Wellington (Nilgiris), Oct 10: The chairman of the country's largest industrial tea co-operative--Indcoserve, which has 17 co-operative tea factories under its fold--T Rangaiah, has been closely associated with the small tea growers in Nilgiris. Besides, he was the secretary of the Nilgiris Small Tea Growers' Association, apart from being a member of the Tea Board for a period of three years from April 1999. Rangaiah had visited Kenya recently as a member of the six-member Tea Board delegation of small tea growers from India. Speaking to The Financial Express, he says that harping on quality rather than quantity is the secret of the Kenyan tea's global presence. Excerpts:On the visit of the Indian delegation to Kenya
During our visit to Kenya, we visited their plantations, factories and also their trading centres, and also held a series of discussions with various Kenyan authorities, viz., the Kenya Tea Development Authority (KTDA), Kenya Tea Board, Tea Research Foundation and the EastAfrican Tea Trade Association, besides meeting the Indian High Commissioner and his team.
On the Kenyan tea industry vis-a-vis that in India
Kenya is one of the world's main producers and exporters of black tea and is the third largest tea producer after India and Sri Lanka. As against India, which produces 868 million kgs and exports a mere 206 million kg, Kenya produces 294 million kgs and exports 95 per cent of its produce at 264 million kgs (as per their 1998 figures).
Kenyan local consumption is 5 per cent of its consumption while India's local consumption is in excess of 70 per cent of its production.
Whereas, in terms of production, India is far above their production levels but we cannot ignore its share in the world tea trade, which during 1998 was more than that of India.
On the reasons for Kenya's good performance in the export front
I would rather attribute it to the quality of Kenyan tea, for its good performance in the export front. Kenyan teas are far superior inquality and the authorities are highly quality conscious. The quality of tea is ensured at every level, right from plucking to its processing. Whereas, in India we pluck even the banjies, which is a dormant bud, the Kenyans on the other hand pluck only the two leaf and a bud. Banjies are dormant buds and needs to be plucked as they delay harvest. However, Kenyans would compromise on quantity and will not pluck banjies to protect quality.
Besides the plucking, even their factories have better facilities including sophisticated machines for producing quality tea. Their material handling is much better and on the packaging front also they are using huge packs which are cheaper in terms of costs, but help in preserving the quality and life of teas. Then they take care of proper hygiene methods right from plucking to transportation. Besides quality checks are performed at every stage. All these factors contribute to their better quality of their tea, with in turn results in a good demand in globalmarkets.
On the small tea growers in Kenya
There are three lakh small growers in Kenya as against 40,000 in India. These small growers come under the control of Kenya Tea Development Authority (KTDA) who are taken care of by this authority. At present, KTDA is the single largest producer and exporter of made tea in Kenya. The job of marketing Kenyan tea is entrusted to the marketing division of KTDA. The main job of the marketing division is to ensure that the processed tea is transported from the factories to the warehouses awaiting sales.
KTDA's main objectives are establishment and management of tea nurseries, purchase of materials for seedling propagation and selling them to growers, procurement of fertilisers, supervision of tea cultivation by growers, inspection of growing and harvesting green leaf, marketing of made tea, revenue collection and payment to growers, management of financial resources, corporate development and services and technological advancements in the tea sector.
InIndia, we have to learn a lot from them and after our visit to Kenya, we are also planning to implement certain schemes prevailing in Kenya, for the benefit of out farmers.
On the activities of Indcoserve
Indcoserve, at present has 17 tea factories under its control serving the interest of around 18,000 small growers and provides various services to its members. It markets the tea produced from these factories through various sources, apart from exporting these to various countries.
The annual production from all these factories is about 130 lakh kgs which accounts for 16 per cent of total production of tea in the Nilgiris.
On its own, Indcoserve, has introduced sale of packaged tea, which at present sells under two brands namely `Indco' and `Queen of Hills'. In the coming years, we will increase our brands and presence in the domestic market.
Indcoserve is also in talks with Amul for supplying tea to them. Amul will procure teas from Indcoserve and will sell them in the market through itsextensive marketing network all over the country. Besides, we are also selling our tea to the defence forces.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.