There are few entry barriers to tea. It does not demand heavy infrastructure. But the complaint from smallholders selling raw leaf to large-scale tea producers operating multiple factories is that for the past decade, farmgate prices are not commensurate with costs. Now the economics of the tea trade is gradually shifting from oversupply to scarcity. At the same time, some quiet work underway in India is yielding encouraging results that lower the cost of tea production, improve quality, and ease a shortage of labor. The most powerful driver for change is revenue. Prices globally, on average, increased by $0.21 cents per kilo during 2021, according to Trading Economics. Abhijeet Hazarika, IT analyst @TeaSigma and former head of process innovation at Tata Global Beverages, observed that “Tea is not a very high profit yielding commodity and will not be so in the foreseeable future until some tech breakthrough happens.” The frugal innovations described in this series, combined with higher prices may herald that breakthrough.
Caption: A quality assessment station. Improving quality is critical to the success of growers.
Hear the interview (part 1)
Abhijeet Hazarika on promising new Frugal Innovations
Scanning tea fields at different wavelengths to assess plant conditions. Using cameras to monitor crop conditions, in order to identify threats from disease and pests at an early stage, enables a more targeted (and effective) use of pesticides, lifting productivity and profits. Photo courtesy of Shekib Ahmed.
Bringing Technology into the Tea Value Chain
By Aravinda Anantharaman
Abhijeet Hazarika talks about technology in terms of “frugal innovation”.
What is frugal innovation? His checklist includes:
1. Low capital expenditure because the industry cannot bear additional high expense
2. Low complexity, taking into the view that skill levels on the tea estate, with people who are not very conversant with technology
3. Low upkeep cost, because tea estates have limited infrastructure. Innovations that required high maintenance have a short shelf life and soon land in the junk pile
4. Clean and safe because this is non-negotiable, and buyers ask for it, especially export buyers
5. Highly reliable, because the whole idea of innovation is to improve efficiencies
6. Impact, because the scale of impact must justify adoption of innovation
The ideas he shares are not limited to large estates but have taken cognizance of the small growers. Frugal innovation also correlates with low risk which makes it an attractive proposition. And yet, there have been few takers for it.
In Part 1, we look at how implementing frugal innovations can impact the purchase of leaf and the sale of tea.
Innovation in the procurement of leaf
Saurav Berlia is the third generation in his family’s tea business. The LR Group (Berlia Foods) has been involved in all aspects of tea, from gardens and factories to broking, packing and exports. His company produces more than 20 million kilos annually, supplying to buyers including the top three in India. Berlia decided to pilot some of Hazarika’s projects in frugal innovation.
The group procures about 500 kilos of tea every day from small growers. This process involves calling every small grower each morning for an estimate of the tea they expect to pluck. The small growers sell their leaves, but they won’t know the price they will be paid for it until the next day. They will also not receive feedback on the quality of their leaves.
Berlia is piloting an app that his growers could connect to. With this, the call every morning is made redundant. The grower’s login to the app to understand the market requirements in the morning and offer the estimated quantity of leaves right there. What’s more, because they have an insight into the market requirements, they can set their own prices. Berlia’s staff can accept the price or negotiate before they buy the leaf. Once the transaction is confirmed, the grower gets a message with the weight of the green leaf to be supplied and the price they will be paid for it.
A three-month pilot has shown a positive response and a few of the growers are very happy. However, Berlia admits that he met with resistance at both ends — growers were resistant to the new-fangled app that demanded their inputs and attention. At his factory, Berlia’s staff were convinced it wouldn’t work. They preferred the status quo. He says patience accompanied by training addressed some of this resistance. With each unit having about 50-100 growers as partners, the app can potentially transform how transactions are conducted, to everyone’s benefit.
“Technology has become much more affordable today than what it was 5-10 years ago because processing power has made it affordable. Devices are more affordable. Technology has become simpler.”
– Shekib Ahmed
Using data effectively
Another early adopter of tech is Shekib Ahmed who runs the Koliabur Tea Estate near Silghat in Assam. The 1,600-acre estate next to the Kaziranga National Park with 900 acres under tea. Low hill ranges form part of the terrain here. The garden produces exceptional single-origin CTC tea.
Ahmed chose to partner with Hazarika because of a shared desire to integrate technology in tea farming. Listen to as Ahmed talks about the two key points that attracted him to this.
“Technology has become much more affordable today than what it was 5-10 years ago because processing power has made it affordable,” says Ahmed. “Devices are more affordable. Technology has become simpler. He (Abhijeet) was reminiscing how, when he was working with data, the cost of data analytics was astronomical. But now with cloud computing and everything, it’s become a lot more affordable for companies of our size to give it a shot. That was the first part.”
“The second part was how he focused so much on frugal innovation, things that are affordable for companies of our size to try to tweak and to learn. And one of the biggest benefits of working with Abhijeet is that when we’re doing three to four projects, two or three may not give the results that we want today. They may give it later or they may not work out. However, the side benefits of all the ideas and discussions, just the access to these bright minds like Abhijeet, like the scientists really opens up a lot of little innovations, which are very groundbreaking in the sense that it’s really helped me improve quality in the last one and a half years,” said Ahmed.
He adopted a simple system of data analytics for tea from the tea auction system. There’s a lot of data that comes from the tea board of India, but this is raw data. Ahmed talks about the resistance to change even here when he says the Indian tea industry is where the steel industry was 30-40 years ago. Innovation was very, very slow and the industry was loathed to move past its way of working.
Ahmed’s tea is sent to the auction every week. Data analytics helped him understand how his tea was performing but also what quality the market was seeking. Just to jump the gun a bit, in using data analytics to offer tea that the market wants, Koliabur and Dubba, both of Ahmed’s estates saw a jump of 15-25% in auction prices this year. From being in the Top 20 in the ranks, they are now in the Top 10, which, given that there are 800 gardens in Assam, is no small feat. But he is quick to add that it’s not data alone that has contributed to this.
For innovation to fully work, it must be leveraged across the value chain.
Listen next week to Part 2 when we take a look at frugal innovation in the fields and in the factory.
Determining raw leaf densityDrying in a vacuum ovenFloor fermentation Using a microwave to determine withering parameters
India’s highest levels of government are reforming the basic structure of agriculture. The intent is to loosen regulations on pricing and storage and to permit direct sales of produce. These rules have sheltered India’s farmers from the free market for decades. In September 2020 Prime Minister Narendra Modi called the reforms a “watershed moment” for Indian agriculture but a year later was forced to abandon plans to end subsidies following widespread protests.
In Part 2 of this Newsmaker Interview – Prabhat Bezboruah, Chairman of the Tea Board of India, describes a new board mission to increase consumption, promote tea exports and expand markets at home and overseas. He also addresses discussions underway to transfer regulatory oversight of India’s tea industry from the Ministry of Commerce to the Agriculture and Farmers Welfare Ministry.
