Lok Sabha Question No. 1972 (UNSTARRED), answered on 2016-11-28
Subject: Tea Quality
Ministry: COMMERCE AND INDUSTRY
Asked by: M. UDHAYAKUMAR, GEETHA KOTHAPALLI

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 1972 TO BE ANSWERED ON 28 th  NOVEMBER, 2016

## TEA QUALITY

## 1972.  ADV. M. UDHAYAKUMAR: SHRIMATI KOTHAPALLI GEETHA:

Will the Minister of COMMERCE & INDUSTRY ( वाͨणÏय एवं उɮयोग मंğी ) be pleased to state:

- (a) whether the Government is aware that the 20 per cent export clause in 12th Plan scheme for  upgrading  tea  quality  is  proving  to  be  dampener  for  the  industry  as  the  clause  is restrictive and if so, the details thereof;
- (b) whether the Tea Board has agreed that the 20 per cent export obligation would make it difficult for tea companies to avail the scheme and if so, the details thereof;
- (c) whether  the  Quality  Upgrade  and  Product  Diversification  (QUPD)  Scheme  has  been successful  and  if  so,  the  details  thereof  and  if  not,  the  reasons  therefor  along  with  the details of the gardens which have availed of the said scheme;
- (d) whether  the  25  per  cent  subsidy  available  through  the  scheme  is  mainly  for  upgrading machinery  for  producing  orthodox  tea  which  enjoy  higher  prices  in  the  export  market when compared with CTC tea and if so, the details thereof;
- (e) whether  it  is  also  true  that  against  an  average  cost  of  production  of  about  Rs.  180  for producing a kilogram of CTC tea, the cost of orthodox tea is about Rs. 210 a Kg and if so, the details thereof;
- (f) whether a similar scheme during the 11th Plan was very successful as it did not have the export clause and if so, the details thereof; and
- (g) whether Sri Lanka and Indonesia are proving to be tough competitors in this segment and if so, the details thereof and the manner in which the Government will face this situation?

## ANSWER

okf.kT; ,oa m|ksx jkT; ea=h ¼Jherh fueZyk lhrkje.k½ ¼Lora= izHkkj½ THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- (a) & (b): Representations has been received regarding the conditionality of 20 per cent export obligation in Quality Upgradation and Product Diversification  (QUPD) component under the 12 th plan scheme of the Tea Board. However, the objective of the  Scheme is to  enhance the  quality  of  made  tea  by  way  of  giving  incentives  for modernization  of  tea  manufacturing  units,  warehouses,  units  dealing  with  value addition of tea, Organic tea production and production of Orthodox/Green tea with the ultimate goal of enhancement of export of Indian tea. Accordingly, the clause of 20 per cent export obligation has been kept in the operational modalities.
- (c): The  scheme  with  the  conditionality  of  20  per  cent  export  obligation  is  under implementation  since  10.12.2014.  The  details  of  beneficiaries  under  QUPD  component  is placed at Annexure-1.  Tea Board has been directed for conducting outcome review of the Scheme, including the QUPD Component. (d): As per scheme guidelines, 25 per cent subsidy is provided for replacement of old and worn-out tea machineries. However, 40 per cent subsidy is provided for procurement and installation of machinery for manufacturing orthodox tea in 100 per cent CTC factories and setting up of new factories for production of green tea, orthodox tea and specialty teas as product diversification. (e): The  cost  of  production  is  dependent  on  seasonal  variations  and  from  region  to region. Orthodox tea is observed to have about 12 to 20 per cent more production cost than CTC tea. (f): Since  there  was  no  conditionality  regarding  export  obligation,  more  number  of estates could be covered during 11 th Plan. However, since the ultimate aim of the scheme is for promotion of export of Indian tea, the export obligation clause has been introduced in 12 th Plan. Moreover, the Scheme is being implemented with effect from 10.12.2014 rather than from the beginning of 12 th Plan.   A cumulative financial assistance of Rs 6.56 crore has been given to 93 estates so far. (g): Sri  Lanka  and  Indonesia,  being  the  major  orthodox  tea  producers  are  the  closest competitors to India in the orthodox tea segment. For giving boost to tea export, including orthodox tea, Tea Board is implementing a dedicated and focused promotional programme called 'Project 5-5-5' since 2012-13 for extensive promotion of India Tea Logo, engagement with the local trading community, consumer-oriented promotion, utilisation of social media and focus on export of value-added teas in five target markets, namely Russia, Iran, USA, Kazakhstan and Egypt.
- ******

