IITI Commodity Project Commodity - TEA

Presented By: Sushant Mishra sushant_mishra1@yahoo.com

Introduction
Tea origins China (4th century AD). 350 A.D. Kuo Po described tea as, a beverage made from boiled leaves. People - interior part of China pressed tea into brick currency to barter with other tribes. From 350 to 600 A.D., the demand for tea dramatically increased and outstripped the supply of wild tea trees.

 Farmers began to grow tea plants in the Szechwan district soon spread to whole China. Western world tea introduced by Venetian writer Ramusio (16th century). 1st public sale of Tea England - Thomas Garway in 1657.

Introduction of Tea to India and beginning of Tea trade

In 1780 Tea cultivation experimented in India with seeds from China by Robert Kyd. Robert Bruce(1823) discovered wild tea plants growing in Upper Brahmaputra Valley. May 1838 Tea from Assam sent to England for public sale for 1st time.

Tea in India
1. 2. 3. Major 3 tea producing regions: Darjeeling (North-Eastern India) Assam (far North-East India) Nilgiri (South India) All 3 differ in style and flavour.

Darjeeling
Found in the foothills of Himalayas. Grows at altitudes of 600m to 2000m. Cool moist climate, rainfall and sloping hilly terrain give the Muscatel Flavor to the Tea. Called Champagne of Teas finest and most uniquely flavored.

Assam

Rainfall - 100 to 150 inches per year. Offer rich, full-bodied, bright tea liquor. A bright, strong cup of tea. Assam is the single largest contiguous tea growing area in the world.

Nilgiri
Blue Mountains of Nilgiri in South India. Tea grown at an elevation of 1000m to 2500m. Rainfall varies from 60 inches to 90 inches annually. Fine, elegant flavor and brisk liquor. The combination of fragrance and briskness makes Nilgiri a truly unique tea in the world.

Apart from the above three distinct tea growing regions tea is also grown in: Arunachal Pradesh Kerala Tripura Karnataka Himachal Pradesh Manipur Nagaland Uttaranchal Mizoram & Sikkim Meghalaya Orissa Dooars and Terai of West Bengal Bihar

Indian Tea
Tea Act,1953 - Tea means the plant Camellia Sinensis (L) O. Kuntze. Tea leaves during manufacturing Made Tea in factories generate Tea waste. Tea Waste Unfit for human consumption and used for: 1. manufacture of caffeine. 2. manufacture of Instant Tea. 3. using as manure in the tea field.

Green and Black Tea

Made tea or Tea manufactured from green tea leaves is generally classified into two types: 1. Black Tea 2. Green Tea

Black Tea
Two types: 1. Orthodox Tea

2. CTC Tea
(Crushing, Tearing & Curling)

 Green tea is different from Black tea since fermentation of green leaves is arrested in manufacturing green tea. Again black tea is of two types viz. Orthodox tea and CTC tea. Orthodox teas are manufactured with the help of orthodox roller in the process of rolling. CTC machine/Rotervan is used in rolling process in manufacturing CTC teas. CTC stands for Crushing, Tearing & Curling.

 Most of the teas produced in Sri Lanka is of orthodox variety. Kenya produces mainly CTC teas. The tea processing in any factory in the traditional way comprises the following phases: 1. Withering 2. Rolling 3. Fermentation 4. Drying 5. Sorting & Grading

Instant Tea
Instant tea: is also being manufactured in India and in few other tea producing countries of the world like Kenya and Sri Lanka. The raw materials used for manufacturing Instant tea are green tea leaves and/or tea waste.

Tea Bags
Tea, mainly the black tea is also being further processed to manufacture tea bags. Filter papers is being used as packaging material for manufacture of tea bags. Instant tea and Tea bags are generally known as convenience tea since these are convenient for consumers to get the liquor with less hazards.

Quality of Tea
The characteristic of the beverage like tea is determined by the major components of the leaf: polyphenols, the peptic substances, the flavouring constituents and caffeine. The caffeine is known for its stimulating effect.

1. 2. 3. 4.

1. 2. 3. 4. 5.

So quality means the summation of the desirable attributes comprising internal and external characters like: aroma/flavour, strength, colour, briskness and character of infused leaf.

Primary Factors affecting Tea Quality

The quality of tea depends primarily on: 1. the nature and chemical composition of the plucked leaf 2. the type of bush, 3. the growing conditions and 4. the kind of plucked leaf like coarseness and fineness etc.