Listen to the interview (Part 2)
Prabhat Bezboruah, Chairman Tea Board of India on expanding India’s domestic tea market and exports.
Prabhat Bezboruah, chairman of the Tea Board of India
Part II: Tea Board Reform and Changing Priorities
During the past few months, the Tea Board of India has shown signs of change. Stakeholders, many of whom expressed concerns, have met on several occasions to better understand the prevailing views of the Tea Act of 1953. Several amendments were proposed and sections within the Act were revised or discarded. The Minister of State for Commerce and Ministry, Anupriya Singh Patel, also visited the tea regions, meeting various groups from the tea industry. In Part II we continue our conversation with Prabhat Bezboruah, Chairman of the Tea Board of India, on the changes underway.
Aravinda: How can the plantation model stay relevant in these changing times, as the small tea grower community is growing?
Prabhat: The organized sector today is struggling because it has low productivity, low investment, large-scale theft and malpractice, and an inability to carve a niche out for itself. There are companies, even in today’s scenario, where small growers have maintained a cost of production that is half that of the organized sector, or maybe even less. There are companies that are doing well because small growers, the way they are set up, and the fact that they sell their produce to Bought Leaf Factories, cannot make very good teas. There are always exceptions. There are some Bought Leaf Factories that buy only the best quality green leaf from small growers. There are small growers who pluck very well. So there are exceptions. But the general trend in the small tea grower sector is that their quality is not as good as the organized sector. There are estates in the organized sector that make superlative teas. Their cost of production is much higher. Especially this year, they are getting huge premiums. I would like to bring to your attention that a medium Assam today is selling at INRs 180 – 200 a kilo. The best is 400 plus. So you have a quality premium of 200 plus and the cost of production differential is not 200. Therefore, people who aren’t focusing on quality – and I’m talking about really, really good quality – are going to lose out this year. They will lose out to people who are focusing on that kind of quality. And that’s the way to go. If you do go that way there would also be spinoff benefits for everyone because your volume will come down.
It would be of interest to you that there are some areas of Assam where large-scale theft and dacoity [an act of armed robbery committed by a gang] of green tea leaves is taking place. And I’ve been observing that many of the companies, the majors, tea majors, as you would call them, who’ve had to divest their units the units that they’re getting rid of and the bulk of their assets are in the areas where this green leaf theft is rampant. I feel for them.
The green leaf is sold to people who buy and there is no certificate of origin in the case of green leaf. If you have a Bought Leaf Factory and somebody brings two trucks of fairly acceptable green leaf to you, you will buy it. You don’t ask the seller where they got this from.
Aravinda: Is something being done about this?
Prabhat: The leaf is being stolen from the composite garden, estate gardens. The people who are doing the stealing are local people. And the government is doing its best to help. But it’s endemic in certain areas. I have a sneaking feeling that one of the big reasons for majors are having problems in the units is this. I started by saying that small growers can produce green leaf at half or less the cost of production of privatized gardens. But there are ways of handling it, creating niche markets for yourself. But if you have so many pressures on you and one of them is theft, then you buckle.
Aravinda: You spoke of quality being one of the things to go after, but is there enough innovation happening in the industry that you think is going to help tea get better prices?
Prabhat: Innovation is there at the front end, with really fantastic tea rooms and tea boutiques. This is one area where we should move forward. In Australia and in the US there have been new methods of brewing tea, like pressure steam rather than water which brings out more of the flavor.
But we are dealing with an estimated output of 1,360 million kilos this year. These innovative methods of reaching the ultimate consumer are welcome, but they are not going to help bring that 1,360 or any sizeable percentage of that output out of the morass. It won’t.
We need to be innovative in the field, which is not coming through. You need to be open-minded to new technology in the factories, which is not happening. Basically, the tea industry remains very hidebound. I believe that we do need to come out of our shells, and we need to be receptive to new technology.
We need to be innovative in the field, which is not coming through. You need to be open-minded to new technology in the factories, which is not happening. Basically, the tea industry remains very hidebound.
– Prabhat Bezboruah
Aravinda: What’s the Tea Board’s response to challenges and concerns faced by the industry?
Prabhat: We tend to give a lot of importance to the Tea Board, but the Tea Board’s ability to really help the industry is very significant ways is limited. However, the Tea Board can change its focus. What does the Tea Board do? One, they run the auctions. The auctions are not badly run. I don’t think that they did a very, very bad job, but the whole structure of the auctions is wrong. And the Tea Board hasn’t restructured that. We just took the manual auction and converted it into a replica, an electronic replica, where the hammer was replaced by the mouse. We had the option at that time, and the opportunity of redesigning the whole platform, the whole structure of the platform. We had the opportunity, but we lost it. That was in 2007-08.
Now the Tea Board is overregulating the industry, issuing tea factory licenses, issuing licenses at its own whim. So, that’s really not the job of the Tea Board. The Tea Board should actually monitor what is being imported into the country. We can’t block imports [due to World Trade Organization rules] but we have to discourage it by having an import duty. We already have a 100% import duty but it does not apply to tea shipped here from every country.
We can ensure that the tea coming into the countries is clean. The Tea Board must monitor this, but they are not doing that. Maybe they will now. I mean, so far, they haven’t.
We talk about the young generation not being that enthusiastic about tea, moving on to other hot beverages, like coffee. What are we doing to ensure that packets are of reasonable quality?
I’m surprised that there are packets that are being launched priced below the most economy packet. You have to try and attract new customers but I fear that this kind of strategy will actually push people away from tea. The whole concept of competing on price as they do in supermarkets in Europe and America, where a lot of things are price-driven, I feel that strategy should not be aimed for in India because of the much lower segment already in place.
In supermarkets in America and Europe, the price of tea is fairly high compared to our prices. So, for them, it does make sense to compete on price. But in India, the cheapest packets are already very cheap. And if you try to offer the consumer even cheaper tea, you have to compromise on quality. And the kinds of consumers who are offered these very cheap and very poor-quality teas will get turned off from tea permanently.
The marketing wars should be fought on quality rather than on price. And that would expand the overall market for tea. And I feel that the Tea Board has a role to play there because I feel we should look at the really cheaper packets and maybe the other packets and test them. We should also test what’s coming out from our gardens and ensure that all the tea that is sold in India is as safe as that which is exported. Because we talk about other importing countries putting non-tariff barriers on our tea by reducing the maximum residue limits. But I don’t think that’s wrong on their part. If somebody wants to protect its citizens more stringently, they have the right to do so. And we should ensure that our own citizens in the country are drinking tea which is as safe as that which is exported.
Prabhat: There has been news about the various reforms underway at the Tea Board. What can we expect in the coming year?
Prabhat: The government is going to revamp the Tea Act. It’s going to be a wholesale revamp. The role of the Tea Board is also going to be redefined. That’s a work in progress and it’s already happening. Even the Plantation Labor Act is going to get subsumed once the code on wages and the occupational safety and health hazards act is implemented.
