The Tea Association of India (TAI) seeks Rs 100 crore from the government for generic promotion of tea to boost domestic consumption and address price concerns.
Kolkata, Jan 12 (PTI) The Tea Association of India (TAI) is emphasising the need to increase domestic tea consumption due to suppressed prices resulting from a demand-supply imbalance in the sector and has sought around Rs 100 crore from the government for generic promotion of the beverage in the country.
"Generic promotion highlighting the health benefits of tea could be an effective way to bridge the gap. Numerous studies showcase tea as a healthy beverage," said TAI president Ajay Jalan.
He said that the industry is not capable of funding for promotion and thus it is seeking support from the Commerce and Industry Ministry and the Tea Board.
"It can be Rs 100 crore to begin a campaign promoting tea through digital media. Promotion in TV will require more funds," Jalan said.
He said the industry is not asking for subsidies.
"This is like an investment which will fuel growth for the entire tea ecosystem and the economy. It will minimise industry issues, make a flourishing sector leading to overall economic development in tea-growing areas like West Bengal and Assam," the TAI chief said.
He highlighted numerous studies indicating the health benefits of tea, suggesting them as key selling points for the promotion.
TAI Secretary General Prabir Kumar Bhattacharjee also called for a level playing field where all tea growers, regardless of land size (5 acres to 500 acres), adhere to the same statutory obligations.
He noted that the organised tea sector has a higher production cost (Rs 220 per kg) compared to smaller growers (Rs 140 per kg) due to the absence of statutory mandates like rations and other commitments.
However, small tea growers now contribute a larger share to the total production, which is 52 per cent, compared to that of the organised sector, 48 per cent.
Commerce and Industry Minister Piyush Goyal, at a recent stakeholder meeting here, approved stricter and larger-scale tea leaf testing by FSSAI to discourage the rampant use of pesticides, which has been a major concern for the industry, particularly in exports.
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