Nabard Report on Nilgiris Tea
TEA IN TAMIL NADU
A Commodity Study in Nilgiris and Coimbatore Districts
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT TAMIL NADU REGIONAL OFFICE, CHENNAI 2006
STSqZFT ^•'QcTT ^ : rt# 17 Study Series No: Cheimai 17
Foreword Tea is cultivated in an area of 1.14 lakh hectares in South India with an annual production of more than 2,000 lakh kgs. Tamil Nadu leads both in terms of area and production of tea in South India, with maximum concentration and production in Nilgiris district. The present study is an attempt to address issu^s related to cultivation, processing, marketing and export of tea in Nilgiris and Coinfibatore districts. Besides, the study also identifies different stages in supply chain management, assesses the role of credit, examines Government policies in tea Sector and also the R&D initiatives undertaken by Tea Research institutions. The demand- supply imbalance has created a pressure on tea prices. The situation is alarming today when the prices of green tea leaf have gone down from Rs. 18/kg during 1997-98 to Rs. 6/kg during 2003-04. This has been the major factor affecting the economics of tea gardens for the small growers. Due to the rising cost of production, tea estates have also been affected. Auctions still continue to remain the primary marketing channel despite the relaxation to the manufacturers of made tea to sell tea through any source. Based on the findings, the study recommends boosting replantation activities, restructuring of INDCOSERVE, formation of joint liability groups among the small tea growers, aggressive tea marketing campaigns, promotion of new innovative products like iced tea and emphasis on R&D in cultivation and processing technology. It is hoped that the report will be useful to everyone interested in the development of tea sector.
Chennai 31 March 2006
(Dr. Prakash Bakshi) Chief General Manager
5flM 9mc\ ^'gm ^ #fft 11 e r m t ^ ^ to ^ ' ^ sitcftt. $:^i^ ^^tf^ 3?mo\ .4
1 ^ 1 . $:?T^
A Commodity Study in Nilgiris and Coimbatore Districts
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT TAMIL NADU REGIONAL OFFICE, CHENNAI 2006
STSqZFT ^•'QcTT ^ : rt# 17 Study Series No: Cheimai 17
Foreword Tea is cultivated in an area of 1.14 lakh hectares in South India with an annual production of more than 2,000 lakh kgs. Tamil Nadu leads both in terms of area and production of tea in South India, with maximum concentration and production in Nilgiris district. The present study is an attempt to address issu^s related to cultivation, processing, marketing and export of tea in Nilgiris and Coinfibatore districts. Besides, the study also identifies different stages in supply chain management, assesses the role of credit, examines Government policies in tea Sector and also the R&D initiatives undertaken by Tea Research institutions. The demand- supply imbalance has created a pressure on tea prices. The situation is alarming today when the prices of green tea leaf have gone down from Rs. 18/kg during 1997-98 to Rs. 6/kg during 2003-04. This has been the major factor affecting the economics of tea gardens for the small growers. Due to the rising cost of production, tea estates have also been affected. Auctions still continue to remain the primary marketing channel despite the relaxation to the manufacturers of made tea to sell tea through any source. Based on the findings, the study recommends boosting replantation activities, restructuring of INDCOSERVE, formation of joint liability groups among the small tea growers, aggressive tea marketing campaigns, promotion of new innovative products like iced tea and emphasis on R&D in cultivation and processing technology. It is hoped that the report will be useful to everyone interested in the development of tea sector.
Chennai 31 March 2006
(Dr. Prakash Bakshi) Chief General Manager
5flM 9mc\ ^'gm ^ #fft 11 e r m t ^ ^ to ^ ' ^ sitcftt. $:^i^ ^^tf^ 3?mo\ .4
1 ^ 1 . $:?T^