They’ve already passed this legislation but the implementation is being delayed a bit because the government is under a lot of pressure. The economy is under a lot of pressure due to the two COVID waves and the resulting huge disruption in trade. But as soon as it comes, the Plantation Labor Act will be subsumed by those two new acts. The two acts have a totally different take on the remuneration that a plantation worker should get. So that’s one big change that we foresee. It will impact the organized sector as well as the unorganized sector, as well as the small tea growers. And hopefully, create a more level playing field. The Tea Act is also being amended and once it’s amended the role of the Tea Board will change.
The government is going to revamp the Tea Act. It’s going to be a wholesale revamp. The role of the Tea Board is also going to be redefined. That’s a work in progress and it’s already happening. Even the Plantation Labor Act is going to get subsumed once the code on wages and the occupational safety and health hazards act are implemented.
– Prabhat Bezboruah
Aravinda: Will we be seeing this in 2022?
Prabhat: About the code on wages, I don’t know. If you bring in the code on wages and the occupational safety and health act now, suddenly there’ll be huge numbers of small and marginal businesses that may go under, and it will be a big disrupting factor in India. So I feel that the code on wages and the occupational safety and health hazards act will be implemented in 2023, not 2022. the Tea Act amendments and modifications will definitely come through in 2022.
Aravinda: What about speculation that the Tea Board of India will move from the Ministry of Commerce to the ministry of Agriculture and Farmer Welfare? Is that something that the industry or the board has been pushing for?
Prabhat: The board hasn’t been pushing for it. There was a meeting where this, among other things, was discussed, but the meeting didn’t reach any conclusion. There’s going to be another meeting and I think at the end of that meeting, we’ll have clear guidance about what’s going to happen in the future. As far as the industry is concerned, I think small tea growers are very keen that the board and the industry be brought under the agriculture ministry. As far as the larger producers are concerned and the associations are concerned, there is no consensus. I think some people would prefer to be under agriculture and others would like the status quo.
Prabhat Bezboruah
Tea came under commerce because it was India’s most important export in the 50s. Up to about 1953-54, believe it or not, it was the biggest export, earning the biggest revenue, the biggest value. So, therefore, it came under Commerce. Today tea exports are just under $1 billion in a country where the total export value is around $275 billion, it’s like 0.3%. So, it doesn’t deserve to be in the Commerce Ministry, but for historical reasons, we are. Going into agriculture might help small growers. I’m not sure how much benefit it will bring. Taking it out of commerce might bring the export focus down and as I said, exports remain a large part of our business plan. Even though domestic consumption is almost five times greater, exports are crucial in standardizing the market and sorting a better price for producers. So I wouldn’t like the export focus to go.
Aravinda: Should the Tea Board become the Tea Market Expansion Board once again, as suggested in the letter by the Guwahati Tea Auction Buyers’ Association, and focus on building the market and promoting tea? Should that be the Tea Board’s priority?
Prabhat: Definitely. That’s what I’ve been saying for the last three years. I think that same letter was sent by the ITEA, the Indian Tea Exporters Association. So, people are realizing that the Tea Board should focus on marketing rather than on regulation. They need to ensure that good tea are sold in the country. They need to ensure that the demand for tea goes up.
People are realizing that the Tea Board should focus on marketing rather than on regulation. They need to ensure that good teas are sold in the country. They need to ensure that demand for tea goes up.
– Prabhat Bezboruah
Aravinda: What about the tea brands that are coming up? What role can they play in building this market and supporting the industry? What would you like to see them do?
Prabhat: I’d like to see them compete on quality. People like Teabox have some really high-quality offerings, but I would also like them to expand their markets faster than they are doing because these innovative marketing approaches are only barely scratching the surface. When you’re talking about a production level of 1,360 million kilos, if you have 100,000 or 120,000 kilos, going into one of these premium brands, it’s not really going to make much of an impact on the entire industry, but that’s not to demean their efforts. They are very important. Although Darjeeling produces only 7 million kilos annually, it acted as the flagship of India. Even today, when you talk about premium teas, the first thing that comes to mind is Darjeeling. These brands, which have come into the market recently, as long as they focus on exclusivity and high-quality tea, are able to lift the whole category up a little bit.
Aravinda: They become a face of the industry, isn’t it? Because they showcase the best of what is available and the best of what is possible.
Prabhat: Exactly. And you see what will happen then if somebody thinks that they would like it a lot and maybe they would try another few brands, their friends who can’t afford such high-priced teas would buy something else.
Aravinda: Will the domestic market compensate for what is lost in the export market?
Prabhat: Exports are now only 20% or less of our total production, so we need to get people in India to drink more tea and better tea. If we can do that, a lot of our marketing problems will be over, but exports are important because India needs exports, without exports, you can’t establish a stable and remunerative primary market for tea. So for both those reasons, we need to focus both on exports and boosting domestic demand.
Aravinda: What about the move to organic production? Darjeeling seems to view organic cultivation as a way to survive. Do you think that’s necessary, especially coming on the back of what happened in Sri Lanka?
Prabhat: Darjeeling needs organic because in Darjeeling the difference in yield between a conventional estate and an organic one is less than it is in Assam. Assam is a hothouse. Its temperature and extremely humid conditions are like a greenhouse. Under these conditions, conventional agriculture will give you almost double the yield, compared to organic agriculture. Since you produce so much less, you need to sell organic produce at almost double the price. In the recent past, or even in the last 20, to 30 years that hasn’t been the case. There is strong demand for organic tea but it’s at a price that is 30-40% more than conventional tea. And with that kind of a price premium for organic, it won’t be sustainable. And that’s what happened in Sri Lanka. That was a bold step they took. If they had stuck to it and if the entire global industry became organic, you would be seeing huge price increases. We would see prices moving into the $7-8 [per kilo] bracket worldwide, maybe more. But the whole industry, the entire global industry would have to convert.
Aravinda: Do you remain optimistic about the future of the tea industry in India?
Prabhat: If we evolve, yes, definitely. The organized sector needs to evolve and fast. As far as small growers are concerned, they’re definitely here to stay. That combination is unbeatable.
In south India, the tea estates are doing many other things. There are tea estates that are into floriculture. There are tea estates that are making very high-quality orthodox teas, which are selling extremely well. In the Northeast particularly, and Dooars, tea over the decades has brought better returns and better profitability than the south. An easier environment breeds lethargy. In the north, especially the Northeast, we have become lethargic, and we are unable to change with the times and keep complaining all the time. And that’s really not the way to go. We have to be focused and optimistic.
Smallholders have replaced plantations it total volume of tea produced, but the tea is often low quality
Part I: Current Challenges and Expectations
The Tea Board of India has been in the news recently for various reforms now underway. We spoke to Tea Board Chairman Prabhat Bezboruah to better understand the changes that are brewing with the Board and to learn his views on how the Indian tea industry is faring this year. Bezboruah has been chairman since 2017. An alumnus of IIM Calcutta and the Wharton School of Business, he is the first tea planter to hold the position.
