Why in news?
Sri Lanka is commemorating the 150th anniversary of its tea industry.
What is its condition?
- Sri Lankan tea industry accounts for 5% of world output.
- It is among the world’s top five exporters of the agro-commodity.
- It supports 20% of the country’s population through direct and indirect employment.
- The celebration in Sri Lanka draws attention to the present state of affairs in the Indian tea industry.
What are the problems in Indian tea industry?
- Tea exports from India dropped for the second consecutive year.
- Tea quality has become an issue and this is reflected in depressed prices.
- Big companies are exiting the industry.
- Increased pressure in the wake of increased costs amid decreased earnings worries the remaining few companies.
- The issues of absenteeism as well as worker migration affect the growth of the industry.
- Political shutdown in Darjeeling (amidst demand for separate land), one of the major players in the Indian Tea industry, adds to the worsening effect.
- This could result in foreign exchange losses to the country
- It could also affect the global brand equity of Darjeeling tea in the global market.
What should be done?
- Efforts to promote tea industry as an export-oriented industry.
- Making presence in export markets in strife-torn countries like Syria where India is absent.
- Materialising every opportunity to expose the tea industry to a world.
Source: The Hindu
