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DYNAMIC REGULATORY ENVIRONMENT IN TEA INDUSTRY

DYNAMIC REGULATORY ENVIRONMENT IN TEA INDUSTRY. S.SOUNDARARAJAN. soundartea@gmail.com. Interesting facts about Indian Tea. Contd…. Interesting facts about Indian Tea. Contd…. Interesting facts about Indian Tea. Historical Years.

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DYNAMIC REGULATORY ENVIRONMENT IN TEA INDUSTRY

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  1. DYNAMIC REGULATORY ENVIRONMENT IN TEA INDUSTRY S.SOUNDARARAJAN soundartea@gmail.com

  2. Interesting facts about Indian Tea Contd….

  3. Interesting facts about Indian Tea Contd….

  4. Interesting facts about Indian Tea

  5. Historical Years • Upto 1964, India could boast of being the world’s largest producer, consumer and exporter of tea • In 1965 India slipped to 2nd position when Sri Lanka became the largest exporter • In 1992, China became the 2nd largest exporter of tea and India slipped to 3rd position • In 1993 Kenya took the 3rd position and India slipped one notch to 4th position • Since then, India has been maintaining the 4th position at 14% behind Kenya (23%), China (20%) and Sri Lanka (15%) during 2017

  6. International Tea vis-à-vis India Tea during 2018 The world production was 5883 m. kg from 36 countries spread over all the continents that grow tea 6

  7. Regulatory Initiatives by Tea Board India • Every grower needs to take prior permission from Tea Board for planting of tea, which is excluded in case of Small Tea Growers (STG) who plants tea area of below 10.12 Ha (or 25 acres ). • There are around 1585 big growers in the organized sector and an estimated 1.89 lakh small growers with a total area of 599 Th. Ha under tea cultivation. • Green Leaf Prices for the STGs are monitored:-, District Green Leaf Price Monitoring Committees has been set up in the tea growing Districts. The price payable to small growers by manufacturers is disseminated through bulk SMS to the stakeholders concerned. Contd…..

  8. Regulatory Initiatives by Tea Board India.. Contd • At present nearly 48% of the production is contributed by the small tea growers. • All the tea Manufacturing units are to be registered with Tea Board under Tea Marketing Control Order (TMCO) who can produce the tea under the Food Safety and Standards Authority of India (FSSAI) standard only. • Presently, there are 926 estate factories and 679 bought leaf tea factories operating in India. Contd…..

  9. Regulatory Initiatives by Tea Board India.. Contd • Plant Protection Code (PPC) is being implemented to aid best practices in tea and to address the consumers for a safe, healthier and environmentally friendly tea and also of sustainability as the part of Good Agricultural Practices (GAP). • Most of the manufacturing units adopted various sustainability certificates such as Trustea, HACCP., etc., • Primary sale of tea is made in 7 auction centres located across tea producing regions • All the Auction Centres are registered with Tea Board under TMCO. All the Auction Centres are run under electronic platform (eAuction) under the platform provided by Tea Board India. Contd…..

  10. Regulatory Initiatives by Tea Board India….Contd • All the Warehouses are registered with Tea Board under Tea Ware House Control Order (TWCO) and have to maintain the quality standard at the storage points. • All the manufacturing units and storage warehouse must hold Tea Waste License under Tea Waste Control Order (TWC) so that the tea waste generated which are not suitable for human consumption can be closely monitored. • Management of Logos and Geographical Indications(GI). Contd…..

  11. Regulatory Initiatives by Tea Board India…Contd • All the Registered (under TMCO) manufactures and Buyers are allowed to participate in the buying-selling process at the auction centres. • Tea Marketing Control Order monitors the statutory requirement on 50% of the total tea produce being sold through public auction. • Pan India e-auction of tea is being implemented for fair price discovery along with payment gateway system. • Tea which are sold at the Auction Centres are fully governed by tax structure under GST. • Tea which are exported by the Exporters from India are licensed by Tea Board under Tea Distribution and Export Control Order (TDEC). • All the tea which are meant for exports are closely monitored by Tea Council to ensure the quality standard for the International buyers. • Additionally, Customs stations have their own testing process at their end.

  12. New Initiatives by Tea Board India • Small grower sector – Organizing small growers’ collectives / FPOs for moving up the value chain. A MobileApp for the use of industry stakeholders connected with Small tea Growers, Tea Factories, Tea Estates and Tea Board’s Field Officers. • The App has been launched in Assam, the major tea growing area and will be subsequently made available in other Indian languages for the stakeholders in various regions of the country • Training/workshop of small growers – This has emerged as a very important need given the lack of overall skills and knowledge in tea husbandry in the small growers sector Contd…..

  13. New Initiatives by Tea Board India…Contd • Value addition – Value addition so that producers are able to fetch the gains of value addition at their level • Uneconomic tea bushes - encouraging uprooting and replanting for sustainable yields • Product Diversification – Thrust on production of orthodox and specialty teas with a view to having enhanced exports • Sustainability & Certification – Production of safe, healthier and environmentally friendly tea for securing the plantation environment, welfare of workers and long term security of supply and also meeting International standards • Traceability – for Darjeeling certificate of origin is being issued through supply chain integrity system. Indigenous sustainability code needs to be developed for other teas. Contd…..

  14. New Initiatives by Tea Board India….Contd • Implementation of New Export Strategy - Implement Tea Export Strategy based on district cluster approach in line with the new Agriculture Export Policy • Regulatory and Food safety issues - Compliance to International norms on food safety and MRLs • E-auction for transparency in auctioning system • E-Governance – for dissemination of services to stakeholders and ensuring ease of business. • Jorhat Auction Platform –For providing an auction platform with value added services like logistics, third party tasting, etc.

  15. Future regulations • There is an increasing demand to deregulate certain aspects like planting Permits, Licensing. • And there is a mixed demand for 100% auction • Government on the ease of doing business policy trying to optimize controls • Focus on uniform standard (RA, Trustea, ISO, etc.,) • Full Traceability of GI tag for domestic and international consumers • Full traceability will ensure the consumer preference (bar/QR code, etc) • Improved packaging standards.

  16. Thank You soundartea@gmail.com www.teaboard.gov.in

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