Listen to the interview (Part 1)
Prabhat Bezboruah, Chairman Tea Board of India on expanding India’s domestic tea market and exports.
Aravinda Anantharaman: How has 2021 been for the Indian tea industry?
Prabhat Bezboruah: It’s been quite bad. 2020, despite the lockdown and that tea gardens were shut for a while, turned out to be a pretty good year for tea. When supply is restricted, prices go up. This year, Indian volumes have recovered almost to 2019 levels, but demand is sluggish.
I personally don’t believe demand contracted over the COVID epidemic. But it’s sluggish, it’s stagnant, growing at maybe 1% or so. 2019 was a bad year for tea, and 2021 will be a pretty bad year, especially for the South Indian tea industry where the prices are lower even than 2019.
Aravinda: Are rising costs and slowing exports the primary reason?
Prabhat: The primary reason is volume output. The crop has bounced back to 2019 levels. Remember, we had record exports in 2019. Last year, exports were about 210 mkg. This year they’re likely to be lower.
[In 2020 tea production declined to 1,257 million kilos and exports dropped by 16% to 208 mkg, down from 249 mkg in calendar 2019. CTC, at 150 mkg, accounts for nearly 60% of the country’s total tea exports – Tea Board Production by Region 2019/20].
The whole logistics chain is broken. There are various reasons Indian tea is uncompetitive. Kenyan teas are still available cheaper than equivalent Indian teas. South Indian doesn’t compete with Kenya. Orthodox exports from South India are decent, they compete with Sri Lankan exports. The South Indian CTCs are much lower in the value chain. Indian CTC exports are going to be very badly affected because Kenyans are available much cheaper. Overall, the export’s scenario isn’t very bright, and the domestic demand is also sluggish, prices are down every way.
Aravinda: Will growers carry forward tea again, this year, like in 2019?
Prabhat: There might be some carry forward stock because exports are going to be much lower than 2019, but in 2019 we made 1,340 million kilos and we exported 250 million kilos. If our exports had been at the 2019 level, you wouldn’t have seen any carry forward this year.
Aravinda: India’s hospitality industry has still not recovered from the pandemic. What is the impact on tea?
Prabhat: Hospitality is a fairly large chunk of demand in India. Hospitality includes tea stalls, roadside tea stalls. That’s a big demand. But the total out-of-home (OOH) demand for tea in India is only around 15% of the total demand. In-home drinking of tea has increased to offset some of the droppings in OOH. I don’t buy the story that Indians are drinking less tea in 2021 than they were even in 2019.
I don’t think you’re really going to see a very bad last quarter as far as demand is concerned. I don’t know about prices, but I think that demand will be there.
Aravinda: You’ve spoken about the need to liberalize the market. What would you say is the current reliance on auctions as a price discovery platform? What needs to change?
The tea auction should not be the price barometer, but it is. I don’t believe that a dual system can survive.
– Prabhat Bezboruah
Prabhat: I’ve always thought that the auctions are a good place to sell your tea provided it’s the only place to sell your tea. You can’t have a system that acts as the primary price discovery mechanism – that’s the auction – and then expose it to manipulation. There’s no overt collusion among the main buyers because they are companies that are bound by very strict ethical codes and they do follow those codes. I would hasten to dispel the notion that there is any overt collusion between, at least the big boys, so to speak.
In any auction, there’s what’s known as a demand multiplier. Even the biggest buyer, to get a million kilos of tea, for example, needs to bid for 2 or 2.5 million kilos of tea because they don’t get every lot they bid for. So if you take away demand from the auction if a buyer has a total tea demand requirement of 50 million kilos, and you permit him to buy 30 million outside the auctions, the level of competition in the auction will be affected not only for the 30 million that he doesn’t buy, but another 40 or 50 million that he would have had to bid for in order to buy that 30 million. It’s actually a no-brainer that if you have parallel systems running, even if there’s no overt collusion, you’ll be weakening the auction. So, therefore, the auction should not be the price barometer, but it is. I don’t believe that a dual system can survive. Now we need to sell 50% of our teas in the auctions, but buyers don’t need to buy 50% of their purchases in the auctions. So it’s a total hodgepodge. I have brought up the issue repeatedly at the Tea Board. Now they have Mahadevan’s report (a reference to the report by Prof. Mahadevan of the IIM-Bangalore, recommending the Japanese auction model) in hand. Even that is being implemented very slowly. That’s not a panacea, that will not be a panacea unless you ensure that 100% of tea is sold through the auctions. If you can’t do that, I feel that the government and the Tea Board should withdraw from the auctions. The brokers, who sell tea on behalf of the producers to the buyers can organize their own auctions. That won’t be a price barometer. It would be like any other sale.
There would be competition. The marketing of tea, the primary marketing of tea would be liberalized in a way that would benefit everyone. The alternative, as I told you before, and I’m repeating myself, is to have everything sold in the auction.
India’s traditional tea plantation model is under regulatory scrutiny. The union government recently amended legislation from the 1950s to gradually loosen regulations, abandoning requirements that previously limited who could grow tea and where it could be grown. Amending the Tea Act and redefining the mission of the Tea Board of India will follow. In Part 1 of this extended Newsmaker Interview, Aravinda Anantharaman speaks with Tea Board of India Chairman Prabhat Bezboruah to better understand the current situation and the economic and societal forces driving change.
Listen to the interview, Part I
Prabhat Bezboruah, Chairman Tea Board of India on current challenges and expectations.
Part I: Current Challenges and Expectations
The Tea Board of India has been in the news recently for various reforms now underway. We spoke to Tea Board Chairman Prabhat Bezboruah to better understand the changes that are brewing with the Board and to learn his views on how the Indian tea industry is faring this year. Bezboruah has been chairman since 2017. An alumnus of IIM Calcutta and the Wharton School of Business, he is the first tea planter to hold the position.
Aravinda Anantharaman: How has 2021 been for the Indian tea industry?
Prabhat Bezboruah: It’s been quite bad. 2020, despite the lockdown and that tea gardens were shut for a while, turned out to be a pretty good year for tea. When supply is restricted, prices go up. This year, Indian volumes have recovered almost to 2019 levels, but demand is sluggish.
I personally don’t believe demand contracted over the COVID epidemic. But it’s sluggish, it’s stagnant, growing at maybe 1% or so. 2019 was a bad year for tea, and 2021 will be a pretty bad year, especially for the South Indian tea industry where the prices are lower even than 2019.
Aravinda: Are rising costs and slowing exports the primary reason?
Prabhat: The primary reason is volume output. The crop has bounced back to 2019 levels. Remember, we had record exports in 2019. Last year, exports were about 210 mkg. This year they’re likely to be lower.