## Annexure-1

| List of Beneficiary Tea Estates under Component of QUPD since 10.12.2014 i.e. the date of th   | List of Beneficiary Tea Estates under Component of QUPD since 10.12.2014 i.e. the date of th   | List of Beneficiary Tea Estates under Component of QUPD since 10.12.2014 i.e. the date of th   | List of Beneficiary Tea Estates under Component of QUPD since 10.12.2014 i.e. the date of th   | List of Beneficiary Tea Estates under Component of QUPD since 10.12.2014 i.e. the date of th   | List of Beneficiary Tea Estates under Component of QUPD since 10.12.2014 i.e. the date of th   |
|------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|
| SL. No.                                                                                        | approval A/C year                                                                              | of the 12 State                                                                                | of Tea Board 'Tea Name of Garden                                                               | Development and Promotion Name of Company                                                      | Scheme' Amount (Rs)                                                                            |
| 1                                                                                              | 2014-15                                                                                        | Assam                                                                                          | Tengpani                                                                                       | Gillanders Arbuthnot &Co.Ltd.                                                                  | 1285650.00                                                                                     |
| 2                                                                                              | 2014-15                                                                                        | Assam                                                                                          | Madhuting                                                                                      | Madhuting Tea Pvt.Ltd.                                                                         | 1514430.00                                                                                     |
| 3                                                                                              | 2014-15                                                                                        | Assam                                                                                          | Langharjan                                                                                     | The Jorehaut Group Limited                                                                     | 1354060.00                                                                                     |
| 4                                                                                              | 2014-15                                                                                        | Assam                                                                                          | Marangi                                                                                        | MarangiPvt.Ltd.                                                                                | 644770.00                                                                                      |
| 5                                                                                              | 2014-15                                                                                        | Assam                                                                                          | Bogapani                                                                                       | Mcleod Russel India Ltd.                                                                       | 1325400.00                                                                                     |
| 6                                                                                              | 2014-15                                                                                        | Assam                                                                                          | Numaligarh                                                                                     | Jorehaut Group Ltd.                                                                            | 175000.00                                                                                      |
| 7                                                                                              | 2014-15                                                                                        | Assam                                                                                          | Prime Rose                                                                                     | Primerose Green Tea Industry                                                                   | 1083470.00                                                                                     |
| 8                                                                                              | 2014-15                                                                                        | Assam                                                                                          | Dhelakhat                                                                                      | Dhelakhat Tea Co. Ltd.                                                                         | 858434.00                                                                                      |
| 9                                                                                              | 2014-15                                                                                        | Assam                                                                                          | Dhelakhat                                                                                      | Dhelakhat Tea Co. Ltd.                                                                         | 538556.00                                                                                      |
| 10                                                                                             | 2014-15                                                                                        | Assam                                                                                          | Bokel                                                                                          | M. K.JokaiAgri Plantations Pvt. Ltd                                                            | 19,10,848.00                                                                                   |
| 11                                                                                             | 2014-15                                                                                        | Assam                                                                                          | Jodhpur                                                                                        | Jodhpur Tea & Industries (P) Ltd                                                               | 8,54,770.00                                                                                    |
| 12                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Chandighat                                                                                     | Rungamattee Tea & Industries Ltd.                                                              | 15,12,340.00                                                                                   |
| 13                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Panitola                                                                                       | M.K. Jokai Agri Plantations Pvt.Ltd                                                            | 19,14,639.00                                                                                   |
| 14                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Anandabari                                                                                     | Anandabari Tea Co. Pvt.Ltd.                                                                    | 7,12,020.00                                                                                    |
| 15                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Bokel                                                                                          | M.K. Jokai Agri Plantations Pvt.Ltd                                                            | 12,920.00                                                                                      |
| 16                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Singlijan                                                                                      | M.K.Shah Exports Ltd                                                                           | 33,480.00                                                                                      |
| 17                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Muttuck                                                                                        | M.K.JokaiAgri Plantation (P) Ltd, A/C Muttuck Tea Estate                                       | 12,920.00                                                                                      |
| 18                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Koilamari                                                                                      | M.K. Shah Exports Ltd                                                                          | 42,430.00                                                                                      |
| 19                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Nowal Tea Warehouse                                                                            | Nowal Tea Warehousing Corporation                                                              | 29,780.00                                                                                      |
| 20                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Maud                                                                                           | Maud Tea & Seed Company Ltd                                                                    | 41,370.00                                                                                      |
| 21                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Jamguri                                                                                        | Bhumya Tea Co. Pvt. Ltd.                                                                       | 57,950.00                                                                                      |
| 22                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Hattialli                                                                                      | M.K. Jokai Agri Plantations Pvt.Ltd                                                            | 12,920.00                                                                                      |
| 23                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Singlijan                                                                                      | M.K.Shah Exports Ltd                                                                           | 42,430.00                                                                                      |
| 24                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Jamguri                                                                                        | Bhumya Tea Co. Pvt. Ltd.                                                                       | 37,380.00                                                                                      |
| 25                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Tongonagaon                                                                                    | Tonganagaon Tea Co. Pvt Ltd                                                                    | 33890.00                                                                                       |
| 26                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Gingia                                                                                         | M.K.Shah Exports Ltd                                                                           | 42,434.00                                                                                      |
| 27                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Shyamguri                                                                                      | Luxmi Tea Company Limited                                                                      | 26,230.00                                                                                      |
| 28                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Narayanpur                                                                                     | Tea Board Revolving Corpus Fund                                                                | 37,470.00                                                                                      |
| 29                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Tippuk                                                                                         | James Warren Tea Limited                                                                       | 18,48,780.00                                                                                   |
| 30                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Zaloni                                                                                         | James Warren Tea Limited                                                                       | 15,30,000.00                                                                                   |
| 31                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Hatijan                                                                                        | Dhunseri Tea & Industries Limited                                                              | 38,090.00                                                                                      |
| 32                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Seajuli                                                                                        | M.K.Shah Exports Ltd                                                                           | 42,435.00                                                                                      |
| 33                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Jamguri                                                                                        | Bhumya Tea Co. Pvt. Ltd.                                                                       | 26,360.00                                                                                      |
| 34                                                                                             | 2015-16                                                                                        | Assam                                                                                          | Nalani                                                                                         | M.K.JokaiAgri Plantations (P) Ltd.                                                             | 12,920.00                                                                                      |

