojana. However, later bulk tea was included in the Merchandise Exports from India Scheme, whereby the export benefit was reduced to 3%. This is one factor that adversely affects the competitiveness of tea industry.

Tea Varieties in India

In India, there are three distinctly different tea growing regions. These regions are geographically separated, thereby producing three entirely different teas both in style and in taste/flavor. The three regions are:

• Darjeeling (North-Eastern India),
• Assam (far North-East India)
• Nilgiri (South India).

Further, we have a small Kangra Tea industry also which is made of 5,900 tea gardens spread over an area of 2312 hectares between Shahpur-Palampur-Baijnath-Jogindernagar in Himachal Pradesh.

Darjeeling Tea

Darjeeling Tea aka the Champagne of Teas is cultivated, grown, produced, manufactured and processed in certain hilly areas of Sadar, Kalimpong, Kurseong, Siliguri and Darjeeling at altitudes ranging from 600 to 2,000 meters.  Its unique muscatel flavour comes due to the cool and moist climate, the soil, the rainfall and the sloping terrain. These natural factors give Darjeeling tea a distinction which is not found anywhere else in the world. Eventually, it was the first Indian product to be given GI tag in 2004-05.

Production Figures & Varieties

According to India Tea Association figures, Darjeeling tea production from 57 gardens in all stands roughly at 8.5 million kg or 0.7 per cent of India’s total production. Out of this, 6 million kilograms is exported. Since Darjeeling tea is produced via orthodox method, there are several varieties on the basis of the harvesting time such as first flush, second flush, autumnal flush etc.

The best export quality is first flush, which is harvested in March, immediately after the spring rains.  Second flush is harvested in June. Monsoon and Autumnal rains are the last one and least exported. 90% export quantity is of Darjeeling tea is from First Flush. If there is some delay or deficiency in spring rains, the export trade of Darjeeling is affected. Such affect is seen in current year also.

In recent times, Darjeeling Tea has suffered several issues as follows:

Challenge from Nepal Tea

Darjeeling is close to Nepal and area around Darjeeling in Nepal have same geographical and topographical features. The Nepal tea produced in those areas is somewhat similar to Darjeeling though its aroma is not lasting. Howeever, that tea is sold at a price half to Darjeeling tea and this has severely affected Darjeeling tea market, both in domestic as well as abroad.

Problem of minimum wages

The wages of Darjeeling tea workers has been a politically sensitive issue. In 2011, the wages for Darjeeling tea workers was fixed Rs. 95 per day. There were agitations with the demand to raise these wages in 2014-15. In 2015, the wage was hiked to Rs. 122/- but the agitation continued. In September 2015; the central government released a draft notification which suggests the states to offer Rs.321 as the minimum wage to workers.

Gorkhaland Agitation and Blockade

The Gorkhaland agitation has also affected the Darjeeling tea business in last few years.

Assam Tea

Assam is the single largest contiguous tea growing area in the world.  The Assam tea is generally known as Breakfast tea or English Breakfast Tea.  The variety is C. sinensis var. assamica

Nilgiri Tea

Nilgiri Tea is grown in the hills of the Nilgiri district of Tamil Nadu as well as some other parts of South India. They are a picturesque range of undulating hilly landscapes where tea is grown at elevations ranging from 1,000 meters to 2,500 meters. Rainfall varies from 60 inches to 90 inches annually. Roughly 50% of the Nilgiri tea produced in India is exported.

Kangra Tea

Kangra Tea Industry had a golden history but today it is struggling to survive. Kangra was one of the sites where British introduced the China tea in the initial days of modern tea plantation in India in mid of 19th century. It was introduced by abiologist and soldier Jameson; who had brought tea bushes from China and planted them on experimental basis in Kullu, Mandi, Chamba, Palampur and Dharamsala areas. The bushes failed to survive in Kullu, Chamba and other areas but took root in Palampur and Dharamsala.

Due to its quality, the tea was readily accepted in Europe and had won gold & silver medals in exhibition of tea in Europe during 1886-95. However, first jolt to the Kangra tea plantations came in 1905, when this area was struck by an Earthquake, which ruined the tea plantations. This caused panic into the British planters and they sold their estates to locals and moved away. The local people could not maintain the plantations because of technical knowhow. Despite that the Industry survived in 20th century and remained as one of the leading suppliers to Afghanistan and Pakistan.

