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EVENTS

Up exports to increase India’s world tea mkt share, says Chandrasekhar
Saturday, 18 November, 2017, 08 : 00 AM [IST]
Shraddha Joshi, Mumbai
There is a demand for tea in the global market. However, India is a small player and its share in the market is small. To increase the share, the exports of tea need to be increased. This was stated by G Chandrashekhar, economic advisor, IMC Chamber of Commerce and Industry, during a presentation titled Tea and Coffee Market Dynamics on the second day of the fifth essay of World Tea and Coffee Expo (WTCE), which is underway at Bombay Convention and Exhibition Centre and being organised by Sentinel Exhibitions Asia Pvt Ltd.

The presentations focused on the dynamics of the tea and coffee sectors and the health benefits associated with various variants of the two beverages. Chandrashekhar added that in 2016, the market share of tea was 12.47 per cent, and the sector should target a share of 15-16 per cent in the next three years. He stressed on the need to tap the untapped market by increasing exports, improve unit value, think strategically, and most importantly, frame a progressive import export policy.

“Research and development (R&D) is the need of the hour in tea and coffee sector,” he said. The domestic consumption of tea is growing at a compound annual growth rate (CAGR) of 2.2 per cent. Commenting on the challenges faced by these sectors, he said, “The biggest risks to the tea and coffee sector are global warming and climate change. There is a need to develop new varieties which withstand heat, climate change and consume less water. Global competitiveness is another challenge.”

“It can be defined as ability to produce a quality product which is globally acceptable and the cost of it is comparable globally,” Chandrashekhar added, “Another challenge is the risk of the balance market. It is very important to have proper knowledge of the market because if there is one per cent change in the demand and supply, there is 10 per cent change in price.” He stated that tea and coffee parlours were great drivers of growth. “It creates great opportunities to promote tea and coffee among the masses, especially the younger generation,” he added.

With reference to the coffee sector, Chandrashekhar stated that there was a strong need to promote the beverage in India. He added, “The per capita consumption of coffee is very low. For the last three years, the total output of coffee has been about three lakh tonne in India. There is a high need to increase the yields.” During his presentation, titled presentation on Stevia - A Miracle Leaf, Rajpal Singh Gandhi, managing director, GVS Biotech Private Limited, said, “India will witness a stevia revolution.”

“Stevia is not just a natural sweetener, but also a power-packed sweet revolution. It is, in fact, a little leaf with a big advantage. It has zero calories and no side effects,” he added, stating, “Producing stevia has many environment benefits as well. It uses a much lesser amount of water vis-a-vis sugar production. For instance, the production of one kg of sugar requires 1,500 litre of water, whereas it requires only 75 litre of water to produce one kg of stevia. Thus, there is limited water use and no water pollution.”

“The goodness of stevia can be seen by the fact that one kg of stevia is equal to 300-400kg of sugar,” Gandhi informed, adding that there was a need for industrial demand for stevia. Also, authorities are working out a policy on stevia, which will be finalised shortly.”

During his presentation, titled Emerging Trends in Tea Bagging - Machinery and Materials, Madhusudan Sikri, partner and chief mentor, Shri Packaging Corporation LLP, informed that new types of teas need new types of tea bags - both in machine and material terms. Explaining the dichotomy of tea bag packing, he said, “The cheapest teas are sold in tea bags using expensive machines owned by gigantic multinationals, and expensive value-added teas are produced on low-cost machines and sold by boutique and small niche companies.”

“The start-up culture has arrived in the tea industry, and people are experimenting with the packaging materials,” he added. H N Sivan, promoter, director and social entrepreneur, Ootyfresh Tea and Tourism Services, made a detailed presentation, titled The Nilgiris - Your heavenly abode for Specialty Nilgiris tea, coffee and eco-tourism projects.

“Annually, the world production of tea is approximately 5,200 million kg, whereas India produces approximately 1,200 million kg. However, the Nilgiris’ production is only 100 million kg. Nilgiris are rich in flavours and taste, and the reasons we should opt for these specialty teas are many. These include a growth rate of 30 to 40 per cent per annum, consistent price and quality and non-adulterated products. There is a need for backward and forward linkages in order to increase the Nilgiris’ tea production,” he added.

Lastly, a presentation on the health benefits of tea and coffee from a medical perspective, and tea and coffee as substitutes to fizzy and carbonated drinks was made by Dr Shweta Rastogi, clinical dietitian and nutritionist, Dr Guru Nanak Hospital. She said, “There have been changes in society over the last three decades. These have made it harder for individuals to maintain healthier lifestyles.” Dr Rastogi added that the consumption of sugar-sweetened beverages (SSBs) has increased.

“The problem with having various kinds of drinks like energy, flavoured or sports drinks is that they caffeine and sugar content,” she said, adding that while tea was good for the heart but, adding milk or cream, the health benefits of tea were neglected. In terms of the benefits of coffee, Dr Rastogi stated that moderation and common sense were the key. “A person should not consume more than 300-400mg. In other words, just three or four cups per day would be considered safe,” she added.

Dr Rastogi added, “Tea and coffee should be substitutes to fizzy and carbonated beverages, as they are natural and portable (with the availability of tea bags) and the sugar content can be adjusted.” The three-day expo attracted 70-plus exhibitors from five countries, with a footfall of 6,000 business visitors from India and overseas. Going overseas for the first time, the sixth essay of WTCE will be held in Dubai.
 
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