|   35 | 2015-16   | Assam       | Daisajan        | M.K.JokaiAgri Plantations (P) Ltd.          | 12,920.00    |
|------|-----------|-------------|-----------------|---------------------------------------------|--------------|
|   36 | 2015-16   | Assam       | Panitola        | M.K.JokaiAgri Plantations (P) Ltd.          | 12,920.00    |
|   37 | 2015-16   | Assam       | Monmuhinipur    | Luxmi Tea Company Limited                   | 57,810.00    |
|   38 | 2015-16   | Assam       | West Jalinga    | Tea Board Revolving Corpus Fund             | 8,57,975.00  |
|   39 | 2015-16   | Assam       | SreeSibbari     | BansidharBadridass Modi(P)Ltd.              | 13,49,490.00 |
|   40 | 2015-16   | Assam       | Oating          | Madhupur Tea Estate Pvt.Ltd.                | 151750.00    |
|   41 | 2015-16   | Assam       | Sundarpur       | Baruanagar Tea Estate Pvt.Ltd.              | 1215196.00   |
|   42 | 2015-16   | Assam       | Arin            | Arin Tea Pvt.Ltd.                           | 1802920.00   |
|   43 | 2015-16   | Assam       | Hoograjuli      | Hoograjuli (Assam) Tea Company Ltd.         | 2,61,387.00  |
|   44 | 2015-16   | Assam       | Bazaloni        | Bazaloni Group Ltd                          | 9,37,070.00  |
|   45 | 2015-16   | Assam       | Silcoorie       | The North-Western Cachar Tea Company Ltd    | 22,750.00    |
|   46 | 2015-16   | Assam       | Dhunseri        | Dhunseri Tea & Industries Limited           | 36,030.00    |
|   47 | 2015-16   | Assam       | Bettybari       | Dhunseri Tea & Industries Limited           | 33,003.00    |
|   48 | 2015-16   | Assam       | Santi           | Dhunseri Tea & Industries Limited           | 1,19,012.00  |
|   49 | 2015-16   | Assam       | Bahipookri      | Dhunseri Tea & Industries Limited           | 33,003.00    |
|   50 | 2015-16   | Assam       | Orang           | Dhunseri Tea & Industries Limited           | 33,003.00    |
|   51 | 2015-16   | Assam       | Doomni          | Sublime Agro Limited                        | 13,680.00    |
|   52 | 2015-16   | Assam       | Madhupur        | Madhupur Tea Estate Pvt.Ltd.                | 6,11,414.00  |
|   53 | 2015-16   | Assam       | Budlabeta       | Apeejay Tea Limited                         | 14,37,500.00 |
|   54 | 2015-16   | Assam       | Tongonagaon     | Tonganagaon Tea Co. Pvt. Ltd.               | 33,890.00    |
|   55 | 2015-16   | Assam       | Tarajan         | Contemporary Industries Ltd.                | 6,11,080.00  |
|   56 | 2016-17   | Assam       | Methoni         | The Methoni Tea Co.Ltd.                     | 11,48,804.00 |
|   57 | 2016-17   | Assam       | Singlijan       | M.K.Shah Exports Ltd.                       | 19,53,051.00 |
|   58 | 2016-17   | Assam       | Romai           | Rossell Tea (Division of Rssel India Ltd.   | 6,47,125.00  |
|   59 | 2016-17   | Assam       | Numalighur T.E. | The Jorehaut Group Limited                  | 24,56,577.00 |
|   60 | 2016-17   | Assam       | Menoka T.E.     | M/S Menoka Tea Estate Pvt. Ltd.             | 23,19,636.00 |
|   61 | 2016-17   | Assam       | Chandighat T.E. | Rungamattee Tea Industries Limited          | 15,21,810.00 |
|   62 | 2016-17   | Assam       | Hattiali T.E    | M.K. Jokai Agri Plantations Pvt. Ltd.       | 21,31,737.00 |
|   63 | 2016-17   | Assam       | Dikom T.E.      | Rossell Tea (Division of Rossell India Ltd. | 8,07,610.00  |
|   64 | 2016-17   | Assam       | Muttuckt.E.     | M.K. Jokai Agri Plantations Pvt. Ltd.       | 19,24,485.00 |
|   65 | 2014-15   | West Bengal | Soongachi       | Soongachi Tea Industries Pvt. Ltd.          | 9,70,500     |
|   66 | 2015-16   | West Bengal | Oodlabari       | The Oodlabari Co. Ltd.                      | 11,25,000    |
|   67 | 2015-16   | West Bengal | Cooch Bihar     | Coochbehar Tea Company Limited              | 17,17,217    |
|   68 | 2015-16   | West Bengal | Balaji TF       | Balaji Agro International                   | 7989         |

