The Goodricke Group has appointed Arun Narain Singh as the Managing Director and CEO, effective March 6, 2024. This appointment follows the resignation of Atul Asthana last month. Mr Singh has held this position and most recently has been Founder Trustee of Tea Vision, an industry think tank building a common platform for multiple stakeholders in the tea industry and to be the industry’s voice.
The National Committee of the Indian Tea Association (ITA), meeting on March 12, announced the appointment of Hemant Bangur of Shri Vasupradha Plantations as Chairman, Suneel Singh Sikand, CEO of Rossell Tea, as Vice Chairman, and Atul Rastogi, Director of Luxmi Tea, as Additional Vice Chairman of the Association. Founded in 1881, the Indian Tea Association, headquartered in Kolkata, is India’s oldest organization of tea producers.
INDCO in the Nilgiris Gets a Tourism Boost
Tea tourism comes into focus in the south as well. In the Nilgiris, INDCOServe tea cooperative is set to receive Rs 7.4 crore (approx USD 900,000) to convert its Kattabettu tea factory into a tea tourism hub under the Tamil Nadu Innovation Initiatives plan. The funds will be used to create a living tea museum that will house various tea plants and allow visitors to see how tea is made and taste different teas. Both tea and tourism are essential to the economy of the Nilgiris, and this move is seen as a boost to that. INDCOServe is the largest tea cooperative in the country, with 30,000 small farmer members and 16 factories in the Nilgiris.
Slack sails signaled trouble for sailors plying the trade routes of yore. The Intertropical Convergence Zone, known by sailors as the doldrums, describes a monotonous, windless passage. This is a helpful metaphor describing the past 25 years of tea exports. Like the converging trade winds, the impact shifts with the seasons and location, but the overall drag on productivity, resources, and profits is global.
The Tea Association of India warns these times signal a return to the “dark phase.”
Ajay Jalan, president of the Tea Association of India (TAI), cited stagnant prices, oversupply, a widening gap between demand and supply, and a “race to the bottom” for cheaper teas.
Speaking to delegates at the association’s annual meeting, he was quoted in The Hindu, saying, “The economic strides made by our nation are indeed commendable, yet the tea industry is currently experiencing challenges reminiscent of the dark phase two decades ago.” Twenty-two years ago, India’s tea industry experienced a severe downturn until 2007 (when a global recession extended the pain).
India is not alone. China’s tea export value declined by 16% to $1.74 billion in 2023 (down by $343 million), falling below $2 billion. China’s export value fell by 9.6% in 2022. Export volume remains low in Sri Lanka, but tea value rose to $1.3 billion in 2023. After exports fell to $940 million in 2022, Kenya was the only top five tea producers to show gains in volume and value. Export earnings rose 31% to a record $1.24 billion in 2023. Export volume grew by 72.5 million kilos year-over-year to 523 million kilos.
Record volume, but the price per kilo for auctioned tea averages hovered around $2.25 per kilo — well below 2022 when prices peaked at $2.74 per kilo.
“Global sales of exported tea from all countries totaled $7.87 billion in 2022, up by a flatlining 0.2% since 2018, when worldwide tea exports were worth $7.86 billion,” according to analyst Daniel Workman at World’s Top Exports. “Year over year, the value of worldwide tea exports shrank by an average -8.8% compared to $8.63 billion in 2021. Only China, Sri Lanka, and Kenya generate more than $1 billion in dollar value, accounting for 60% of global export value.
Demand is steady, but prices are stagnant, preventing producers from keeping pace with rising labor and input costs. Mass market retailers continue to pressure brands, which pressures margins, which averaged only 5% in India last year and have fallen 150 basis points since 2022, according to Crisil Ratings.
The UN FAO’s Intergovernmental Group on Tea (IGG/Tea), at its 25th Session in January, released a comprehensive analysis everyone in the industry should read.
The report states, “International tea prices, as measured by the FAO Tea Composite price, a weighted average price index for black tea, including crush, tear, curl (CTC) and Orthodox teas, remained firm over the last decade.
In this instance, “remaining firm” means losing ground.
The report summarizes the key takeaway: “Over the last decade, world tea intake increased annually by 3.3%, reflecting strong growth in producing countries that have more than offset declines in traditional importing markets.”
The good news is that FAO projects long-term demand for tea is rising. Global intake has increased by 3.3% annually for the last decade. Year-over-year consumption expanded by 2% in 2022.
The bad?
After increasing by 14.5% in 2022, tea prices fell by 9.2% in 2023, as availabilities expanded while demand slowed, putting downward pressure on prices.
FAO writes, “Diversification and value addition are vital to boosting the sector’s performance, as consumer behavior is evolving towards specialty and high-quality tea products.”