[In 2020 tea production declined to 1,257 million kilos and exports dropped by 16% to 208 mkg, down from 249 mkg in calendar 2019. CTC, at 150 mkg, accounts for nearly 60% of the country’s total tea exports – Tea Board Production by Region 2019/20].
The whole logistics chain is broken. There are various reasons Indian tea is uncompetitive. Kenyan teas are still available cheaper than equivalent Indian teas. South Indian doesn’t compete with Kenya. Orthodox exports from South India are decent, they compete with Sri Lankan exports. The South Indian CTCs are much lower in the value chain. Indian CTC exports are going to be very badly affected because Kenyans are available much cheaper. Overall, the export’s scenario isn’t very bright, and the domestic demand is also sluggish, prices are down every way.
Prabhat Bezboruah
Aravinda: Will growers carry forward tea again, this year, like in 2019?
Prabhat: There might be some carry forward stock because exports are going to be much lower than 2019, but in 2019 we made 1,340 million kilos and we exported 250 million kilos. If our exports had been at the 2019 level, you wouldn’t have seen any carry forward this year.
Aravinda: India’s hospitality industry has still not recovered from the pandemic. What is the impact on tea?
Prabhat: Hospitality is a fairly large chunk of demand in India. Hospitality includes tea stalls, roadside tea stalls. That’s a big demand. But the total out-of-home (OOH) demand for tea in India is only around 15% of the total demand. In-home drinking of tea has increased to offset some of the droppings in OOH. I don’t buy the story that Indians are drinking less tea in 2021 than they were even in 2019.
I don’t think you’re really going to see a very bad last quarter as far as demand is concerned. I don’t know about prices, but I think that demand will be there.
Aravinda: You’ve spoken about the need to liberalize the market. What would you say is the current reliance on auctions as a price discovery platform? What needs to change?
Prabhat: I’ve always thought that the auctions are a good place to sell your tea provided it’s the only place to sell your tea. You can’t have a system that acts as the primary price discovery mechanism – that’s the auction – and then expose it to manipulation. There’s no overt collusion among the main buyers because they are companies that are bound by very strict ethical codes and they do follow those codes. I would hasten to dispel the notion that there is any overt collusion between, at least the big boys, so to speak.
In any auction, there’s what’s known as a demand multiplier. Even the biggest buyer, to get a million kilos of tea, for example, needs to bid for 2 or 2.5 million kilos of tea because they don’t get every lot they bid for. So if you take away demand from the auction if a buyer has a total tea demand requirement of 50 million kilos, and you permit him to buy 30 million outside the auctions, the level of competition in the auction will be affected not only for the 30 million that he doesn’t buy, but another 40 or 50 million that he would have had to bid for in order to buy that 30 million. It’s actually a no-brainer that if you have parallel systems running, even if there’s no overt collusion, you’ll be weakening the auction. So, therefore, the auction should not be the price barometer, but it is. I don’t believe that a dual system can survive. Now we need to sell 50% of our teas in the auctions, but buyers don’t need to buy 50% of their purchases in the auctions. So it’s a total hodgepodge. I have brought up the issue repeatedly at the Tea Board. Now they have Mahadevan’s report (a reference to the report by Prof. Mahadevan of the IIM-Bangalore, recommending the Japanese auction model) in hand. Even that is being implemented very slowly. That’s not a panacea, that will not be a panacea unless you ensure that 100% of tea is sold through the auctions. If you can’t do that, I feel that the government and the Tea Board should withdraw from the auctions. The brokers, who sell tea on behalf of the producers to the buyers can organize their own auctions. That won’t be a price barometer. It would be like any other sale.
There would be competition. The marketing of tea, the primary marketing of tea would be liberalized in a way that would benefit everyone. The alternative, as I told you before, and I’m repeating myself, is to have everything sold in the auction.
The tea auction should not be the price barometer, but it is. I don’t believe that a dual system can survive.
– Prabhat Bezboruah
Part II: Tea Board Reform and Changing Priorities
During the past few months, the Tea Board of India has shown signs of change. Stakeholders, many of whom expressed concerns, have met on several occasions to better understand the prevailing views of the Tea Act of 1953. Several amendments were proposed and sections within the Act were revised or discarded. The Minister of State for Commerce and Ministry, Anupriya Singh Patel, also visited the tea regions, meeting various groups from the tea industry. IN Part II we continue our conversation with Prabhat Bezboruah, Chairman of the Tea Board of India, on the changes underway.
Aravinda: How can the plantation model stay relevant in these changing times, as the small tea grower community is growing?
Prabhat: The organized sector today is struggling because it has low productivity, low investment, large-scale theft and malpractice, and an inability to carve a niche out for itself. There are companies, even in today’s scenario, where small growers have maintained a cost of production that is half that of the organized sector, or maybe even less. There are companies that are doing well because small growers, the way they are set up, and the fact that they sell their produce to Bought Leaf Factories, cannot make very good teas. There are always exceptions. There are some Bought Leaf Factories that buy only the best quality green leaf from small growers. There are small growers who pluck very well. So there are exceptions. But the general trend in the small tea grower sector is that their quality is not as good as the organized sector. There are estates in the organized sector that make superlative teas. Their cost of production is much higher. Especially this year, they are getting huge premiums. I would like to bring to your attention that a medium Assam today is selling at INRs 180 – 200 a kilo. The best is 400 plus. So you have a quality premium of 200 plus and the cost of production differential is not 200. Therefore, people who aren’t focusing on quality – and I’m talking about really, really good quality – are going to lose out this year. They will lose out to people who are focusing on that kind of quality. And that’s the way to go. If you do go that way there would also be spinoff benefits for everyone because your volume will come down.
It would be of interest to you that there are some areas of Assam where large-scale theft and dacoity [an act of armed robbery committed by a gang] of green tea leaves is taking place. And I’ve been observing that many of the companies, the majors, tea majors, as you would call them, who’ve had to divest their units the units that they’re getting rid of and the bulk of their assets are in the areas where this green leaf theft is rampant. I feel for them.
The green leaf is sold to people who buy and there is no certificate of origin in the case of green leaf. If you have a Bought Leaf Factory and somebody brings two trucks of fairly acceptable green leaf to you, you will buy it. You don’t ask the seller where they got this from.
Aravinda: Is something being done about this?
Prabhat: The leaf is being stolen from the composite garden, estate gardens. The people who are doing the stealing are local people. And the government is doing its best to help. But it’s endemic in certain areas. I have a sneaking feeling that one of the big reasons for majors are having problems in the units is this. I started by saying that small growers can produce green leaf at half or less the cost of production of privatized gardens. But there are ways of handling it, creating niche markets for yourself. But if you have so many pressures on you and one of them is theft, then you buckle.
Aravinda: You spoke of quality being one of the things to go after, but is there enough innovation happening in the industry that you think is going to help tea get better prices?
