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Tea Production and Export: A Case Study of Select Tea Owners in Assam

Author : Deba Pratim Borgohain, Bindhu M and Thokchom Saphaba

Abstract :

The research paper is a study of dynamics of production and export of the tea industry in Assam, India with special emphasis made on the decision-making processes, and the problems encountered by owners of the tea gardens. Assam, the major producer of India (more than half of the total Indian tea) with an estimated 3.22 lakh hectares of tea plantations is an important participant in the global tea market. The research is a quantitative research design that utilized snowball sampling method to gather primary data consisting of thirty (30) tea garden owners in different areas of Assam created with secondary data consisting of industry level reports and publications.
The study examines two main concerns that include studying the most important variables in the production and export choice, and the problems that face the owners of tea gardens. The results indicate that the suitability of soil (37%), market demand (30%), and customer feedback (33%), are the most common in the production choice and the main quality evaluation procedure. The respondents said that technological innovation is highly important (40%), and the practice of organic farming is increasing in order to support environmental management (30%).
Regarding the dynamics of exports, it is the international demand that is the most important (43%); Asia comprises 40 percent of the export destinations. According to the study, pest and disease management (43 per cent) is the most dominant production issue, and an increase in the cost of production (37 per cent) has a significant consequence on the quality of output. The barrier to export mainly concerns transportation and logistics (34). In order to resolve these issues, the respondents attach importance to climate-smart farm techniques (37 percent) and investing in infrastructure (50 percent).
The study makes the conclusion that in order to achieve sustainable development of the Assam tea industry, further attention to the technological development, the improvement of the working conditions, the diversification of the market, and better infrastructures should be considered. The results would be informative to policy makers, tea garden proprietors and the industry players in the strategies to help the tea industry in Assam to enhance its competitiveness and sustainability in the international market.

Keywords :

Tea production, tea exports, Assam tea industry, decision making factors, production and export challenges.