Eliminate the surplus, destroy waste leaves, and pivot to quality.
The race to the bottom is exacting much too high a price
Episode 158 | Sailing Through the Tea Doldrums | India Budgets a Big Increase for its Tea Industry | Crude Tea Production in Japan Declined in 2023 | Episode 158
I am a niche content creator specializing in fostering genuine connections globally through informative, educational, and captivating conversations centered around the world of tea. | Host | Tea Biz Blog | Podcast
Bihar, a state that borders Bengal, has been designated as a non-traditional tea area since 1998 and has just been awarded a trademark by the Indian government. The trademark provides for better protection for goods and services.
Bihar today has 56,000 hectares – mainly in the Kishanganj district – in tea cultivation and produces over 45,000 metric tons of raw tea leaves annually. In 2020, tea was identified as a focus area under the Bihar Agri Investment Policy (2020). Under the Bihar Tea Development Scheme (2023), tea producers are eligible for a 50-90% subsidy on tea cultivation. The state is keen to expand the area under tea farming. Leading the tea movement here is Doke Tea by Rajiv Lochan, who has been producing artisanal tea for the last decade.
Microsoft Co-founder Bill Gates Unwittingly Promotes Chai
Microsoft co-founder Bill Gates was in India last week and introduced his trip with a video on chai! Now famous as “One Chai Please,” it shows Gates walking up to a chaiwala and commenting that innovation abounds here, even in how chai is made. This video on Gates’ Instagram handle has garnered 7.6 million likes, besides making the chaiwala, Sunil Patel, who goes by the name Dolly Chaiwala, famous overnight.
Muskan Khanna, of the boutique Tea Studio in the Nilgiris, won the patent for her tea, Nilgiri Bamboo, described as a green tea made using only the internode between the terminal bud and the first leaf of a tea shoot. The patent comes after five years of work. Khanna runs The Tea Studio in the Nilgiris as a women-only company producing bespoke specialty tea. In a social media post, Muskan’s father, tea veteran Indi Khanna, said that this patent is second in tea making, following the patent for the Rotorvane in the 1960s granted to the TRI.
Shantha Chhetri, a former parliamentarian from Kurseong, has written to the offices of the Prime Minister of India and the Commerce Minister, raising concerns about Tata Consumer Products’ consumer packs. She said the company blends its tea with those from Nepal, which is unsafe for consumption and does not meet safety standards. She has urged the food safety regulator, FSSAI, and the Tea Board to test their tea for MRL levels of banned pesticides. The company responded that they do not import directly from Nepal. And that any Nepalese tea in blends is sourced from Indian traders. Tata explained that their teas are rigorously tested within the company and are deemed safe. In 2021, Tata Tea and Darjeeling were at loggerheads when the Tea Board prohibited blending imported teas with GI-protected Darjeeling, Assam, Kangra, and Nilgiri teas. A year later, this ban was lifted. The Telegraph
Indian Government Requires 100% of Dust to be Sold at Auction
The amendment of the Tea (Marketing) Control Order, 2003, will come into force from 1st April 2024. One of the directives is that 50% compulsory sale of tea and 100% sale of dust grades must be sold through public auctions starting 1st April. This order is targeted at estates in North India, including Arunachal Pradesh, Assam, Bihar, Himachal Pradesh, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand, and West Bengal. Dust grades account for 25% of Assam and West Bengal tea production. Retail prices for CTC dust are currently Rs 160 to Rs 190 per kilogram (IndiaMART). The move is thought to support greater compliance of tea towards boosting exports. The mandate does not apply to many small-volume mini-tea factories. Industry stakeholders are divided in their opinion on this new move.
Atul Asthana, MD, Goodricke Group Resigns
Atul Asthana, Managing Director and CEO of The Goodricke Group Ltd., has resigned after 39 years with the company. The Goodricke Group includes 18 storied gardens, including Thurbo, Badamtam, Barnesbeg, Nonaipara, and Hope across Darjeeling, Assam, and the Dooars. Asthana led the company to years of profitability, retaining its position as a top producer in the tea market. Asthana also actively supports the tea industry and is currently Chairman of the Indian Tea Association. The decision to resign, he has said, was for personal reasons.
Assamica is One of Five Distinct Genetic Tea Populations
By Roopak Goswami
A study published in the Journal of Plant Beverage Research reveals new Camellia sinensis assamica varietal traits. Researchers from India and China have worked on this study using 150 SNP markers and population genetics tools to conclude that Assam tea is unique. Researchers identified five distinct genetic populations independently domesticated from a western cluster of wild tea trees rather than introduced from a single origin. The varietal grown in Assam differs from the eastern cluster grown in Yunnan. This new understanding presents new possibilities for cultivating new hybrids bred from Assam tea.