Prabhat: Innovation is there at the front end, with really fantastic tea rooms and tea boutiques. This is one area where we should move forward. In Australia and in the US there have been new methods of brewing tea, like pressure steam rather than water which brings out more of the flavor.
But we are dealing with an estimated output of 1,360 million kilos this year. These innovative methods of reaching the ultimate consumer are welcome, but they are not going to help bring that 1,360 or any sizeable percentage of that output out of the morass. It won’t.
We need to be innovative in the field, which is not coming through. You need to be open-minded to new technology in the factories, which is not happening. Basically, the tea industry remains very hidebound. I believe that we do need to come out of our shells, and we need to be receptive to new technology.
We need to be innovative in the field, which is not coming through. You need to be open-minded to new technology in the factories, which is not happening. Basically, the tea industry remains very hidebound.
– Prabhat Bezboruah
Aravinda: What’s the Tea Board’s response to challenges and concerns faced by the industry?
Prabhat: We tend to give a lot of importance to the Tea Board, but the Tea Board’s ability to really help the industry is very significant ways is limited. However, the Tea Board can change its focus. What does the Tea Board do? One, they run the auctions. The auctions are not badly run. I don’t think that they did a very, very bad job, but the whole structure of the auctions is wrong. And the Tea Board hasn’t restructured that. We just took the manual auction and converted it into a replica, an electronic replica, where the hammer was replaced by the mouse. We had the option at that time, and the opportunity of redesigning the whole platform, the whole structure of the platform. We had the opportunity, but we lost it. That was in 2007-08.
Now the Tea Board is overregulating the industry, issuing tea factory licenses, issuing licenses at its own whim. So, that’s really not the job of the Tea Board. The Tea Board should actually monitor what is being imported into the country. We can’t block imports [due to World Trade Organization rules] but we have to discourage it by having an import duty. We already have a 100% import duty but it does not apply to tea shipped here from every country.
We can ensure that the tea coming into the countries is clean. The Tea Board must monitor this, but they are not doing that. Maybe they will now. I mean, so far, they haven’t.
We talk about the young generation not being that enthusiastic about tea, moving on to other hot beverages, like coffee. What are we doing to ensure that packets are of reasonable quality?
I’m surprised that there are packets that are being launched priced below the most economy packet. You have to try and attract new customers but I fear that this kind of strategy will actually push people away from tea. The whole concept of competing on price as they do in supermarkets in Europe and America, where a lot of things are price-driven, I feel that strategy should not be aimed for in India because of the much lower segment already in place.
In supermarkets in America and Europe, the price of tea is fairly high compared to our prices. So, for them, it does make sense to compete on price. But in India, the cheapest packets are already very cheap. And if you try to offer the consumer even cheaper tea, you have to compromise on quality. And the kinds of consumers who are offered these very cheap and very poor-quality teas will get turned off from tea permanently.
The marketing wars should be fought on quality rather than on price. And that would expand the overall market for tea. And I feel that the Tea Board has a role to play there because I feel we should look at the really cheaper packets and maybe the other packets and test them. We should also test what’s coming out from our gardens and ensure that all the tea that is sold in India is as safe as that which is exported. Because we talk about other importing countries putting non-tariff barriers on our tea by reducing the maximum residue limits. But I don’t think that’s wrong on their part. If somebody wants to protect its citizens more stringently, they have the right to do so. And we should ensure that our own citizens in the country are drinking tea which is as safe as that which is exported.
Prabhat: There has been news about the various reforms underway at the Tea Board. What can we expect in the coming year?
Prabhat: The government is going to revamp the Tea Act. It’s going to be a wholesale revamp. The role of the Tea Board is also going to be redefined. That’s a work in progress and it’s already happening. Even the Plantation Labor Act is going to get subsumed once the code on wages and the occupational safety and health hazards act is implemented.
They’ve already passed this legislation but the implementation is being delayed a bit because the government is under a lot of pressure. The economy is under a lot of pressure due to the two COVID waves and the resulting huge disruption in trade. But as soon as it comes, the Plantation Labor Act will be subsumed by those two new acts. The two acts have a totally different take on the remuneration that a plantation worker should get. So that’s one big change that we foresee. It will impact the organized sector as well as the unorganized sector, as well as the small tea growers. And hopefully, create a more level playing field. The Tea Act is also being amended and once it’s amended the role of the Tea Board will change.
The government is going to revamp the Tea Act. It’s going to be a wholesale revamp. The role of the Tea Board is also going to be redefined. That’s a work in progress and it’s already happening. Even the Plantation Labor Act is going to get subsumed once the code on wages and the occupational safety and health hazards act are implemented.
– Prabhat Bezboruah
Aravinda: Will we be seeing this in 2022?
Prabhat: About the code on wages, I don’t know. If you bring in the code on wages and the occupational safety and health act now, suddenly there’ll be huge numbers of small and marginal businesses that may go under, and it will be a big disrupting factor in India. So I feel that the code on wages and the occupational safety and health hazards act will be implemented in 2023, not 2022. the Tea Act amendments and modifications will definitely come through in 2022.
Aravinda: What about speculation that the Tea Board of India will move from the Ministry of Commerce to the ministry of Agriculture and Farmer Welfare? Is that something that the industry or the board has been pushing for?
Prabhat: The board hasn’t been pushing for it. There was a meeting where this, among other things, was discussed, but the meeting didn’t reach any conclusion. There’s going to be another meeting and I think at the end of that meeting, we’ll have clear guidance about what’s going to happen in the future. As far as the industry is concerned, I think small tea growers are very keen that the board and the industry be brought under the agriculture ministry. As far as the larger producers are concerned and the associations are concerned, there is no consensus. I think some people would prefer to be under agriculture and others would like the status quo.
Tea came under commerce because it was India’s most important export in the 50s. Up to about 1953-54, believe it or not, it was the biggest export, earning the biggest revenue, the biggest value. So, therefore, it came under Commerce. Today tea exports are just under $1 billion in a country where the total export value is around $275 billion, it’s like 0.3%. So, it doesn’t deserve to be in the Commerce Ministry, but for historical reasons, we are. Going into agriculture might help small growers. I’m not sure how much benefit it will bring. Taking it out of commerce might bring the export focus down and as I said, exports remain a large part of our business plan. Even though domestic consumption is almost five times greater, exports are crucial in standardizing the market and sorting a better price for producers. So I wouldn’t like the export focus to go.
Aravinda: Should the Tea Board become the Tea Market Expansion Board once again, as suggested in the letter by the Guwahati Tea Auction Buyers’ Association, and focus on building the market and promoting tea? Should that be the Tea Board’s priority?
Prabhat: Definitely. That’s what I’ve been saying for the last three years. I think that same letter was sent by the ITEA, the Indian Tea Exporters Association. So, people are realizing that the Tea Board should focus on marketing rather than on regulation. They need to ensure that good tea are sold in the country. They need to ensure that the demand for tea goes up.
