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The Indian Government Will Drive the Growth of Indian Tea Industry As It Is Kept Under the Lowest Tax Slab of 5.0%

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The Indian Government Will Drive the Growth of Indian Tea Industry As It Is Kept Under the Lowest Tax Slab of 5.0% Th e I n d ia n The birth of indian tea industry was marked by the discovery of indigenous tea plants in Assam in 1823 by Robert Bush. This received momentum when the east india Company in 1833 lost the tea trading monopoly in china. Now india is one of the largest tea producer with the finest quality in the world. Indian tea industry is about 172 years old. Tea plantations are mainly located in rural hill and backward areas of Northern Eastern and Southern states. The major tea growing areas in india are concentrate in Assam, West Bengal,Tamil Nadu,and Kerala. KANGRA TEA Darjeeling tea Assam tea Dooars-terai tea Karnataka tea Nilgiri tea Annamalaias VARIETIES OF TEA IN INDIA tea WayanaAd tea Munnar tea 90 tea production in 80 Various state /district in india 70 2017(E) 2016 60 50 40 30 20 Quantity in Million Kgs Million in Quantity 10 0 Assam valley cachar Dooars Terai Darjeeling Others Tamilnadu kerala karnataka North India South India State/District Different types tea Available in india Steamed Dried WHITE TEA Rolled/ Painfried/ Dried shaped Steamed g R E E N TEA Painfried/ I Oxidized Bruised by Dried (brief) Shaking OOLONG Steamed TEA Rolled/ Painfried/ Dried shaped Steamed b L A C K TEA Rolled/ Fermentation Dried Fixation Shaped PU‘ERH TEA All type of teas are made from the same tea plant, Camellia Sinensis (L) O. How the tea end up depends on how it processed after being picked Packaging of tea Tea bags Compressed tea Loose tea Bottled & Tisanes: the non-tea: Tea bags Compressed tea Loose tea Bottled & INDIA 2 nD LARGEST TEA PRODUCER– 2017 31% 5% CHINA TURKEY 3% 3% IRAN 28% JAPAN INDIA 9% 10% SHRI 5% 4% INDONASIA KENYA VIETNAM 2% ARGENTINA MARKET SHARE OF MAJOR 29% 27% 08% 29% Other players include: Ducans Industries, Goodricke Group Limited, Hasmukhrai And Company, Girnar Food And Beverages Private Limited, Sapat Packaging Industries Indian tea statistics Tae production in india Tae consumption in india 1304,48 1006,55 1358 1209 1040 985 1207 1358 945 965 1261 1200 988 926 1164 1126 936 903 1067 884 Quantity in Million Kgs Million in Quantity Quantity MillionKgs in Quantity 970 932 2012 2013 2014 2015 2016(P) 2017(E) 2012 2013 2014 2015 2016(P) 2017(E) Indian tea export Tae imports into india 235,66 229 240 22 21 228 219 217 21 20 20 208 216 207 20 19 19 18,54 204 19 Quantity in Million Kgs Million in Quantity Quantity MillionKgs in Quantity 192 18 2012 2013 2014 2015 2016(P) 2017(E) 2012 2013 2014 2015 2016(P) 2017(E) Impact of gst on Indian tea industry... Indian tea industry is growing at a faster pace and is the 2nd largest producer of tea in the world. The introduction of goods and services tax (GST) by the Indian government will drive the growth of Indian tea industry as it is kept under the lowest tax slab of 5.0%. Furthermore, the unprocess green tea leaves are exempted from the GST. On the flip side, a major disadvantage to tea industry is that it was exempted from paying any taxes on interested transfer but after the introduction of GST 1.0% tax is likely to be applicable on interstate transfer. Additionally, the 5.0% GST on tea will affect the selling of teas at auctions. Moreover, orthodox tea suffered a sharp downfall after GST. sources Tea Board India Indian Tea Association Tea Box India Brand Equity Foundation Tea.in Decimal view Tea industry total turnover is around 100000 carores. It provide employment to more than 1.1 million Indian workers and almost half the workforce constitutes of women . Tea production in India is not same round the year and production is more in North India than in south India. Some of the major issues faced by the industry which should be solved to make the country top producer in the world are the old age of tae bush- es, the high cost of production, lack quality monitoring mechanism and poor infrastructure. Packaged tae market in India is expected to grow at a CARG of more than 14.0% till 2021. 5A, B-wing, Trade Star Building,J.B.Nagar, Andheri-Kurla Road, Andheri (East) , Mumbai– 400 059,Maharashtra,India Ph: +9122300 15200 Email : [email protected] Web: www.decimalpointanalytics.com .
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