Domestic tea demand to touch 1,000 mn kg by 2017: Ghatowar

says tea industry should "carefully protect" its nurtured markets abroad

The domestic demand of tea is presently more than 800 million kg and would likely touch 1,000 million kg mark by the end of the 12th five year plan period, said Paban Singh Ghatowar, minister of Development of North Eastern Region (DoNER). Given the projection, he asked the tea industry to put "concerted efforts" to maintain steady growth in production to retain India's export share in the international market.

"I am told the domestic demand has crossed more than 800 million kg mark and it is likely to touch 1,000 million kg by the end of the 12th plan period.  Given this growth, for retaining our export share in the global market, concerted efforts are needed for maintaining steady growth in production," said Ghatowar.

He said the tea industry needed to respond to the situation with "more vigour" and "imagination" and needed to get closer to its customers for survival. The minister was speaking at the 76th Annual General Meeting (AGM) of Assam Tea Planters' Association (ATPA) in Jorhat, in upper Assam.  

Ghatowar said the tea industry should "carefully protect" its nurtured markets abroad. He added that value-addition had become must in today's competitive world to retain supremacy.

"In order to respond to the changing consumer preferences, it would be necessary to launch value-added products and development of brands. Under the free market regime and the era of WTO, Indian tea industry has to face both the threat and the opportunities offered in a regime of free international trade. The threat has to be met by improvements in productivity and thereby lowering per unit cost of production," Ghatowar said.  

The minister, who is a Lok Sabha MP from Dibrugarh constituency in Upper Assam and who had a long association with the Assam tea industry, said the Centre was "quite well aware" of the manifold problems faced by the tea industry and number of steps had been taken to resolve them.