Tea industry in West Bengal and trade analysis of tea market

摘要

The Tea Industry is passing through a very tough time as realisation plummets due to poor global and domestic demand. It is really facing what perhaps its greatest moment of trial. Prices are barely covering costs and many estates, particularly in South India, Cachar and Dooars are at the brink of closure. Over supply is the most fundamental problem facing by the industry and it becomes a global trend when production exceeds demand. Within India also, the per capita consumption of tea remains stagnant and shows signs of negative growth. The domestic per capita consumption remains approximately 0.64 kg. for the last 6/7 years as against 2 kg. in the UK, over 1 kg. in Sri Lanka and even 1.80 kg. in Pakistan (Source - Assam Review, Jan/2003). However, domestic production has shown a dramatic increase from 780 Million Kg. in 1996 to 854 Million Kg. in 2001. The import of tea which was only 1 Million Kg. during 1996 has increased to 16 Million kg. in 2001. Hence, the availability that was 781 Millionkg. during 1996 had peaked to 870 Million kg. during 2001. The export which was 162 Million kg. during 1986 has improved marginally to 182 Million kg. during 2001. The domestic consumption in the same period rose from 580 Million kg. to 673 Million kg. Hence, there is always excess tea in the pipeline and spill over effect of the above has been increasing. A critical analysis of the demand supply reveals that in absence of alternative off-loading area domestic market has been glutted. Hence, brings thenegative impact on price.