Dynamics of Production and Export in Transformation of Tea Plantation Sector in India

The study has examined trends in production and export of tea and growth in India based on the secondary data for the period 1971 to 2011. The three major tea-producing regions are Darjeeling, Assam and Nilgiri. In the recent years, the sector has witnessed a stiff competition in the international export market affecting domestic production. The increase in production of tea in the country was mainly due to increase of area and productivity. The replanted and replacement areas have not influenced the production of tea significantly. The number of tea estates increased between 1991 and 2001 due to inclusion of small tea gardens. The productivity change was higher in Assam, Tripura, Tamil Nadu and Kerala. The production share of tea grades like CTC, Darjeeling and Green tea has declined and of traditional tea has increased over the years. The export of tea bags as value-added tea grew faster from 1971–72 to 2011–12 in terms of quantity and value followed by packet tea. The employment generated per estate has been found to vary from 191 person-days in Karnataka to 1011 person-days in West Bengal (in 2011). The study has concluded that tea area it needs to be increased under replanting and replacement planting. Steps should also be taken to increase the export of value-added tea. The small tea sector should be organised and regulated to make it more productive in the country.