KOLKATA: The Indian Tea Association (ITA) has said that boosting exports should be the main thrust of the tea industry, which needs re-engineering to achieve global competitiveness.

In a status paper released on Tuesday, it said that India, once the world's top exporters, was now in the fourth position trailing Kenya, Sri Lanka and China with exports hovering below 200 million kg. It said that structured efforts were needed at the industry and government levels to regain India's premier position in the world tea market. The ITA and the Tea Board were now exploring the possibility of setting up of business centres in Iran and Egypt — two thrust markets. The ITA also favoured inclusion of tea in the `Focus Product Scheme' of the Centre. It felt that more emphasis was needed on orthodox tea production to enhance exports.

The association said at the macro-level, continuous erosion of the market share and adverse quality image in the international market had seriously impacted the industry's health. However, alongside pressing for immediate action to boost replantation activities for increasing productivity and quality, the ITA has made a pitch for utilising surplus tea land for alternative cropping.

Based on consultations with different segments of the industry, the ITA has projected a production of 930 million kg, exports of 195 million kg, imports of 20 million kg and consumption of 805 million kg. In 2005, the actual figures stood at 928 million kg (production), 192 million kg (export), 16 million kg (imports) and 780 million kg (consumption).

On the price front, the apex body saw a hardening of tea prices towards the close of 2006, since supply was getting restricted in the wake of a lower crop scenario and a decline in stocks in the pipeline. To this extent, the industry was optimistic that its health would improve during 2006, enabling it to come out of the recession.

Commenting on exports, the ITA said that between January and June exports were 1.5 million kg lower than in the first half of 2005. Exports from South India were higher.

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