The South Indian Tea Scenario

T h e Q u a l i t y P e r s p e c t i v e

A Quote From – Henry Ford

Coming together is a beginning.Keeping together is progress.Working together is success

SOUTH INDIA - BRIEF HISTORY

The Tea Industry, after 1998, went through a long period of recession. At that point of time, a good percentage of South Indian CTC teas, particularly leaf grades was being bought by CIS, Poland and few others. Teas that were clean, black and grainy sold well. Other than ‘the make of the tea’, the liquor or its suitability was very much neglected.

From 1999, CIS reduced its intake from India. It was then that the realization to look into alternate markets both abroad and domestically was felt. To suit the Indian markets, the challenge was to obtain a premium type of leaf and to change the manufacture accordingly for South Indian teas.

A lot of efforts have thus gone into manufacture of the right type of teas, primarily aiming at the domestic markets in the last ten years. Today, South Indian CTC teas are well accepted throughout various states in India and we are happy to note that Gujarat & Maharashtra markets are also continuously supporting our teas. We have been able to achieve this as the South Indian Tea industry has realized that “Quality cannot be compromised”.

We Know :

Times have changed and quality is the need of the hour.

“Quality” is never an accident.

It is always the result of:High IntentionSincere effortsIntelligent direction &Skillful execution

Thus quality is an ongoing process and we need to keep bringing in changes to improve the product.

STEPS TAKEN IN THE FIELD TO OBTAIN QUALITY LEAF:

Given this backdrop, I would like to dwell into the various steps taken by the South Indian Tea fraternity to improve the quality of teas in South India.

Seminars & Field ProgramVarious seminars and field programs have been conducted to educate the small growers to pluck fine leaves. The Tea Board, UPASI & KVK have been playing an important role in this regard, which is an ongoing process.

INCENTIVE TO PLUCK FINE

As tea manufactured out of fine leaf realized premium prices, more and more growers are today encouraged to harvest a better standard of leaf.

Manufacturers of quality teas today reject substandard leaf.

In Nilgiris, Green Leaf is grouped broadly into A, B and C categories with “A” being the best. Since, there is a price difference between these categories of leaves, more and more growers have started taking measures to improve the leaf quality in order to obtain higher rates for their produce. Some factories in fact, pay an additional premium for the A+ Category of leaves.

Some of the estates as well as factories have taken managerial control of small tea plantations and holdings from small growers. All the agricultural practices are being carried out by the lessee and profits are shared between the two. This system guarantees a definite quantum of leaf with the desired quality.

All the tea leaf suppliers are to be registered with the Tea Board and they are directly accountable for the quality of leaves. The Tea Board itself has a group of personnel who monitor the quality both in the factory as well as the field.

In order to obtain high quality leaves, following practices are observed by the big as well as the small growers:Shortened pruning cycles.Improvement in plucking standards.Quality check of plucked leaf.

As far as possible, mechanization is being introduced at the field and factory level, mainly to improve the efficiency and also to cope up due to the acute shortage of manpower.

STEPS TAKEN AT THE FACTORY LEVEL TO IMPROVE QUALITY

An Ideal Manufacturing Process is of utmost importance in order to improve the quality of teas.

MANUFACTURING PROCESSQUALITY CHECKS

Leaf Quality Check is carried out at the factory on arrival of the leaf. A minimum of 70% fine leaf is the acceptable norm for normal manufacture and a minimum of 90% fine leaf is maintained for the “A” Grade Manufacture. Inferior or damaged leaves are rejected.

Leaf Quality Check

Transportation

Transportation of leaves to the factory.

Leaves should reach the factory without any damage.

Withers:

Both Physical and Chemical withers are taken. Evenness and uniformity in wither without damaging the leaf is maintained.

Over Loaded

L o a d e d C o r r e c t l y

CTC / ROLLING

CTC Machine is used to crush tear and curl the leaves.

Temperatures and moisture levels are constantly checked.

ROLLINGC T C M A C H I N E

FERMENTING

Fermenting drums were replaced with Googies and these are subsequently being replaced with Continuous Fermenting Machines (C.F.M), with auto moisture and temperature controllers.

Floor fermentation CFM fermentation Drum fermentation

D RY I N G

Old conventional driers have now been replaced with new Vibro Fluid Bed Driers.

Moisture levels and Temperatures are monitored carefully.

