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CONSUMPTION AND EXPORT OF TEA IN INDIA
Abstract
India is the largest producer and consumer of tea in the world, accounts about 29 per cent of world production. In the global trade, Indian production contribution is about 30 per Gent and 23 per cent of China, respectively. This is because of high domestic consumption share of tea in these countries. The production trade in India since 1981 to 2000, the export of Indian tea in 1981 was highest as 241.25 million kgs and lowest in 1996 as 161.71 million kgs. Export of Indian tea is declined from 241.25 million kgs in 1981 to 201.00 million kgs in 2000. It is due to disintegration of Soviet Union, the export of Indian tea was badly affected. Domestic demand for tea for internal consumption has increased faster than that of production and it happens due to growing population and increase in habits of tea drinking. It is also recorded that during 1998-99 the country received Rs. 1006.87 crores from export of value added tea product. It means the export of value-added tea can earn maximum foreign exchange.
... The economic importance of the tea industry is manifold for the tea producing countries. The industry provides a vital source of export earnings for tea exporting countries (Wijeratne, 1996;Majumder et al., 2012;Pajankar and Thakare, 2009;Wachira and Kamunya, 2005;Ganewatta et al., 2005;Dang and Lantican, 2011;Mwaura and Muku, 2007;Sivaram, 2000;Alkan et al., 2009). A large proportion of these nations' populations rely on the tea industry for employment (Wijeratne, 1996;Majumder et al., 2012;Pajankar and Thakare, 2009;Wachira and Kamunya, 2005;Ganewatta et al., 2004;Dang and Lantican, 2011;Mwaura and Muku, 2007;Sivaram, 2000;Alkan et al., 2009). ...
... The industry provides a vital source of export earnings for tea exporting countries (Wijeratne, 1996;Majumder et al., 2012;Pajankar and Thakare, 2009;Wachira and Kamunya, 2005;Ganewatta et al., 2005;Dang and Lantican, 2011;Mwaura and Muku, 2007;Sivaram, 2000;Alkan et al., 2009). A large proportion of these nations' populations rely on the tea industry for employment (Wijeratne, 1996;Majumder et al., 2012;Pajankar and Thakare, 2009;Wachira and Kamunya, 2005;Ganewatta et al., 2004;Dang and Lantican, 2011;Mwaura and Muku, 2007;Sivaram, 2000;Alkan et al., 2009). Apart from the economic benefits for the producers, tea plantations also deliver other important ecosystem services such as carbon sequestration, soil fertility protection and water conservation (Xue et al., 2013;Li et al., 2011). ...
The global production and consumption of tea has been steadily increasing over the past decades. The tea industry has become a significant contributor to the economies of producing countries such as Kenya, Sri Lanka, India and China. Apart from its economic importance, the environmental and social importance of tea production has been recognised in the literature. However the industry is confronted by a number of challenges. These challenges include resource constraints, competition for land, unavailability of adequate labour, and climate change, as is noted in this article. All of the major tea producing countries have identified climate change as being a major challenge. Therefore, identification of the appropriate methods for modelling tea prices by incorporating a group of interacting time series variables such as price, production and weather variables to explain the dynamic relationships among these time series is important for producers. This article reviews and examines the approaches used to model tea price. In particular, various time series techniques are reviewed. The analysis clearly shows that quite a number of studies have been done on tea pricing. We found that VAR techniques have the ability to model the non-structural relationship of tea price alongside other time series variables which are endogenous and exogenous in nature. This paper also contributes to the existing literature by summarising the research undertaken on tea pricing to date.
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