But despite its protection under land tenancy law; the industry has failed mainly due to absence of professional knowhow and faulty government policy.

Current Area and Production

At one time, Kangra tea industry covered more than 5,000 hectares of land and supported more than 1,600 families, but it has now shrunk considerably. It is currently grown in 5,900 tea gardens spread over an area of 2312 hectares between Shahpur-Palampur-Baijnath-Jogindernagar of Himachal Pradesh. Its current production is around 9 Lakh Kg, which used to be in the range of 16-17 Lakh Kg in 1990s.

Why Kangra Tea is struggling?

Kangra tea is facing a crisis and many of the tea growers in Kangra valley are abandoning the tea gardens. The key reasons of this crisis are discussed here:

Lack of quality planting material and technical knowhow

The Kangra valley growers are unable to find good quality planting material and they are not knowledgeable about the performance of the crop and nursery plants they are planting. The government apathy and policy blunders resulted in absence of any formal channel of imparting latest knowhow to the planters.

Labour problem

Non-availability of labour during plucking period adversely affects the productivity and quality of gardens. Then, the workers have no knowhow of correct plucking operation.

Lack of Mechanization

Most of the planters undertake hand plucking. Tea mechanization and farm mechanization process have not occurred in these gardens.

Urbanization

The faster pace of urbanization in Kangra district is luring the planters to sell their land for handsome cash.

Competition and other reasons

Kangra’s tea industry is struggling to compete with Sikkim and Assam varieties in the market. The steep rise in cost of inputs and falling margins are another reasons. Further, Kangra region is also witnessing a slow invasion of apple trees in the tea plantations. The tea planters are now banking on apple to change their fortunes.

The industry also facing a policy problem whereby the marketing and development of tea industry in Himachal Pradesh was shifted from Industries department to Agriculture Department. The planters allege that the Agriculture Department failed to deliver the goods and neglected the development and marketing of tea in the region.

Measures taken to protect the Kangra Industry

Kangra Tea is one of the GI protected commodities in India. The state government along with Union Government has made some efforts to provide a niche based market for Kangra tea.

What should be done?

• Kangra tea needs better government policy, adoption of technology in production and brand promotion. A roadmap should be prepared for only Brand Promotion of Kangra tea.
• Kangra tea is unique in its quality and has potential to compete in international market on account of its special flavour. But the growing area is very small. Governments need to encourage farmers to grow the tea in Kangra as well as nearby areas of Kullu, Mandi etc. The state government had formulated such scheme but so far this scheme is not in operation.
• The state agricultural university and Tea Board of India should come forward to enlighten the farmers in terms of productivity and quality. This can be done by organizing camps in selected areas for latest knowledge dissemination.
• Labour problem can be corrected by creation of a labour bank and a centralized facility with skill manpower and machines.
• The Self Help Groups and Cluster approach and reviving the Kangra Tea Planters Association.

Tea Board of India

In 1903 Indian Tea Cess Bill was passed which provided for levying a cess on tea exports – the proceeds of which were to be used for the promotion of Indian tea both within and outside India. It was a predecessor to present Tea Board of India.

The Tea Board of India was set up under section 4 of the Tea Act 1953 was constituted on 1st April 1954. It has succeeded the Central Tea Board and the Indian Tea Licensing Committee which functioned respectively under the Central Tea Board Act, 1949 and the Indian Tea Control Act, 1938 which were repealed.

The Board is constituted of 31 members (including Chairman) drawn from Members of Parliament, tea producers, tea traders, tea brokers, consumers, and representatives of Governments from the principal tea producing states, and trade unions. It is reconstituted every 3 years and its head office is located at Kolkata.

Main functions of Tea Board of India include: Rendering financial and technical assistance for cultivation, manufacture and marketing of tea; Export Promotion; R&D in tea production; financial assistance to tea workers; collect and maintain tea data and other activities assigned by the central government.

Demand of Tea as National Drink of India

There has been a consistent demand from the Tea Industry for declaring Tea as ‘national drink’ of India. In August 2012, a parliamentary standing committee on commerce recommended that the beverage be given the status of ‘national drink’. The view of the committee was that tea is an integral part of the socio-cultural milieu of the country and enjoys a space in the hearth of every home irrespective of caste, class, religion and economic status of the person. So far this status has not been given to tea.