While there is a reasonable consensus regarding China type (var. sinensis) and Assam type (var. assamica), the classification of Assam tea needs to be clarified. Scientists associated with the study say it is essential to understand further the genetic diversity and population structure in c. assamica for efficient conservation and use of Assam tea germplasm in crop improvement programs. The objectives were to understand the genetic diversity and population structure in the Assam tea germplasm from India and China and to assess the efficacy of the current classification system for tea.
The present study used 150 Single Nucleotide Polymorphism (SNP) markers to analyze a representative set of Assam tea sampled from Assam, India, and from four ancient tea gardens in China. SNP markers are the most efficient molecular markers, helping scientists locate genes associated with essential characters. A total of 252 teas sourced from Assam, India, and China were used in the investigation.
Scientists from China, the USA, and India employing cutting-edge techniques and population genetics tools have shown at least five distinct var. assamica populations in their primary gene pool. These include:
1. India var. assamica, which is distributed in Assam, India, 2. Cambod type from Indochina, but the exact origin and distribution are not yet identified, 3. China var. assamica from Southwest Yunnan (leaves from Jingmai and Mangshi), 4. Jingping, Honghe district, Yunnan and 5. Malipo, Wenshan district, Yunnan.
Assam growers contribute around 12% of the world’s tea annually and are known for the large quantities of second flush leaf harvested in May-June. Made tea is characterized by its boldness and robustness and is topped with classic malt and woody astringency flavors. It is valued for its rich taste and bright liquors and is considered one of the world’s choicest teas. Because of its high caffeine content, Assam tea is marketed as a breakfast tea.
The study says that despite the joint adoption of the two botanical varieties (C.s. var. sinensis and C. s. var. assamica) by the tea research community, the genetic basis for the current classification system for Assam tea germplasm has yet to be comprehensively clarified. Several studies based on molecular markers have provided contradictory results.
In general, tea in India Assam is known for its high polyphenol content, broad leaf, and adaptability to hot and humid climates. In contrast, the Chinese small-leaf variety is well known for its hardy adaptability to many environments, high theanine content, and small leaves.
“The main finding is that Assam tea is unique and has separate centers of origin. Although the Assam tea available in Yunnan in China has a bigger leaf size, it is different from the Assam tea available here in Assam,” writes Dr. Devajit Borthakur, a study co-author. Borthakur is a tea breeder and was the principal investigator at Tocklai when he did research in the USA.
“The specialty of Assam tea lies in its unique genetic architecture,” says Borthakur, who holds a doctorate from Zhejiang University, Hangzhou, China.
“A thorough understanding of the genetic architecture of the popular Assam clones, including 154 garden series clones and at the same time, their blending compatibility need to be worked out to exploit the uniqueness of Assam Tea. TV-23, the most popular tea clone, does not reflect the true Assam character as the clone is a hybrid between the Assam and Cambod types, he says.
“The diversity among the Assam type tea in different tea growing countries is yet to be exploited. In tea, 80% heterosis (the superior performance of a hybrid progeny over the parents) is reported. Thus, there is a huge potential to improve tea’s yield, quality, and tolerance capacity if the breeding program includes the diverse tea germplasm available in different tea-growing countries. “Mutual exchange of germplasm between Yunnan in China and Assam in India and inclusion of this germplasm in tea breeding program may open up new possibilities,” he said.
“In conservation of genetic diversity, the important issue is that there should not be any duplication. Otherwise, the population size will be too big, and expenses and time will be well spent on maintaining the duplicated germplasm. To avoid duplication, it is essential to understand the exact genetic architecture of the germplasm. The panel of 150 molecular markers developed in our investigation is sufficient to avoid duplication in germplasm conservation of tea,” Borthakur said.
There is no doubt that China is the first center of domestication for tea, which can be traced back more than 2000 years ago. However, the hypothesis was that new studies, including the present one, did not support domesticated tea dispersed from China to India and Southeast Asia. Local people in Northeast India and Southeast Asia also domesticated tea using their indigenous wild tea populations.
“Our result confirmed that the wild trees found in Assam are indigenous to Assam and ruled out the possibility that they were introduced from Southeast Asia or China,” researchers say.
The study showed that research is still needed on the wild teas in Assam, the neighboring Northeast Indian states, and the countries extending south of China. “The distribution of genetic diversity in the Assam tea germplasm must be systematically collected and analyzed. The panel of 150 SNP markers developed in this investigation will help accomplish the task efficiently,” Borthakur said.