People are realizing that the Tea Board should focus on marketing rather than on regulation. They need to ensure that good teas are sold in the country. They need to ensure that demand for tea goes up.
– Prabhat Bezboruah
Aravinda: What about the tea brands that are coming up? What role can they play in building this market and supporting the industry? What would you like to see them do?
Prabhat: I’d like to see them compete on quality. People like Teabox have some really high-quality offerings, but I would also like them to expand their markets faster than they are doing because these innovative marketing approaches are only barely scratching the surface. When you’re talking about a production level of 1,360 million kilos, if you have 100,000 or 120,000 kilos, going into one of these premium brands, it’s not really going to make much of an impact on the entire industry, but that’s not to demean their efforts. They are very important. Although Darjeeling produces only 7 million kilos annually, it acted as the flagship of India. Even today, when you talk about premium teas, the first thing that comes to mind is Darjeeling. These brands, which have come into the market recently, as long as they focus on exclusivity and high-quality tea, are able to lift the whole category up a little bit.
Aravinda: They become a face of the industry, isn’t it? Because they showcase the best of what is available and the best of what is possible.
Prabhat: Exactly. And you see what will happen then if somebody thinks that they would like it a lot and maybe they would try another few brands, their friends who can’t afford such high-priced teas would buy something else.
Aravinda: Will the domestic market compensate for what is lost in the export market?
Prabhat: Exports are now only 20% or less of our total production, so we need to get people in India to drink more tea and better tea. If we can do that, a lot of our marketing problems will be over, but exports are important because India needs exports, without exports, you can’t establish a stable and remunerative primary market for tea. So for both those reasons, we need to focus both on exports and boosting domestic demand.
Aravinda: What about the move to organic production? Darjeeling seems to view organic cultivation as a way to survive. Do you think that’s necessary, especially coming on the back of what happened in Sri Lanka?
Prabhat: Darjeeling needs organic because in Darjeeling the difference in yield between a conventional estate and an organic one is less than it is in Assam. Assam is a hothouse. Its temperature and extremely humid conditions are like a greenhouse. Under these conditions, conventional agriculture will give you almost double the yield, compared to organic agriculture. Since you produce so much less, you need to sell organic produce at almost double the price. In the recent past, or even in the last 20, to 30 years that hasn’t been the case. There is strong demand for organic tea but it’s at a price that is 30-40% more than conventional tea. And with that kind of a price premium for organic, it won’t be sustainable. And that’s what happened in Sri Lanka. That was a bold step they took. If they had stuck to it and if the entire global industry became organic, you would be seeing huge price increases. We would see prices moving into the $7-8 [per kilo] bracket worldwide, maybe more. But the whole industry, the entire global industry would have to convert.
Aravinda: Do you remain optimistic about the future of the tea industry in India?
Prabhat: If we evolve, yes, definitely. The organized sector needs to evolve and fast. As far as small growers are concerned, they’re definitely here to stay. That combination is unbeatable.
In south India, the tea estates are doing many other things. There are tea estates that are into floriculture. There are tea estates that are making very high-quality orthodox teas, which are selling extremely well. In the Northeast particularly, and Dooars, tea over the decades has brought better returns and better profitability than the south. An easier environment breeds lethargy. In the north, especially the Northeast, we have become lethargic, and we are unable to change with the times and keep complaining all the time. And that’s really not the way to go. We have to be focused and optimistic.
A recent development in tea in India has been the rise of new brands, many that have their roots in tea regions. Almost all of them seek to bridge producers and consumers. Most rely on the narrative that accompanies a product from its place of origin. For consumers, it’s in part vicarious living and a window to another world. This is as good as it gets for those who want to know who made their tea and where it comes from.
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A conversation with Subhasish Borah, co-founder Folklore Tea, AssamBirinci Borah at Folklore Tea
Exceptionally Local Teas that Connect with Consumers
By Aravinda Anantharaman
Emphasizing the local characteristics of Assam (instead of crafting tea to the expectations of export markets) shows respect for the land, customs, and artisanal craft, according to Folklore Tea co-founders Subhasish Borah, an urban planner, and Bidisha Das, a business management grad.
Folklore Tea, based in Guwahati, actively works with farmers to become something more than a marketing platform for their teas, explains Borah, 30, and Das, 29. The couple run the Kohuwa Collective, a space that comes with a slow food café and tea room, with rooms for collaborative clothing and pottery workshops – concepts that seem to drive their work. They launched Folklore early in 2020 and, as a brand, are keen to carry the farmers’ stories.
Folklore is anchored in the idea of storytelling and connecting to consumers intimately. Each tea acknowledges the farmer who grew it. Each tea is given a name, and a poem accompanies it.
Each eco-friendly packet is numbered with a handwritten note addressing the recipient. And while this helps connect with the drinker, it’s not Folklore’s unique sales proposition. That lies in the experiments and work they do with their farmers.
Folklore works with three small growers, Beeman Agarwalla, Birinsi Borah, and Tarun Gogoi, who collectively cultivate about three hectares (seven acres) of tea. They also run Prithivi, a farmer producer company that now includes 56 members with farms ranging from 0.2 to 3 hectares in size. All the growers are geographically located close to each other, making this a community enterprise. Beeman, Birinci, and Tarun have chosen organic farming and work with the other members to convert inorganic farms to organic. The process takes a long time, up to five years, during which farmers have to face a loss in yield and income. The association supports them by way of small scholarships for children and providing compost from a small vermicomposting unit.
“Behind it all, there are real people – small tea growers whose innovation improves the craft and whose land stewardship protects the environment and the quality of your tea. It is their passion that makes the tea taste better.” – Folklore Tea
In Assam, small tea growers sell their green leaves to bought leaf factories that manufacture and sell tea. Most of these factories make CTC tea, which is bought and blended for the domestic market. Farmers adopting organic cultivation find no advantages in price as CTC factories are not always organic. Here, the tea is mixed, and the source and style of cultivation are lost. With no advantages to producing organic tea, the farmer has no incentive to stay the course. And this is something that Folklore is trying to address.
Subhasish describes a proposed project for a mini-community factory that will be used to manufacture organic CTC with leaves sourced from their own farmer community. Currently, they have six small units where their tea is made. These units are not heavily equipped with machinery, and even the CTC is made using traditional wooden tools.
“Right now, there are 56 growers who have joined us. So, collectively, whenever we will be able to set up the factory then we have a huge leaf bank. If we get this funding, which I’m not sure we will get, then of course we go for CTC as it will help not only these three people but all 56 families. That means almost 180 people will be benefited with this factory, it will be huge change in the village,” he said.
“Whatever we can do in terms of packaging, design, or marketing will help them,” he said.
