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India, China to promote tea globally
Why is it in the news ?
- The Indian Tea Association (ITA) and China Tea Marketing Association (CTMA), have signed a MoU to promote green and black tea consumption.
- Both the countries together to promote consumption in major tea markets in Europe , the U.S., Russia and West Asia, besides India and China.
- The pact could also involve organisation of joint events.
More in the news
- China imported 30 million kg of black tea annually amid its rising popularity in the country where green tea had earlier held sway.
- Indian exports stood at about 8.7 million kg in 2017 with the market being dominated by Sri Lanka and Kenya.
- An export of 15 million kg was being targeted next year.
- The alliance would promote sustainable development of the tea industry in the two countries, including that of the small tea sector.
- The network works to promote sustainable production of 13 commodities across nine regions.
- The MoU covers the areas of trade promotion, intellectual property protection and technology exchange.
- Also certain issues, which were adversely affecting India-China tea trade, were flagged.
- These included China’s non-acceptance of India test reports, difficult compliance conditions and delay in payments remittances.
- ITA also said that there was need for an intensified promotional initiative to secure a larger share of tea as a global beverage.
Tea sector in India
- Indian tea is among the finest in the world owing to strong geographical indications, heavy investments in tea processing units, continuous innovation, augmented product mix and strategic market expansion.
- The main tea-growing regions are in Northeast India (including Assam) and in north Bengal (Darjeeling district and the Dooars region).
- Tea is also grown on a large scale in the Nilgiris in south India.
- India is one of the world’s largest consumers of tea, with about three-fourths of the country’s total produce consumed locally.
- India stands fourth in terms of tea exports after Kenya (including neighbouring African countries), China and Sri Lanka respectively.
- Total Tea exports stood at US$ 837.33 million in 2017-18, as compared to US$ 731.25 million during the previous year.
- In 2017-18 major importers of Indian tea were Iran (US$ 126.36 million), Russia (US$ 120.83 million), UAE (US$ 66.28 million), USA (US$ 64.33 million) and UK (US$ 55.80 million).
Source
The Hindu, IBEF.