Kolkata, May 6 (PTI) Tea Board is finalising its recommendations to the commerce ministry on the industry’s demand for a special financial package for retaining the viability of this sector which is claimed to be under threat, an official said on Friday.
Tea industry representatives had met the Parliamentary Standing Committee on commerce in March and submitted a memorandum on the challenges faced by the sector, particularly in Darjeeling where production levels have decreased by six million kilograms at present from 12 million kilograms earlier.
“We are in the process of finalising our recommendations on the industry demand for a special financial package,” Tea Board Deputy Chairman Saurav Pahari told PTI.
He said the industry had not mentioned the quantum of financial assistance needed.
Pahari said that in order to raise the declining export levels, Tea Board is engaged in promotional activity in collaboration with the industry to tap new potential markets.
So far, the CIS block and Iran had been the major importers of Indian tea.
Asked whether the economic crisis in Sri Lanka will help Indian tea exporters, secretary-general of the Tea Association of India (TAI) PK Bhattacharya said that the island nation mostly produces the orthodox variety while the majority portion of Indian produce is CTC.
“Sri Lanka is primarily an orthodox tea producer. India’s orthodox component is only 10 per cent of total production. Unless India increases its orthodox production, it will be difficult to take benefit of the Lankan crisis to capture export markets in a big way,” he said.
India’s tea production is around 1200 million kilograms, while Sri Lanka’s volumes are around 300 million kilograms.
“Demand and prices of orthodox variety are much better now due to the Sri Lanka crisis. Indian orthodox variety is getting traction in the export market and it is expected that producers will now gradually shift to manufacturing of this particular variety”, chairman of Indian Tea Exporters Association (ITEA) Anshuman Kanoria said. PTI dc NN NN