SORTING

Sorting: Most of the factories have gone in for automation. Use of Conveyors, storage bins for tea and blending machines are becoming very common.

QUALITY

Hygiene is given utmost importance.Factories and Plantations are now going in for certifications like ISO, Japanese Agricultural Standards, Rain Forest Alliance (RFA), Hazard Analysis and Critical Control Point (HACCP) etc.

QUALITY CONTROL

Installation of Electronic fibromatsMagnets and Moisture meters

are being given top priority.

Most quality-conscious Producers in the South, including Corporates, have upgraded their factories a good deal in recent years, despite the huge expenditure involved & are turning out a better product. (more attention to manufacture, apart from improving the standard of raw material).

PROGRESSIVE MEASURES

There has been more interaction between Producers, Brokers & Internal Buyers in recent years, so we have a better understanding of the requirements.

Packing standards have improved a great deal. Better & more attractive packaging materials are being used. Vacuum packing also has come into vogue. (This helps in preserving freshness & is tamper-proof as well).

QUALITY CONTROL

CTTA has a Quality Control Committee comprising of buyers, sellers & auctioneers. They follow a certain methodology for elimination of low quality teas. Such teas are not permitted to be printed in the auctions & necessary action is taken against such sellers.

QUALITYShould an auctioneer come across a tea, the quality of which is doubtful, it is immediately sent for a PFA analysis. Such teas are offered for sale only if cleared after analysis.

The Tea Board also monitors the Quality of Teas very closely.

PFA Standard (ISO 3720)

Parameters Specifications

1 Total Ash 4 – 8%

2Total ash soluble in boiling water

>45% of total ash

3Ash insoluble in dilute HCL on dry basis

<1% by wt.

4 Water extract > 32%

CONCLUSION

The general Quality of teas from South India has improved drastically in the past few years. Many of these teas are easily comparable with some of the better Cachar & Dooars Teas.

The Best Liquoring teas have good brightness and briskness and possess good thickness, making them suitable for your markets.

The Good and the Medium Category of teas has a fair body, briskness & possess some brightness. Such teas can be used with price advantage against some of the Cachars & even Dooars.

SPECIALITY TEAS

LONGDING GREEN TEA GOLDEN T IPS W I N T E R F R O S T S F T G F O P S I LV E R T I P S W H I T E T E A G R E E N T E A  

 CATEGORY 2012 (%) 2010 (%)Above Rs 100 10.01 3.0390 - 100 15.44 2.3380 - 90 26.51 3.0370 - 80 26.48 13.32Below 70 21.57 78.29

COONOOR – PRICE COMPARISON

Figures show how much the general quality of teas have improved in the last two Years. Plain teas which constituted 78% in 2010 has come down drastically to only 21%.

COCHIN – PRICE COMPARISON

 CATEGORY 2012 (%) 2010 (%)

Above Rs 100 34.39  0.01

90 – 100 32.42  20.97

80 – 90 20.29  23.45

70 – 80 11.52  17.52

Below 70 1.38  38.05

As is Evident from the above that S.India has moved up by 199% whereas N.India

has moved up by Rs 214%

2012(Upto Sept) 2005

QTY AVG QTY AVG DIFF

SOUTH INDIA 101.3 86.63 121.76 43.44 43.19

NORTH INDIA 244.3 136.13 374.8 63.60 72.53

CATEGORYSOUTH INDIA CACHAR DOOARS

AVG. PRICE % PRICE IN RS PRICE IN RS

       

BEST 105 - 130  17.20 170 - 200  180 - 210 

GOOD  92 - 100 23.18  140 – 170 150 – 180

MEDIUM  80 - 90 24.11  120 – 140 120 – 150

Comparison of the Current Price Ranges(South India with Cachar & Dooars)

2012

"No one can whistle a symphony. It takes a whole orchestra to play it."

As we all know

WE WOULD LIKE TO THANK THE AHMEDABAD TEA MERCHANTS ASSOCIATION FOR INVITING US TO PORTRAY OUR TEAS TO SUCH A WIDE CONTINUUM OF BUYERS. WE ALSO WOULD LIKE TO THANK ALL THE BUYERS AND THEIR RESPECTIVE ASSOCIATION

WE LOOK FORWARD TO YOUR INCREASED PARTICIPATION AT THE SOUTH INDIA AUCTIONS.

JAI HIND