Project report for TEA FARMING

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Tea is the country’s favourite addiction. Tea or as we lovingly call it, ‘chai’ is something whose aroma exists in almost every household in India. If my parents are anything to go by, then I can safely say that it is the beverage of the Indians. Tea is the dried leaf of a bush. It contains theine and when added to boiling water along with sugar and milk, it gives a very cheap and stimulating drink. Thus it is the most important beverage crop of India. Most hill stations in India have vast tea estates and plantations that not only add a lot of beauty to the place but are also known for their unique flavours. Your vacation will only get better if you visit the tea plantations in India, especially if you are a chai lover. India is one of the largest tea producers in the world, although over 70 per cent of its tea is consumed within India itself. A number of renowned teas, such as Assam and Darjeeling, also grow exclusively in India. The Indian tea industry has grown to own many global tea brands and has evolved into one of the most technologically equipped tea industries in the world. Tea production, certification, exportation, and all other facets of the tea trade in India are controlled by the Tea Board of India. Assam is the single largest tea-growing region in the world. The low altitude, rich loamy soil conditions, ample rainfall and a unique climate help it to produce some of the finest orthodox leaf teas.

Market potential & Strategy

The global tea market size was valued at INR 40, 88,100.44 Lakhs in 2020, and is projected to reach INR 51, 11,608.25 Lakhs by 2027, registering a CAGR of 6.6% from 2020 to 2027. India is the second largest producer of tea, globally, after China. The country is also a leading consumer of the beverage and accounted for nearly a fifth of the global consumption. However, the annual growth of the exports from the country was only moderate due to the high domestic consumption. Almost 80% of the total output in India is consumed domestically. The per capita consumption of the beverage in the country has witnessed a significant increase in the last decade. The growing popularity of cafes or lounges primarily serving variations of the beverage is expected to drive the industry in the coming years. The convenience of its distribution channels like local Provisional stores and supermarkets, along with the growing online channel, will also aid the industry growth. The consumers are increasingly choosing packaged over unpackaged varieties, due to the perceived superior quality of packed tea.  The middle class is also willing to experiment more with tea blends, thus, providing an impetus for the growth of segments like fruit, herbal, and other speciality varieties. Green tea is expected to witness a robust growth in the coming years as its consumption is witnessing an increase as people become more aware of its health benefits.

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