Financial Daily from THE HINDU group of publications
Friday, Nov 25, 2005


News
Features
Stocks
Shipping
Archives
Google

Group Sites

Agri-Biz & Commodities - Tea
Marketing - Strategy


`Teas with a conscience' may be the new marketing mantra

Kohinoor Mandal

Kolkata , Nov. 24

`INDIAN teas are the only teas with a conscience." A couple of years from now, this could become the punch line for Indian tea advertisements in leading global markets such as London or Berlin or Moscow where it competes with new producers.

Indian tea, which is constantly failing to retain its share in such prestigious overseas markets because of its high cost of production, is trying to bring about a paradigm shift in its marketing approach.

In the 11th Five-Year Plan, the Tea Board is considering helping organised tea manufacturers to market their products in the global arena with the message that plantation sector in India takes care of all the needs of its workers.

According to Mr Basudeb Banerjee, Chairman, Tea Board, the idea has been floated among the corporate houses and their feedback has been sought. If this concept wins the support of the producers, it will be a focus area of the Union Government in the next Five-Year Plan.

"There is no point in crying ourselves hoarse over our high cost of production. The buyers are not bothered. We will have to try and turn our negative aspect into a marketing advantage. We will have to highlight the facilities that are being offered to the plantation workers," Mr Banerjee told Business Line.

Over the last few years, exports of Indian teas have been fluctuating and falling. From 210 million kg in 2001 it dropped to 180 million in 2004. In 2005, it is expected to drop further.

A major reason for this loss in market share is high production cost and 60 per cent of it is due to several benefits given by the producers to the plantation workers. It includes cheap food ration, housing and hospitals, roads, drinking water and education for their children.

The workers' benefits are a legacy from the colonial era and institutionalised by the Plantation Workers Act. Newer tea producing countries do not carry this baggage and this gives them the cost advantage.

"With growing social consciousness all over the world on so many aspects, time will come when buyers will refuse tea produced under inhuman conditions and will be eager to pay a premium for fair production norms. We will have to create that awareness and gain that advantage", Mr Banerjee said.

He said the planters have been following such fair practices for ages. Now the time has come for the marketing team to promote this niche aspect of Indian teas and it is likely to get the Commerce Ministry's support.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

More Stories on : Tea | Strategy



Stories in this Section
Bountiful


Rubber firms up on short supply
`Teas with a conscience' may be the new marketing mantra
Gold may correct lower
Metal scrap: DGFT suspends acceptance of 8 PSI certificates
Egypt cancels cotton export contracts to India — Shippers cite growers' reluctance to sell their produce at lower rates as reason
Kerala promoting silk usage
Tight supply pushes up pepper prices
Kakinada farmers oppose move to acquire fertile land for SEZ


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line