Secondary Factors affecting Tea Quality

The factors affecting tea quality apart from those involved in processing can be distinguished in 3 groups viz. genetic, environmental and cultural. (i) Tea quality is primarily determined by the genetic properties of the tea planting and those of the tea bush in particular. (ii) Both soil and climate are influencing the quality of tea. Climatic condition including temperature, humidity, sunshine duration, rainfall are important in determining quality. (iii) Field operation like pruning, fertilising, shading, plucking round and plucking standard are also playing the important role in determining the quality of tea.

Tea Definition
In order to prevent tea from any possible adulteration, the Prevention of Food Adulteration Act, 1954 is in existence. Tea therefore shall conform to the following specifications as indicated in the PFA Act, 1954. a) Total ash determined on tea dried to a constant weight at 100 C b) Total ash soluble in boiling distilled water c) Ash insoluble in HCL d) Extract obtained by boiling dry tea (dried to constant weight at 100 C) with 100 parts of distilled water for one hour under reflux 4.0 to 8.0 percent by weight

Not less than 40.0 percent of total ash Not more than 1.0 percent by weight on dry basis Not less than 32.0 percent

e) Alkalinity of soluble ash

Not less than 1.0 percent and not more than 2.2 percent expressed as K2O on dry basis
Not more than 17.0 percent

f) Crude fibre determined on tea dried to constant weight at 100 C

Note:1. It shall not contain any added colouring matter or added flavouring matter. 2. Provided that tea for export may contain added flavour under proper label declaration. 3. Provided further that the tea used in the manufacture of flavoured tea shall conform to the standards of tea.

Tea Tasting

The made tea of an estate, is tested by the commercial tasters (generally known as broker) for determining the quality and its value. Tea tasting is aimed at describing and evaluating teas in the form of individual grades or as blended product.

 The description and evaluation include the appearance of the dry tea, of the infused leaf and of the infusion obtained by brewing the tea with boiling water, the taste characteristics of the infusion, commonly called the liquor, etc. During tasting the various characteristics that make up a tea liquor viz. briskness, strength, colour, body, quality and aroma or flavour, are assessed individually.

Tea Grades
On the basis of the physical appearance of the made tea, different grades are maintained. The type of different grade and its description is indicated below : BLACK TEA GRADES [ORTHODOX TEA]
Kind of Tea Whole Leaf Grade Name FP Nomenclature Flowery Pekoe

Broken

FTGF OP
TG OP TGF OP 1 GF OP

Fine Tippy Golden Flowery Orange Pekoe

Tippy Golden Flowery Orange Pekoe Tippy Golden Flowery Orange Pekoe Golden Flowery Orange Pekoe

FOP OP Broken BOP 1 GF BOP BPS GBOP

Flowery Orange Pekoe Orange Pekoe Broken Orange Pekoe one Golden Flowery Broken Orange Pekoe Broken Pekoe Souchong Golden Broken Orange Pekoe

These are just some of the grades and nomenclatures.

Similar grading and nomenclature is done for all tea types.

Marketing of Tea
Primary marketing Teas grown in the tea estates reaches to the traders of either domestic or of importing countries. The tea planter has the following four options to dispose the output through sale: i) Sales through Indian auction. ii) Sales through overseas auction by sending teas on consignment basis. iii) Sales as direct export to the importer of importing countries. iv) Ex-garden sales.

Secondary marketing (with reference to India) Teas from the traders reaches to consumers of either domestic or overseas. Indian Traders who purchase tea through Indian auctions or directly from the tea planters have the following options: a) Export in bulk packages in original form and/or export in bulk packages in blended form. b) Export after further processing as tea bags and/or packaging in consumer packs. c) Sale to Wholesaler/Retailer in loose form to reach Indian consumers. d) Sale to Wholesaler/Retailer in packet form after packaging in consumer packs to reach Indian consumers.

