Tea Marketing System of Bangladesh

Topics: Tea, Tea culture, Camellia sinensis Pages: 34 (9671 words) Published: July 7, 2012
Executive Summary2
History of Tea in Bangladesh5
Tea: an Overview6
What does a tea leaf contain?7
Tea Health Facts8
Different types of Tea8
How is Tea Grown10
Tea Estates10
Plantation and Environment10
Tea Production of Bangladesh12
Tea Marketing system of Bangladesh15
The Role of the Auction Houses16
Internal Market: Internal Consumption of Tea17
Exporting Tea from Bangladesh20
Export Market22
Country-wise Export of Tea25
Bangladesh Tea Board26
Bangladesh Tea Research Institute27
Problems of the Tea Industry28

Executive Summary

Tea is the most popular non-alcoholic drink of the world. Tea is a refreshing, energetic, and relaxing drink. However, tea was introduced in the 2737 B.C. by the Chinese Emperor “Shen Nung” as a medicine for cold and cough. At present, tea is considered as a non-alcoholic refreshing drink; which is also good for cold and cough. People all over the world drink tea just to refresh themselves, after long hours of work.

The British introduced tea to Bangladesh, in the mid of the 19th century. The British developed the first tea garden of Bangladesh in the slope of the hills in ‘Chittagong’. At the time of partition of Bengal, Bangladesh has got 103 tea gardens and independent with 153 tea gardens in 1971. At present, Bangladesh has got total of 163 tea estates in ‘Sylhet’, ‘Chittagong’ divison and ‘Panchagar’ district. As the tea capital of Bangladesh, ‘Srimongol’ in ‘Sylhet’ has got the three largest tea gardens of the world, both in area and production.

The marketing system of tea is not like the other agricultural commodities; because the quality of tea is varying widely, even the tea from the same garden. To overcome this problem, the tea producers of Bangladesh have developed the auction system to sell their tea, under the governance of the “Bangladesh Tea Board”. Every Tuesday, “Bangladesh Tea Board” is organizing this tea auction market in Chittagong. Both the local and foreign buyers gathered there and bid for the tea according to its quality. So, the auction house is playing a big role in the tea marketing system.

In Bangladesh, the internal consumption rate of tea is rising very quickly. In 2005, Bangladesh had consumed almost 85% of her total production, which was 14% of the total world production. Bangladesh produced 60 million kg. tea in 2005, which was only 1.75% of the total world production. World tea production has been showing an annual increment of 3 % while in Bangladesh the production has increased by 1.84 % and the internal consumption rate of tea is increasing in between 1.5% to 3.5% every year, which is much higher than the production rate. This difference between the rising consumption and production rate; may force Bangladesh, in future, to import tea from other tea producing countries.

Tea is one of those few commodities, which is earning foreign currency for Bangladesh. However, tea exporting rate of Bangladesh is reducing year after year. In 2005, Bangladesh exported 9.03 million kg. tea, which was almost 33% less than the previous year. Although, Bangladesh has got some captive export market in some foreign countries; at present, she is losing those markets- mainly because of increasing internal demand and poor quality of tea. If things do not change than, in future, Bangladesh will be eliminated from the world map as a tea exporting country.

The government of Bangladesh has established two organizations, namely “Bangladesh Tea Board” and “Bangladesh Tea Research Institute” for the purpose of helping the tea industry. Both of these organizations have a very proud history of success. But, at present, these two organizations are not as successful as they were in their early days. The government of Bangladesh must take some necessary steps to...
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