Thursday, June 20, 2024
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Tea industry’s annual turnover to reach Rs 33K crore by 2015: ASSOCHAM

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From Our Correspondent

 GUWAHATI: The total turnover of the tea industry in India is likely to reach Rs 33,000 crore by 2015 from the current level of about Rs 19,500 crore. With nearly six lakh hectares under tea cultivation, the domestic tea industry is growing at a compound annual growth rate (CAGR) of about 15 per cent, according to a study titled ‘Indian Tea Industry’ released by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“India is world’s largest consumer, second largest producer and fourth largest exporter of tea after China and accounts for nearly 30 per cent of global output and nearly 25 per cent of tea produced worldwide is consumed in India ,” said DS Rawat, secretary general of ASSOCHAM while releasing the findings of the study.

“Branded market accounts for nearly 55 per cent of the total market and is growing at about 20 per cent while the unbranded market is growing at 10 per cent annually,” said Rawat.

Nearly 35 lakh workers are employed in over 1,500 tea estates across India and about 65 per cent of these are employed indirectly.

Assam produces over half of India’s tea and accounts for over 12 per cent of annual global tea yield, according to ASSOCHAM.

Tea being cheap, affordable and addictive in nature nearly 90 per cent of Indian households are regular tea drinker.

According to an ASSOCHAM estimate the tea production during the current year is likely to stay over 950 million kilograms as against 966.4 million kilograms in 2010.

“Awareness about health benefits associated with moderate intake of tea is another significant factor behind this upsurge in its demand as now more and more people are familiar with healing properties of tea,” said Mr Rawat.

It not only helps combat heart related ailments but also helps lower cholestrol, protects skin, keeps cancer at bay, strengthens bones and teeth and contains no calories, fat and salt.

Historically regarded as a hot beverage, the penetration of tea in the non-alcoholic cold beverage segment is another driving force for this industry.

Due to the rising affinity towards ice-tea which currently accounts for over five per cent of entire non-alcoholic beverage market in India, said ASSOCHAM.

There is not much product differentiation at rural and urban levels and thus key industry players are coming out with value added products.

But with rapidly changing market scenario and technological advancement in agri business there is tremendous scope and potential for growth and development of domestic tea industry.

ASSOCHAM has called for imparting proper marketing skills, research, training and technical know-how to tea cultivators to increase the yield and revenue.

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