Folklore’s association with Prithivi is a close and mutually beneficial one. Prithvi and its farmers brought knowledge of cultivars and tea making, along with market intelligence. Says Subhasish, “Most of the small tea growers with whom we are working started back in the early 1990s. They planted whatever tea bushes they could get from nearby tea gardens. The knowledge of cultivars was not very prominent at that time.”
The Folklore team decided to study tea and brought knowledge and the willingness to experiment in tea making. Their experiments are with clones, leaf-to-bud ratio, and processing methods such as pan-roasting and naturally scenting tea. Only a small volume of made tea, not more than 300-350 kilos, is sold under the Folklore brand, primarily black and oolong whole leaf tea and some CTC.
On average a small tea grower can pluck 6-7 kilos of unprocessed tea daily to make 3-4 kilos of finished tea.
They are experimenting with rolling techniques to improve appearance, experimenting with blending to get the right flavor. And they have also taken on the immense challenge that oolong brings to tea making.
Artisanal tea making is still has a niche market within India. Folklore seems conscious of this, taking a B2C approach for India and a B2B platform that caters to a global market, with customers in the US, Canada, UK, and Australia. Since the scale is still small, the brand can sustain its relationship and customer base.
As Subhasish says, there are two main challenges and opportunities of Assam’s tea industry: people who live in the tea areas of the state don’t know enough about loose leaf teas. The irony of producing one of the finest teas and yet sending them to faraway markets is the story across India’s tea-growing regions.
“It’s very sad,” says Subhasish, “because people in their own region, especially in the villages and towns that are surrounded by tea gardens, the people don’t know much about loose leaf teas. It’s absurd that mainstream media is promoting the concept of green tea in Assam. Green teas have been grown here for years. It is supposed to be the other way around,” he says.
“Paying 500 rupees for a kilo of tea is not a thing here,” he says. The economic status is not very high. Assam’s annual per capita income is INRs 119,155 ($1,700 compared to the all-India average of $2,100 per capita).
“People collectively have less money so marketing loose leaf teas at a higher price is difficult. It takes a lot of effort to make loose leaf tea and if you’re selling it for let’s say INRs 300 to 400 rupees per kilo then it’s not giving me anything.
“Consider that you can get a kilo of CTC for INRs 90 to 100 rupees ($1.20). In this scenario everyone is going to buy CTC but it’s weird. In Assam the culture of water-based tea is also very high but that water-based tea is made using CTC, not loose leaf teas.
“Most of the growers face difficulties here, they don’t have the human resources or the financial resources to do marketing or packaging. Many people who start making teas go back to selling fresh leaves so that they don’t have to think about marketing again. And many people go back to inorganic because if they ultimately have to sell the leaves to bought leaf factories then then there is no point in maintaining organic because the factories are not certified to process organic tea,” he said.
Due to financial limitations, few of our growers can afford the expense of the organic certification process, but the growers are far beyond it. They preserve ancient processing traditions and care deeply about their environment. They put their heart and soul into the teas they make naturally, says Subhasish.
As much as the conversation is on branding and experimentation, ultimately, what will make a brand like Folklore work is its impact on the community. Already there are plans to set up a bamboo cottage on one of the tea farms open for experiential travel. Assam has a lot on offer, from textiles to food, and of course tea. “We want to bring people,” says Subhasish. We want to show the things that are going on here. That it’s not only tea, but a lot of associated cultural elements too.” He talks about the vision to make the area an open museum, where “the entire place can act as a museum, all the houses can act as a museum and the traditional tools which are used in the processing are living heritage.”
Subhasish describes Folklore as a “passion project.” Perhaps that’s what Assam needs more of, passionate marketers who can join hands with farmers to create quality teas and find a market for them for the greater good of the community. And if it includes nudging local preferences towards better tea for their consumption, that’s a bonus.
Trouville Black Tea
People have spun stories on my genesis. Was it a monk who discovered me? or Was it a king who dropped me in boiling water? Yet my origin is unknown Since then, I have grown And grew and grew some more Moving across spaces and borders A living chronicle of several cultures. I’m Trouville. I was found through pure chance.
— Subhasish Borah
Assam oolong
Cupping
Finished tea
Folklore’s artisanal teas are hand-plucked and hand processed. The company publishes a poem for every tea. The name Meraki means to incorporate one’s soul within their work.Birinci with his wife. Small holder farms ranges from a half an acre to seven acres.
Pickled tea leaves may sound a bit out of the ordinary but not for Southeast Asian chefs. Burma, now known as Myanmar, is an ancient crossroads influenced by the cuisine of bordering Bangladesh, China, Thailand, and Laos. It is here that laphet has become a national dish that is now finding its way to US and European consumers as branded packaged goods.
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Tea’s popularity is not limited to the choice it offers as a drink alone. Laphetor fermented tea leaf, is used in a salad called the laphet thoke or mixed with rice. The uses of the fermented tea leaves are not limited to salad or a dish.
Cultured Tea Leaves Flavor Many Dishes
By Aravinda Anantharaman
Tea’s popularity is as a beverage, and a versatile one at that. A single plant produces leaves that are processed, blended, flavored, aged, rolled, compressed, bagged, powdered into a product that finds its audience. But tea’s versatility is not limited to the choice it offers as a drink alone. As a green leaf, it’s also an herb but surprisingly this side of tea has yet been tapped to its fullest potential. Except perhaps in Myanmar (formerly Burma) bordering India, Bangladesh, China, Thailand, and Laos. Not surprisingly, tea is also cultivated here, but its most famous rendition is as laphet or fermented tea leaf, used in a salad called the laphet thoke or mixed with rice. The uses of the fermented tea leaves are not limited to salad or a dish. It’s immensely popular in Burmese cuisine – probably the unofficial national dish. It’s said that only the finest leaves of any harvest are used to make lahpet.
Burmese cuisine enjoys fantastic influences, surrounded by countries with culinary wealth. Its popularity may not have reached the levels of say, it’s neighboring Thailand’s cuisine but there’s plenty of offer. Overseas Burmese are now seeing that there is an interest in the lesser known, unexplored cultures of the world, offering an opportunity to promote their own. There are a handful of brands, including Burma Love Foods, a 5-year-old brand from San Francisco whose product range is built on laphet. Besides variations of the dressing, they offer do-it-yourself salad kits which should hold appeal. Myanmar Tea Leaf’s Paline is a homegrown brand producing laphet, said to be the first to brand the product.
“Tea you can eat” is an attractive opportunity for promoters of Burmese cuisine, to take something so familiar as tea but offer it in newer ways, and equally for tea businesses that are looking for deeper cultural connections with tea.
Fermented tea leaves in olive oil
Stir-fried tea salad
Fried mushrooms
Laphet and rice
Hors d’oeuvres
Myanmar Laphet (SO) single origin edible tea leaf is picked and aged at 5,332 feet above sea level in Namhsan, Myanmar’s original capital of tea, producing the country’s highest quality teas for the past 1,000 years.