World Production
1200 1000 800 600 400 200 0 China India Sri Kenya Lanka Quantity (M.Kgs.) 2004 2005 2006

Tanzania 1% Malawi 1% Bangladesh 2% Vietnam 4% Indonesia 4% Turkey 4%

World Production (2006)

Others 11%

China
China 28%

India Sri Lanka Kenya Turkey Indonesia Vietnam Bangladesh Malawi Tanzania

Kenya 9%

Sri Lanka 9%

India 27%

Others

World Export
350 300 250 Quantity 200 (M.Kgs.) 150 100 50 0 Sri Kenya China Lanka India 2004 2005 2006

World Export (2006)

Tanzania 2% Zimbabwe 1% Others 7% Sri Lanka 19% Argentina 4%

Malawi 3%

Indonesia 6%

Vietnam 7% Kenya 20% India 13%

China 18%

Sri Lanka Kenya China India Vietnam Indonesia Argentina Malawi Tanzania Zimbabwe Others

Production of Tea in India

800 980 960 700 940 600 920 900 880 400 860 300 840 820 800 100 780 0 2002 2003 2004 2005 2006 760 North India South India Total

500

200

Consumption of Tea in India

Population (Millions)

Domestic Consumption (M. Kgs.) Per Capita Consumption (Grams per head)

2000

2002

2004

2006

2008

2010

Years

Tea Exports from India

250 200 Quantity 150 (M. Kgs.) 100 50 0 North South All India 2004 2005 2006

Quantity (M.Kgs.)
10 15 20 25 30 35 40 45 0 5

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Country

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Countrywise Exports from India (2006)

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Value v.s. Quantity of Exports from India

300 45 40 250 35

200

30

25 150 20

Quantity (M.Kgs.)

Value (Rs. Cr.)

Quantity Value

100

15

10 50 5

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Ira n

a az ak hs ta n

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U K

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Tea Board of India

Tea falls under control of Union Government. Tea Board formed in 1903 through Tea Cess Bill. The present Tea Board set up under section 4 of the Tea Act 1953 was constituted on 1st April 1954.

Functions of Tea Board

a) Rendering financial and technical assistance for cultivation, manufacture and marketing of tea. b) Export Promotion c) Aiding Research and Development activities for augmentation of tea production and improvement of tea quality. d) Extend financial assistance in a limited way to the plantation workers and their wards through labour welfare schemes. e) To encourage and assist both financially and technically the unorganised small growers sector. f) Collection and maintenance of Statistical data and publication

a) Such other activities as are assigned from time to time by the Central Government.

Organisation of the Board

The present Tea Board is functioning as a statutory body of the Central Government under the Ministry of Commerce. The Board is constituted of 31 members (including Chairman) drawn from Members of Parliament, tea producers, tea traders, tea brokers, consumers, and representatives of Governments from the principal tea producing states, and trade unions . The Board is reconstituted every three years.

 The following are the standing committees of the Board : (i) Executive Committee (ii) Export Promotion Committee (iii) Labour Welfare Committee and (iv) Development Committee.

(a) Offices in India: With Head Office located in Kolkata, West Bengal it has fifteen offices which include Zonal, Regional and Sub-Regional Offices located at the following cities/towns :

Coonoor Siliguri Chennai Agartala Kurseong

Guwahati Mumbai Silchar Jorhat Palampur

New Delhi Cochin Kottayam Tezpur Almora

b) Foreign Offices: Currently Tea Board has three overseas offices located at London, Dubai, and Moscow. (The fourth and fifth office at Hamburg and New York was recently closed down).

SPECIAL PURPOSE TEA FUND SCHEME (SPTF)

The most important factor afflicting the Indian Tea Industry is the ageing of tea bushes, leading to declining quality and productivity. Cost of production of Indian Tea is the highest among major tea exporting countries. Special Purpose Tea Fund - for extending financial support to the needy tea estates for undertaking replanting, replacement planting and rejuvenation of old aged tea bushes.

Objective of SPTF
To cover 2.12 lakh ha over a fifteen-year period. Government approval has been obtained for phase-I of the programme i.e. for activities to be completed till the end of the XI plan period (2007-12). Phase-I would be 85,044 ha comprising replantation on 68,154 ha @ 11,359 ha per annum and rejuvenation in 16,890 ha @ 2815 ha per annum.

 Governments contribution towards the programme during the period has been fixed at Rs. 567.10 crore (capital infusion of Rs. 91 crores to the SPTF and subsidy of Rs. 476.10 crore equivalent to 25% of the projected project expenditure of Rs. 1904.40 crore). 75% of the assessed unit cost of replanting/replacement planting/rejuvenation pruning and consolidation would be provided to tea gardens by way of term loan (50%) and subsidy (25%). The borrowers are required to bear the balance 25% of the cost.

Thank You