STATUS OF INDIAN TEA INDUSTRY AND ITS PERSPECTIVE CHANGES UNDER GLOBAL COMPETITIVE ENVIRONMENT- A QUANTITATIVE APPROACH
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Date
2017-07
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AAU, Jorhat
Abstract
Tea industry in India plays an important role in the national economy and it is one of the oldest and well organized labour intensive, agro-based industries of the country. Recognition of tea cultivation as an industry in the country was done towards the end of nineteenth century and it took a phenomenal increase in area after China. Tea industry contributes more than Rs 33000 croresper annum to the Gross National Product (GNP). The total turnover from the tea industry in India alone is more than Rs 33000 crores, a mere 3.22 per cent of Gross Domestic Product (GDP) during 2014-15. The study was based mostly on secondary published data with effect from 1971 to 2015 with an objective to examine the trends of production and export of tea and growth in India. It was observed that tea sector plays an important role contributing more than 200 crores to the GNP of the country. The major three producing regions are Darjeeling, Assam and Nilgiri. In the recent years, the sector has witnessed a stiff competition in the international export market affecting domestic production. It was observed that China produces 39.00 per cent of world tea followed by India sharing 24.55 per cent with an annual change of 2.87 per cent during 1971-81 to 3.06 per cent during 2001-11. Production of tea in the country was mainly due to increase of area and productivity. Application of gravity model shows that population of India could not affect the bilateral trade. It was observed that relatively higher productivity of tea was exhibited by South Indian states like Karnataka and Tamil Nadu with NPC value rangingbetween 0.66 to 0.74.Tea export quantity was forecast with the help of the export quantity model, exponential smoothing and ARMA model. The Giniconcentration ratio for different categories for producer-sellers and buyers was found to be 0.5171 and 0.7424 respectively and the prices of tea at GTAC were influenced more by number of buyers and the markets was monopolistic in nature.Marketing channels were studied to know the efficiency and effectiveness in the marketing system. The study also shows that output price has positive influence on factor prices and the output price with respect to labour and chemical was more dominating. Export of value added tea was more erratic and unstable. It can be concluded that area could influence the production and it needs to be increased under replanting and replacement planting. Steps should also be taken to increase the export of value added tea in the country. The small tea sector should be organised and regulated to make it more productive. The linkage between small and big growers be strengthened and the price of green leaves needs to be raised. The processing of green leaves of small growers through cooperatives was therefore need to be strengthened.
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