Indian Tea Association suggests quality grading system for packet tea

About 75 to 80 per cent of tea consumption has shifted to the packaged format

The Indian Tea Association (ITA) is mooting the introduction of a scientific quality grading system from one leaf to five leaf marks for packet tea to boost consumer trust.

 

Addressing the association’s annual general meeting on Friday, ITA Chairman Hemant Bangur said recent research by the Tea Research Association (TRA) to assess the impact of leaf maturity on quality of processed CTC tea had shown that as leaves mature, the antioxidant activity decreases.

 

“This opens up the scope for a quality benchmarking code and redefining quality standards. Conclusive research can provide consumers the knowledge to differentiate between various kinds of teas in terms of their qualitative and health related advantages as well as enable intervention by introduction of a statutory scientific quality grading system with one leaf to five leaves mark,” he said.

 

On the sidelines of the meeting, Bangur explained that when tea is manufactured from two leaves and a bud, it has the highest level of antioxidants. It becomes less with three leaves and more.

 

“But the consumer doesn’t know that the quality is not the same and should be allowed to make an informed choice,” Bangur pointed out.

 

About 75 to 80 per cent of tea consumption has shifted to packaged format. “We need to set up a committee consisting of Tea Board, TRA and outside professionals who can scientifically analyse every single blend which is available in the market and give it a rating,” Bangur said.

 

The ITA chairman believes that this would enhance market competitiveness and consumer trust.

 

A demand-supply mismatch has been telling on tea prices for some time. Bangur said sustainability cannot happen if average prices remain continuously below cost of production. He said that the last decade had witnessed tea prices growing at a CAGR of 2.88 per cent only, but trailing the escalating costs of inputs at 10-12 per cent CAGR.

 

“Wages have surged by 117 per cent in Assam and 122 per cent in West Bengal in the last 10 years. The FAO’s projection of the decadal price growth of teas for 2018-2027 states that the prices in real terms would actually decline by 3.6 per cent which in effect means negative margins,” he said.

 

Adverse weather conditions this year impacted production. In North India, the crop decline was 63 mkg as of September. 

 

Bangur pointed out although the domestic price situation had shown a surge in recent times, the substantial decline in crop had wiped out gains and impacted earnings.