The tea industry should benchmark itself against global best practices and learn from domestic coffee and rubber plantations to increase productivity and tackle the problem of financial viability, Union commerce secretary Anup Wadhawan said in Calcutta on Thursday.
Addressing the annual general meeting of the Indian Tea Association (ITA), he spoke about the fundamental problem ailing the sector — financial viability.
“There are fundamental challenges on the production side such as financial viability. Becoming productive is the underlying source of the challenges we face. We need to learn the sophistication involved in international markets. We need to study global best practices…. in Sri Lanka, China…. The industry needs to benchmark itself against the best practices to raise productivity and compete in the international market,” said Wadhawan.
He also stressed the need for more interaction between the different plantation sectors within the country and cited the example of the “unique, modern and innovative” steps taken by the coffee industry to understand farmers’ problems.
In the beginning of September, the Coffee Board had launched a slew of mobile apps to improve productivity of coffee plantations. From collating information on various plantations in the country — location, age, production machinery — to weather warnings and detecting diseases and pests in plants, the apps cover a range of issues.
Wadhawan said the industry should also put special emphasis on branding and marketing of tea to reinvigorate its demand. He spoke of “value addition to cater to the changing taste”.
“The government will provide all support to the efforts of the industry,” he said.
In his inaugural address, ITA chairman Azam Monem said the government should increase the MEIS (merchandise exports incentive scheme) reward rate to 11 per cent from 5 per cent and increase orthodox subsidy to Rs 20 per kg from Rs 3 per kg.
Wadhawan said the Centre would examine the proposal.
Monem also called for reforms in the e-auctioning system.
However, ITA deputy chairman Arun Kumar Ray said the board would not interfere in the auction process.
