Indian Media Studies Journal

  • Year: 2007
  • Volume: 2
  • Issue: 1–2

Impact of oversupply and low quality tea on tea prices

  • Author:
  • Mohijit Sen
  • Total Page Count: 9
  • DOI:
  • Page Number: 37 to 45

International Tea Resources, Singapore

Abstract

Tea prices have tumbled during the last decade due to an oversupply, the root cause of which is a 10% increase in plantation area and a 20% increase in production. Many new growers in tea producing countries have generated a lot of low quality tea due to inadequate or poor processing facilities, particularly during the rush crop period. Enforcement of ISO standard 3702 and its annexe 6079 would eliminate 10–15% non-tea and low quality tea and would stabilise prices to make the tea industry profitable. The author has suggested a 7 point prescription to meet the economic situation, which also includes compulsory licensing of factories to eliminate substandard processing, developing new kind of beverages, and low cost tea bags and vacuum packing.

Keywords

Excess production, Poor quality, Low prices, Standard ISO 3720 with ISO 6079, New products, New markets