| 69   | 2015-16   | West Bengal   | Tukvar                  | BD Tea Estates Pvt. Ltd.         | 142335         |
|------|-----------|---------------|-------------------------|----------------------------------|----------------|
| 70   | 2015-16   | West Bengal   | Darjeeling Organic      | Darjeeling Organic T E Pvt. Ltd. | 93145          |
| 71   | 2015-16   | Delhi         | JK T.F.                 | JK Tea Estate                    | 789000         |
| 72   | 2015-16   | West Bengal   | Atal                    | Atal Tea Estate                  | 1048000        |
| 73   | 2015-16   | West Bengal   | Azamabad                | Azmabad Tea Co. Ltd              | 928186         |
| 74   | 2015-16   | West Bengal   | Bio Tea Estate Ltd.     | Bio Tea Estate Ltd.              | 50896          |
| 75   | 2015-16   | West Bengal   | Bush T.F.               | Bush Tea Co. Pvt. Ltd.           | 77046          |
| 76   | 2015-16   | West Bengal   | Essels Fund Mgt.        | Essels Fund Mgt. (P) Ltd.        | 1098200        |
| 77   | 2015-16   | West Bengal   | FulbariPatan            | FulbariPatan Tea Estate          | 673933         |
| 78   | 2015-16   | West Bengal   | I D A Organic           | I D A Organic Pvt. Ltd.          | 28691          |
| 79   | 2015-16   | West Bengal   | Jatinga Tea Ltd. T.F.   | Jatinga Tea Ltd.                 | 1511676        |
| 80   | 2015-16   | West Bengal   | Mansarovar T.F.         | Mansarovar Tea Pvt. Ltd.         | 2500000        |
| 81   | 2015-16   | West Bengal   | Premier T.F.            | Premier's Tea Ltd.               | 48651          |
| 82   | 2015-16   | West Bengal   | Sarat                   | Sarat Tea Company                | 1172000        |
| 83   | 2015-16   | West Bengal   | Simulbari               | Simulbari Tea Co. Pvt Ltd        | 146000         |
| 84   | 2015-16   | West Bengal   | Dima                    | Surajgobind Tea Co. Ltd          | 430196         |
| 85   | 2015-16   | West Bengal   | Manabari                | Todi Tea Co. Ltd.                | 411952         |
| 86   | 2015-16   | West Bengal   | Sundaram T.F.           | Sundram Agro Products Pvt. Ltd.  | 1772586        |
| 87   | 2016-17   | West Bengal   | Hrithik Investment T.F. | Hrithik Investment Pvt Ltd       | 28077          |
| 88   | 2016-17   | West Bengal   | MadhuJyanti T.F.        | MadhuJyanti International Ltd    | 53421          |
| 89   | 2014-15   | Kerala        | Achoor                  | H.M.L                            | 35,604.00      |
| 90   | 2014-15   | Kerala        | Chundauvarrai           | KDHP Ltd                         | 44,231.00      |
| 91   | 2015-16   | Tamil Nadu    | Havukal                 | Havukal T.E.                     | 25,00,000.00   |
| 92   | 2015-16   | Tamil Nadu    | Arivikad                | KDHP                             | 1,00,000.00    |
| 93   | 2015-16   | Kerala        | Chundavurrai            | KDHP                             | 18,68,968.00   |
|      |           |               |                         | Total                            | 6,55,74,714.00 |